Prioritization when your application is rejected
If you're failing rental application screenings, blindly applying to properties is counterproductive. The key is to understand the points that are looked at during the screening process and to correctly prioritize "where to start making changes." In particular, rent setting, guarantee conditions, and property type greatly influence the screening results. By adjusting the elements with the greatest impact first, you can efficiently increase your chances of passing the screening.
The top priority is to review the "rent setting (within X% of net income)".
The most important factor in rental application screening is the "balance between rent and income." Generally, rent should be within 30% of net income; exceeding this amount is likely to be seen as a sign of a lack of ability to pay.
For example, if your take-home pay is 200,000 yen, a rent of around 60,000 yen is a safe range. If you have been rejected for an apartment before, your top priority should be to lower your rent by "compromising a little on the distance from the station," "expanding on the age of the building," or "reconsidering the floor area."
In many cases where applications are rejected even after submitting proof of income, the problem lies in the initial rent setting. Therefore, the quickest way to pass the screening process is to adjust the rent to a manageable amount.
Next, rearrange the "guarantee (guarantee company/joint guarantor/contract holder)".
If you still can't pass the screening process even after reviewing your rent settings, you'll need to reconsider your guarantee arrangements. While it's common to use a guarantee company in current rental agreements, each company has different screening criteria, and you may have difficulty passing depending on your past payment history and employment status.
In that case, it is advisable to consult with the real estate company to see if it is possible to change to a different guarantee company. Also, in many cases, the application can be approved by having a relative with a stable income act as a co-guarantor, or by switching to an agency agreement or corporate agreement where a parent or company is the contracting party. Guarantee conditions are a flexible element that can be rearranged, so it is important not to give up and to keep trying to make adjustments.
Finally, switch to the "Property Type (a property that is relatively easy to get approved for)."
If the application process is still difficult even after adjusting the rent and guarantee conditions, consider switching to a different type of property. For example, UR rentals and public housing have different application criteria than private rentals, and in some cases, you can move in without a guarantor. Also, shared houses, furnished apartments, and monthly apartments tend to have relatively flexible application processes.
Especially right after changing jobs or during periods of unstable income, securing temporary housing in such properties and then searching for rentals again once your situation has stabilized is a realistic option. It's important not to be fixated on passing the screening process and to be open to changing your housing arrangements.
What is a rental application screening process? When, who, and why is it done?
A rental application screening process is a procedure to determine in advance whether a prospective tenant is suitable for renting a property. The screening is conducted immediately after application, and its main purpose is to prevent risks such as rent arrears and other problems. Understanding the screening process, the body that makes the judgment, and the points that are checked will help you understand why you might fail the screening and make it easier to take preventative measures.
This section explains the application process for rental properties.
Tenant screening process
The rental application process generally follows this flow: "Application → Screening → Notification of Results → Contract."
- First, fill in information such as your employer, income, and guarantor on the application form.
- Submitted to the property management company, landlord, and guarantee company through the real estate company.
- After that, your income, credit information, and guarantee conditions will be checked, and if there are no problems, the results of the review will be available in one to several days.
You may be asked to submit additional documents, and it's important to note that delays in responding can prolong the review process. To ensure a smooth process, it's crucial to have all necessary documents ready before applying.
Who will be doing the judging?
Tenant screening isn't handled by just one organization. In most cases, the landlord, property management company, and rent guarantee company are involved. Recently, using a guarantee company has become mandatory in many cases, and the guarantee company often makes the final decision. The guarantee company focuses on the applicant's income and credit information, primarily assessing their ability to repay.
On the other hand, landlords and property management companies make their decisions based on factors such as the applicant's personality, compatibility with the property, and past risk of problems. Therefore, it's important to understand that the impression you get from interacting with and dealing with the real estate company will indirectly influence the screening results.
Four points that are considered during the review process
The four main points considered during the rental application screening process are "income," "credit history," "guarantee," and "personality."
- First, it is important to consider whether the rent is within 30% of your take-home pay.
- Next, your credit information, such as your history of defaulting on credit cards or loans, will be checked.
- Furthermore, whether the conditions for a co-signer or guarantee company are met is also a major factor in the decision.
