What is a rental inspection? The basic process and the probability of rejection

When renting a property, a tenant screening is almost always conducted. Screening is an important step before signing a contract, and is conducted to confirm the tenant's ability to pay rent and living situation. Management companies and real estate companies check whether the tenant has a stable income, a history of late payments or evictions, and any other issues to prevent risks after moving in. Especially when starting to live alone or with a partner, whether or not you pass the screening directly affects when you can move in. By understanding this process, you can reduce the chances of failing the screening.

This chapter provides a detailed explanation of the purpose and basic procedures of rental property screening, as well as the general rejection rate and guidelines.

Reasons and purposes for conducting tenant screening for rental properties

Rental screening is an important process that property management companies and landlords use to verify the trustworthiness of potential tenants. The ability to pay rent is of paramount importance, and factors such as income, employment status, and stability of workplace are also important considerations. Screening may be stricter depending on the type of work, such as the unemployed or those who have just changed jobs, if there are concerns about the stability of income, or if the job involves night work or night shifts. A history of rent arrears, evictions, or other problems may be a disadvantage in the screening process.

It is also important to have a guarantor company or a joint guarantor, and to check whether there is a system in place to collect rent in the unlikely event of a default. These are preventative measures to protect the value of the property and ensure the peace of mind of other tenants.

What is the probability or rate of failure? General guideline

The probability of failing the rental screening varies greatly depending on the property and conditions, but it is generally said to be around 10-20%. For popular rooms or properties with rents lower than the market rate, there are many applicants and the competition is high, which results in a higher failure rate.

In addition, each management company and real estate company has different screening criteria, and what may pass one company's requirements may be stricter at another. Even if a property does not require a guarantor or allows short-term occupancy, you may still be rejected depending on your income, occupation, and past payment history. The key to increasing your chances of passing the screening is to review in advance the balance between your income and rent, your past history, and the conditions for guarantors.

Differences in screening criteria between management companies and real estate companies

Even for the same rental property, screening criteria will vary depending on the management company or real estate company. Large management companies often use strict, manualized criteria, and will thoroughly check income, employment stability, and credit information. On the other hand, small to medium-sized or independent companies may be more flexible in their decisions, and tend to place more importance on the individual circumstances and personality of the prospective tenant. For example, some companies will accommodate students living alone, women, or those seeking short-term contracts, while others will generally prioritize full-time employees and long-term tenants.

The screening results will also vary depending on the type of guarantor company and their affiliation status. Therefore, it is important to understand the conditions and characteristics mentioned above and find a property and contract partner that suits you.

Main reasons for failing rental inspection

There is no single reason why an applicant may fail a rental property screening; multiple factors often overlap. Management companies and real estate companies place importance on a wide range of factors, including the balance between rent and annual income/take-home pay, stability such as place of employment and length of service, and even past credit history and history of rent arrears. The things to be aware of vary depending on the situation, such as living alone or with a partner, or a women-only property, and if there are any deficiencies in the terms of the guarantor or guarantor company, they may determine that there are concerns about the applicant's ability to repay. A poor attitude or impression during viewings or pre-contract interactions can also affect the screening process.

Here we will explain in detail the main reasons that increase the chances of failure.

Cases where the balance between rent and annual income/take-home pay is poor

The most important factor in rental appraisals is the balance between rent and annual income/take-home pay. As a general guideline, rent should be within one-third of your monthly take-home pay. For example, if you try to rent a room for 80,000 yen in rent with a take-home pay of 180,000 yen, it is a high burden and your ability to repay may be questioned. Even if you present your annual income including bonuses or income from a side job, your actual monthly ability to repay is emphasized, so in many cases your take-home pay is used as the standard. Choosing a property with a low rent will create more comfort in your life after you move in and reduce the risk of default.

Impact of years of employment, occupation, and employment status

Those with a short length of employment or non-regular employment such as part-time, contract, or freelance may be at a disadvantage during the screening process. Management companies and real estate companies place importance on whether you can expect a stable income over the long term. For this reason, they tend to be judged more carefully than full-time employees or civil servants. However, even if you have a short work history, you may still be approved if you can make up for it with extensive work experience in the same industry, a high annual income, and savings. Even those who are unemployed or have just changed jobs can increase their chances of being approved by taking measures such as putting the property in the name of a family member or choosing a low-rent property with furniture and equipment.

