UR Rental Housing: No Key Money, No Agency Fee, No Guarantor
If you have been refused by a guarantor company, or the ¥500,000 move-in bill for a private apartment is out of reach, there is a route most foreign residents never hear about: UR rental housing. It removes four of the costs that make renting in Japan expensive, and it has no nationality requirement.
What is UR housing? Public-interest rental run by a national agency
UR is rental housing operated by the Urban Renaissance Agency (都市再生機構), an incorporated administrative agency. It manages roughly 700,000 units nationwide, concentrated in the Tokyo, Osaka and Nagoya metropolitan areas.
Because it is not a private landlord chasing yield, the customary fees that accumulated in Japan's private rental market simply do not apply.
What does UR remove? Four costs and the guarantor
| Cost | Private rental | UR |
|---|---|---|
| Key money (reikin) | 0–1 month | None |
| Agency fee | 1 month + tax | None |
| Renewal fee | 1 month every 2 years | None |
| Guarantor company | 50–100% of one month | Not required |
| Deposit | 1 month | 2 months (refundable) |
On a ¥100,000 apartment, a private rental costs roughly ¥450,000–500,000 to move into. The equivalent UR unit costs about ¥300,000 — and ¥200,000 of that is the refundable deposit. The renewal saving then repeats every two years for as long as you stay.
Who qualifies? Income of 4x rent, or savings instead
The standard requirement is monthly income of at least four times the rent. For ¥100,000 rent that is ¥400,000 a month. The threshold eases for lower rents — below a certain rent level the multiple drops to three.
What makes UR genuinely different is the savings-based alternative: instead of proving income, you can show savings of 33 times the monthly rent. For ¥100,000 rent that is about ¥3.3 million in an account.
- Students, freelancers and the newly arrived can qualify on savings alone
- Advance payment of one year's rent is another accepted route at many properties
- A relative's income can be combined in some cases
There is no nationality requirement. You need a residence card and, in practice, enough Japanese or a companion to complete the paperwork — see can foreigners rent in Japan for the wider picture.
What are the apartments actually like? Plain, solid, and often further out
Most UR stock is reinforced concrete built between the 1970s and 1990s, plain inside but structurally sound and notably quiet. Rooms are typically larger than equivalent private rentals at the same rent — family-sized 2DK and 3DK units are common where the private market would offer a 1LDK.
What you trade away:
- Location — often 10–20 minutes by bus from the station, or on outer lines
- Interiors — plain and unrenovated; some properties offer renovated units at higher rent
- Availability — popular properties run a lottery, and vacancies appear unpredictably
- Support — no agent guiding you; you search, apply and handle the paperwork yourself
How do you apply? Search, reserve, then visit a UR office
- Search the official UR website for vacancies by area and rent. Listings update frequently and go fast
- Reserve a viewing — some units can be held online for a short window
- Visit a UR administration office with your residence card, proof of income or savings, and your personal seal
- Apply — a check of the income or savings standard, with no guarantor company involved
- Sign and pay the deposit and first month
Turnaround is usually faster than a private rental because the guarantor screening step is absent.
Who is UR right for? And who should skip it?
| UR suits you if | Skip UR if |
|---|---|
| You have been refused by guarantor companies | You need a central location above all |
| You have savings but limited Japanese income | You want a new or renovated interior |
| You want space more than a fashionable address | You need to move within two weeks |
| You plan to stay several years (renewal savings compound) | You want English-language support throughout |
If UR does not fit, the private market still has a large lever available: the agency fee, which is set by the agency and not the landlord. Removing it saves one month plus tax without changing the apartment (the full ranked list of savings).
Frequently asked questions
What is UR rental housing?
UR is public-interest rental housing run by the Urban Renaissance Agency, an incorporated administrative agency. It charges no key money, no agency fee and no renewal fee, and it does not require a guarantor or a guarantor company. Move-in costs are typically the deposit plus the first month of rent.
Can foreigners rent UR housing?
Yes. There is no nationality requirement. You need a residence card and to meet the income standard. Because there is no guarantor company screening, UR is often easier to obtain than private housing for people who have been refused elsewhere.
What income do you need for UR housing?
Generally monthly income of at least four times the rent, or 33 times the rent in savings as an alternative to the income test. For rent of 100,000 yen that means about 400,000 yen a month, or roughly 3.3 million yen in savings.
What is the catch with UR housing?
The buildings are usually older and often further from central stations, the rooms are plain and unrenovated, and popular properties require entering a lottery. There is also no agent guiding you, so you research and apply yourself.
Summary
- No key money, no agency fee, no renewal fee, no guarantor required
- Move-in cost is roughly deposit plus first month — often half a private rental
- Income of 4x rent, or savings of 33x rent as an alternative
- Open to foreign residents with a residence card; no nationality requirement
- Trade-offs: older buildings, plainer rooms, less central, lottery for popular units
Comparing UR against a private listing?
Send us the private listing on LINE and we will quote it in English, so you can compare totals.
Chat with us on LINE* The agency fee is as low as ¥0. Listings for which the landlord pays no advertising fee (AD) may not qualify. We always confirm the exact amount in a written estimate before you sign.