Successfully sign a rental contract in Japan! A guide to real estate inspection standards for foreigners
Even Japanese people may not be able to rent a room if they do not pass the screening process for a rental contract.
You might think that this is even more true for foreigners.
Therefore, in this article, we will explain how foreigners can pass the rental property inspection.
Please use this guide to dealing with real estate appraisal standards as a reference to ensure a successful real estate contract.
1.What are Japan's rental screening standards?
In Japan, before signing a rental contract, a tenant screening is conducted, and only those who pass the screening can rent an apartment.
The screening process for occupancy is not conducted in person, but through official documents.
The rental screening criteria serve as the guideline for this screening.
2.Requirements for foreigners to enter into a rental contract in Japan
Although it depends on the case, the documents and requirements that foreigners must submit for review are as follows.
| Requirements | Documents to be submitted and their contents |
| Status of residence | This is to prove that you are not an illegal resident. Present your Certificate of Eligibility (COE) or residence card. |
| Solvency | Proof that you can pay your monthly rent. Pay slips, tax payment certificates, etc. |
| Guarantor | If the tenant is unable to pay the rent, the guarantor will assume responsibility for paying the rent instead. The guarantor will sign and stamp the contract. |
| Resident record | Submit for all tenants |
| Seal registration certificate | Original issued within the last three months |
| Communication skills | Although you don't have to submit any paperwork, some landlords won't rent to foreigners who don't speak Japanese. |
We will further explain how to meet these rental screening standards.
3.A guide to successful rental contracts for foreigners
Now let's take a look at some specific ways foreigners can increase their chances of success in applying for a property in Japan based on rental screening standards.
Prepare your Certificate of Eligibility and Residence Card
A residence card serves as identification for foreigners staying in Japan for the medium to long term.
If you enter Japan by air at a major airport such as Narita Airport or Kansai Airport after obtaining a visa at the Japanese embassy in your home country, you will be issued a residence card on the spot.
However, if you enter Japan by any other means, your residence card will be mailed to your address in Japan at a later date.
Therefore, for example, if you plan to stay in a hotel or other accommodation for a while after entering Japan and look for a place to live during that time, or if you want to sign a rental contract before entering Japan, you will need to submit a Certificate of Eligibility (COE).
After you have obtained your visa, your employer in Japan (such as the company you will be joining) can apply for a Certificate of Eligibility on your behalf. It takes about a month from application to issuance, and the certificate is valid for three months from the date of issue, so please be careful about the timing of your application.
Creating a resident registration card
A resident registration card is an official document that lists the name, gender, date of birth, address, residence status, etc. of the individual and their family members.
Foreigners who have obtained a visa and are staying in Japan for a medium to long term can also apply for a resident registration card.
To apply for a resident registration card, please bring your residence card and passport to your local city, town or village office.
If you have just arrived in Japan and are staying in a hotel or other accommodation facility and have not yet settled on a place of residence, you will not be able to create a resident registration card.
In that case, you should first rent a room for short-term stays, such as a monthly apartment, and use it as a temporary residence, then register as a resident at the local government office and apply for a resident registration card.
If you are registering as a family member, you will need the originals of your marriage certificate and birth certificate. Please prepare these documents in your home country before coming to Japan.
Creation of a seal and seal registration
When signing a rental contract, you will need a personal seal and a personal seal registration certificate. There are many cases where you will need a personal seal for purposes other than rental contracts, so take this opportunity to get one.
There are three types of seals:
- Mitome-in: A seal used for everyday purposes such as receiving documents
- Bank seal: A seal required for procedures at financial institutions
- Registered seal: A seal required for legal procedures such as rental contracts
The lower the number, the greater the legal effect. Therefore, while a registered seal can be used as both a bank seal and a personal seal, it is common in Japan to use separate seals for each purpose.
The official seal required for real estate rental contracts can be created at a specialist store or online.
Once your official seal is ready, you will need to register it at the city, town or village office where you registered your residence. This will serve as proof that the official seal is indeed yours and is officially registered.
When you register your seal, you will be issued a card called a "Seal Registration Card." If you bring this card to the counter, you will be issued a "Seal Registration Certificate."
Opening a bank account
In most cases, rent is paid by direct debit from a bank account, so you will need to have a bank account when signing a rental contract.
If you are a foreigner opening a Japanese account for the first time, we recommend Japan Post Bank, where the procedures are relatively simple.