- Finally, personality and manners demonstrated through interactions with real estate companies and property management companies are also evaluated.
Identifying your concerns regarding any of these four points is the first step in preparing for the review process.
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Documents and information required for the tenant screening process
During the rental application screening process, applicants are required to submit multiple documents and pieces of information to verify their identity and ability to pay. Missing or incomplete documents can delay the screening process or negatively impact your application. Identity verification, employment verification, and income verification are particularly important, and preparing these in advance will ensure a smoother application process.
This chapter will introduce the documents and information required for the tenant screening process.
Things related to identity verification and employment verification
For identity verification, you will be required to submit official identification documents such as a driver's license, My Number card, or passport. This verifies that the applicant is a real person.
Additionally, as part of employment verification, you will be required to provide the name, address, and contact information of your employer on the application form, and a phone call may be made to your employer if necessary. You may also be asked to submit your employee ID or health insurance card, so it is advisable to have documents that can prove your employment ready, especially if you have recently changed jobs or have a short tenure at your current company. Providing false information will result in your application being rejected, so it is important to fill in accurate information.
Proof of Income
During the tenant screening process, you will be required to submit proof of income to determine if you can reliably pay the rent. For company employees, this typically includes a withholding tax statement or pay stubs for the past few months.
For sole proprietors and freelancers, you will need to submit tax returns, tax payment certificates, and documents showing your sales trends. Even part-time workers may pass the screening process if they can demonstrate a consistent income. If your income is unstable, remember that you can supplement your proof of ability to pay by submitting a copy of your bank statement showing your savings balance.
Items that are often overlooked on application forms
The application form for tenancy includes many items to verify besides income and employment details. Particularly often overlooked are emergency contact information, information about cohabitants, and the purpose of tenancy. If the emergency contact is not a relative, this may be considered a cause for concern.
Additionally, if you have cohabitants, you must accurately state their relationship and the number of people living with you. Incomplete or ambiguous information may lead to further verification or delays in the review process. Since the application form is treated as "review material," accurately and carefully filling in all the facts without leaving any blanks is key to increasing your chances of approval.
Common examples of people who fail rental application screenings
There isn't usually just one reason why someone might fail a rental application screening; in most cases, it's a combination of several factors. In particular, the balance between income and rent, employment status, credit history, guarantee conditions, personality, and usage history all significantly influence the screening outcome.
This section explains common reasons why applications are likely to be rejected, so you can identify which category you fall into.
Rent does not match income.
The most common reason for failing a loan application is an imbalance between rent and income. Generally, rent should be no more than 30% of your net income; exceeding this amount makes you more likely to be considered a high risk of rent arrears. Even if you are a full-time employee, you are quite likely to fail the application process if your rent is too high.
Some people apply expecting bonuses or side income, but it's important to note that projected income is not given much weight in the screening process, as the focus is on whether you can make stable monthly payments.
Short employment status or length of service / Unstable income
Employment type and length of service are also important factors in the tenant screening process. If you have recently changed jobs and have a short length of service, or if you are a temporary worker, contract worker, or part-timer with fluctuating income, you are more likely to be seen as having an uncertain future ability to pay.
Furthermore, for sole proprietors and freelancers, significant fluctuations in income tend to lead to stricter scrutiny. However, having stable clients and being able to submit tax returns for the past several years can sometimes improve the evaluation.
History of defaulting on rent, loan payments, and credit card payments
Having a history of defaulting on rent, loan payments, or credit card payments will significantly impact your application. This information is shared with guarantee companies as credit information, and a history of defaults is often seen as a sign of high payment risk.
Even a single late payment from several years ago can result in your application being rejected, depending on the circumstances. It's important to understand that even if you're currently making payments without issue, your credit history will remain on file for a certain period.
I have a lot of debt / I use a lot of revolving credit and installment payments.
The total amount of debt and payment history are also considered during the review process. In particular, if you frequently use revolving credit or installment payments, you may be judged as having high monthly fixed expenses and therefore a low ability to pay rent.
Having debt doesn't automatically mean you'll be rejected, but if your repayment amount is high relative to your income, it will be a disadvantage. Paying off or settling any outstanding revolving credit balances before the rental application review can potentially increase your chances of approval.
Unable to provide a guarantor or emergency contact.
