You will burden a risk of lawsuit if you reject a lease contract with foreigners for the reason of their nationality in Japan

Foreign students aged twenties from Europe who weren't able to make a rent contract of a apartment located in the city of Kyoto because a owner didn't allow foreigners to live in required legal support to the Ministry of Justice as the case of racial discrimination. However a government officer rejected the requirement as it was difficult case to judge if violation of human rights were occurred then.

Ryukoku university which had mediated this apartment through a rental apartment inquire counter apologized formally to foreign students and they stopped introducing this properties which doesn't allow foreigners to dwell in. Ryukoku university instructed university co-op to improve dwelling circumstances for foreign students. There were constant criticism about government's treatment to foreign students from their supporters.

Ministry of Justice call out to citizens to stop propaganda activity of racial discrimination, MOJ introduced the case that a barbar's shop rejected a foreigner studying abroad to come inside of the shop as violation of human rights. This time MOJ turned down the explanation of the reason they rejected foreign students' legal requirement. Foreign students said "MOJ have obligation to fulfill accountability about this case. They have no sense of responsibility"

 A staff in charge of Ryukoku university co-op said Japanese property owners keep feeling vague anxious about renting room to foreigners. Lately many troubles about the difference of lifestyle, unpaid rents by foreign students have often happened between owners and foreign students.

kyodo

 I happened to find this new while net surfing. Opinions on the web are divided between people who support the treatment of a owner and who pursue the responsibility of racial discrimination.

 There is a judicial precedent here.  Actually, we have a precedent about the case rejecting a lease contract by nationality discrimination

Tokyo District Court Judgement Oct/2/2007

Petition
The court case that an unlawful responsibility was accepted in court against the fact that an owner rejected a lease contract with the prospective tenant for the reason of his nationality in the final application process for move-in examination.
The outline of the case
 X1,Inc requested the housing land and building dealer Z to midiate a room of the newly‐built rental apartment owned by Y to X1's employee X2.  

 X2 submitted to Z a move-in application form which he filled out contractor’s column , tenant column and move-in preferred date column. X2 wrote April/2005 on the move-in preferred date column on the form.  

Late in March in that year, X2 paid total 470 thousands yen to Z as move-in deposit, key money and brokerage fee etc, and Z took a lease contract form and all the necessary documents(a copy of the registration card or a certificate of registered matters and etc) to lender side broker A one week later but A told Z that he would receive these documents after making sure Y's intention so Z wasn't able to have Y's signature then. After that, A announced Z that Y didn't have an intention to lend this apartment to X2 so X1 reported X2 that the move-in contract was rejected.   

As of the end of March when X1 made all the necessary payments of move-in deposit and etc, this lease contract had been already concluded between X1 and Y. Supposing this lease contract had never been concluded, Y side needed to be liable for compensation for damages based on a breach of a legal duty in fair and equitable principle by the fact that Y rejected this lease contract for the unreasonable reason that X2 had only foreign citizenship.  

Z filed suit against Y for the claim that although Y had duty to confirm and let X1 know he had intention of rejecting foreigners to move in the apartment in advance before the lease contract had been concluded therefore Y needed to be liable for compensation for damages based on nonfulfillment of financial obligation.
The outline of the judgement
  • In the final application process for move-in examination, Y didn't signed up for the contract form with an intention of the vitiation of the contract therefore the lease contract has not been concluded.
  • Y claimed X1 had hidden X1's nationality in collusion with Z. However, this claim will not be accepted as the evidence enough to find this fact.
  • Considered objectively, Y rejected the lease contract one-sidedly with X1 without sufficient explanation even on the stage that the contract was expected to be fulfilled reasonably. Furthermore, no reasonable reason about rejecting the agreement of the contract was explained. In fair and equitable principle, this case is appropriate enough to interpret y must be liable for compensation for damages of X1.
  • According to the found facts, Y made up his mind not to lend a room of the apartment for the reason that X-2's nationality was not Japan in this case of the lease contract , therefore Y is appropriate to be liable for compensation for damages to X1 based on an unlawful act.
  • X1 claimed Z had neglected duty to confirm Y had intention of rejecting making a lease contract with foreigner. However it is appropriate to interpret Z should not be obliged to make a confirmation of this matter if X1 and Z applied special provision. It is unacceptable case that a owner of a rental apartment reject the lease contract for the reason of nationality of a prospective tenant.
Summary
This case indicates discriminatory treatment rejecting contract for the reason that a prospective tenant has foreign citizenship is unacceptable. The judgement rejects lessee's claim of compensation for damages and accepts 1100,000 yen as consolation money from the claim of compensation for a damages of a prospective tenant.

http://www.retio.jp/

 Therefore the court judged Y was liable to pay 1100,000 for compensation for damages about this case. The people who have opinion like " Rejecting foreigner is economically reasonable for a owner" need to think of the risk of lawsuits deeply before taking an unadvised action.  

According to the found facts, Y made up his mind not to lend a room of the apartment for the reason that X-2's nationality was not Japan in this case of the lease contract , therefore Y is appropriate to be liable for compensation for damages to X1 based on an unlawful act.
By the way, when you read this part of quote you may think " This issue was disputed in the court because Y rejected as of the last move-in examination for the lease contract so they would not have had a problem if Y had listed the condition of " Japanese Only" on the contract in advance ,wouldn't they?"

Actually this lawsuit also claimed liability against real estate broker as "Neglecting the duty to research whether the prospective tenant was foreginer " However this was rejected in court. This is the reason below.

It is unacceptable case that a owner of a rental apartment reject the lease contract for the reason of nationality of a prospective tenant.