Somewhere between the job offer and the flight to Kansai, a document landed in your inbox: a relocation package, complete with an allowance figure that looked, on paper, generous. HR probably framed it as "enough to get you settled." And in many countries, a number like that would comfortably cover a deposit, a moving truck, and a few weeks of breathing room while you found your feet.
Osaka's rental market doesn't work on the same assumptions your company's relocation formula was built on. Not because the number is dishonest, but because it was very likely calculated somewhere else entirely — a global mobility spreadsheet, a regional benchmark, a template built for a different city's cost structure — and then applied to Osaka almost as an afterthought. The result is a package that looks sufficient until you actually try to sign a lease, at which point you discover that Japan's rental system front-loads costs in a way that has no real equivalent in most Western or even other Asian markets.
This is the part nobody in HR walks you through in detail, because most HR teams have never rented an apartment in Osaka themselves. So let's go through what your package is actually built on, where it tends to fall short, and why the shortfall is so easy to miss until you're standing in front of a lease agreement wondering why the "move-in cost" is five times what you budgeted for.
Before looking at Osaka's rental costs specifically, it helps to understand what kind of package you're actually holding, because the three common formats behave very differently once they meet the local market.
There's a detail buried in this that most employees never think to ask about, and it genuinely changes what your package is worth: a cash allowance paid to you personally is treated as ordinary salary for tax purposes in Japan. It raises your taxable income for the year, and with it your income tax and your social insurance contributions. Housing costs paid or reimbursed directly by the company, structured correctly, can sometimes avoid that additional tax exposure entirely. In practice, this means two employees with an identical headline "relocation allowance" figure can end up with meaningfully different amounts of real, spendable money, purely based on how the package was routed. It's worth understanding which category your offer falls into — not to renegotiate the mechanics yourself, but so you know what you're actually being given.
In many relocation frameworks, "initial housing costs" is shorthand for a security deposit — typically one to two months' rent, refundable, held as a safety net. If that's the mental model your package was built on, Osaka is going to feel expensive in a way that seems almost punitive, even though nothing unusual is happening. It's simply a different system, doing what it always does.
A typical rental agreement here stacks several separate, mostly non-refundable payments, all due before you move in:
Add it up and a commonly cited rule of thumb among agents in the Kansai market is that initial move-in costs land somewhere between four and six times the monthly rent — before you've bought a single lightbulb or paid a moving company. For a well-located 1LDK near central Osaka, where rent regularly sits above one hundred thousand yen a month, that's a move-in figure that can comfortably clear five hundred thousand yen. If your relocation allowance was benchmarked against a "one to two months' deposit" assumption from a home-country formula, the gap between what was budgeted and what's actually required can be substantial, and it lands all at once, in a currency and banking system you may not have fully set up yet.
This is the cost that catches even well-prepared transferees off guard, because it doesn't map to anything in most home-country rental systems. Almost every landlord in Osaka now requires a lease guarantor, and in the near-total majority of cases for a foreign tenant, that means a commercial guarantor company rather than a personal guarantor. Your employment contract and your company's name on the transfer letter matter for how a landlord perceives you as a tenant, but they don't replace the guarantor company requirement, and the fee for it is a real, separate cost — not paperwork, not a formality. It's one more month-equivalent of rent, gone before you've moved a box.
Package calculations frequently treat "furnishing the apartment" as a soft, flexible line item — something you can spread out over your first few paychecks. In Osaka, the more immediate issue is that a standard unfurnished rental here is unfurnished in a more literal sense than the word usually implies elsewhere: no light fixtures (often just a bare wire and socket in the ceiling), no curtains, sometimes no air conditioning unit installed even where the wiring exists for one, and no appliances of any kind.
None of these are expensive individually — a basic ceiling light runs about two thousand yen, a compact refrigerator and a budget washing machine can each be found new for around ten thousand yen if you're not particular about size or brand, and secondhand appliance shops catering to the relocation crowd can bring the total down further. The issue isn't the price of any one item. It's that these are all costs due in the first week, on top of the move-in costs above, at a moment when you're also dealing with a new bank account, possibly still waiting on a residence card, and generally at your least equipped to comparison-shop efficiently in a language you may not read yet.
Having reviewed a fair number of relocation letters over the years, the shortfall in a package rarely comes from a single dramatic miscalculation. It tends to come from a handful of smaller mismatches stacking on top of each other:
None of this happens because employees are careless or HR departments are negligent. It happens because a relocation package is, by design, a generalized instrument — built to apply reasonably well across dozens of cities, adjusted by a cost-of-living index rather than by direct knowledge of any one rental market's mechanics. Osaka's system of stacked, non-refundable, upfront costs is genuinely unusual by international standards, and it doesn't show up clearly in the kind of aggregate housing-cost data that a global mobility team typically works from.
The other reason this is hard to see from abroad is that the first apartment you rent after landing is rarely representative of what you'll rent two years later, once you understand the market, have a Japanese banking history, and possibly a track record with a guarantor company. Your relocation package has to absorb the least favorable version of this system — the first-timer version — and that's exactly the version most templates weren't built to price accurately.
None of this means the system is designed to work against you — it means it's a system with its own internal logic, one that rewards knowing it well before you're negotiating against a deadline. This is, concretely, where working with a broker who specializes in foreign residents earns its place rather than adding a layer of cost. A good local partner can tell you, before you fall in love with a listing, which buildings and landlords are realistic given your specific guarantor situation and employment structure, which of the quoted fees are genuinely fixed and which have room to move, and — critically — what the true, all-in number will be before you commit, so you're not discovering the real figure at the signing table.
At Maido Estate, this is a conversation we have constantly with people in your exact position: relocation letter in hand, trying to work out whether the number they were given is realistic for the neighborhood they actually want to live in. We're not going to tell you to skip the professional support and go it alone — that's not the honest advice for someone navigating a market with this many moving, upfront, non-negotiable parts, in a language and a system that took us years working inside it to fully understand ourselves. What we can do is make sure the gap between what your company gave you and what Osaka actually requires is something you understand clearly, well before it becomes a problem.
If you'd like to talk through what's realistically achievable for your allowance and your profile — and steer clear of the mistakes that catch most relocating foreigners off guard — we're happy to have that first conversation with you, no pressure attached, in English, French, or Japanese.
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