What is “UR” rental housing in Japan? What are the pros and cons?
Main Points:
・What is UR rental housing?
・Advantages and disadvantages of UR rental housing
・Requirements when applying as a foreign national
・Necessary application documents
What is UR rental housing?
UR rental housing is rented accommodation made available to the public and managed by the Urban Renaissance (UR) Agency. There are currently about 740,000 units nationwide. Many of these units are public housing complexes called “Danchi,” which are generally older buildings without elevators. However, many Danchi apartment complexes have been actively renovated, so you shouldn’t assume that they are out-of-date or old-fashioned. Furthermore, UR rental housing also includes new complexes with modern facilities.
The following is a foreign language PDF from the UR Urban Renaissance Agency that includes the necessary documents for application.
What are the advantages of UR rental housing?
No Key Money Required
In Japan, there is a system called “key money” that you pay to the landlord when you sign a lease contract for a house or apartment. Usually, you need to pay 2-4 months’ rent up-front, which is quite expensive as an initial investment. UR Housing does not require any key money.
No Agency Fee
A brokerage fee is a fee paid to a real estate company (brokerage company) that acts as an intermediary between a seller and a buyer to coordinate opinions and handle contractual affairs. UR rental housing does not require this fee.
No Renewal Fee
In Japan, if you live in rented accommodation for a long time, you are required to pay a “renewal fee”. For example, if your lease is renewed every 2 years, you will have to pay 1 or 2 months’ rent extra every time you renew. However, UR housing does not require a renewal fee regardless of the length of your stay.
No Guarantor Required
UR rental housing does not require a guarantor, as you only need to submit a copy of your residence certificate, proof of income and other necessary documents when you apply.
What are the disadvantages of UR rental housing?
The rent may be higher than the local market price
In general, UR rent can be approximately 20% higher than the standard market rate. The reason for this is the spaciousness of the rooms; a 2LDK UR rental apartment is about the same size as a standard 3LDK rental apartment. For example, if the market price for a 2LDK apartment in a certain area is 80,000 yen, the rent for a UR rental apartment can be as high as 100,000 yen because the 2LDK apartment is as large as a 3LDK apartment. (A 3LDK has one extra room compared to a 2LDK.)
In summary, you should not limit yourself to only investigating UR apartments, but also compare them with general apartments and choose the best one for you.
Competition is high and it’s first come, first served
UR rental housing is very popular because of its reliability and the size of the rooms, so there are usually not many available for rent. It is a good idea to consult with your local UR rental store in advance.
Many old-fashioned apartment complexes in bad locations
There are many old-style Danchi apartment complexes. The low price of these units is appealing, but we recommend that you carefully check the interior of the rooms and the surrounding environment before signing a contract. In particular, where applicable, check the elevators, distance from the station, auto locks and so on before proceeding with the procedure for renting.
Strict screening standards
In general, when renting an apartment you need to have a monthly income of 3 times the monthly rent, but for UR rentals you need to have a monthly income of 4 times the rent. UR rental housing is proactively accepting working foreign residents, so you may be able to hope for some relaxation of the monthly income standard. However, it is important to understand that screening standards are still strict.
Requirements when applying as a foreign national
Eligibility requirements for foreign nationals
Those who fall into one of the following categories are eligible to apply:
1,Those whose status of residence is permanent resident, diplomatic, or official.
2,Special Permanent Residents
3,Medium- to long-term residents
<Source> UR rental housing official website (Japanese)
Things to know if you are thinking of living in UR rental housing
”Danchi” residents have close relationships with their neighbors
Compared to newer apartment buildings, “Danchi” apartment residents have historically often had closer relationships with their neighbors. This can be an advantage as you can make friends and acquaintances in the neighborhood, but there are also situations where it is important to follow the rules and expectations of daily life in this setting.
For example.
・Don’t have parties with a lot of friends in the middle of the night.
・Dispose of garbage according to the rules.
・Use all common spaces hygienically and tidily.
,,,and so on.
Compared to newer apartments where soundproofing and garbage storage facilities are fully equipped, rules such as those mentioned above are often more important in older apartment complexes.
You have many options to choose from
There are various advantages and disadvantages to UR rental housing, as well as various differences within different types of UR rental housing. We at JAPANBOX hope that this article expands your options for finding a place to live in Japan, and that we help you find your perfect home!
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