Getting Rejected to Rent a House in Japan

Are you a foreigner in Japan looking to rent an apartment or house in Japan? Many foreigners living in Japan face challenges when their rental application is getting rejected. This comprehensive guide explores why landlords in Japan often reject applications from non-Japanese residents, how to improve your chances of approval, and what to do if your application was rejected based on your nationality.

Understanding the Rental Market for Foreigners in Japan

According to recent housing statistics, approximately 40% of foreigners experience rental application rejections when trying to rent a place in Japan. This can make finding a suitable apartment in Japan or house in Japan particularly challenging. Many foreigners living in Japan report that their application was rejected based on the fact that they were foreigners, despite being financially qualified to rent an apartment.

When looking to live in Japan, understanding the local rental market is essential. The property in Japan market operates differently from many Western countries, with unique procedures that can surprise newcomers attempting to rent a house or rent an apartment for the first time.

The Japanese Rental Screening Process

In Japan, nearly all rental properties conduct thorough tenant screening. According to real estate experts, when you need to rent housing in Japan, your application must typically pass two separate evaluations:

• Guarantor company screening
• Property managers in Japan or landlord screening

If you get rejected at either stage, your entire rental application will be denied. This dual-screening approach creates a comprehensive evaluation system that examines your financial stability, personal history, and sometimes includes subjective assessments by landlords in Japan.

Common Reasons Why Your Rental Application Gets Rejected

Japanese rental properties reject approximately 10% of all applications. For foreigners in Japan, that percentage is much higher. Understanding the common reasons why your rental application might get rejected can help you address potential issues before applying.

Financial History Issues

One of the most common reasons property managers in Japan reject applications is problematic financial history. Your application is likely to be denied if you have a history of late payments or credit delinquencies in the past five years. Guarantor companies check credit information through credit bureaus, and any negative marks can immediately disqualify your application to rent an apartment or rent a house.

Insufficient Income for Rent

When you want to rent for the apartment or house, landlords in Japan require proof that you can afford the monthly payments. Typically, your rent should not be higher than 30% of your take-home pay. Many property managers in Japan use a similar calculation requiring that your annual income be at least 36 times the rent.

Even if you believe you're able to pay your rent, applications may be rejected if this threshold isn't met. For borderline cases, some agencies may approve applications if you use a rent guarantor.

False Information on Rental Applications

Providing inaccurate information is another major reason why rental application is getting rejected. Property managers in Japan conduct employment verification, and if this verification cannot be completed, the application will be rejected. Even if verification is successful, your application may still be denied if the agent suspects dishonesty.

Being a Foreigner in Japan

Perhaps the most challenging barrier for international residents is discrimination based on nationality. A 2016 survey on discrimination against foreigners commissioned by Japan's Ministry of Justice found that "39.8% of foreigners were rejected based on the fact that they were foreigners, and 26.8% encountered properties with explicit signs saying 'no foreigners allowed.'"

This housing discrimination persists despite efforts by some municipalities to combat it. Many foreigners living in Japan report having been rejected multiple times before successfully finding an apartment in Japan or house in Japan that accepted them.

Preventative Measures to Avoid Getting Rejected

There are several strategies foreigners in Japan can employ to improve their chances of rental approval when trying to rent an apartment or house.

Financial Preparation

To pass the income requirements, ensure your documented income meets the common standard where rent should not be higher than 30% of your take-home pay. Having proof of stable employment and income is crucial, particularly for foreigners in Japan who may face higher scrutiny from landlords in Japan.

Using Guarantor Companies in Japan

One problem facing Japan at the moment is the difficulty in finding suitable guarantors. This issue has been partially addressed through the proliferation of rent guarantor services. These guarantor companies cater to foreigners and provide institutional backing.

When you use a rent guarantor, the guarantor company will act as your guarantor for a fee. This is particularly helpful for foreigners in Japan without local connections. According to real estate experts, "the problem of finding co-guarantors has been resolved with the increase in guarantor companies."

These companies typically charge a fee equal to 0.5-1 month's rent initially, plus annual renewal fees. For short-term rental periods of 3-6 months you might not need a guarantor, but for standard leases, both foreigners and Japanese people will need guarantors.

Understanding Cultural Expectations

Many rejections stem from concerns about cultural differences in housing practices. For foreigners applying to rent a house or apartment in Japan, demonstrating familiarity with Japanese housing customs can help. Property managers in Japan and landlords in Japan worry about "garbage disposal methods" and "noise issues" that are common points of cultural misunderstanding.

The style of housing and apartments are much different in Japan compared to many Western countries. Being proactive in learning and acknowledging these expectations can improve your chances of getting your rental application approved.

Seeking Foreigner-Friendly Properties

Some real estate agencies specialize in properties that accept foreign tenants in Japan. Working with these specialized agencies can significantly increase approval chances. Real estate agencies that cater to foreigners and don't discriminate can be found in major cities, particularly in areas where many people in Japan use English services.

These agencies understand that foreigners living in Japan with valid visas have been vetted by immigration authorities and shouldn't be considered high-risk tenants. They can help you find an apartment that allows foreign residents and guide you through the application process.

