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Rent subsidy in Japan

Japanese rental fee subsidies

Sadly, the Coronavirus has taken a toll on all across the world in a number of aspects. Japan unfortunately is not an exception. In the previous couple of months, the Japanese government has introduced a number of support packages to battle the negative consequences of the pandemic. 

Let us take a closer look at the rent subsidy.

Let’s assume you are renting a small apartment in Tokyo alone, without any other family members (1-person per household). Unfortunately due to the pandemic, you have lost your job or your salary had decreased dramatically.

I will give a couple of examples:

  • You work as an instructor at your local gym, but it was closed to battle the widespread of the virus.
  • You work as an interpreter, but all the major conferences were postponed or canceled.
  • Or perhaps you work at a hotel, but it had to suspend its business activities.

In situations like these, it’s not easy to pay your rent on time. But there’s an option — you may apply for the Rent Subsidy

The government will pay a part of your rental fee on your behalf for a couple of months, so that you can stay in your current apartment, rather than having to move out.

Who can apply for the rent subsidy?

If the amount of salary and asset is less than a certain amount, you may be able to apply for this subsidy.

Anyone, whose salary and assets are lower than a certain amount, specified in the law. If your application for this subsidy is accepted, the Japanese Government will pay your rental fee directly to your landlord for 3 months.

In the event that you will be trying to look for a job but will fail to find one, this period can be extended up to 9 months.

  1. If you have lost your job within two years or
  2. If the amount of your salary had decreased

you are eligible to apply for this subsidy.

(There are several requirements as mentioned below)

Even if you are not a salaried worker nor part-time worker, but you are a freelancer, you may be able to receive this subsidy.

In order to receive this subsidy, there are several requirements.

If the amount of monthly gross salary (額面) is ¥138,000 or less, you can fulfill one of requirements.

(This amount includes Pension, unemployment allowance)

This gross salary is salary before deduction of social insurance.

If the amount of monthly gross salary (額面) is ¥148,000 and after deduction of Pension, unemployment allowance is 138,000 yen, you can NOT fulfill this requirement.

And if you have enough asset, you cannot use this subsidy.

Specifically, if the amount of your deposit is more than ¥504,000 (in the case of one person household), you cannot use this subsidy.

(Even if you have a real estate or stocks, such asset is not included in ¥504,000.)

So if you own a large house, but renting an apartment and have cash of only ¥100,000, you can satisfy this requirement.

Coronavirus Cooperation Money

How much rent subsidy can you receive from the Japanese government ?

In the case of One person household in Tokyo, you can receive up to ¥53,700 of rent subsidy per month.

If rental fee of your apartment is ¥73,700, you need to pay ¥20,000 by yourself.

This rental fee does not include Management fee (管理費) etc.

If you are paying ¥53,700 to the landlord and it is comprised of a rental fee of 43,700 yen and Management fee of 10,000 yen, you can receive only 43,700 yen from government of Japan.

Necessary documents to apply for this Subsidy

There are several necessary documents though, such as:

  • your personal ID;
  • your bank book;
  • lease contract;
  • salary slip etc.
Those documents are mandatory. By providing the salary slip, you can prove that amount of your salary is below ¥138,000. By providing a bank book, you can prove amount of your deposit is ¥504,000. 

Providing an employment contract will prove your current employment status with the company, that hired you. However, if you are running a business yourself, you can even take a picture of your shop to confirm that it had to be closed, due to the current situation.

Where can you apply for this subsidy ?

You can visit your local ward office and if your application is granted, your landlord will receive it within 2 weeks.

If you are operating real estate renting out business, you can introduce this subsidy to your renters

This real estate should be a residential building.

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