Renting to Japanese corporate tenants in London - What landlords need to know

Many leading Japanese companies have a strong presence in London, creating consistent demand for quality rental homes for employees and executives relocating to the UK.

For both overseas and UK-based landlords with properties in London, Japanese corporate tenants can be an attractive tenant profile.

From reliable rent payments and potentially longer tenancies to the way properties are generally looked after, there are several reasons why landlords value this segment of the rental market.

Why Japanese corporate tenants are highly sought after

Many corporate tenancies are backed by established companies, giving landlords a more secure and structured rental arrangement.

The employer's HR or relocation team is also often involved in the accommodation and tenancy process, giving landlords and agents a clear point of contact when needed.

While tenancy arrangements and payment methods vary between companies, corporate tenancies generally have a well-established payment structure, offering landlords greater confidence in receiving rent reliably throughout the tenancy.

Overseas assignments also often last several years. This can lead to longer tenancies and less frequent turnover than with a typical open-market let. Fewer changeovers can mean fewer void periods, lower re-marketing costs and less time and expense spent on arranging new tenancies.

There is also another aspect that we have noticed through many years of working with Japanese tenants: many tend to take particularly good care of the properties they rent.

Of course, every tenant is different, but in our experience Japanese tenants generally look after their homes carefully and often return them in good condition at the end of the tenancy.

For landlords considering Japanese corporate tenants, working with an experienced letting agent familiar with this market can help ensure that each application is properly assessed and that the tenancy is set up and managed appropriately from the outset.

What do Japanese expat tenants look for in London rental homes?

Japanese expat tenants can have slightly different priorities when choosing a rental property compared with the wider London rental market.

Security is often high on the list.

Buildings with manned entrances, good security systems or 24-hour concierge services are particularly popular with Japanese tenants.

The standard and practicality of the interior are equally important.

Modern appliances, a well-designed kitchen and reliable heating are all important considerations. Ample storage space, good natural light and attractive views are also commonly sought-after features.

Properties that offer a combination of these features can be particularly appealing to Japanese corporate tenants. In recent years, some tenants have also become more conscious of a property's environmental performance and energy efficiency, and these can sometimes form part of the decision-making process.

Location is another important consideration, but convenience often matters more than postcode prestige alone. Easy commuting into the City, Canary Wharf or the West End is a major advantage, while families relocating with children will also consider access to well-regarded schools when choosing where to live.

Properties close to transport links, with fast and convenient connections into central London, therefore have a strong advantage.

Modern and recently built developments are also particularly popular, especially those offering a good range of residents' facilities such as 24-hour concierge services, gyms, swimming pools and cinema rooms.

Our London corporate letting service can advise landlords on how best to prepare and position their properties for Japanese expat tenants, as well as providing ongoing support throughout the tenancy.

How to attract high-calibre corporate tenants in London

Having a property that meets the expectations of Japanese expat tenants is important, but that alone does not necessarily mean it will reach the right audience.

The other key part is getting the property in front of the HR and relocation teams that source accommodation for employees moving to London.

For an individual landlord, reaching these corporate contacts directly can be difficult. This is where working with a letting agency that already has established relationships with Japanese companies can make a real difference.

Benham and Reeves has been introducing London rental properties to Japanese companies for over 20 years.

Since 2017, we have also operated a dedicated Japan Desk, staffed by a Japanese-speaking team specialising in supporting Japanese companies and their employees with their accommodation requirements in London.

By working directly with HR and relocation teams, our Japan Desk helps connect landlords with Japanese corporate tenants and supports the process from property introduction and tenancy arrangements through to ongoing assistance once the tenant has moved in.

For landlords who prefer a more hands-off arrangement, we also provide a full property management service, taking care of the day-to-day management of the property and ongoing communication with tenants throughout the tenancy.