People living alone for the first time are often particular about their apartment’s location, amenities, interior, etc. However, many people get too hung up on their wants and end up choosing homes that are beyond their financial means, which ultimately leads to renter’s remorse. 

This article will introduce several reasons why someone who lives alone may regret renting an expensive apartment. We will also introduce some characteristics of people who tend to experience renters’ remorse as well as the ideal amount to pay for rent. We recommend that you use this article as a reference when apartment hunting for yourself. 

Village House has over 1,000 properties across Japan. We rent out apartments at reasonable prices, so you won’t have to cut back on your living expenses. If you are looking for a room for solo living, please check out our website. 

1. Having less to spend on living expenses 

According to the Ministry of Internal Affairs and Communications Statistics Bureau’s “Household Budget Survey (Household Income and Expenditure Section) Survey Results,” the monthly living expenses of people living alone in rental housing are as follows: 

Reference: Ministry of Internal Affairs and Communications Statistics Bureau “Household Budget Survey (Household Income and Expenditure Section) Survey Results” 

If your rent is too high for your income level, you will have to cut back on your living expenses. 

According to the table above, the average person’s monthly living expenses, excluding rent, come up to around 120,000 yen. If your take-home pay is 180,000 yen, you will be left with around 60,000 yen to pay for rent. 

If your rent is more than 60,000 yen, you will have no choice but to spend less on living expenses (food, entertainment, etc.) to survive. When savings become especially tight before payday, you may even be forced to lower your quality of life.  

Note that the table above only features average figures, and your actual expenditures will vary depending on your region and lifestyle. 

2. Having little money left for hobbies and savings 

If your rent is high, you will have less money left over for your hobbies and savings. People who earn low or unstable incomes in particular will feel the squeeze on their daily expenses. 

You can always set aside more money for rent by cutting back on your living expenses, However, this would also mean you have less money to spend on hobbies/traveling or to save in the bank. Not having money to save may also add to your mental burdens, which often leads to stress and anxiety. 

On the other hand, if you live in an apartment with a better rent-to-income ratio, you will have more money left over for your hobbies and savings, which will increase your quality of life. It is also important to prioritize what is important to you: the sense of security that comes with savings, a life filled with hobbies, or a nicer home. 

3. Being too busy and not having enough time to stay at home 

For busy people who only have a little time at home, it may be a waste to stay in apartments that have expensive rents. Suppose you work from early till late on weekdays and often fall asleep immediately after reaching home. Or suppose you spend time going out and socializing with friends in your free time. In such cases, you will spend very little time at home, so you may not need a spacious apartment or one with many amenities. 

If you spend little time at home, a compact studio apartment with the minimum necessary amenities will be sufficient. Furthermore, if you prioritize factors like proximity to the train station and safety over the size of your apartment, you can live a more comfortable and efficient life. 

4. Unstable mental health 

Even if you are satisfied with your apartment, as you continue to cut back on living expenses and worry about your savings, you may find your mental state becoming increasingly unstable. Financial difficulties can eat away at your mental health, and cause anxiety and stress about the future. 

If you pay a lot of money for rent every month, you may be left with almost no money in your account after paying your utilities, phone bills, etc. Make sure to carefully consider your priorities before looking for an apartment, or you may end up experiencing unnecessary financial stress. 

5. Lowering high living standards is not easy 

Once you get used to a room with extensive amenities and a spacious floor plan, it may be difficult to compromise on your next apartment. 

For example, you may have no problem living without a warm water bidet or a bathroom dryer if you always lived in an apartment without them. However, once you grow accustomed to living with those amenities, you may want to have the same amenities in your next apartment. 

Or perhaps, if have you always lived within a 3-minute walk from the station, you may also want your next apartment to be less than a 5-minute walk from the station. However, if you can make do with a property that is a 15-minute walk away, you will be able to save on rent. 

Once you start living in a conveniently located apartment with good amenities, it will be harder for you to compromise on your next apartment. Therefore, when living alone for the first time, it’s best to avoid choosing an apartment that places too much pressure on your living expenses. 

Characteristics of people who experience renter’s remorse 

Here are some characteristics of people who experience renter’s remorse: 

• Busy and don’t spend much time at home 
• Want to pursue hobbies 
• Often eat out (can’t cook) 
• Low and/or unstable income 
• Want to save money 
• Not particular about apartment amenities 
• Paying for college tuition 

If you are busy with work and don’t spend much time at home, there is little point in paying extra for a better apartment. A cheap studio apartment is likely to suffice if you eat out a lot and spend your time at home sleeping. 

Also, spending more on rent means less money for your fandom activities and travel plans. You may find it stressful not having enough money to do the things you love. 

If you would like to save up or enjoy your hobbies, we recommend that you choose an apartment with a low and fixed rent. 

Characteristics of people who don’t regret paying higher rent 

Here are some characteristics of people who have no regrets about paying higher rent: 

• Stay home a lot 
• Want a living space with excellent soundproofing 
• Particular about security (e.g., auto-locks and security cameras) 
• Have plenty of income 
• Concerned about the quality of neighbors 
• Want to boost self-confidence and self-worth 

People with the above characteristics are able to rent an expensive apartment with little or no regrets. 

If you spend a lot of time at home, you may be fine with spending slightly more money on a more comfortable apartment. Of course, you will need to have a high enough income to ensure that the rent doesn’t become too much of a burden on your living expenses. 

It is risky to assume you will always be able to get by financially. Make sure you are spending within your means when deciding on an apartment so that you won’t have difficulty making ends meet later. 

Spend no more than one-third of your income on rent 

The recommended budget for rent is one-third of your income. If you live together with other people, the standard allowance for rent is one-third of your total household income. 

During tenant screening, applicants are usually expected to earn an annual income that is 36 times the monthly rent. For example, if you pay 80,000 yen for rent, you are supposed to have an annual income greater than 2,880,000 yen. 

If the rent costs more than half your take-home pay, you will be judged as not having a good income-to-rent ratio (i.e. more likely to be delinquent on rent). As a result, you will be evaluated more harshly during the screening process. 

If you are looking to save on rent as much as possible, check out the Village House website. We have over 1,000 properties across all of Japan’s 47 prefectures with rent starting from 20,000 yen. In addition, you can cut down on initial costs as we don’t charge any deposits*, key money, brokerage fees, or renewal fees! 

*Depending on the contract details and screening results, a security deposit may be required. Please contact your assigned agent for more details. 

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• Renting a Second-Floor Apartment: What to Know Before Signing a Lease
• Apartment Viewing for People Living Alone: What You Need to Check and How to Be Ideally Prepared!
• Top 5 Issues When Moving and How to Deal with Them
• Living Alone for the First Time? Checklist of All the Things You Need

Machiko Doi

Hello, I’m Machiko Doi, a freelance writer who writes about housing and living in Japan.

I live in an 80-year-old house that I inherited from my grandparents along with my two shelter cats and daughter.

We live a relaxed life while repairing the house.

I like to cook vegetables from the garden and fresh fish caught by my father, and enjoy them with cold beer on a hot day or hot sake on a cold day.