In today's lease contracts, using a guarantor company (hoshō-gaisha) in place of a joint guarantor (rentai hoshōnin) has become the norm. A guarantor company guarantees your rent payments, and you pay an initial guarantee fee when signing the contract. As a guideline, this initial fee runs about 50–100% of total rent. Even if you don't have anyone who can act as a joint guarantor, focusing your search on properties that assume the use of a guarantor company makes it easier to move forward with a contract.
- A guarantor company is a system that guarantees your rent payments in place of a joint guarantor.
- Screening commonly checks your income, employer, and emergency contact.
- The initial guarantee fee is typically around 50–100% of total rent, and some contracts also charge a renewal fee.
- Even when a guarantor company is assumed, some properties may still require a joint guarantor or emergency contact separately.
- If you don't have anyone who can act as a guarantor, focus your search on properties that rely on a guarantor company, and sort out candidates for your emergency contact early.
What Is a Guarantor Company?
A guarantor company (hoshō-gaisha) is a company that provides a system for paying rent to the landlord on the tenant's behalf if the tenant becomes unable to pay. In the past, it was common to have a joint guarantor (rentai hoshōnin) — typically a relative — vouch for you, but today many lease contracts assume the use of a guarantor company instead. Even if you don't have anyone who can act as a joint guarantor, using a guarantor company increasingly makes it possible to move forward with a contract.
What Guarantor Company Screening Commonly Checks
Guarantor company screening commonly checks things like your income, employer, and whether you have an emergency contact. This isn't meant to exclude particular attributes — it's a standard procedure to confirm whether you'll be able to keep paying rent going forward. Making sure your application details line up consistently with your submitted documents is the key to getting through screening smoothly.
Typical Costs for a Guarantor Company
When you use a guarantor company, it's standard to pay an initial guarantee fee when signing the contract. As a guideline, this comes to about 50–100% of total rent, meaning rent plus management fees and similar charges combined. Depending on the contract, additional costs — such as an annual guarantee fee or a renewal fee — may also come up while the lease continues, so it's reassuring to check the contract in advance for when these charges apply.
When a Joint Guarantor Is Also Required
Even in a contract that uses a guarantor company, some properties or management companies may still ask for a joint guarantor or emergency contact separately, to reinforce the screening. A guarantor company and a joint guarantor play different roles, and some cases require both, so it's worth checking before you apply which requirement applies to a given property.
What to Do If You Don't Have Anyone Who Can Act as a Guarantor
Even if you have few relatives or acquaintances in Japan who could act as a joint guarantor, focusing your search on properties where a guarantor company alone is enough to sign lets you handle this more easily. It also helps to sort out candidates you can reach as an emergency contact — such as someone at your workplace or a friend — ahead of time, which keeps the application process moving smoothly. If you truly can't find anyone, talk to your real estate agency early.
Frequently Asked Questions
Does using a guarantor company mean I never need a joint guarantor?
At many properties, using a guarantor company alone is enough to sign a lease, but some properties may still require a joint guarantor or emergency contact separately.
When do I pay the guarantor company's fee?
It's usually paid as part of the initial costs when you sign the contract. As a guideline, it's about 50–100% of total rent.
What if I don't have anyone in Japan who can be my emergency contact?
Talk to your real estate agency early about candidates for your emergency contact. What's acceptable varies by property and guarantor company.
Summary
A guarantor company is a system that guarantees rent payments in place of a joint guarantor, and it's used in most lease contracts today. The initial guarantee fee is typically about 50–100% of total rent, and some properties may still require a joint guarantor or emergency contact separately. If you don't have anyone who can act as a guarantor, it helps to focus your search on properties that assume the use of a guarantor company, and to talk to your real estate agency early for peace of mind.