Failure to provide a co-signer or emergency contact can also be a reason for failing the screening process. Even when using a guarantee company, an emergency contact is almost always required. If the only contact is a friend and not a relative, this may be seen as a cause for concern.
Furthermore, the screening process tends to be stricter if the co-signer does not have a stable income or is too elderly. Since guarantee conditions can be flexibly reviewed, it is important to consult with the real estate company.
Incomplete or false information in the application
If there are any deficiencies or falsehoods in the information you provide on your application form, you may fail the screening process. Not only are there omissions and typos, but any attempt to exaggerate your workplace or income will severely damage your credibility once discovered.
Since accuracy and consistency are highly valued in the review process, inconsistencies in information across documents will result in a negative evaluation. Always review your application form and ensure that the facts are accurately recorded.
Concerns about personality and communication skills.
It's often overlooked, but personality and communication skills also influence the screening process. Arrogant behavior, slow responses, and failure to keep promises when dealing with real estate companies or property management companies can lead to the conclusion that "there are concerns about potential problems after moving in."
Landlords and property management companies also look to see if you are someone they can trust to rent to for a long period of time. Simply being polite and sincere in your interactions can make a big difference in the impression you make.
Troubles are anticipated regarding cohabitants, purpose of use, etc.
Applications may be rejected if the number and relationship of cohabitants, or the purpose of using the property, are unclear. For example, the possibility of undeclared cohabitants or suspicion of office use or subletting poses a significant risk to the landlord.
Concerns are also raised if the intended use of the property deviates from the contract terms, such as whether pets are allowed or if musical instruments will be played. To avoid problems after moving in, it is important to be honest and clear about your intended use and cohabitation situation.
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Specific measures to increase the chances of passing the review process.
Even if you're worried about passing the rental application screening process, you can increase your chances of approval with the right preparation. The key is to adjust your conditions and how you communicate them to match the points the screening committee looks at. In particular, the rent setting, guarantee conditions, contract type, and the choice of real estate company will significantly impact the outcome.
Here, we will explain, in order, specific measures that are easy to implement and highly effective.
Lower the rent range
The most effective way to improve your chances of passing the screening process is to revise your rent range. Generally, rent should be within 30% of your net income, and exceeding this limit is likely to raise concerns about your ability to pay. If your application is rejected, it is effective to lower your rent by increasing the walking distance from the station, expanding the age range of the building, or streamlining the amenities you require.
By adjusting the amount to something you can definitely afford with your current income, the assessment from the guarantee company and landlord will improve significantly, and you will often pass the screening process even under the same conditions.
Show savings
If your income is unstable or you have a short employment history, you can supplement your ability to pay by showing your savings. Submitting copies of your bank statements or balance certificates makes it easier to demonstrate that you have the financial capacity to pay rent even if your income temporarily decreases. This is a particularly effective measure for freelancers and those who have recently changed jobs.
However, be careful, as making fake deposits can be counterproductive. Presenting a clear record of consistent savings will increase your chances of passing the review.
Make a "relative with a stable income" the co-signer.
When choosing a co-signer, it's crucial to select a relative with a stable income. The guarantor's annual income, employment status, and age will also be considered during the screening process, so ideally, a relative who is a full-time employee with a long tenure is best.
Even when using a guarantee company, having a guarantor often improves your chances of approval. Relatives are generally more trustworthy than friends or acquaintances, making them a favorable factor in the application process.
Change your guarantor company / Choose a guarantor company whose screening criteria match yours.
Each guarantee company has different screening criteria. It's not uncommon for someone to be rejected by one company but approved by another. Compatibility depends on factors such as past payment defaults and employment status, so it's a good idea to ask the real estate company if it's possible to change guarantee companies.
In particular, for properties that specify a guarantee company with strict screening criteria, there's a possibility that you might not meet the standards. Having multiple options is key to passing the screening process.
The contract holder can be a parent or a workplace.
If it's difficult to sign a contract in your own name, you can also have a parent or your employer sign the contract. A "proxy contract" where a parent is the contract holder and you live there as the resident, or a "corporate contract" where your company signs the contract, are common methods that make it easier to pass the screening process. This is especially effective for new graduates or those who have recently changed jobs.
