I highly recommend this free website and service. They book ryokan (traditional Japanese Inns) and monastery stays for you. Not only do they do the booking but they give you a print out of directions in Japanese you can show a cabbie or someone on the street for directions.
They give you very specific information on what to expect.
Not all the lodging is cheap, but there are many inexpensive choices. (and remember, dinner in your room is often included).
It is a wonderful service. Our stay at a ryokan in Takayama (Nagase Ryokan) and a monastery on Mt. Kyosan (Shojoshin-in) were high points of our trip.
http://www.japaneseguesthouses.com/index.htm