2025/06/28
Why Some Properties in Japan Exclude Foreign Tenants

While searching for housing in Japan, some foreign nationals may come across listings or agencies that include phrases such as “No foreign tenants” or “Foreigners must be approved on a case-by-case basis.” Understandably, this can be confusing—especially in a market that, on the surface, appears open to all.

Despite Japan’s growing international community, it is still not uncommon for landlords to decline applicants solely based on their nationality. However, it’s important to note that these decisions are not always rooted in prejudice or discrimination; in many cases, they are driven by practical and operational concerns.

This article explores the real-world reasons why “No Foreigners Allowed” properties still exist, explains the considerations behind such decisions, and provides strategies that foreign residents can use to navigate these challenges and successfully secure a rental.


Cases Where Foreign Tenants Are Denied Still Exist in Practice

While Japanese law promotes fair housing practices and discourages discrimination based solely on nationality, the reality on the ground can be different. A significant number of properties still carry conditions such as “No foreign tenants” or “Foreign nationals not accepted.”

Real estate agents may rarely state this explicitly. Instead, foreign applicants often encounter indirect rejections during the process—such as being told “The owner has declined the application” or “The guarantor company did not approve the tenant.” In practice, these outcomes may amount to a de facto refusal of tenancy.


Why Are Some Properties “No Foreigners Allowed”? Key Reasons Explained

1. Communication Barriers Due to Language Limitations

When landlords or property managers do not speak languages other than Japanese, they may feel uncertain about clear communication. Common concerns include:

  • Difficulty explaining rules such as waste disposal procedures

  • Challenges in contacting tenants for overdue rent

  • Inability to accurately communicate maintenance or emergency issues

The underlying fear is that language gaps could lead to unresolved problems or escalated disputes, posing a risk to the smooth management of the property.


2. Concerns About Lifestyle Differences Leading to Conflicts

Some landlords express reservations due to potential misunderstandings arising from cultural or lifestyle differences, which may affect relations with neighboring residents. Common examples include:

  • Different standards regarding noise levels or nighttime activities

  • Strong food odors or unfamiliar ventilation habits

  • Religious customs or decorations impacting shared areas

In buildings with past incidents, restrictions may be implemented to prevent recurrence, often under the pretext of maintaining harmony and protecting the community environment.


3. Mitigating Risks During Lease Contracts, Renewals, and Terminations

Landlords often express concerns stemming from several factors: the lessee’s potential misunderstanding of contract terms, the possibility of becoming unreachable due to repatriation or relocation, and the absence of a guarantor or emergency contact. These elements can pose significant uncertainties for property owners.

Furthermore, landlords who have previously experienced abrupt tenant departures—resulting in uncollected security deposits—or cases of rent default followed by loss of contact, may impose stricter conditions to prevent recurrence. Such measures are particularly common in the rental market, where safeguarding asset value and maintaining trust are paramount.


4. Risk of Rejection by Rent Guarantee Companies

In Japan’s rental market, many properties require the use of rent guarantee companies. However, these companies may decline applications from non-Japanese tenants for reasons such as a short remaining period on their residence card, perceived employment instability, or having a primary contact address located overseas.

For properties where contracts cannot proceed without such guarantee approval, failure to pass the screening can effectively serve as a de facto exclusion of foreign nationals—regardless of their suitability or financial capability.


Not a Matter of Rejection, But of Operational Limitations

Upon closer examination, these limitations often do not stem from a desire to reject foreign tenants per se. Rather, they reflect an operational reality: the lack of an adequate support system necessary to responsibly manage the tenancy.

Landlords and property management companies bear a range of responsibilities—including legal compliance, repair coordination, neighborhood relations, and contract oversight. When they determine that they are unable to fulfill these obligations with sufficient confidence—particularly in cases involving international tenants—they may feel compelled to impose restrictions as a matter of prudence rather than discrimination.


Practical Measures for Prospective Foreign Tenants

  1. Choose a Multilingual Real Estate Agency
    Selecting an agency that offers services in English, Chinese, Vietnamese, or other languages can greatly facilitate communication with landlords and ensure a clearer understanding of contractual terms. This improves the likelihood of a successful lease agreement.

  2. Provide a Japanese-Speaking Guarantor
    Designating a co-signer or emergency contact who resides in Japan—such as a relative, friend, or workplace supervisor—offers landlords a greater sense of security and can ease concerns regarding communication and accountability.

  3. Communicate Your Intended Length of Stay and Visa Renewal Plans
    Even if your current residence card has a limited validity period, proactively informing the landlord or agent about your plans to renew your visa can help mitigate perceived risk.

  4. Demonstrate Familiarity with Local Living Etiquette
    Indicating that you are aware of and prepared to follow Japanese residential norms—such as waste disposal regulations and maintaining low noise levels—can build trust and signal your commitment to being a responsible tenant.


Tips for Finding “Foreign-Tenant Friendly” Properties

  • Utilize Real Estate Platforms Specializing in International Clients

  • Consult Local International Exchange Organizations or Support NPOs

  • Search Using Terms Like “Foreigners Welcome” or “Student Friendly”

  • Consider Share Houses or Furnished Short-Term Rentals


Trust Is Built Through Transparency and Preparation

When encountering a listing marked as “No Foreigners Allowed,” it is important not to simply feel discouraged. Instead, consider asking why such conditions exist and reflect on how you might proactively demonstrate trustworthiness.

Lease agreements are fundamentally built on mutual trust. Rather than being turned away due to language or cultural differences, the most effective approach is to present yourself as a responsible and reliable tenant—someone who does not generate concern for the landlord.

By emphasizing preparedness, communication, and respect for local expectations, foreign residents can reshape the narrative and open doors to housing opportunities.