In Japan, residential lease agreements often include a section designating a “joint guarantor”, especially when no rent guarantee company is involved. In such cases, landlords typically require a third party to back the tenant’s obligations in addition to the tenant’s own creditworthiness.

While the role of a guarantor is commonly perceived as someone who “steps in to pay if something goes wrong,” the legal reality is far more serious. Becoming a joint guarantor entails significant legal responsibility—often equal to, or even greater than, that of the tenant. Agreeing to this role without a full understanding can lead to severe consequences in the event of a dispute or default.

This article explains the distinct legal positions and obligations of tenants and joint guarantors in rental contracts, outlines how these roles are treated under Japanese law, and highlights essential considerations before entering into such an agreement.

Primary Responsibilities of the Tenant

The tenant, or lessee, is the individual who enters into a lease agreement and occupies the rental property. Under the lease, the tenant bears several core obligations, including:

• Paying rent in full and on time each month

• Using the property in accordance with its designated purpose (e.g., as a residence)

• Maintaining the property in a proper and respectful manner

• Restoring the unit to its original condition upon move-out

• Complying with all procedural requirements regarding contract duration, renewal, and termination

In essence, the tenant is granted the right to use the property in exchange for rent and is expected to honor the terms and conditions of the lease agreement.

Should the tenant fail to fulfill these duties—for example, by defaulting on rent, damaging fixtures, or vacating without notice—the landlord may have grounds to terminate the contract or seek compensation for damages.

The Significant Legal Liability of a Joint Guarantor

A joint guarantor is someone who agrees in advance to assume full financial responsibility if the tenant fails to fulfill their contractual obligations. When the term “joint” is included, the legal burden becomes particularly substantial.

In a standard guarantor arrangement, the landlord must first attempt to collect from the tenant. Only if the tenant fails to pay can the guarantor be approached for payment. However, in the case of a joint guarantor, the landlord may bypass the tenant entirely and demand full payment directly from the guarantor—without any prior notice or attempt to collect from the tenant.

In Practical Terms, the Joint Guarantor Assumes the Following Responsibilities:

• If the tenant defaults on rent, the joint guarantor is legally obligated to pay the full amount

• They may also be held liable for damages or restoration costs following contract termination

• Even if the tenant vacates the property without notice, the guarantor may still be responsible for outstanding obligations under the lease

In effect, a joint guarantor is treated almost identically to the tenant in terms of legal liability. Despite not residing in the property, the guarantor is fully responsible for rent payments and any resulting losses.

Key Differences Between Joint Guarantors and Rent Guarantee Companies

In Japan’s rental market today, many lease agreements now involve the use of a rent guarantee company. Under this system, if the tenant fails to pay rent, the guarantee company covers the payment temporarily and subsequently seeks reimbursement from the tenant.

In some cases, landlords may still require a joint guarantor even when a guarantee company is involved. This dual structure—“guarantee company + joint guarantor”—serves to further reduce financial risk for the landlord.

On the other hand, in properties that do not use a guarantee company, having a joint guarantor is often a mandatory condition for the lease. In such cases, the guarantor’s income level, financial assets, residence status, and even ability to communicate in Japanese are closely scrutinized to ensure suitability.

Key Considerations Before Agreeing to Be a Joint Guarantor

Becoming a joint guarantor is not a matter of simply signing a document. It carries significant legal and financial consequences should the tenant encounter difficulties. Before agreeing, it is essential to review the following points carefully:

• Scope of Guarantee: Does it cover only rent, or also include repair costs, penalties, or other obligations?

• Duration of Guarantee: Is the responsibility limited to the initial lease term, or does it extend through automatic renewals?

• Relationship with the Tenant: Consider the tenant’s financial stability and reliability

• Impact on Your Own Finances and Credit: Will this obligation affect your ability to secure credit or loans?

• Clarity of the Agreement: Ensure the contract is specific and does not include open-ended commitments

When signing the guarantee agreement, make sure to keep a personal copy for your records. This serves as an important reference should any disputes arise in the future.

Ending a Guarantee Obligation Is Not Simple

In many cases, when the lease is renewed, the guarantor agreement is automatically extended as well. There have been instances where the guarantor remained legally bound for several years without receiving any formal notice. This prolonged liability is often overlooked at the time of signing.

Therefore, it is essential to confirm in the contract “when” and “how” the guarantee obligation will end before agreeing to take on such a role.