How to Screen Tenants in Japan: A Landlord’s Complete Checklist
After managing my own rental units for over a decade, I’ve learned that the single most important decision I make as a landlord happens before a tenant ever moves in. Choosing the wrong person costs me money, time, and stress. Choosing the right one means smooth rent collection, fewer repair calls, and a property that stays in good shape. Here’s the complete screening process I use for every applicant.
Understand the Japanese Rental Application System
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In Japan, the standard rental process runs through a real estate agent (fudosan-ya), but if you’re self-managing, you’ll often collect the application documents yourself. The typical package includes:
- A completed rental application form (nyuukyosha moushikomisho)
- Proof of income u2014 usually a gensenchoshuu-hyou (withholding tax slip) or direct bank statement showing three to six months of deposits
- A copy of the applicant’s ID (driver’s license, residence card, or My Number card)
- Contact details for a guarantor (hoshounin) or enrollment in a guarantee company (hoshougaisha)
- In some cases, proof of employment from the company’s HR department
Since the early 2020s, guarantee companies have become the norm rather than relying on a personal guarantor. This is actually good news for landlords u2014 they provide a buffer if rent goes unpaid and handle the awkward collections process on your behalf.
Income and Employment Verification
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My personal rule: the monthly rent should not exceed one-third of the applicant’s gross monthly income. If the rent is 80,000 yen, I want to see income of at least 240,000 yen per month. For part-time workers, contract employees, or freelancers, I look at the last six months of bank statements to judge stability. A self-employed applicant with wildly fluctuating income is a different risk than a salaried employee at a large company.
Things I specifically look for on income documents:
- Consistency u2014 is the income steady, or are there large gaps?
- Length of employment u2014 someone who just started a new job two months ago is higher risk than someone with three years at the same company
- Type of employment u2014 full-time (seishain) is lowest risk; short-term contract (haken or keiyaku) is medium; part-time or freelance requires closer scrutiny
Reference Checks and Guarantor Evaluation
Even when I use a guarantee company, I still contact the listed workplace to confirm basic employment. I ask simple questions: Does this person work there? What is their general work schedule? It’s not an interrogation u2014 just a sanity check. Most HR departments will confirm employment without sharing salary details.
If an applicant is using a personal guarantor instead of a guarantee company, I evaluate the guarantor just as carefully as the tenant. The guarantor’s income, age, and relationship to the applicant all matter. A guarantor who is elderly and retired, or who lives far away and barely knows the applicant, isn’t much protection.
Red flags I watch for during reference checks:
- The workplace phone number doesn’t match what a quick search returns
- The guarantor hesitates or seems surprised to have been listed
- The applicant becomes evasive when asked basic questions about their move-in reason
The In-Person Interview: What I’m Actually Evaluating
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I always meet applicants in person before finalizing anything. This isn’t just about politeness u2014 I’m watching for things documents can’t show. Are they on time? Do they treat the space respectfully during the showing? Do they ask reasonable questions about the property, or do they immediately push for lower rent and extra concessions?
I also pay attention to how they talk about their previous living situation. Someone who left their last place on bad terms with the landlord may repeat that pattern. Someone who speaks respectfully about their former home and takes care to explain why they’re moving is usually a better bet.
One thing I’ve added to my process is a straightforward question about why they chose this particular unit. Applicants who have thought carefully about whether the location, layout, and price suit their life tend to stay longer and cause fewer problems. Applicants who seem indifferent and are just taking whatever is available often move out within a year.
Final Decision and Documentation
Once I’ve reviewed all documents and met the applicant, I make my decision within 48 to 72 hours. Dragging it out isn’t fair to the applicant, and good tenants have other options. If I decline, I keep my reason general and documented u2014 in Japan, you must not discriminate based on nationality, age, or family status, and you should be able to show that your rejection was based on financial or practical grounds.
When I accept, I send a formal acceptance notice (nyuukyo shodaku tsuchi) and move straight into lease preparation. The screening process isn’t the fun part of being a landlord, but it’s the part that determines whether the next two or three years will be smooth or stressful. I take it seriously every single time.
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15 years of landlord experience u00b7 3 apartment buildings u00b7 DIY renovations that saved millions of yen. Browse all articles at diytosan.com