However, this may not be possible for all properties, so it is necessary to check with the real estate company in advance.
Cases where paying rent in advance and negotiating terms is effective / cases where it is not effective
While paying rent in advance or negotiating terms can sometimes help you pass the screening process, it's not a foolproof method. In properties where the landlord makes their own individual decisions, paying several months' rent in advance may be viewed favorably.
On the other hand, in screenings led by guarantee companies, advance payments are often not given much weight. Whether negotiation is effective depends on the property, so it is important to have a real estate company assess the situation.
Communicate with real estate companies carefully.
In the screening process, not only the documents but also the impression you make during communication indirectly influences the outcome. Slow responses, an arrogant attitude, or vague answers to questions will cause anxiety for the management company and the landlord.
By striving for polite and sincere communication, you are more likely to be perceived as a "tenant who causes few problems." Even simply being mindful of basic manners can change the outcome of the screening process.
Entrust the process to a real estate company with a strong track record in screening.
If you are worried about the application process, it is important to entrust your case to an experienced real estate company that understands your situation. A real estate company that is strong in the application process will suggest options that are more likely to be approved during the property selection stage and will also properly explain the situation to the guarantee company and the landlord.
By honestly explaining your situation and consulting with them from the beginning, you can avoid unnecessary rejections during the application process and ensure a smooth move-in.
Attribute-based strategies | Solutions for cases that are often considered difficult to get approved
In rental application screening, applicants may be judged as less likely to pass depending on their attributes. However, the problem is not the attributes themselves, but how well you can demonstrate your ability and continuity to pay. By taking appropriate measures for each situation, such as being unemployed, a student, a freelancer, or a foreign national, you can increase your chances of passing the screening.
This section explains countermeasures based on different attributes.
Unemployed or recently changed jobs: Take measures such as job offer letters, savings, and changing the contract holder.
Unemployed individuals or those who have recently changed jobs often face stricter scrutiny due to a lack of income history. In such cases, submitting a job offer letter or employment contract to demonstrate that future income is guaranteed is effective.
Furthermore, if you have sufficient savings, submit a copy of your bank statement to demonstrate your ability to pay rent for a certain period. In addition, having a parent act as the contract holder or providing a co-signer can sometimes improve your chances of approval. It is important to not only show your current lack of income but also to clearly demonstrate your future prospects.
Students: Parental contracts/guarantees, handling of part-time job income
Since students do not have a stable income, parental involvement is generally required. Having a parent as the contract holder or co-signer makes it easier to pass the screening process. Even if you have part-time job income, it is often only considered as a supplementary factor in the screening, so it's best not to have excessive expectations.
Submitting withholding tax statements or pay stubs to demonstrate a consistent income will lead to a positive evaluation. Choosing student-friendly or student-accepting accommodations is also an effective strategy.
Sole proprietors/freelancers: How to file tax returns and track sales trends
Sole proprietors and freelancers are often perceived as having an uncertain income stability. As a countermeasure, it's important to submit tax returns for the past one to two years to demonstrate a consistent income track record. Additionally, providing documentation showing monthly sales trends and explaining the continuity of clients will improve your evaluation.
If you've just started your business, you may be able to pass the screening process by showing proof of savings or providing a guarantor. The key is to prepare documents that can be explained with numbers.
Temporary/Contract Employees: Explanation of Contract Period/Renewal Prospects
Because temporary and contract workers have limited employment periods, they may be viewed less favorably during the application process. In such cases, it is effective to clearly explain the current contract period, renewal history, and future renewal prospects. Submit an employment contract or a statement of employment conditions to demonstrate that you can expect a certain level of income for a certain period.
Even with a short tenure, having worked for the same staffing agency for a long period can be viewed positively. It's important to clearly communicate the continuity of your income.
Foreign nationals: Addressing concerns about residence cards, employment, and communication.
Foreign nationals may face more rigorous scrutiny during the application process due to concerns about their residency status and language barriers. First, submit your residence card to demonstrate that you have sufficient remaining validity. Additionally, clearly state your employer and income, and explain that you are in a position to live stably in Japan.
If you are unsure about communicating in Japanese, consider enlisting the help of an interpreter or guarantor. By striving for polite and courteous communication, you can alleviate the concerns of the management company and landlord.