The documents required to open a Japan Post Bank account are as follows:
- Residence card
- Company employment certificate or student enrollment certificate
For information on how to open a Japan Post Bank account, please refer to the multilingual application form creation page .
You can also apply via a smartphone app. For more information, please click here (supported languages: English, Chinese, and Vietnamese).
Proof of ability to pay
Normally, you would submit a pay slip or tax certificate, but if you have only recently entered the country, you can also use a job offer letter or bank statement instead.
What to do with a guarantor
In most Japanese rental contracts, a guarantor is required to avoid the risk of non-payment of rent.
Not just anyone can be a guarantor; the guarantor must be a relative residing in Japan with a stable income.
If you are unable to find a guarantor, you can use private services such as guarantor agency services or rent guarantee companies. Available services may vary depending on the property, so please consult with your real estate agent.
Alternatively, you can look for a property that does not require a guarantor.
For example, Mooovin , which handles rental properties for foreigners , provides guarantor company services to all users. If you pass the screening, you can move in without a guarantor.
communication
To avoid problems, many landlords do not allow foreigners who cannot speak Japanese to rent their properties.
In order for foreigners to smoothly enter into a rental contract, it is recommended that they use a real estate agency that specializes in foreigners, such as Mooovin , introduced above .
4.Unique rules of rental contracts in Japan
In addition to screening criteria, Japan also has unique rules regarding rental contracts.
It is important to understand these rules thoroughly in order to successfully complete a rental agreement.
Deposit and key money
In Japan, most rental properties require you to pay a deposit and key money.
- Deposit: A security deposit given to the landlord.
- Key money: A payment made to the landlord as a token of appreciation.
A security deposit is equivalent to a deposit, which is common in rental property contracts overseas, but key money is a unique rule in Japan, so you may be confused.
For more information on the rates and contents of security deposits and key money, please click here.
What are security deposits and key money in Japan? A complete guide to successfully completing a rental agreement (link provided)
Renewal fee
Renewal fees are also one of the rules unique to Japan.
In Japan, the contract period for an apartment or condominium is usually two years, and if you want to continue living in the same room after that period has expired, you must renew the contract.
When you renew your contract, you will have to pay a renewal fee, which is usually one month's rent.
Key money and renewal fees Key money and renewal fees are not uniformly stipulated by law, but they are widely accepted as local customs, and are generally considered valid if agreed upon in the contract.
5.Move-in process
We will also explain the process from signing a rental contract to moving in when using Mooovin .
- Search for properties: Narrow your search by specifying conditions such as area, rent, floor plan, and walking distance from the station
- Check the conditions: Check the detailed conditions such as the property's features, facilities, and initial costs.
- Apply: Create an account and apply for the property you want using the application form.
- Screening: A real estate company will conduct a screening process for tenants.
- Contract procedure: Prepare the necessary documents and complete the contract procedure online
- Payment: Pay online
- Key collection: Receive the room key from the management company. Depending on the option, you may be able to collect it at the airport upon arrival.
The basic process is similar across real estate agencies. To ensure a smooth contract, be sure to prepare all necessary documents in advance.
6.How to avoid rental property troubles in Japan
Some landlords are reluctant to let foreigners move in because they tend to cause trouble after moving in.
However, these problems are also due to differences in culture and customs.
If you understand the differences in culture and customs between Japan and your own country, you will be able to avoid such troubles.
Here we will introduce three main problems that foreigners tend to have when renting accommodation.
Sorting garbage
Japan has very strict rules for separating garbage, and the rules vary depending on the local government.
Therefore, once you move in, please check the website of your local government to find out how to separate your garbage, what days to put it out, and whether there are designated garbage bags.
Don't make noise
One of the things that surprises foreigners when they start living in Japan is how quiet the city is.
It is common overseas to hold a home party and invite many people, but please avoid making noise in apartments or condominiums.
Cleaning or running the washing machine late at night (after 9 PM) can also lead to problems. Depending on your job, this may be difficult, but try to adapt to the lifestyles of those around you as much as possible.
Subleasing the property or cohabiting without permission is prohibited.
Subleasing a rented room to another person is prohibited by law.
You may also consider room sharing to reduce the high rent.
However, information about cohabitants is also included in the screening criteria, so living together without permission (even if you are in a romantic relationship) can be a breach of contract.
Therefore, if you are adding a new person to your household, be sure to contact the real estate agency.
