This article is written by a Japanese local.
In the rental market, it is not uncommon for foreign nationals to be passed over during the tenant screening process simply because of their nationality. However, this is not mere discrimination or prejudice; it stems from a “risk-hedging structure” unique to the real estate system. Continuing your property search without understanding the mechanisms behind application rejections will lead to a fatal waste of time and effort.
This article unravels the “3 fundamental reasons” why contracts are rejected and thoroughly explains logical approaches to breaking through them. In conclusion, by strictly implementing three points—“specifying a guarantor company that accommodates foreigners,” “visualizing objective payment ability,” and “securing infrastructure by utilizing temporary stays”—it is entirely possible to secure an excellent property.
1. Why Do You Fail the Screening? The “3 Real Reasons” for Rental Contract Rejection
In property screenings, what real estate management companies and owners emphasize most is “risk minimization.” The following three points stand as the biggest barriers in contracts with foreigners.
Reason 1: Strict Scoring by Guarantor Companies
Currently, properties requiring the use of a “Rent Guarantor Company (家賃保証会社)” instead of a joint guarantor (individual) account for about 80% of the market. Many general guarantor companies tend to estimate the “return home risk” (the risk of leaving the country with unpaid rent) of foreigners extremely high in their databases. Therefore, the reality is that some companies have systems that mechanically reject applications based solely on nationality or visa type, regardless of how high your social status or current income is.
Reason 2: Owners’ Wariness of “Language and Lifestyle Rules”
The ultimate decision on move-in is made by the property owner. What they fear most is “unpaid rent” and “neighborhood troubles” (such as violating garbage disposal rules or causing noise). If it is determined that smooth communication in Japanese cannot be achieved, concerns arise that “in the unlikely event of a problem, a dialogue toward resolution cannot be established.” Consequently, the better the property is equipped and conditioned, the easier it is for management companies and owners to make conservative decisions.
Reason 3: The Deadlock Phenomenon of “Bank Account and Mobile Phone”
In the final stages of a rental contract, you are required to submit a “bank account for direct debit” and a “domestic mobile phone number (emergency contact).” However, opening a bank account requires an ID card with a “confirmed address.” Cases frequently occur where contract procedures stall due to falling into the deadlock contradiction: “You can’t open an account without an address, and you can’t rent a house without an account.”
2. “3 Countermeasures” to Eliminate Risks and Reliably Pass the Screening
These barriers can be completely avoided by grasping the structure of real estate rules in advance and following the appropriate steps.
Countermeasure 1: Narrow Down to Properties Allowing Foreigner-Specialized Guarantor Companies
From the beginning, target properties that allow the use of guarantor companies with a rich track record of screening foreigners (such as GTN, Zenhoren, etc.). When approaching a real estate agency, do not just convey your desired area and layout; specify in advance, “Please only propose properties where foreigner-friendly guarantor companies can be used.” This will drastically reduce time wasted on useless viewings and screening rejections.
Countermeasure 2: Visualize and Submit “Ability to Pay” and “Visa Eligibility” in Advance
To logically dispel the owner’s anxiety, objective proof in writing is essential. When negotiating with the owner through a broker, package and submit the following documents.
| Type of Document | Specific Examples | Purpose/Effect of Submission |
|---|---|---|
| Required Documents | Residence Card, Passport | Objective proof of identity and legal stay period. |
| Proof of Income | Employment contract, Job offer letter, Previous year’s tax certificate | Proof of continuous and stable rent payment ability. |
| Proof of Assets | Bank balance certificates (domestic or overseas; English is acceptable) | Proof of ability to handle sudden situations and economic leeway. |
For investors and entrepreneurs, attaching a business plan or a certified copy of the corporate registry to these documents to prove that “you have a solid business foundation to stay in the mid-to-long term” is an extremely effective approach.
Countermeasure 3: Utilize Temporary Stays (Monthly Mansions) to Build Infrastructure Early
This is the most reliable procedure to break the aforementioned “bank account and mobile phone deadlock.” Rather than aiming for a standard long-term rental contract right away, execute the following timeline.
- Secure a Temporary Base: Rent a property that can be contracted via credit card even from overseas, such as a monthly mansion or serviced apartment, for 1 to 2 months.
- Resident Registration: Register that temporary address at the jurisdictional city hall to obtain a Certificate of Residence (Juminhyo) and have the address printed on the back of your Residence Card.
- Establish Infrastructure: Based on the Juminhyo, sign a voice call SIM contract for a mobile phone and open a bank account.
- Secure Your Target Property: Armed with your completed infrastructure (phone number and bank account), proceed to the screening for your target long-term rental property.
By following these steps, “document deficiencies” during the screening process are completely eliminated, and the passing rate for excellent properties improves dramatically.
3. Irregular Situations and Q&A Regarding Rental Screening
Here is a summary of countermeasures for cases that deviate from standard procedures. Please check according to your own situation.
Q. If I have a high-income Japanese relative as a guarantor, do I still need a guarantor company?
A. In today’s real estate market, even if a high-income Japanese relative can become a joint guarantor, the mainstream properties have a basic management company rule making “enrollment in a guarantor company mandatory.” While having an individual guarantor may work favorably in the screening itself, you should recognize that excellent properties completely avoiding the use of a guarantor company are a very small minority.
Q. Can I rent a house even if I am unemployed (preparing to start a business)?
A. The hurdle for screening goes up, but it is possible. If you cannot provide monthly salary proof, a method called “Savings Screening (預貯金審査)” is used. This is a method to pass the screening by proving your payment ability through written proof of your bank account balance (roughly 1 to 2 years’ worth of rent). While some guarantor companies accept balance certificates from overseas banks, certificates from domestic accounts are evaluated much more highly.
Q. I cannot speak Japanese at all; is there a way to pass the screening?
A. Yes. You can either choose a property managed by a company equipped with its own multilingual call center (English, Chinese, etc.) or use a foreigner-specialized guarantor company (like GTN) as mentioned earlier. Because they step in between the owner and the tenant to guarantee language support, you can physically remove the owner’s “wariness of the language barrier.”