House Rent Business Targeting Foreigners in Japan: Scam, Racism, or Something Else?

Japan is known as the most honest, sincere, hardworking, and respectful country—at least I believe that. That's why I decided to come to Japan to work and contribute to the development of both countries. Before coming to Japan, we foreigners try to learn Japanese rules, language, and manners so that we can adjust to their society and show the same respect for their laws.

These laws should be beneficial for society, including foreigners living here. When foreigners live here, they contribute just as much as Japanese people, sometimes even more. So the laws and treatment should also be the same. Japan is also expecting foreigners in many areas; they are targeting foreign students, foreign human resources, foreign investors, and
startups, but are they ready to accommodate them equally?

Housing is one of the basic needs of any human being. When foreigners come here, they first have to ensure their housing. However, they often face significant discrimination and complex systems, which create a negative impact and feel like discrimination or racism. We are living in a globalization era where everyone should be treated equally, especially if you welcome foreigners to your country; you should be respectful and make the situation easy for them so that they can show their creativity and contribute to your country. But that's not happening.

Let me share my experience regarding housing issues. When I came here for higher education, my university only checked my academic background and English skills, and I came to study here in English and with a global perspective. But when I started looking for housing, the first problem I faced was having to speak Japanese! If it is a requirement, it should be consistent
everywhere, like for university applications, visa applications, and everything else. You are allowing me to study here in English, but after arriving here, you are forcing me technically to learn Japanese. It should not be obvious; it should be optional.

Then I faced the second challenge—most of the housing companies and owners were not willing to rent houses to foreigners. Some housing companies even declined to talk to me simply because I am a foreigner. I don’t know what their reasoning is or how they do business by showing this type of discrimination when the government is allowing foreigners to come here to study
and work!

Another issue is that if you are lucky enough to find a house after looking at 10, 20, or 50 places, they explain something on their website or public advertisement, but when you are going for finalization, they show you a different calculation. In Japan, we believe in transparency, but here it looks like a scam.

Let me explain with a recent example. One of my friends came here to study. She searched for many houses, faced many difficulties, and finally found one. On their website, they mentioned: Rent and Management Fee: 52,000 (47,000+4,000) Deposit Money = 0, Key Money = 0

But when she talked with them online, they said she had to pay around 150,000 yen at the time of moving. Then she decided to visit the house, and after visiting, she confirmed that she was willing to take it. However, the agency gave her another calculation, amounting to 233,565 yen, with costs separated into many parts—mostly guarantor company fee, contract handling fee, and key exchange fee. Almost all companies do the same thing. But here is another scam—I am renting a property, so why do I have to pay 27,500 yen as a "Key exchange Fee"?! It looks like a scam, nothing else. Then they are taking 51,250 yen as a guarantor fee, which seems like an insurance for whether she will be able to pay the rent or not. When she agreed to pay, but after that, they also asked her to provide information about a guarantor person, and that person must be Japanese. What the hell is that? You are taking a guarantor fee, and at the same time, you are asking for a Japanese guarantor—why should it be Japanese?


Japan follows the most advanced security and management systems. When a foreigner enters Japan, even before coming, the government has all of its data and gives permission to come, stay, and live here. Then why do I have to show a Japanese person as a guarantor? I don’t know how to define this—discrimination, racism, scam, or something else.

 Story 2: Recently, I visited another prefecture to see a foreign student who came here to study at a Japanese language school. The school provided him with a dormitory. I visited to check that. They are offering a 1K room for two people and charging 50,000 yen for two people. The condition of the room and building makes it seem like a slum house. If they offered it to any Japanese person or any experienced person here, they would hardly pay 20,000 yen for this house. But the student doesn’t have any other options, as the school said they must stay in their recommended dormitory (that slum house!) for at least 6 months. It feels like a forceful business practice, hampering the rights of the student.

Whenever I talk with any foreigner, everyone faces difficulties to find houses here and similar issues. But why? Japan is known for having good policies and solutions. They can come up with good solutions within a short time in a suitable way. Then why is this happening? It seems nobody cares after arriving here and facing these issues. If it continues like this, Japan should amend its treatment of foreigners. Not only Japan, but any country that practices this kind of discrimination should not have political or diplomatic relations with other countries; they should be isolated.

Before diving into the controversy, it is essential to understand the housing situation for foreigners in Japan. As the country's
economy and global appeal continue to thrive, an increasing number of foreigners are drawn to Japan for various reasons, such as work opportunities, education, or cultural exploration. This influx of foreign residents has created a demand for rental properties that cater to their specific needs.

The house rent business targeting foreigners in Japan is a complex issue that requires careful examination. While there are legitimate concerns regarding scams and discrimination, it is essential to avoid generalizations and not label all companies operating in this sector as malicious. Striking a balance between protecting from exploitation and promoting ethical business practices is crucial to foster a welcoming environment for international residents in Japan. With robust government regulations, increased awareness, and open dialogue, progress can be made to address these concerns and uphold Japan's reputation as a hospitable and inclusive society.

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