Rental Rejection and Move-In Requirements—Explaining the Boundaries of Age, Nationality, and Occupation Discrimination and Their Legal Basis
Have you been rejected from renting properties because you're foreign, elderly, or in an unstable occupation? This article explains the legal standards for rental screening, the boundaries between lawful criteria and illegal discrimination, and where to seek help if you face unfair treatment.
Many of you may have experienced being turned down with reasons like "We cannot accept foreign nationals," "Elderly residents are not eligible," or "We cannot rent to people in certain occupations." At the same time, landlords also have legitimate concerns related to property management. This article clarifies the legal boundaries of rental rejection and explains how to respond if you face unfair discrimination.
Legal Position of Rental Screening
Rental agreements are contracts under civil law, and landlords are generally granted the freedom to choose their contracting parties. However, Japan also has constitutional and statutory anti-discrimination provisions, and rental rejections based on certain attributes can raise legal issues.
The following forms of discrimination are explicitly prohibited under current law:
Discrimination Based on Nationality, Ethnicity, or Race: Based on international treaties (Convention on the Elimination of All Forms of Racial Discrimination) and the principles of laws against discrimination toward foreign nationals, outright rejections based solely on nationality or ethnicity are considered socially unacceptable discriminatory acts. While legal enforcement varies by specific statute, real estate practitioners may violate ethical provisions under the Real Estate Agents Law.
Discrimination Based on Gender, Sexual Orientation, or Disability: In line with the spirit of the Equal Employment Opportunity Act for Men and Women, rejections based solely on gender are problematic. For people with disabilities, providing reasonable accommodations became mandatory from April 2024 (Amendment to the Act on Elimination of Discrimination against Persons with Disabilities), and rejecting them from renting without valid reasons can constitute discriminatory treatment.
Lawful Screening Standards
In contrast, the following screening standards are generally considered lawful:
Income and Payment Ability Screening: Verifying that a tenant can stably pay rent is a valid screening criterion. It is permissible to check whether income is at least three times the monthly rent and whether the employment situation is stable.
Joint Guarantor or Guarantor Company Requirements: Requiring a joint guarantor or guarantor company as backup for potential rent default is generally a lawful condition.
Occupancy Limits and Use Restrictions: Limiting occupancy if the number of residents exceeds what is appropriate for the property size, or restricting non-residential uses (office use, short-term rentals, etc.), is lawful.
Pet and Instrument Restrictions: Reasonable restrictions on how the property is used are permitted.
The Issue of Rejecting Elderly Residents
Rejection of elderly residents from rental properties is currently a serious social issue in Japan. Many cases involve rejection based on reasons such as "elderly residents carry the risk of solitary death," "their bodies may not be discovered promptly," or "they lack personal guarantors."
However, outright age-based rejection is difficult to justify as lawful screening. The Ministry of Land, Infrastructure, Transport and Tourism has established "Guidelines on Securing Housing for Elderly Residents" and expects reasonable measures.
Solutions for elderly residents include seeking properties with "monitoring services," utilizing rent guarantee services from the "Japan Housing Finance Agency," or looking for properties offering "lifetime building rental agreements."
Accommodating Foreign Residents
Rejections of foreign nationals from rental properties often stem from concerns about communication or cultural differences, and risks of loss of contact. Blanket rejections based on such reasons can constitute discriminatory treatment.
The Ministry of Land, Infrastructure, Transport and Tourism has formulated "Guidelines for Facilitating Access to Private Rental Housing for Foreign Nationals," urging real estate companies to treat foreign residents appropriately. Additionally, using guarantor companies specializing in foreign nationals (such as GTN and Casa Japan) can help lower screening hurdles.
What to Do If You Face Rental Rejection
If you believe you've faced unfair rental rejection, you can contact the following organizations:
Real Estate Transaction Council (RETIO): This organization handles complaints about real estate transaction disputes. You can lodge complaints or reports about unfair treatment by real estate practitioners.
Prefectural Real Estate Administration Offices: For discriminatory treatment by real estate companies, you can consult or file complaints with your prefectural construction or housing divisions.
Ministry of Justice Human Rights Consultation: For discrimination involving human rights violations, you can contact the Legal Affairs Bureau's Human Rights Consultation Hotline (tel. 0570-003-110).
Local Consumer Affairs Centers: You can seek advice on any housing-related disputes.
Rental rejection is a complex area where landlord property rights and tenant housing freedom intersect. Understanding the boundary between lawful screening standards and discriminatory treatment, and knowing how to protect your rights, will help you search for housing with confidence.
Rental contracts in Japan typically require guarantors or guarantor companies. This guide explains the differences between joint guarantors and guarantor companies, how to rent without a guarantor, and which guarantor companies accept foreign nationals.