What to Do If Your Rental Application Gets Rejected in Japan

Despite best efforts, rejections still occur. Here are steps to take when facing Japan rental rejection:

Request Informal Feedback

While agencies aren't obligated to provide reasons why your rental application was rejected, building a relationship with the agent might encourage them to give unofficial hints about what went wrong. This information can be valuable for future applications when you need to rent an apartment again.

Adjust Your Property Target

If your financial qualifications are borderline, consider properties with lower rent for the apartment or house, or look in less competitive areas. The general rule of rent being less than 30% of income serves as a guideline for selecting appropriate properties.

Many foreigners living in Japan find success by looking in areas slightly outside the most popular foreign neighborhoods. This can be especially true if you've never been denied housing based solely on financial reasons.

Provide Additional Assurances

For those who can afford it, offering to pay several months' rent in advance or providing additional documentation of financial stability might overcome hesitation from landlords in Japan. This approach can be particularly effective for foreigners who face skepticism about their ability to pay rent on time.

Some property managers in Japan may be more willing to rent to foreigners who can demonstrate a history of paying their rent on time in their home country or previous residences in Japan.

Engage a Housing Guarantor Company

As mentioned earlier, guarantor companies can serve as institutional guarantors for a fee, which is particularly useful for foreigners. When you use a rent guarantor, the guarantor company will act as your guarantor and provide assurance to the landlord that the rent on time payments will be made.

Special Considerations for Different Types of Housing

Pet-Friendly Housing

Finding an apartment in Japan that allows pets can be particularly challenging to find. If you have pets and your rental application might get denied because of this, look specifically for pet-friendly properties. Be aware that these often require additional deposits.

Family Housing vs. Single Apartments

The type of property in Japan you're seeking can affect your approval chances. Larger family apartments typically have more stringent requirements than smaller units. Many Japanese people and foreigners living in Japan with families find it helpful to work with agencies that specialize in family housing.

Short-Term vs. Long-Term Rentals

If you'll be in Japan as long as a few years, landlords may be more willing to rent to you than if you're seeking a short-term rental. Some agencies specialize in short-term rental options for those arriving in Japan for brief periods.

Regional Differences in Japan's Rental Market

The ease of finding housing as a foreigner varies significantly by region:

Tokyo and Major Cities

In Tokyo, where there are many foreigners, the Tokyo Metropolitan Government educates real estate agents that rejection based on nationality constitutes discrimination. However, enforcement mechanisms remain limited, and many people in Japan use informal methods to screen tenants.

When trying to rent an apartment in Tokyo, you may find that some neighborhoods are more foreigner-friendly than others. Areas like Roppongi, Azabu, and Hiroo have higher percentages of foreign residents and more landlords in Japan who are accustomed to renting to non-Japanese tenants.

Smaller Cities and Rural Areas

In smaller cities and rural areas, finding housing as a foreigner can be either easier or more difficult, depending on the area. Some rural regions with declining populations welcome foreigners, while others with little experience with international residents may be more hesitant.

Legal Considerations for Discrimination Cases

Challenging discriminatory rejection legally is difficult in Japan, despite some anti-discrimination ordinances in places like Kawasaki City.

Limitations of Legal Recourse

Taking legal action against discriminatory practices when your application was rejected based on nationality is challenging because:

• It involves significant cost and time
• Landlords can claim rejection was based on "income, length of stay, or lack of guarantor" rather than nationality
• The burden of proof falls heavily on the applicant

Regional Variations in Protection

Some areas offer more protection than others. In Tokyo, the government educates real estate agents about discrimination, but enforcement mechanisms remain limited nationwide.

Impact of Japanese Social Systems on Rental Applications

School Zones and Housing

For families with children, proximity to good schools in Japan often influences housing choices. Some apartments may be in high demand due to their location in desirable school districts, making them more competitive for all applicants.

Workplace Connections

Some foreigners in Japan find success in securing housing through employer connections. Many Japanese companies have relationships with real estate agencies and can help foreign employees find housing.

Conclusion: Finding Your Place in Japan

Navigating Japan's rental market as a foreigner in Japan presents unique challenges, with many experiencing rejection based on nationality despite having valid qualifications. Recent surveys indicate that between 2017-2022, approximately 40% of foreigners living in Japan reported that their application was rejected at least once when trying to secure housing.

Preventative measures—such as ensuring financial stability, using guarantor companies, and working with foreigner-friendly agencies—can improve approval chances. For those facing rejection, alternatives include adjusting property targets, providing additional financial assurances, or seeking specialized housing assistance.

While discrimination remains a reality in Japan's rental market, property managers in Japan are gradually recognizing that foreigners with valid visas shouldn't be considered high-risk tenants. As Japan continues to internationalize and address one problem facing Japan (its aging population) by welcoming more international residents, there's hope that housing barriers for foreigners will gradually diminish.

Currently, preparation, persistence, and understanding the local rental market remain essential for successfully securing a place to live in Japan. With the right approach and resources, foreigners living in Japan can navigate these challenges and find suitable rental properties that meet their needs and budget.