Credit information, blacklists, and past rent arrears

If you have financial history registered with a credit information agency, or are on the so-called blacklist, you are more likely to fail the screening process. This is because past credit card or loan defaults can raise concerns about your ability to repay. In addition, a history of rent arrears in a previous rental apartment or condominium, or forced eviction, are also serious negative factors. Such histories are particularly scrutinized by guarantor companies, so it's important to check your credit information in advance and take steps to improve any areas that can be improved as soon as possible. It's also recommended to take advantage of systems that allow free information disclosure.

Deficiencies or insufficient conditions in the screening of the guarantor or guarantor company

If the guarantor's income or place of employment is insufficient, or if they do not meet the guarantor company's screening criteria, the contract may not proceed. Since the guarantor is obligated to pay the rent in place of the contracting party if they are unable to pay the rent, their ability to repay and credit information are strictly checked.

Also, some guarantor companies have their own screening criteria, such as occupation, age restrictions, past payment history, etc. It is important to check the conditions in advance and take measures such as changing the guarantor if necessary, or choosing a plan that does not require a guarantor.

When personality, such as lifestyle and impression at the time of viewing, influences the property

In rental screening, not only documents and numbers are evaluated, but also personality and attitude. Taking photos without permission during viewings, not listening to explanations, asking too few or too many questions, etc. will leave a bad impression on the management company and landlord. Delays in communication and document submission during contract preparation, and rough language can also result in a negative evaluation. On the other hand, prompt responses and polite communication will increase trust and are a plus for passing the screening. Even small things are important to give the impression that "this is the person I can rent to with confidence."

Preparations and measures to reduce the chances of falling

Preparation before applying is essential to passing the rental property screening. If you review the rent and area, check the required documents, choose a guarantor company, and prepare in advance, you can significantly reduce the chances of being rejected. In particular, during moving season and busy periods, the screening process speeds up, so a lack of preparation can be fatal. We recommend preparing the necessary documents and initial costs early.

The timing of interactions with management companies and real estate companies is also important, and people who communicate and submit documents smoothly tend to be more trustworthy. Since the screening process may change depending on your living situation, such as cohabitation or job changes, you need to take appropriate measures. Here, we will explain specific methods and points to note to increase your chances of passing the screening process.

How to submit required documents and certificates and checkpoints

Rental screening requires the submission of multiple documents, including identification and proof of income. In addition to identification such as a driver's license or My Number card, proof of income such as a tax withholding slip or pay slip is required. Be sure to check that your address and name are correct, and that the number of days and expiration dates have not expired. Make sure copies and scans are clear, and if attaching documents to emails, be careful about file size. Prompt submission also leads to trust from the management company. Recently, some guarantor companies have begun offering free document checking services, and it is a good idea to take advantage of these convenient systems.

How to review rent settings, areas, and floor plans

Ideally, rent should be kept to within one-third of your monthly take-home pay. If the room you want exceeds your budget, it's effective to reconsider the area and layout. For example, you can reduce rent by choosing a property one or two stations away from a popular station, choosing an older building, or converting from an apartment to a condominium, or vice versa. Properties with specific conditions, such as women-only properties or furnished properties, tend to be more expensive, so it's important to prioritize your requirements. To find a property below market price, it's recommended to compare listings on multiple real estate sites and devise your search criteria.

Choosing a guarantor company and checking the screening criteria

Each management company and real estate company has different guarantor companies with different partners and screening criteria. Even with the same conditions, you may be approved by one guarantor company but rejected by another. Credit companies tend to have strict standards, but independent or community-based guarantor companies may be more flexible. Since evaluations vary based on past credit information, work content, and income, it's a good idea to check multiple candidates before signing a contract. You can also choose a plan with no or low guarantor fees to reduce initial costs.

Timing of contact and consultation with management companies and real estate companies

It is important to communicate smoothly with management companies and real estate companies from the time of application to the end of the screening process. Delays in responding to requests for additional documents or questions not only lower the chances of passing the screening process, but also mean that other applicants may get ahead of you. It is advantageous to respond quickly to phone calls and emails, and be polite and concise in your interactions. It is also important to consult in advance if you have any concerns or questions. If you want to finalize the contract in a short period of time, it is safest to schedule all documents to be prepared within one week.

