It\u2019s no secret that foreigners arriving in Japan frequently struggle with finding housing, with various attributes such as visa type, length of stay and Japanese ability being just a few of the many factors that may impact the scope of available options.\u00a0 The significantly less common Investor visa type, which currently makes up only 1% of all mid-to-long term visas in Japan, often faces a particularly steep set of difficulties when its holder is seeking to lease housing.<\/p>\n
Standard residential leasing within Japan falls into two primary categories\u2014personal (kojin<\/em>) and corporate (hojin<\/em>) contracts.\u00a0 Although there are some notable aspects in how their handling differs, both types of leasing contracts present a range of obstacles for Investor visa holders.\u00a0 Read on for a brief dissection of the variety of causes for unfavorable outcomes during the housing application process, as well as our company\u2019s plans to actively address this largely unfulfilled need.<\/p>\n \u00a0<\/strong><\/p>\n Topics:<\/strong><\/p>\n <\/p>\n Personal Lease Contracts & The Increased Scrutiny On Applicants\u2019 Qualities<\/strong><\/span><\/p>\n In the case of a personal lease, the applicant\u2019s personal attributes\u2014domestically earned income, place of employment or study, individual Japanese language ability, etc.\u2014are scrutinized more closely.\u00a0 It is extremely common for the use of a guarantor company (a form of rental insurance) to be required, and sometimes a Japanese guarantor individual may also be required in addition to this.\u00a0 The corporate leasing contract option is available only through a company registered in Japan that the prospective resident is directly associated with.<\/p>\n Many incoming foreign exchange students as well as individuals who have entered on a Working Holiday visa (but are not currently employed full-time) will often find themselves at odds with the strict demands of property management companies for personal contract applicants to meet a minimum level of income\u2014typically at least three times the monthly rent cost.\u00a0 They also may experience being turned away for the uncertainty of whether they can fill the greater portion of a standard, 2-year Japanese rental lease, as it is not uncommon for such visas to be issued for only 6 months to a year at a time.\u00a0 These same issues are also likely to arise with an Investor visa searching for housing in Japan, especially if they are still in the process of applying for their actual Investor visa and currently only possess the 6-month \u201cTemporary Visitor\u201d visa.<\/p>\n <\/p>\n Corporate Lease Contracts & The Challenges They Present For Small Businesses<\/strong><\/span><\/p>\n Working expats in Japan may sometimes receive housing assistance from their company in the form of a corporate lease contract. \u00a0The credentials and capital of the company act as a means of guaranteeing rental stability, and in some cases can also supplement the residing employee\u2019s low amount of Japanese ability (most landlords within Japan heavily prefer that the tenant is able to communicate directly when possible).\u00a0<\/p>\n But what about in the case of foreign entrepreneurs on the Investor visa?\u00a0 While the corporate contract can often provide the necessary additional leverage for a working foreigner struggling to secure housing on their own, Investor visa holders are not nearly as fortunate.\u00a0 The very factors that can make a corporate contract beneficial to a foreign applicant are in fact the same aspects that conversely lower an Investor visa holder\u2019s chances of success.\u00a0 With corporate contracts, the corporation\u2019s internal capital, length of establishment, as well as less precisely measurable details such as how \u201cprestigiously\u201d the company is regarded come into consideration. \u00a0As a result, the prospect of successfully passing application screening with a newly established (and naturally unheard of) startup bearing a modest amount of capital becomes alarmingly slim.<\/p>\n <\/p>\n FREA\u2019s Intent To Move Forwards In Increasing Housing Availability For Investor Visa Holders<\/strong><\/span><\/p>\n As discussed in a previous article, foreigner entrepreneurs face a wide array of challenges with the corporate and legal aspects of establishing their company in Japan, but the matter of housing in fact proves to be quite daunting as well.\u00a0 Both forms of housing lease contracts pose a considerable challenge to Investor visa holders, leaving them with very limited housing options as they concurrently try to navigate the other numerous obstacles associated with doing business in Japan.<\/p>\n FREA, originating as a real estate agency specializing in assisting foreigners, has taken note of this major dilemma frequently encountered by foreigner entrepreneurs seeking to enter the Tokyo market.\u00a0 We are currently in the planning stages of organizing possible solutions to this major housing hurdle, as one of the projects in our new expansion into foreign entrepreneur\/business support this spring.\u00a0<\/p>\n By leveraging various networks and business relations we have built up over the years, we aim to assemble a roster of rental housing in Japan that is actively Investor visa-friendly.\u00a0 Although the initial selection will perhaps not be luxuriously extensive, we feel this could still serve as a constructive step in supporting foreign entrepreneurs, who currently encounter difficulty in securing housing both before and after attaining the Investor visa.\u00a0 Ultimately, we hope to be able to alter the Japan market to offer significantly more housing options that can readily accommodate these Investor visa holders.<\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":"\n