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Even if the screening process is still strict, you can switch "property type".
If your application is still rejected even after reviewing the rent and guarantee conditions, switching to a different type of property can be an effective option. Rental properties have different screening systems, and not limiting yourself to typical private rentals can broaden your chances of getting a place.
Here, we introduce some typical property types that are easier to consider even for those with strict screening criteria.
Find properties that do not require a guarantor company.
If you fail the screening process of a guarantor company, one option is to look for properties that do not require a guarantor. In these cases, the landlord or management company directly decides whether or not to approve your tenancy, so personality and willingness to pay may be given more importance than credit information.
However, the number of available properties is limited, and some may require advance rent payment or a co-signer. Since the conditions vary from property to property, it is important to clearly tell the real estate company that you want to find a property that does not require a guarantor company.
UR rentals, public housing rentals, and other options with "different systems"
UR rentals and public housing corporation rentals use different screening criteria than private rentals. In many cases, there is no key money, brokerage fee, or renewal fee, and a guarantor may not be required. Instead, you must meet certain income and savings requirements.
A key feature is that current repayment ability is given more weight than credit history. If you meet the requirements, it can be a strong option for those who are worried about passing the credit check.
Shared housing, furnished with appliances, etc.
Share houses and furnished apartments tend to have more flexible application processes than typical rental properties. Share houses, in particular, often do not require the use of a guarantor company, making them attractive because they reduce initial costs. Furnished apartments are designed for people who stay for short periods or move frequently, and income and length of employment may not be strictly scrutinized.
While there are restrictions on how you can live there, it's a realistic option for those who are worried about passing the screening process.
Secure temporary accommodation on a monthly/weekly basis.
If you can't immediately move into a regular rental property, you can also secure temporary accommodation in a monthly or weekly apartment. These are service agreements rather than lease agreements, so the application process is often simpler.
By living in a temporary accommodation while waiting for a job change or a stable income, and then searching for rentals again once the situation is settled, you increase your chances of finding a property that closely matches your desired conditions.
What to do after failing the screening process
Even if your rental application is rejected, there's a good chance you'll pass on your next application if you take the right steps. The important thing is not to repeat the same mistakes without understanding the reasons for the rejection. By understanding why you were rejected, deciding when to reapply, and reviewing your requirements step by step, you can prevent unnecessary rejections.
This section explains the correct course of action to take after the review process.
How much can I find out about the reason for the rejection?
The reasons for failing a rental application are not always disclosed in detail. Especially when a guarantee company is involved, individual reasons for the decision are often kept confidential. However, in some cases, the real estate company may provide a general explanation, such as "rent setting," "guarantee conditions," or "income level."
Rather than emotionally confronting them, it's important to listen calmly as a way to confirm things so you can learn from them for the future. Even just understanding the general direction of their reasons will make it easier to plan your next steps.
Timing of re-application and strategies to avoid applying consecutively under the same conditions.
It's best to avoid applying for another property under the same conditions immediately after being rejected.
Having multiple application history entries in a short period may lead to scrutiny from the guarantee company. When reapplying, be sure to change at least one condition, such as lowering the rent range, adding a guarantor, or changing the type of property.
By taking your time to adjust the conditions before applying, you can increase your chances of success.
Resolve the problem and then search again.
If the reason for your application being rejected is clear, it's important to resolve that issue before starting your property search again.
For example, if you have a lot of debt or are paying off a lot of credit, you can work on paying it off; if you've just changed jobs, you can gain a few months of work experience; if you have little savings, you can increase your savings. There are many areas where you can improve your situation. Using a monthly rental property temporarily to get things in order is also an effective method.
Allowing a preparation period will significantly change the outcome of the next review.
Points to keep in mind to avoid rushing into hiring unreliable contractors.
Immediately after being rejected, it's easy to be tempted by companies that emphasize "guaranteed approval" or "no screening required." However, there's a risk of being charged exorbitant fees or being forced into illegal contracts. Legitimate real estate companies cannot completely omit the screening process.
Be wary of overly sweet talk, and always check whether the real estate agent has a real estate license and what the contract details are. Making a calm and rational judgment will lead to a safer housing search.
