Addressing Rental Contract Challenges for Foreign Residents in Japan

Japan has seen a rise in the number of foreign residents, primarily due to increasing acceptance of foreign workers. However, this influx has generated new challenges, particularly in the leasing of properties. A recent survey conducted by Renxa Inc., focused on real estate professionals, explored the hurdles faced by these companies when managing rental agreements with foreign nationals.

Growing Number of Foreign Rentals

According to the survey, although the number of rental contracts involving foreign residents has risen significantly, only about 20% of real estate companies are actively addressing these contracts. Many respondents indicated that they are encountering several difficulties, primarily due to cultural differences, language barriers, and issues with documentation.

Language and Cultural Barriers

Responses revealed that the primary concerns when dealing with foreign tenants are driven by differences in culture and customs, inability to understand the language, and a lack of familiarity with the rental process. About 60% of real estate professionals reported having been asked for assistance with utility contracts after a rental agreement, citing difficulties in communicating rules around essential services like electricity, gas, and water.

When faced with these challenges, real estate agents often struggle with understanding how far they should go in providing assistance. Many expressed feelings of being overwhelmed by the additional responsibilities that managing international leases entail.

Support Needs for Life Infrastructure

The survey highlighted significant support needs for foreign residents regarding utility contracts. A majority expressed that tenants struggle mainly because they cannot comprehend Japanese contracts, which correlates with a strong demand for assistance with understanding these documents. The ideal support suggested by professionals included having interpreters present during the contract process, providing clear life orientation guides upon moving in, and even acting as proxies for utility contracts.

Current Status of Foreign Rental Support

Inquiring about the current capacity to handle foreign residents, nearly 60% of agents said their companies partially support these rentals. However, a notable 21% indicated a full rejection of applications from foreigners. In light of this, over half of the respondents who are currently reluctant to engage with foreign tenants stated plans to seek improvement, suggesting that while awareness and readiness are improving, substantial gaps remain.

Many agents felt that it is necessary to develop frameworks that can efficiently support foreign tenants and accommodate their unique needs without overwhelming the personnel managing these processes.

Conclusions and Future Directions

The survey results demonstrate a crucial need for enhanced support structures in the real estate sector regarding foreign residents. The challenge lies in bridging the gap between the rising number of foreign lease requests and the insufficient infrastructure that currently exists to handle them. Miscommunication stemming from cultural differences can lead to potential conflicts, as evidenced by the reports of misunderstandings regarding daily life rules and contractual terms.

In addition to procedural support, the need for language assistance is paramount. Educational initiatives targeting real estate agents could prove beneficial in fostering better relations with foreign clients. Ideally, the incorporation of tailored services like the new "Lifestyle Advisor Global" from Renxa Inc., which aims to facilitate smoother transitions for foreign residents by offering assistance in multiple languages, could provide the necessary support structure to address these challenges effectively.

As the demographic landscape of Japan continues to shift towards a more diverse population, the real estate sector must adapt to meet the growing demands of foreign tenants. This includes establishing robust communication channels and providing comprehensive support services tailored to their needs.

Contact Information for Lifestyle Advisor Global

To learn more about the Lifestyle Advisor Global service or inquire about partnerships, visit Renxa Inc.'s website at Renxa or call 0120-989-757 during business hours.

Survey Overview

Survey Period: August 18 - 19, 2025
Method: Internet survey by PRIZMA
Participants: 1,008 real estate professionals
Conducted By: Renxa Inc.