Examples of measures depending on the situation, such as moving or cohabiting

Changes in your living situation, such as moving or cohabiting, can affect the screening criteria. In the case of cohabitation, you will need the income of both people and information on a guarantor, and the conditions may be stricter than for a single-person contract. If you have just changed jobs or have been unemployed for a while, it is effective to use savings or family members' names, or choose a property that is furnished and reduces initial costs. Women and students in particular should consider safety and ease of living when choosing a property. Taking measures according to these situations can greatly reduce the chances of being rejected.

Ease of passing rental screening based on occupation and lifestyle

The likelihood of passing the rental property screening depends not only on rent and income, but also on occupation and lifestyle. Students and working adults living alone, those who work night shifts or work in the entertainment industry, those who are unemployed or have just changed jobs, all require different precautions and measures. To pass the screening favorably, it is essential to set conditions and prepare supporting documents that suit your situation.

Here we will explain in detail the key points to increase your chances of passing depending on your position.

Important points for working adults and students living alone

For working adults and students starting to live alone, stability is important in addition to the balance between rent and income. Students in particular often have little or no income, so the conditions for a guarantor such as a parent are important. Even if you are working, if you have only been employed for a short time, it is a good idea to prove your ability to pay with savings and pay slips. Choosing a furnished property or a plan that includes utilities will help keep living expenses down and reduce the burden after the screening. Setting the rent slightly lower than the market rate is also a tip to increase your chances of being approved.

Important points to note when applying for specific jobs such as nightlife and night shifts

Jobs such as nightlife and night shifts tend to be judged carefully during screening, even if they pay well. This is because there are concerns about the working conditions and stability of income. To counter this, it is effective to submit documents that show you have a stable income, such as pay slips and withholding tax slips for the last few months. Also, be sure to accurately describe your job duties and place of employment, and be careful not to damage your credibility. If possible, choosing a property with low rent and using a guarantor company will increase your chances of passing the screening.

Tips for attending even if you are unemployed or have just changed jobs

If you are unemployed or have just changed jobs, you will likely be at a disadvantage in the screening process because you will not have a stable income. However, if you have a large amount of savings or a long work history, you may be able to prove this and still have a good chance of passing. Other effective ways to reduce initial costs include signing a contract in a family member's name, or choosing a property that is furnished and does not require a security deposit or key money.

Also, if you have already secured your next job, submitting a letter of offer will reassure the management company and guarantor company.

What to do if you don't pass the examination

Failing the rental screening does not necessarily mean you will not be able to rent an apartment. If you analyze the cause and take appropriate measures, there is a good chance that your next application will be approved. There are many items that need to be reviewed, such as the rent setting, area, guarantor requirements, and the required documents. In some cases, changing the type of guarantor company or adjusting the contract terms can also increase your chances of passing the screening. It is easy to feel discouraged immediately after being rejected, but if you act early, you may be able to reapply within a few days to a week.

Here we will explain the specific and recommended steps to take and points to be aware of if you do not pass the screening.

Items to review before applying for other properties

If you are rejected, it is important to first understand the reasons. Check whether the rent is too high compared to your take-home pay, whether there are any deficiencies in the required documents, and whether there are any problems with your past payment history. If you can ask the management company or real estate company for the reason, it is also effective to ask them frankly. In particular, you want to avoid basic mistakes such as incorrect addresses or names when signing the contract, or expired documents. Once the problems are clarified, it will be easier to take measures for your next application, such as choosing another property with fewer requirements.

How to increase your chances of passing by changing or adding a guarantor

The conditions of the co-guarantor may be the key to passing the screening. If the guarantor's income, years of employment, or credit information is deemed to not meet the standards, the screening is likely to be rejected. By providing another guarantor or adding an additional guarantor, you can prove your ability to repay.

In some cases, non-relatives may be accepted if they meet the conditions. If there are few candidates, it is also effective to use a guarantor company in combination. It is recommended to check the candidate's conditions in advance and, if necessary, to have multiple people as candidates.

