Column · Apartment-hunting tips · No.10

What is a rent guarantor company?

Lately, using a “guarantor company” rather than a personal guarantor is the norm. Knowing the mechanism, costs and screening flow makes contracting smooth.

A rent guarantor company pays the landlord on your behalf if you become unable to pay rent. Using one in place of a personal guarantor has become standard.

The guarantor company’s role

In the event of arrears, it advances the rent, lowering the landlord’s collection risk. For tenants, the benefit is that you can contract more easily even without someone to act as a personal guarantor.

Cost guide

  • Initial guarantee fee: around 0.5–1 month’s rent (varies by plan)
  • Renewal guarantee fee: a set amount once a year, or charged at renewal

Screening flow

At application, you’re screened on ID, income, employer and so on. Results often come within a few days; gathering the required documents early keeps things smooth.

Summary

A guarantor company lets you contract without a personal guarantor, in exchange for a fee. Knowing the costs and flow removes surprises. We’ll guide you on the documents and steps.

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