Final checklist for a smooth review process
To smoothly pass the rental application screening process, a final check before applying is essential. Many rejections are due to issues with rent setting, incomplete documentation, or guarantee conditions. To avoid panicking after applying, it's important to use a checklist beforehand and review each point that will be checked during the screening process.
This chapter will explain a checklist to help you pass the review process smoothly.
Rent setting check
The first thing you should check is whether the rent is set in line with your current income. A good guideline is that it should be within 30% of your net income; exceeding this will significantly tighten the screening process. It's also important to consider the actual rent, including management fees and common area charges.
Without relying on bonuses or side income, double-check that you can reliably pay the rent each month. In many cases, simply reviewing your rent can significantly improve your chances of loan approval, even under the same conditions.
Document check
We will check to ensure that all necessary documents for your application are complete and that there are no errors. Key points include ensuring that your identification, proof of income, and employment verification documents are up-to-date.
Furthermore, omissions, typos, or inconsistencies in information across documents will negatively impact the review process. Review your application again before submission to ensure that the facts are accurately stated. The quality of your documents directly reflects the level of trust the reviewers have in you.
Warranty Check
Finally, check if the guarantee conditions are appropriate. If a guarantee company is specified, consult with the real estate company to see if it matches your profile and past screening results. If you can provide a co-signer, a relative with a stable income is preferable. Don't forget to also check that an emergency contact is available.
The outcome of the credit check can often change depending on how the warranty is structured, so it's important to check it beforehand.
FAQ
Many people have questions about the rental application process, such as "How long does it take?" and "What should I do if I'm rejected?"
Here, we address frequently asked questions and clearly explain common pitfalls in the tenant screening process and the correct ways to address them.
Q. How many days does the application process take? What are the reasons for delays?
The application process for tenancy typically takes 1 to 3 days. However, it may take up to a week if verification by a guarantee company, property management company, or landlord is required, or if it includes weekends or holidays. The main reasons for delays are insufficient submitted documents, verification of the information provided, or inability to verify employment.
Additionally, the application process can take longer during peak seasons when guarantee companies are busy (such as moving season). Preparing your documents in advance and ensuring you are easily contactable can help prevent delays in the application process.
Q. Can I cancel after the review process?
In principle, cancellation is possible before the contract is signed. Even after passing the tenant screening process, in many cases, no cancellation fee will be charged if you cancel before receiving the important information explanation or signing the lease agreement.
However, if you have paid an application fee or deposit, you need to check the refund conditions. Since it becomes difficult to cancel after signing and stamping the contract, it is important to consult with the real estate company as soon as possible if you are unsure.
Q. Which is necessary: a joint guarantor or a guarantee company?
In recent years, an increasing number of rental properties require the use of a guarantee company. Therefore, even if you have a co-signer, it is common to still need to undergo a screening process by the guarantee company.
However, having a guarantor can sometimes give you an advantage in the application process. Depending on the property, you may be required to have either a guarantee company alone or a guarantee company plus a co-signer, so be sure to check the requirements in advance. It is important to choose a guarantee arrangement that suits your situation.
Q. I failed twice, what should I change next?
If you've been rejected two or more times, continuing to apply under the same conditions is unlikely to change the outcome. Next time, be sure to change at least one condition, such as lowering your rent range, adding a guarantor, changing your guarantee company, or changing the type of property you're applying for.
It's also important to confirm with the real estate company the reasons for the rejection and take appropriate measures. If necessary, taking some time to improve your income and savings before trying again can be a valid approach.
summary
Even if you fail the rental application screening, you can significantly improve your chances of passing by correctly understanding the reasons and taking systematic measures. Particularly important is reviewing the rent setting, guarantee conditions, and property type. Aim to adjust the rent to be within 30% of your net income, and be flexible in considering the arrangement of guarantee companies, co-signers, and contract holders.
Furthermore, even in cases where certain attributes may put you at a disadvantage, you can compensate for this by preparing the necessary documents and carefully crafting your explanations. If it's still difficult, expanding your options to include UR rentals, share houses, or monthly rental properties can be effective.
Even if your application is rejected, don't panic. Analyze the reasons why, change your requirements, and reapply. This is the quickest way to find your ideal home.
