The Truth About "No Foreigners Allowed" Rental Properties in Japan: Reasons and Solutions Explained in Detail!

If there are properties in Japan that refuse foreigners, it's likely that this is not unrelated to the increasing number of foreigners living in Japan.

The increase in foreign residents and the current state of the rental market

As of the end of 2024, the number of foreign residents in Japan was approximately 3.76 million, marking a new record high for the third consecutive year. This represents an increase of approximately 10.5% compared to the end of the previous year.

It is estimated that about half of the households of foreign residents live in rental housing, and in Tokyo, Kanagawa, Saitama, and Chiba prefectures in particular, it is estimated that about 60% of households use rental housing.

Looking at Japan as a whole, vacant houses and rooms have become a major problem due to the declining population resulting from the low birthrate and aging population.

However, in major cities like Tokyo, the demand for rental housing is high, and even for Japanese people, finding a place to live can be difficult.

As the number of foreigners living in Japan continues to increase, unfortunately, it is also true that some landlords do not want foreigners living in their properties.

At its root, this is likely due to misunderstandings and prejudices against foreigners.

Communication barriers

Not only in Japan, but in many other countries as well, language differences can hinder effective communication, leading to significant friction.

Since the rental agreement and important information documents required to rent a room are written in Japanese, it's understandable that landlords worry about whether foreigners will be able to fully understand their contents.

Furthermore, there will be communication issues in the event of any problems.

In reality, more and more real estate companies are now providing rental agreements in multiple languages, including English, and with the help of translation apps, language barriers are no longer a major problem.

However, there are still quite a few Japanese people who have a "psychological barrier" when it comes to communicating with foreigners.

For more details on rental agreements in Japanese real estate, please see " How to Read and Check Rental Agreements: What Foreigners Should Know ."

Concerns arising from differences in culture and lifestyle

More than communication issues, the main reason some landlords in Japan refuse to accept foreigners is differences in culture and lifestyle.

In Japan, the idea of "not causing trouble for others" is considered commonplace, and this is expected of foreigners as well.

However, there are many differences between Japan and other countries regarding lifestyles and rules, and these differences actually lead to problems.

for example

• Noise: Japanese people prefer to live quietly. However, in other countries, it's not uncommon to make noise at home parties and other gatherings. Differences in perceptions regarding noise can lead to problems.
• Garbage disposal: In many countries abroad, garbage is collected and disposed of by a private company, but in Japan, the rules for garbage disposal are strict and complicated. It will likely take time for foreigners to get used to them.
• Room usage: Japanese people place great importance on cleanliness. However, due to differences in lifestyles across countries, perceptions of dirt also differ. Many landlords hold the prejudice that "foreigners make rooms dirty."
• Lack of understanding of Japanese rental rules: Japan has its own unique rental rules, such as "key money," "renewal fees," and "joint guarantors." Some landlords worry whether foreigners will truly understand and abide by these rules.

It's true that some landlords want to avoid problems arising from these differences in culture and lifestyle, and therefore have policies against renting to foreigners.

Concerns about procedures and communication when moving out

Another reason landlords might want to refuse foreigners is to avoid problems with tenants moving out.

I'm worried that they might make a terrible mess of the room, or leave without paying the rent and go back to their home country.

When such problems actually occur, resolving them is extremely difficult.

Landlords who have had such experiences in the past, or who have heard such stories, may hesitate to rent their rooms to foreigners.

For the reasons mentioned above, it is true that some landlords want to have a "no foreigners" policy.

However, in reality, you shouldn't see any properties on rental property portal sites that explicitly state "No foreigners allowed."

It is considered highly likely to be discriminatory and therefore inappropriate.

The principle of freedom of contract and the prohibition of discrimination

Japanese civil law has a fundamental principle called the "principle of freedom of contract." This is a basic principle that allows individuals to freely decide who they contract with and what the terms of their contracts are.

For example, the price at which apples are sold or bought in a supermarket can be freely determined between the individuals involved (sales contract).

