When renting a property in Japan, it’s not uncommon to hear a real estate agent say,
“You’ll need to use a rent guarantor company.”
For many—especially first-time tenants or foreign nationals—this may be an unfamiliar concept. Yet, guarantor companies have become a central component of lease agreements across Japan.
If you’re wondering:
“What exactly is a guarantor company?”
“Is this relevant to me?”
“What services do they provide?”
—this article will offer a clear, practical overview of the role, system, and precautions associated with rent guarantor companies in Japan.
What Is a Rent Guarantor Company?
A rent guarantor company acts as a substitute for a traditional guarantor in a lease agreement. If the tenant fails to pay rent, the guarantor company covers the payment to the landlord on the tenant’s behalf—and later collects the owed amount from the tenant.
In the past, it was common for family members or relatives to serve as guarantors. However, with an increasing number of people unable to secure a personal guarantor, the use of professional guarantor services has become the standard in modern rental contracts.
What Services Does a Rent Guarantor Company Provide?
Advance Payment of Rent on Behalf of the Tenant
If the tenant fails to pay rent on time, the guarantor company steps in and pays the landlord directly. The tenant is then required to reimburse the guarantor company for the advanced amount.
Example:
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The tenant does not pay rent by the due date
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The landlord contacts the guarantor company
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The guarantor company covers the rent on the tenant’s behalf
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The guarantor company then requests reimbursement from the tenant
2. Notice and Collection Procedures in Case of Late Payment
When rent is overdue, the guarantor company will reach out to the tenant via phone, email, or written notice to request payment. If the tenant continues to default, the company may initiate legal proceedings such as formal demands or eviction procedures.
Important Point:
Continued delinquency can negatively impact your credit history or rental profile, so it is essential to address issues promptly.
3. Acting as a Guarantor at the Time of Lease Agreement
When a rent guarantor company is used, a personal co-signer or guarantor is generally not required. In fact, many landlords and real estate agencies require the use of such a company as a condition of lease approval.
Advantages for Foreign Residents:
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Enables lease agreements without needing a guarantor in Japan
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Screening is based solely on the applicant’s documentation, making the process more transparent
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Some companies provide multilingual support and interpretation services, helping simplify the process
Process and Costs of Using a Rent Guarantor Company
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Application and Screening
When applying for a rental property, your application will also be submitted for screening by the guarantor company. Evaluation typically includes your employer, income level, residency card validity, and any history of unpaid rent.
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Initial Guarantor Fee
An initial fee is required at the time of signing the lease. The amount varies depending on the guarantor company, but the standard range is 30% to 100% of the monthly rent.
Example:
Monthly rent: ¥100,000 → Initial fee: ¥30,000–¥100,000
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Annual Renewal Fee
In most cases, an annual renewal fee is charged—usually around ¥10,000 per year—to maintain the guarantor contract throughout the lease term.
Common Misconception and Important Caution
“With a guarantor company, I don’t have to pay rent myself” — is a misunderstanding.
While it’s true that the guarantor company covers the rent on your behalf in the event of non-payment, the tenant is still fully responsible for reimbursing that amount. The longer the delay, the higher the potential for late fees, interest charges, and collection costs.
Screening Is Not Guaranteed—Some Applications May Be Declined
Guarantor companies apply their own screening criteria, and approval is not automatic. The following situations often raise red flags or may result in a more stringent review:
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Very short remaining period on residency status
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Unemployment or unstable income
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Previous history of rent delinquency
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No emergency contact within Japan
Multiple Guarantor Companies Available
There are many different rent guarantor companies in Japan, and each real estate agency typically partners with its own preferred provider. It’s not uncommon for one company (Company A) to reject an application, while another (Company B) may approve it.
Therefore, even if you are declined by one guarantor company, it’s important not to give up—speak with your agent about exploring alternative options.
Coverage Terms Vary Between Guarantor Companies
Although all guarantor companies serve a similar purpose, their coverage details may differ significantly. It is essential to review the terms before signing the lease. Key points to confirm include:
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Are common area fees or parking fees included in the coverage?
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Does the coverage extend to unpaid restoration or cleaning costs upon move-out?
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Are there any exclusions or limitations stated in the guarantee agreement?
Key Advantages of Using a Rent Guarantor Company
✅ Eliminates the need for a personal guarantor
✅ Accelerates the leasing process and approval timeline
✅ Reduces the likelihood of direct disputes with the landlord in the event of missed payments
✅ Often more accommodating for foreign nationals seeking premium housing
✅ Provides peace of mind after moving in (some companies offer emergency support services)
Guarantor Companies: A Key to Securing Your Residence
A rent guarantor company is not simply a backup payer—it serves as a trusted intermediary that reinforces the relationship between tenant and landlord.
For foreign nationals who may find it difficult to secure a personal guarantor, these companies open up access to a broader range of properties.
Before signing, be sure to review the guarantor company’s terms, fees, and support services so that you can confidently begin your life in Japan with peace of mind.