In Japan, most residential leases are set for a two-year term, and upon expiration, tenants must go through a lease renewal process to continue residing in the property. While many assume that renewal simply involves paperwork and a fee, some properties and lease types require a new tenant screening during the renewal process.

This re-evaluation may present an additional hurdle—especially for foreign nationals, tenants utilizing guarantor companies, or those living under a fixed-term lease who wish to sign a new contract.

This article explains, in a practical and accessible manner, the scenarios in which re-screening may be required at lease renewal, and what steps tenants can take to prepare for a smooth and stress-free continuation of their tenancy.

The Distinction between Lease Renewal and Re-Screening

Before proceeding with any lease extension, it is essential to differentiate between two common procedures:

• Lease Renewal: This involves affirming the tenant’s intention to continue residing under the same lease terms—rent, duration, and conditions—with typically minimal documentation and the payment of a renewal fee.

• Re-Screening: In contrast, this is a full reassessment of the tenant’s current status to determine continued eligibility. It may involve reviewing one’s employment, visa status, income level, and payment history.

Whether a re-screening is required depends on the terms set forth in the lease agreement or by the guarantor company.

When Re-Screening Is Required:

Case 1 – Use of a Guarantor Company

For tenants using a rent guarantor company, the renewal of a lease also entails the renewal of the guarantor contract. At this stage, the guarantor company may reassess the following:

• Any changes in employment or income

• History of rent payments and any late payments

• Validity of the tenant’s residence card

• Updates to emergency contact details

Key Point: Some guarantor companies may determine that continued coverage is not viable—particularly if there has been job loss or payment delinquency. This can prevent lease renewal.

Case 2 – Fixed-Term Lease Agreement with a “Renewal” System

Unlike standard lease agreements, fixed-term lease agreements do not automatically renew upon expiration. Should the tenant wish to continue residing in the property, a renewal request must be submitted and is subject to approval at the discretion of the landlord.

The landlord retains the right to decline a renewal request without the need to provide any cause.

Key Considerations in Renewal Review:

• Tenant conduct and any history of disputes will be closely reviewed.

• Any record of delinquent rent payments will significantly diminish the likelihood of renewal approval.

• Even tenants intending to stay long-term are not guaranteed a lease renewal.

Case 3 – Rent Adjustment Considerations for Long-Term Tenancies

For tenants residing in a property over an extended period, the landlord may propose a rent revision or modifications to lease terms at the time of renewal, particularly in response to changes in market trends or the property’s aging.

In such cases, the tenant may be asked to provide updated documentation—such as proof of income or employment verification—to confirm their continued financial suitability.

It is important to note that initiating a rent reduction request or receiving a rent increase proposal from the landlord may trigger a formal review of the tenancy.

What Happens if Renewal Screening is Unsuccessful?

In cases where a lease renewal is subject to screening and the outcome results in a “non-renewal” decision, the following scenarios may arise:

• The lease may be terminated due to the inability to renew the associated guarantor company agreement.

• The tenant may be required to secure a new guarantor—often a challenging task in practice.

• A formal notice of lease termination may be issued, signaling the end of the tenancy.

• If the renewal request is denied, the tenant will be expected to vacate the property by the specified end date.

While a failed screening does not result in immediate eviction, the most critical risk is the loss of control over one’s move-out timeline.

Proactive Measures to Prepare for Lease Renewal Screening

• Maintain a Perfect Payment Record
  Timely rent payment is the most fundamental and crucial measure. Even a single instance of delay can undermine the tenant’s credibility with the landlord or guarantor company.

• Renew Your Residence Card Well in Advance
  If your residence card renewal coincides with your lease renewal, ensure you have documentation confirming that the renewal application has been submitted.

• Disclose Changes in Employment or Income
  In cases of job change, leave of absence, or extension of academic stay, proactively inform the landlord and provide supporting documents such as proof of employment or projected income statements.

• Keep Emergency Contact Information Up to Date
  Outdated emergency contacts can signal unreliability, which may lead the guarantor company to reject the lease renewal application.

How to Identify Renewal Screening Clauses in Your Lease Agreement

Certain phrases in the lease agreement may indicate that a renewal screening process is required. Commonly seen examples include:

• “Renewal of the guarantor contract is subject to approval by the guarantor company.”

• “Re-screening may be conducted as a condition of lease renewal.”

• “Additional screening may be required at the time of contract renewal.”

It is also important to note that such stipulations may appear in the separate agreement with the guarantor company. Therefore, it is advisable to retain all contractual documents provided at the time of move-in and review them thoroughly prior to any lease renewal procedures.

Lease Renewal Is a Privilege, Not a Guarantee

While lease renewals are often assumed to be routine in Japan, the reality is that continuation of tenancy is not guaranteed. Approval ultimately depends on the property’s management policies and the discretion of the guarantor company.

This is particularly relevant for foreign nationals or tenants whose personal or contractual circumstances have changed. It is essential to approach the renewal process with the understanding that one must seek approval to continue residing in the property.

Before signing any lease, tenants are advised to confirm whether re-screening will be required. As the renewal date approaches, taking the initiative to submit updated documents and explain any changes in your situation is the most effective way to ensure a seamless continuation of tenancy.