How to try again by adjusting the initial costs and contract terms

Adjusting the initial costs and conditions at the time of signing the contract can sometimes lower the hurdles for screening. For example, lowering the rent, lengthening the contract period, or adding a larger security deposit or guarantee money are some of the ways to do this. Choosing a furnished property or a property with a promotional offer where no key money is required will reduce the initial costs and lower the risk for the management company and landlord. Presenting terms that give the management side peace of mind is key to increasing the success rate of negotiations. Also, negotiating terms will go more smoothly if you clarify in advance how much you are willing to compromise.

Consider using a rent guarantee company or independent guarantee service

There are several types of guarantor companies, and the screening criteria differ between credit card companies and independent companies. Credit card companies tend to check credit information strictly, and if you have a financial history, it may be difficult to pass.

On the other hand, independent guarantor companies are relatively flexible and will make a comprehensive judgment based on your income and employment status. One option is to consult with the management company and see if you can use a different guarantor company. There are surprisingly many options, with some companies even offering campaigns where the initial guarantor fee is waived. In some cases, simply switching guarantor companies can significantly improve your chances of passing the screening.

Tips for smoothly completing a rental contract

Even if you pass the rental screening process, if the process leading up to signing the contract is not smooth, you may miss out on the property you want. To ensure a smooth contract, it is important to gather information from the apartment search stage, compare market prices and conditions, and narrow down your options. Especially during moving season and busy periods, the number of days from application to signing is short, so you need to act quickly. Also, before signing the contract, check the facilities and surrounding environment to ensure there are no disruptions to your life after moving in. Furthermore, it is essential to manage your lifestyle to prevent rent arrears after signing the contract.

Here we will explain in detail the recommended steps and points to note.

Tips for gathering information to make it easier to find the room you want

To efficiently find a room that meets your requirements, it's important to use multiple real estate websites and apps and constantly check the latest property information. Use search criteria to narrow down your search by area, rent, floor plan, age of building, etc., and inquire early about properties that interest you. Properties with specific requirements, such as women-only properties or furnished properties, tend to fill up quickly, so it's important to clarify your requirements and set your priorities in advance. We also recommend contacting local real estate companies and management companies directly to ask them to introduce you to properties that are not publicly listed.

How to find a cheap property by comparing market prices and conditions

Even in the same area, rents and conditions vary, so it's essential to understand the market price. Compare multiple properties and make your decision based on criteria such as the age of the building, distance from the station, and whether or not the property has amenities. If a property is cheaper than the market price, it's important to find out why.

For example, consider sunlight, noise, and the influence of the surrounding environment. Properties that come with furniture and appliances to reduce initial costs, or properties that offer no key money, are also good options. Reducing your financial burden will give you more flexibility in your life after signing the contract.

Facilities and surrounding environment you should check before signing a contract

Before signing a contract, it's essential to check not only the interior of the property but also the surrounding area. Be sure to check the condition of the water heater, air conditioner, and other equipment, the location of electrical outlets, and the size of the storage space. Other important points to consider are the distance to essential facilities such as stations, supermarkets, and hospitals, the safety at night, and whether there is any noise. If it's difficult to check the property on-site, use Street View or local information websites to avoid finding out that the environment is different from what you expected after moving in. If you have any concerns, you can also have the real estate company check them for you in advance.

Lifestyle management techniques to prevent rent arrears after signing a contract

If you fail to pay rent after moving in, not only will it damage your credit rating, but it will also have a negative impact on future rental contracts. To avoid defaulting on payments, it is essential to know the rent due date and ensure you have enough money in your account in advance. Review your monthly income and expenditures and adjust the balance between fixed expenses and living costs. It is a good idea to have savings equivalent to one to two months' worth of living expenses in case of unexpected expenses.

In addition, using a household accounting app or automatic withdrawals will make management easier. By using these and other methods, you can continue to make stable payments.

The screening success rate varies depending on the property selection and area

The success rate of rental screening varies not only depending on the conditions of the contract holder, but also on the property and area selected. Differences in building type (e.g., condominium, apartment, rental condominium), average rent in each region of Japan, and popularity also have an impact. Keeping the conditions low and offering a low rent also reduces the risk for the management company and landlord, making it easier to pass the screening.

