When you apply for a rental property in Japan, a guarantor company screening is often required.
A rent guarantor company covers the landlord side if rent payment is delayed, then claims the amount from the tenant. It is increasingly used instead of a personal joint guarantor.
There are several types of guarantor companies
Broadly speaking, there are independent guarantor companies, credit-related companies, and guarantor companies closely connected to management or real estate companies.
Independent companies often specialize in rental guarantees. Credit-related companies may look more closely at credit information.
However, tenants usually cannot freely choose the guarantor company. In many cases, the landlord or management company specifies which company must be used.
Basic points checked in screening
Common points include the balance between rent and income, employer, employment type, length of employment, and whether the application details are consistent.
If the rent seems too high for the income, or if the application contains unclear or inconsistent details, additional confirmation may be required.
Emergency contacts, joint guarantors, co-occupants, and past payment history may also matter.
Phone response matters
The guarantor company may call to confirm identity or employment.
If you cannot be reached for a long time, the screening may pause or leave a poor impression. After applying, pay attention to calls from unknown numbers.
Registration exists, but it does not decide approval
Japan has a national registration system for rent debt guarantor companies, published by the Ministry of Land, Infrastructure, Transport and Tourism.
This is a voluntary registration system. Whether a company is registered does not automatically decide whether your application will pass. The actual screening depends on the designated company and the property.
Summary
The points checked can differ depending on the guarantor company.
The most important preparation is a reasonable rent-to-income balance, accurate application details, quick phone response, and complete documents. Instead of fearing the guarantor company, prepare well before applying.