Similarly, in real estate contracts, landlords are free to decide who they rent to and for how much rent. Conversely, they are also free to decide who they *won't* rent to. Of course, tenants are also free to choose what kind of room they rent.

This is the "principle of freedom of contract."

However, even with the "principle of freedom of contract," a landlord refusing to enter into a real estate contract simply because the tenant is a "foreigner" is not permitted due to human rights issues.

While Japanese law does not include laws like those in Europe and the United States that prohibit refusing a contract on the grounds of nationality, the Ministry of Land, Infrastructure, Transport and Tourism has issued a warning in its guidelines stating that "refusing tenancy on the grounds of being a foreigner may constitute unfair discrimination."

Legal interpretation

• Landlords are free to decide who they rent their rooms to. However, refusing to enter into a contract simply because someone is a foreigner is unfair discrimination and is therefore not permitted.

Cases where landlords were ordered to pay damages

Actual court cases have clearly shown that refusing entry to foreigners is discriminatory and constitutes an illegal act.

Case Law 1:

A foreigner applied to rent an apartment in Kyoto. However, the landlord refused the contract simply because the applicant was a foreigner. The court ruled that this action was "unreasonable discrimination that goes against the spirit of the Constitution and is unacceptable, as it is based solely on nationality," and ordered the landlord to pay 1 million yen in damages, including 1 million yen in compensation for emotional distress and 100,000 yen for legal fees, totaling 1.1 million yen .

Case Law 2:

In another case, the issue was that a real estate agent stated, "We do not act as an intermediary for nationals of country X." While the court did not recognize the formation of the lease agreement itself, it found the statement discriminatory and awarded 100,000 yen in damages for emotional distress and 10,000 yen in legal fees for the infringement of personal rights.

Because of this ruling, you shouldn't see properties advertised as "No Foreigners Allowed" on regular real estate websites or rental property listing sites.

What are "legitimate reasons" other than nationality?

What became clear in court was that a contract cannot be refused solely on the grounds that the person is a foreigner, but refusing a contract for a "legitimate reason" other than nationality is not a problem.

Examples of legitimate reasons for refusing a lease agreement

1. Insufficient ability to pay/insufficient credit: This applies when it can be reasonably determined that the tenant is unable to pay the rent (e.g., insufficient proof of income or problems with credit information), or when there have been past issues such as rent arrears.
2. Cases where there is a risk of non-compliance with the contract: This includes situations where there is a high probability of non-compliance with contractual obligations, such as noise problems or nuisance behavior, or where violations of laws and regulations or serious nuisance to neighboring residents are anticipated.
3. Cases where the intended use is unsuitable: For example, applying for commercial use of a residential property, or any other case where the purpose of the contract does not match the intended use of the property.
4. If the number of occupants or family composition exceeds the property's regulations: For example, applications exceeding the legally mandated occupancy limit.

If there are reasonable and specific reasons, the landlord can refuse to enter into a lease agreement. The important thing is that "nationality is irrelevant."

Even if you are Japanese, your contract may be refused for these reasons, and conversely, being a foreigner is not a valid reason.

While a landlord cannot refuse to enter into a contract simply because you are a foreigner, in practice, it is possible for a landlord to refuse to enter into a contract after an application has been submitted, citing various reasons.

In other words, they hide the fact that the person is a foreigner and refuse to sign a contract under a different pretext. For the reasons explained above, there are indeed landlords who are reluctant to rent to foreigners.

For foreigners to successfully rent their desired room, a concrete approach is needed to address the concerns of the landlord.

Proof of ability to pay

The landlord's biggest concern is the tenant's ability to pay rent. They may not say it out loud, but in their minds they might be worried, "Will this foreigner really pay their rent on time every month?"

The most effective way to alleviate those concerns is to demonstrate your ability to pay.

