No Guarantor, No Problem? How Rent Guarantee Companies Work in Japan
Renting an apartment in Japan often means being asked for a “joint guarantor” — someone who agrees to cover your rent and related costs if you can't. For people who have just moved from overseas, or who don't have close contacts living in Japan, finding someone willing to take on that role can be one of the first big hurdles.
In practice, it's increasingly common to sign a lease without a personal guarantor by using a rent guarantee company instead. This article looks at how these companies work, what they typically cost, and what's worth checking before you sign. Since terms vary by property and by guarantee company, it's a good idea to confirm the final details with your real estate agent or a licensed professional.
Why do Japanese landlords ask for a guarantor in the first place?
Lease agreements typically require someone who will step in and pay if the tenant falls behind on rent, or fails to cover restoration costs when moving out. This is the joint guarantor — under Japanese law, they take on essentially the same payment responsibility as the tenant.
A relative was traditionally the default choice for this role. But with more single-person households and more renters who don't have someone in Japan they can ask, using a rent guarantee company in place of (or alongside) a personal guarantor has become widespread. It's now common for landlords to require use of a guarantee company even when a tenant can also arrange a personal guarantor.
No guarantor? How rent guarantee companies work
A rent guarantee company agrees to cover your rent to the landlord if you fall behind on payments. In exchange, you pay a guarantee fee when signing the lease, and — once you pass the company's screening — you can rent without a personal guarantor, or use one alongside the guarantee company depending on the property.
Screening generally looks at your visa status and remaining period of stay, your employer and income, and whether you have an emergency contact. Requirements can differ depending on your visa category, so it's worth asking your real estate agent or the guarantee company in advance what documents you'll need.
What if you don't pass the screening?
Guarantee company screening isn't automatic, and not everyone passes. Common alternatives include finding a personal guarantor in Japan who meets the income requirements, using a guarantee scheme arranged through your employer or school, or looking at properties that don't require a guarantor at all, such as UR housing.
Which option is realistic depends on your visa status and work or study situation. Even if you don't pass one guarantee company's screening, a real estate agent may be able to suggest a different one — so it's worth asking before giving up.
Typical costs and screening
- Typical first-time guarantee fee (as a share of rent)
- 0.5month's rent
- Typical renewal fee
- ~¥10,000per year
- Respondents who said they had been refused housing because they were foreign
- 39.8%
Varies by company and plan
May be a flat fee or a percentage of rent, depending on the company
Ministry of Justice, FY2016 survey of foreign residents
Relevant laws and systems
- Civil Code, Article 465-2
- For an individual acting as a revolving guarantor — including a joint guarantor for a lease — the contract is void unless it sets an upper limit (kyokudogaku) in writing. If you're asked to be someone's guarantor, it's worth checking whether that limit is clearly stated in the contract.
- MLIT Rent Guarantee Company Registration System
- A voluntary government registration system for guarantee companies that meet certain standards. Being registered is one reference point when choosing a company, though registration alone doesn't guarantee the safety of every transaction.
Personal guarantor vs. rent guarantee company (general tendencies)
| Personal guarantor | Rent guarantee company | |
|---|---|---|
| Who can do it | A relative or acquaintance | A company you contract with (and pay a fee) |
| Upfront cost | Usually none | A guarantee fee (roughly 0.5–1 month's rent as a guide) |
| Ongoing cost | Usually none | A renewal fee may apply (roughly once a year) |
| Screening | Landlord's/agent's own judgment | The company's own screening criteria |
Common oversights and how to avoid them
✕Assuming a guarantee company wasn't needed because a personal guarantor was available — only to find the property required one anyway.
→Ask the agent before viewing or applying whether a guarantee company is mandatory for that property.
✕Focusing only on the first-time guarantee fee and being caught off guard a year later by a renewal fee.
→Check the contract and disclosure documents for whether a renewal fee applies, and whether it's a flat amount or a percentage.
✕Running into trouble at renewal time because visa renewal timing didn't line up with the guarantee company's requirements.
→If your period of stay is short, share your renewal schedule with the guarantee company and management company in advance.
✕Being caught off guard by how quickly and firmly a guarantee company followed up after a missed payment.
→If you think you'll struggle to pay, contact the management company or guarantee company before you actually miss a payment to ask about options like installments.
Before-you-sign checklist
- Confirmed whether the property requires use of a rent guarantee company
- Confirmed the first-time guarantee fee amount and when it's due
- Confirmed whether a renewal fee applies, and its amount and frequency
- Prepared the documents needed for screening (residence card, income proof, etc.)
- Confirmed who you can list as an emergency contact
- Identified who to contact (management company/guarantee company) if paying rent becomes difficult
Frequently asked questions
- Q. Can I be asked for both a personal guarantor and a guarantee company?
- A. Some properties require both a personal guarantor and a guarantee company. Whether one is enough or both are required varies by property, so it's something to confirm before signing.
- Q. Can international students or technical intern trainees pass guarantee company screening?
- A. Screening criteria and required documents can differ depending on your visa category. In some cases, a guarantee company introduced through your school or supervising organization may be available, so it's worth asking them or your real estate agent first.
- Q. Can I choose which guarantee company to use?
- A. In most cases, you'll choose from among the companies designated by the landlord or management company, rather than being free to pick any company yourself.
- Q. Will I be evicted immediately if I miss a rent payment?
- A. It's not common to be asked to move out immediately after a single missed payment, but continued non-payment can lead to contract termination and a request to vacate. If paying becomes difficult, it's best to contact the management company or guarantee company as early as possible.
In the SUMIMOTO Hub app, a 24-hour AI advisor explains how rent guarantee companies work and helps you read through lease contracts and disclosure documents, in multiple languages. For the final screening criteria of a specific guarantee company or contract terms, we recommend confirming with your real estate agent or a licensed professional.
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