Why Rental Applications Get Rejected and How to Pass the Screening—Impact of Income, Guarantors, and Credit Information

What Is Rental Application Screening?—Who Checks What

After you submit an application for a rental property, the landlord, management company, and/or guarantor company will conduct a screening to confirm whether you will pay rent reliably and live without causing problems. The evaluation is based mainly on three perspectives:

1. Ability to pay rent (income and employment status)
2. Credit information (history of rent arrears or loan payment defaults)
3. Personal factors (application form accuracy and impression during interaction)

Increasingly, guarantor companies (rental guarantee companies) are the primary screening body, not just the landlord or management company. Guarantor companies maintain their own databases to cross-reference past payment defaults.

Common Reasons Screenings Are Rejected

1. Income Below the Required Threshold

The most common rejection reason is insufficient income. The general guideline is that your monthly income should be at least 3 times the monthly rent, or your annual income at least 36 times the monthly rent. For example, if the rent is ¥80,000 per month, you need a monthly income of at least ¥240,000.

If your income is unstable—such as when you're a part-time worker, temporary staff, freelancer, or student—the screening will be stricter. However, you may still pass by providing a family member as a joint guarantor or submitting proof of savings.

2. Adverse Information in Your Credit History

Most guarantor companies are members of information agencies such as LICC (National Rental Guarantee Association) or CGO (Credit and Finance Corporation), where past rent default information is shared.

Credit card and loan default information is shared through agencies such as CIC, JICC, and the Japan Bankers Association. If you have adverse information on these records, it will affect your screening. Adverse information typically stays on record for 5–7 years.

3. Incomplete or False Information on the Application

If your stated income or employer differs from reality, it will be discovered during employment verification and cause rejection. Applications with many blank fields may also be seen as lacking sincerity.

4. Non-Japanese Nationality or Short Residence Period

In Japan, foreign nationals may face stricter screening. Your residence status type (whether you hold a work visa) and the remaining duration of your stay will affect approval. Choosing properties that work with foreign-friendly guarantor companies (such as Zenpo or Foresees) will improve your chances of approval.

5. History of Eviction or Rent Arrears

If you're on a guarantor company's blacklist, you won't pass screening at properties using that company's affiliated network. In this case, you'll need to look for properties that use independent guarantor companies not part of the network, or properties relying on landlord guarantee (personal guarantees only).

Strategies to Pass the Screening

If Your Income Is Low or Unstable

• •Provide a family member as a joint guarantor
• •Submit proof of your savings account balance
• •Choose a property with lower rent (aim for rent that is 25–28% or less of your monthly income)
• •Apply after your employment becomes stable (ideally at least 6 months after starting work)

If You're Concerned About Your Credit Information

• •Request your credit report from CIC or JICC to check your current status (costs approximately ¥1,000 per agency)
• •Reapply once adverse information has been cleared (it's safer to wait 1–2 years after clearance)
• •Actively seek properties that use independent guarantor companies

For Foreign Nationals

• •Choose properties that welcome foreign tenants and have foreign-tenant support
• •Quickly submit your residence card and employment certificate
• •Provide a Japanese character reference (such as your supervisor or university professor)
• •Choose a real estate agency with staff from your country for peace of mind

Increase Application Accuracy

• •Fill out every field with no blanks and write neatly
• •Obtain permission from your emergency contact and guarantor in advance, then enter their information accurately
• •Keep in mind that your courtesy, appearance, and manner of speaking during the property viewing may also be evaluated

What to Do If Your Screening Is Rejected

Rejection reasons are typically not disclosed. However, if you politely ask the agent which conditions were problematic, they may provide some hints.

Reapplying to properties with the same guarantor company in a short time may be viewed as a "red flag," so wait a bit longer or choose properties with a different guarantor company. The quickest path forward is to consult with multiple real estate agencies and ask them to suggest properties with different screening criteria.

A comprehensive guide explaining the steps foreign nationals take to secure a rental contract in Japan. Covers required documents, screening criteria by visa status, how to choose a guarantor company, and tips for passing occupancy screening—usable from before arrival in Japan.