Specifically, you should prepare the following documents:

• Certificate of Employment: A document listing the name of the company where you work, your department, employment type, and length of service. Being able to submit it in Japanese provides peace of mind.
• Proof of income (pay stubs or withholding tax statements): If you have pay stubs for the past three months or withholding tax statements from the previous year, please submit them. This will demonstrate that you have a stable income.
• Bank statement: Showing that you have a balance sufficient to cover several months' rent demonstrates confidence in your ability to pay in the short term.
• Residence Card and Status of Residence: By presenting a valid residence card and a stable status of residence (such as a work visa, long-term resident, or permanent resident), you can demonstrate your intention and stability to stay long-term.
• Using a joint guarantor or rent guarantee company: Having a Japanese guarantor or using a guarantee company is seen as a way to prepare for potential risks.

Familiarity with Japanese rental customs and rules

Landlords are also concerned about problems that tenants might cause. If you can prove that you don't pose such a risk, the landlord will feel more at ease renting you a room.

Specifically, please try the following:

• Explain that you understand the rules regarding garbage disposal, noise levels, etc.
• Even if it's broken Japanese, showing sincerity by greeting them in Japanese will make a good impression on your landlord.
• Ask your Japanese supervisor or other colleagues at work to write a letter of recommendation. Have a third party verify that you are a trustworthy person.
• If you have experience living in Japan, please demonstrate that. Having lived there without any problems so far will be a great source of reassurance.

It can be challenging for foreigners living in Japan for the first time, but the important thing is to demonstrate that you understand the rules and customs of Japanese rental housing.

Such an attitude will help reassure your landlord and earn their trust.

Key points for choosing a property: How to find a property that welcomes foreigners

Looking for properties that are easy for foreigners to rent from the start is a very practical approach.

Here's how to find properties that welcome foreigners:

• Use a real estate company or brokerage specializing in foreigners: For example, Mooovin is a rental information portal site exclusively for foreigners. The properties listed on this site are unlikely to be "foreigners not allowed."
• Consider areas with a large foreign population: Even when using a regular real estate agent, you'll likely find more properties that welcome foreigners in areas with a high concentration of foreign residents.
• Utilize company housing or provided properties: Some companies offer company housing or introduce you to affiliated rental properties. Inquire with your prospective employer.
• Utilize local government consultation services: Some local governments have established services to introduce rental properties to foreigners (e.g., Kanagawa Foreigner Housing Support Center ). Please inquire with the local government in your desired area.

Finally, we've compiled a list of frequently asked questions and answers from foreigners looking for rental housing in Japan.

Q1: Can I rent an apartment with a tourist visa?

Rental agreements in Japan are typically based on long-term contracts of two years or more. Therefore, it would be difficult to rent a regular apartment or condominium with a short-term visa such as a tourist visa. Also, as a practical matter, apartments and condominiums in Japan generally do not come furnished with furniture or appliances. It would not be realistic to acquire such items during a short-term stay.

Q2: Are there any properties available for short-term stays?

Yes, there are. For example, there are weekly and monthly apartments that can be rented on a weekly or monthly basis. These properties often come furnished with basic furniture and appliances, making them suitable for short-term stays.

Q3: If I use a guarantee company, am I guaranteed to be able to rent a room?

Using a guarantee company can make it easier to pass the screening process without having to provide a co-signer. However, the screening criteria are not limited to just that; factors such as the stability of your job and income in Japan are also important, so it's not a guaranteed solution.

Q4: What documents are required when signing a contract?

The documents generally required when a foreigner enters into a rental agreement are as follows:

• Residence Card: This card proves your legal stay in Japan.
• Passport: Required for identity verification.
• Certificate of Status of Residence or Certificate of Eligibility for Employment: This indicates the type of visa and whether or not you are eligible to work.
• Documents proving income: employment contract, certificate of employment, pay stubs, etc.
• Student ID: May be required for international students.
• Employer information: Company name, contact information, etc.
• Emergency contact information within Japan: Information of people you can contact, such as friends or colleagues.
• A mobile phone number usable in Japan is required for contact purposes.
• Seals and seal certificates: In Japan, it is common to use a seal instead of a signature. A registered seal and its certificate may be required.

Having these documents ready in advance will ensure a smooth contract process.

For more detailed information on how foreigners can successfully sign rental agreements in Japan, please see " Successfully Signing Rental Agreements in Japan! A Guide to Real Estate Screening Criteria for Foreigners ."