In Japan, prospective tenants must undergo a tenant screening process before securing a lease. Even after submitting an application, the lease cannot proceed unless the applicant is approved. For first-time renters or foreign nationals, the screening process can often seem opaque and intimidating, particularly when the evaluation criteria are not clearly understood.

Tenant screening is a landlord’s way of assessing whether an applicant is a reliable and appropriate occupant. It involves a comprehensive review of several factors, including income, employment status, creditworthiness, visa type, and guarantor arrangements. While the level of scrutiny may vary by property, the core areas of evaluation are largely consistent.

In this article, we examine the primary components of tenant screening in Japan—focusing on income stability, professional standing, and financial credibility. We also offer practical guidance to help applicants prepare for a smooth and successful approval process, particularly in the rental market where standards are especially high.

Why Tenant Screening Is Essential

In a lease agreement, tenants are obligated to pay rent consistently and maintain the property in good condition. Landlords, naturally, seek to avoid risks such as late payments, neighbor disputes, or breaches of contract. To ensure a smooth and reliable tenancy, it is essential to evaluate whether an applicant is trustworthy and financially capable before finalizing the lease.

In many properties, screening is not conducted solely by the landlord. Properties that utilize guarantor companies involve an additional layer of evaluation. These companies assess the applicant’s financial stability, accessibility for communication, and overall credit history. Combined with the landlord’s own assessment, this multi-faceted approach ensures that only qualified, dependable tenants are accepted.

Income: Balancing Earnings and Rent Is the Most Critical Factor

Among all tenant screening criteria, the most heavily weighted is the balance between the applicant’s income and the monthly rent. A commonly accepted benchmark is that rent should not exceed one-third of the tenant’s monthly income. For instance, an individual earning ¥180,000 per month is typically deemed financially suitable for a property with rent within ¥60,000.

Applicants are usually asked to provide documentation such as:

• Recent payslips (typically from the past 1–3 months)

• A previous year’s tax withholding slip

• An employment contract or offer letter

• Tax returns (for self-employed applicants)

If income is deemed unstable, the guarantor company may decline the application. In such cases, applicants may need to consider alternative strategies—such as choosing a less expensive property, combining income with a family member, or securing a guarantor.

For foreign applicants who are unable to submit payslips, providing a certificate of employment and clearly explaining the relationship between their visa status and income may improve their chances of passing the screening.

Employment: Job Type and Tenure Influence Screening Outcomes

In addition to income, occupation and employment status are key factors in tenant screening. Criteria may vary depending on whether the applicant is a full-time employee, contract worker, temporary staff, self-employed, part-time employee, or student.

Full-time salaried employees are generally viewed favorably due to their perceived stability, making them strong candidates in the approval process. Contract or temporary employees can also pass screening without issue if they demonstrate consistent tenure and contract renewals.

For self-employed individuals and freelancers, income stability may appear less predictable. In such cases, submitting past tax returns, business performance records, or contracts with clients can help demonstrate financial reliability. What matters most is whether there is a reasonable expectation of continued income.

Students typically need to provide documentation from a financial sponsor—such as proof of a parent’s income, remittance statements, or scholarship confirmations. International students are also often required to submit details on their visa status, university enrollment certificates, and an emergency contact in Japan.

Creditworthiness: Payment History and Reliability Matter

Creditworthiness in tenant screening refers to the applicant’s history of rent payments and whether there have been any contractual violations or financial disputes in the past. Guarantor companies often check this through credit bureaus or their own internal databases to assess risk.

Applicants with a history of rent arrears or previous rejections by guarantor companies may face challenges during re-evaluation. In some cases, the real estate agency may suggest an alternative guarantor company, but if the underlying credit concerns persist, the lease may ultimately be denied.

Furthermore, individuals who are difficult to contact, delay submitting documents, or provide unclear explanations may also be viewed with caution during screening. Demonstrating responsiveness, accuracy, and sincerity throughout the application process significantly enhances perceived reliability—especially important in leasing environments where trust and professionalism are paramount.

Additional Considerations

In the screening process, beyond income, occupation, and creditworthiness, the following factors may also be subject to evaluation:

• The applicant’s age

• Type and remaining validity of residency status (for foreign nationals)

• Family structure and the number of intended occupants

• Reliability of the emergency contact (whether they are a relative and can communicate in Japanese)

• Availability and background of a guarantor

For foreign nationals, a comprehensive assessment may include the submission of a residence card and passport, verification of visa details, Japanese language proficiency, and communication arrangements with their home country. Some guarantor companies may exercise caution with specific nationalities or types of residency status. Therefore, when selecting a property, it is advisable to work with a real estate agency that has a proven track record in handling multinational clientele.

Preparing for a Smooth Screening Process

To successfully pass the tenant screening process, thorough preparation and accurate information disclosure are essential. By paying close attention to the following points, applicants can significantly enhance their chances of approval:

• Select a property with a rent-to-income ratio that aligns with financial stability

• Prepare all required documents early and ensure nothing is missing

• Fill out all submitted forms with precise information, including name, date, and address

• Disclose any recent changes in residency status, employer, or income in advance

• Designate a trustworthy emergency contact—preferably someone who can communicate in Japanese

Even in cases where an application is declined, there is no need to give up. Consulting with the real estate agency may lead to alternatives, such as using a different guarantor company or adjusting contract conditions to secure approval.