Rental Scams in Japan & Fake Listings

Beyond so-called "bait-and-switch" listings, Japan's rental market also contains outright fraud involving non-existent properties and scams designed to steal upfront fees. In recent years, rental fraud via SNS and peer-to-peer marketplaces has been on the rise, making newcomers and foreign nationals particularly vulnerable targets. This article explains the most common rental fraud tactics and how to protect yourself.

Common Rental Fraud Tactics

1. Phantom Property Scams (Listing Non-Existent Apartments)

Scammers post photos and information about non-existent apartments on SNS platforms (X, Instagram, Facebook, etc.) and peer-to-peer sites (Craigslist, Jiji.com, etc.), then request money from interested parties under the guise of a "reservation deposit," key money, or security deposit.

How to Identify Them:

• •Rent significantly below market rates (50–70% below standard prices)
• •Pressure to skip viewings with phrases like "No viewing needed—just send the money and it's yours"
• •Requests for payment to a personal bank account, bypassing a licensed real estate agency
• •Photos sourced from foreign websites (verifiable via reverse image search)

2. Impersonation of Licensed Real Estate Agents

This scam uses fake websites that impersonate legitimate real estate agencies or forge/misuse official real estate licensing numbers (issued by prefectural governors or the Ministry of Land, Infrastructure, Transport and Tourism).

How to Identify Them:

• •Verify the real estate license number using the Ministry of Land, Infrastructure, Transport and Tourism's "Real Estate Broker Information Search System"
• •No official seals or stamps on contracts and no delivery of important notice disclosures
• •The agent avoids in-person meetings and communicates only via email or SNS

3. Bait-and-Switch Listings

This occurs when agents deliberately continue to list properties marked as "already leased" on portal sites, then redirect interested inquiries to different properties. While technically a violation of the Real Estate Brokerage Law (rather than outright fraud), some cases also involve stealing upfront fees.

Essential Rules for Safe Apartment Hunting

Use Reputable Real Estate Agencies and Portal Sites

Listings on major portal sites such as SUUMO, LIFULL HOME'S, at home, and Chintai Smocca undergo basic vetting. Additionally, using a licensed real estate agency with a physical location is your strongest defense.

Never Sign a Contract Without Viewing the Property

Be wary of agents who push you to skip viewings with excuses like "You're too far away to view" or "You'll lose it if you don't commit right now." Legitimate agencies always provide in-person viewings (or 360-degree virtual tours).

Request Disclosure of Important Notices Before Making Payment

Under the Real Estate Brokerage Law, a licensed real estate agent must provide and explain the "Important Notice Disclosure" before signing a contract. If this document is absent, the transaction is illegal and fraud is highly likely.

Verify That Payment Accounts Are in the Agency's Name

If you're asked to pay upfront fees to a personal account (such as an individual's name), suspect fraud immediately. Legitimate real estate agencies and guarantor companies always use corporate accounts.

What to Do If You Fall Victim to a Rental Scam

1. Report to Police (110 or your nearest police box): Bring documentation of the amount transferred, the recipient account number, and screenshots of your communications.
2. Contact the Consumer Affairs Agency Hotline (188): Report information about the fraudulent business and seek advice.
3. Contact the Recipient Bank Immediately: If you notice quickly, contact the bank where the payment was sent and request account freezing as a fraud victim (the sooner the better—rapid action increases the chance of recovery).
4. Consult the National Consumer Affairs Center (0120-797-188): For additional support and advice.

Summary

If you encounter three red flags—rent below market rates, pressure to skip viewings, and requests to pay a personal account—be suspicious. Although it takes extra effort, following proper procedures (in-person viewings, receiving important notice disclosures, and paying corporate accounts) is your best defense. If anything feels off, don't hesitate to walk away from the deal.