When renting a property in Japan, you may assume that having a personal guarantor is absolutely necessary.
In reality, however, most modern leases now rely on a rent guarantor company—a system that has become the standard and serves as a valuable safeguard.
This article offers a clear and comprehensive overview of what a guarantor company is, how the process works for non-Japanese tenants, what to expect during screening, and the key considerations to keep in mind—perfect for those navigating the system for the first time.
What Is a Rent Guarantor Company?
A rent guarantor company acts as a financial intermediary that ensures the landlord receives rent payments even if the tenant is unable to pay. In such cases, the guarantor company will advance the unpaid rent to the landlord, and subsequently seek reimbursement from the tenant.
In simple terms:
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From the landlord’s perspective: It provides reassurance that rental income is secured—even in cases of delinquency.
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From the tenant’s perspective: It increases the likelihood of securing a lease without the need for a personal guarantor.
Today, most rental agreements in Japan require the use of a guarantor company, even if a personal guarantor is provided. As a result, it has become an essential component of the leasing process.
Why Are Rent Guarantor Companies Essential for Foreign Residents?
Foreign nationals in Japan may face challenges during the tenant screening process due to factors such as limited local credit history, lack of a Japanese guarantor, or perceived instability in income or employment.
However, utilizing a guarantor company can help overcome these hurdles in several important ways:
✅ No personal guarantor required
→ Ideal for those whose family resides overseas or who lack local contacts.
✅ Transparent screening criteria
→ Many guarantor companies accept valid documents such as a residence card, proof of employment, or income certification.
✅ Support for non-Japanese speakers
→ Some guarantor companies specialize in working with international tenants and even offer services with interpreters to ensure clarity and confidence.
What You’ll Need to Use a Rent Guarantor Company
To apply through a rent guarantor company, you will typically be asked to provide the following documents and information:
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Residence Card (ideally with at least six months remaining)
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Passport
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Proof of Income (e.g., payslips, employment contract, or tax withholding certificate)
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Certificate of Enrollment (or student ID, if applicable)
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Certificate of Residence (issued within the past three months)
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Emergency Contact (someone residing in Japan who can communicate in Japanese)
💡 With these documents properly prepared, most guarantor companies will approve your application—even without a personal guarantor—making the leasing process significantly more accessible for international residents.
What Does a Guarantor Company Review During Screening?
Guarantor companies conduct a careful evaluation based on the following key criteria:
| Screening Category | Evaluation Focus |
|---|---|
| Residence Status | Whether the applicant has sufficient legal stay duration and a clear purpose (e.g., work or study) |
| Income Stability | Whether the applicant has a consistent income stream or sufficient savings balance |
| Employer or Academic Institution | Verification that the applicant is enrolled at or employed by a legitimate organization |
| Payment History | Check for any history of rent arrears or forced eviction through shared databases |
💡 Screening results are typically provided within 1 to 3 business days.
How Much Does a Guarantor Company Cost?
Using a rent guarantor company involves certain fees—both at the time of contract and on an annual basis.
| Fee Type | Typical Range |
|---|---|
| Initial Guarantee Fee | Approximately 50%–100% of one month’s rent (one-time payment) |
| Annual Renewal Fee | Around ¥10,000 per year |
| Monthly Debit Fee | Typically ¥330–¥550 per month |
※ Fees may vary by guarantor company. It’s advisable to confirm exact amounts with your real estate agency during the leasing process.
Rental Process Using a Guarantor Company
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Select a Property that accepts guarantor companies
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Complete the Application Form and submit all required documents to the guarantor company
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Await Screening Results—typically provided within 1 to 3 business days
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Upon approval, sign the lease agreement
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Pay the initial guarantee fee and proceed to move-in
Key Considerations When Choosing a Rent Guarantor Company
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Confirm whether the company accepts non-Japanese applicants, as some may have restrictions
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Review the scope of coverage—does it include not only unpaid rent, but also potential restoration or repair costs?
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Check whether there is an annual renewal fee, and if so, how much it is
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Look for properties that allow you to choose from multiple guarantor companies for greater flexibility
💡 In some cases, real estate agencies may require you to use a specific guarantor company. It’s advisable to clarify this in advance to avoid unexpected limitations.
How to Avoid Issues with Your Guarantor Company
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Always pay rent on time—late payments can negatively impact your rental history
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Notify the guarantor company of any address changes or visa status updates
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In the event of an issue, contact both the property manager and the guarantor company without delay
💡 Ignoring outstanding payments covered by the guarantor company may result in serious consequences, such as legal action, forced eviction, or disqualification from future contracts.
A Guarantor Company: Bridging the Gap Between Concerned Tenants and Reassured Landlords
The guarantor system exists to support individuals who may have limited credit history or no access to a personal guarantor. For foreign residents in particular, it serves as a critical bridge—helping them navigate unfamiliar cultural and contractual norms in Japan.
At the heart of a successful leasing experience are two fundamentals: Submitting the proper documentation and making payments responsibly.
By honoring these simple principles, international tenants can confidently secure a home in Japan—with the backing of a guarantor company that fosters trust between both parties.