How Rental Lease Approval Works and How to Increase Your Pass Rate
What do rental lease approval examiners look for? This expert guide explains income requirements, the guarantor company review process, and common rejection reasons from the perspective of a real estate professional—and provides thorough guidance on preparation and strategies to increase your approval odds.
The Purpose of Lease Approval and Differences in Review Bodies
When you apply for a rental property, you'll always go through a "lease approval" review. The property owner, management company, and guarantor company each examine the applicant's information to decide whether to approve tenancy. The review serves two core purposes: determining whether you can reliably pay rent on time, and assessing whether you'll be a good neighbor.
The Review Structure Has Three Layers
Guarantor Company Review: The rental guarantor company (also called a guarantor service) verifies the applicant's credit information, income, and employment. Most properties require this, and if you fail this stage, you cannot proceed to the lease agreement.
: The real estate management company makes an overall assessment based on your application and the guarantor company's results. They also verify your fit with the property's occupancy requirements (such as employment type and household composition).
Owner Approval: In many cases, the property owner has final approval. Especially in owner-managed properties, personal and subjective judgment may come into play.
The review typically takes 2 to 7 business days. Because the guarantor company needs to check your credit information, the process can take longer if weekends fall in between.
Main Items Reviewed During Approval
Income-to-Rent Ratio (Rent Multiplier)
The most heavily weighted factor is the ratio between your income and rent. The standard guideline is "monthly income should be at least three times the monthly rent." For example, for a ¥100,000 per month rental, you should earn at least ¥300,000 per month (¥3.6 million per year). Even part-time workers and temporary staff can pass if their income is stable, but you'll typically need to provide proof of income (tax withholding certificate, pay stubs, or tax return).
Occupation and Employment Status
For approval purposes, occupations are ranked roughly as follows: "civil servants and large-company employees > small-to-medium company employees > contract and temporary workers > part-time workers, self-employed, and freelancers." For freelancers and self-employed individuals, concerns about income volatility are common, so providing 2–3 years of tax returns to demonstrate stable income is effective.
Credit Information (Credit Card and Payment History)
Guarantor companies are members of credit information organizations like CIC, JICC, and LICC (National Rental Guarantee Associations), and can access your history of credit card delinquencies, mobile phone installment payment defaults, and previous rent non-payments. If you're on a "blacklist" (have negative marks on record), passing approval becomes very difficult. Such negative marks typically disappear after 5–10 years, but applying while they're still active requires careful consideration.
Employment Verification Call
The guarantor company may call your workplace to verify your employment. If your contact person is unavailable or the company says "we have no such employee," it will hurt your approval chances. After applying, it's wise to give a heads-up to your workplace's reception desk.
Difficult Cases and How to Handle Them
Solution 1: Low or Unstable Income
If your monthly income is less than three times the rent, the most realistic solution is to look for a more affordable property. If you're determined to apply for your desired property, consider these approaches:
•Get a Joint Guarantor: Having a family member (especially a parent or sibling with stable income) serve as your joint guarantor can make it easier to pass approval.
•Show Savings or Assets: Some management companies are flexible if you have substantial savings (for example, equivalent to 24–36 months of rent) even if your income is lower.
•Offer a Larger Security Deposit: In some cases, putting down a larger security deposit than usual can lower the approval bar.
Solution 2: Self-Employed or Freelancer Status
Submit your tax returns (the most recent 2–3 years). File accurately using standard or blue tax reporting, and avoid over-aggressive tax strategies that make your income look too low—this matters long-term. If your income appears low, it's effective to negotiate submitting bank statements (showing balance and deposit history) as supporting documents alongside your income proof. As of 2026, as the freelancer population grows, more guarantor companies are offering freelancer-friendly options, so applying through a company that specializes in freelancers is another avenue.
Solution 3: Foreign Nationality
While outright rejection based solely on being foreign is discriminatory and unacceptable, practical hurdles such as "language support concerns" or "residency period restrictions" can affect approval. Prepare a residence card, work visa, employment certification, and a joint guarantor who can communicate in Japanese. Also consider working with a real estate company or guarantor company with experience serving foreign residents (for example, GL or other foreign-focused specialists).
Application Document Checklist
The documents required vary by property and guarantor company, but here's a list of what's generally needed.
Identity Documents
•Driver's license or passport (My Number Card if neither is available)
•Residence card if you're a foreign national
Proof of Income (Any One)
•Tax withholding certificate (previous year)
•Pay stubs (most recent 2–3 months)
•Tax return (for self-employed or freelancers, most recent 2–3 years)
•Job offer letter (if you haven't started yet)
Other Documents
•Health insurance card (to support employment verification)
•Joint guarantor's ID and proof of income (if required)
Missing or incomplete documents can stall the process and cause you to miss your desired move-in date. Before applying, ask your real estate agent for a complete "required documents list."
After Rejection: Next Steps
If your application is rejected, you typically won't be told the specific reason (for privacy reasons). However, understanding common patterns can help you plan your next move.
Common Rejection Reasons and Solutions
Cause
Solution
Low income
Add a joint guarantor, increase security deposit, or look for a cheaper property
Negative credit marks
Request a credit report, wait for marks to disappear, then reapply
Employment verification unsuccessful
Notify your employer in advance and provide supporting documents like a health insurance card
Self-employed or unstable income
Use tax returns and bank statements to demonstrate income stability
Owner's subjective judgment
Switch to a property managed by a larger management company
After a rejection, aim to apply for another property within 1–2 weeks. Waiting longer risks your desired area filling up. Additionally, applying to multiple properties at once isn't standard practice, so prioritize and work through them one by one carefully. Don't give up—adjusting your criteria and persisting is the fastest path to landing your ideal place.
How Freelancers and Self-Employed Can Pass Rental Screening — Income Documentation and Approval Tips
Despite having stable income, freelancers and self-employed individuals often struggle with rental screening. We explain the key points examined during screening and concrete strategies for preparing documents and negotiating to increase your chances of approval.
