This guide explains what home inspections (building condition surveys) are and how to choose rental properties with housing performance evaluation certificates. Learn how to objectively understand a building's safety and condition to prevent troubles after moving in.
Reviewed by: Nobuyuki MoriPresident, M-Assets Co., Ltd. / Licensed Real Estate Transaction Specialist (Miyagi #018212)
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While inspections have become widespread in property sales, they are not mandatory for rental properties and remain uncommon. However, choosing an inspected rental property allows you to identify potential risks of equipment failures, water leaks, and condensation issues before moving in.
A housing performance evaluation certificate is a document issued by a third-party organization certified by the Ministry of Land, Infrastructure, Transport and Tourism (MLIT), evaluating the building according to the Housing Performance Labeling System. It assesses performance in the following 10 categories:
Properties with a housing performance evaluation certificate have had their quality standards verified by an independent third party, providing peace of mind before moving in. While new construction requires evaluations at both the design and construction stages, existing housing evaluations can also be issued for pre-owned properties.
Home inspections and performance evaluations are particularly beneficial in the following rental property scenarios:
Older Buildings
Properties built before 1981 under the old seismic standards, or apartments and condominiums over 30 years old, may raise concerns about structural safety. If inspected, you can make an informed moving-in decision based on objective knowledge of the building's condition.
Single-Family Home Rentals
Single-family home rentals often have less rigorous management than apartments and condominiums, leaving them vulnerable to water leaks, termites, and foundation cracks. It is worth consulting with the landlord about conducting an inspection before moving in.
When Planning a Long-Term Tenancy
If you plan to stay for 5 years or longer, documenting the building's condition at move-in helps prevent disputes when moving out (providing evidence of whether deterioration is age-related or caused by occupants).
Even if a property hasn't been professionally inspected, you can perform simple checks during your viewing.
Structural and Exterior Checks
Interior Condition Checks
Equipment Operation Checks
If you notice any concerns during these checks, you can request repairs from the management company or landlord before moving in, or negotiate moving in on the condition that repairs are completed.
If a tenant requests a home inspection for a rental property, the cost typically falls on the tenant. Costs vary depending on property size, generally ranging from ¥30,000 to ¥50,000 for an apartment unit, and ¥50,000 to ¥100,000 for a single-family home.
Some landlords or management companies may cover inspection costs to encourage occupancy, and some properties are marketed as pre-inspected.
Negotiation Tips
If your prospective rental property has inspection history or a housing performance evaluation certificate, you can verify it through the following methods:
For new construction, design and construction housing performance evaluation certificates may exist, and the brokerage firm should disclose them upon request.
Home inspections and housing performance evaluation certificates are tools that objectively clarify a building's condition. While not mandatory for rental properties, they are particularly valuable for older buildings and single-family home rentals.
By combining simple viewing checks with the habit of verifying whether a property has been inspected and whether a performance evaluation certificate exists, you can significantly reduce the risk of equipment troubles and repair cost disputes after moving in. If you are considering a long-term tenancy, it is well worth the cost to have an inspection conducted.
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