Here we will explain trends by property type and area, as well as tips for efficiently searching for cheap properties.

The difference between condominiums, apartments, and rental condominiums

Condominiums, apartments, and rental condominiums differ in structure and facilities, which affect the screening criteria and average rent.

Reinforced concrete apartments are popular because they are highly soundproof and earthquake-resistant, but the rent is higher and the standards of guarantor companies tend to be somewhat stricter. While wooden or lightweight steel frame apartments tend to have lower rents, many of them have fewer restrictions on age and facilities, and the screening process can be relatively flexible. Rental apartments are somewhere in between, and are characterized by a wide range of options for location and layout.

It's important to choose a building type that suits your lifestyle and budget.

Trends in rent prices and conditions by area in Japan

In Japan, there are large differences in average rent prices and screening standards between urban and rural areas. In major metropolitan areas such as Tokyo, Osaka, and Nagoya, demand is high, so screening is strict and rents are set higher. On the other hand, in regional cities and suburban areas, the average rent is lower, and there are many properties with no security deposit or key money. Conditions such as proximity to a station or new construction push up rents, but properties that are within easy reach of a bus or older buildings tend to be more affordable and easier to pass screening. Researching the average rent in the area you're moving to in advance is the first step to an efficient property search.

Tips for finding cheap properties by limiting your requirements

To find a cheap property, it is important to narrow down your search criteria. It doesn't necessarily have to be new or close to the station, but you can lower the rent by compromising on the age of the building and some of the facilities.

For example, furnished properties and those with appliances can reduce initial costs, but rents tend to be a little higher, so you need to consider long-term costs. When searching online, searching for conditions such as "no key money" and "no security deposit" can help you expand your options while keeping costs down. Utilizing these must-see search techniques will make it easier to find a property that meets your ideal needs and fits within your budget.

Summary | Understand the probability and reasons for failing rental inspections to increase occupancy rates

Rental screening is an important process that assesses the tenant's ability to repay and living situation from multiple angles. The probability of rejection varies depending on factors such as the balance between rent and income, years of employment, credit information, and guarantor conditions, but it is entirely possible to increase your chances of passing by taking advance preparations and measures.

If you keep in mind the points introduced in this article, you will increase your chances of moving into the room of your choice smoothly and quickly. For those who are searching for a room for the first time or who have particular requirements, it is important to have an open mind and the ability to gather information. Finally, we will summarize the important points we recommend for passing the screening and a must-see checklist to check before applying.

Important points to keep in mind to pass the examination

To pass the rental screening, the basic rule is to keep your rent to no more than one-third of your monthly take-home pay.

Making a plan that includes living expenses and money management will reduce the risk of defaulting on payments after moving in. If you have a short employment history, are in non-permanent employment, or are unemployed, you can bolster your ability to repay by submitting proof of savings and balance. Furthermore, choosing a property that comes with furniture and facilities will reduce initial costs and make a good impression when signing the contract. If you have a history of rent arrears or a negative credit history, it is important to check the situation in advance and, if necessary, review the terms of your guarantor company and guarantor.

Also, when communicating with management companies and real estate agents, be sure to respond quickly and use polite language and a sincere attitude to create a sense of trust. Finally, compare multiple property conditions and market prices, and organize your essential requirements and those you are willing to compromise on to broaden your options and increase your chances of passing the screening.

The final checklist to ensure you move in without failing the screening

Before applying, please check the following points. If you meet all of these, your chances of being rejected will be significantly reduced.

• Is the balance between rent and income appropriate? (A good guideline is to have it within one-third of your monthly take-home pay.)
• Are there any missing or incomplete documents (identification documents, proof of income, address, name, etc.)?
• Are the conditions of the guarantor or guarantor company sufficient (income, place of employment, credit information)?
• Have you compared multiple property market prices and conditions (age, location, facilities, furnished, etc.)?
• Is the rent payment plan clear after the contract is signed? (Account balance management, withdrawal date, reserve funds)

It's also important to be flexible and not be too strict about your desired conditions. Simply narrowing down your requirements a little can broaden your options, and by making such adjustments, your chances of passing the screening can increase dramatically. Comprehensive preparation and speedy action are the shortcut to a smooth move-in.