Column · Apartment-hunting tips · No.66

Why guarantor company rules and fees differ

Even for the same rental property, screening standards, guarantee fees, renewal fees, payment methods, and emergency contact checks can differ by guarantor company. Here is what to check before signing.

Rent guarantor companies may look similar, but their screening standards and fees can differ a lot.

Even with the same rent, one company may approve smoothly while another asks for more confirmation.

Screening standards differ by company

Each guarantor company evaluates income, employment type, employer, past payments, credit-related information, and emergency contacts differently.

Some focus more on salaried employment, while others check freelance or foreign-national applications in more detail.

As a result, the same applicant may receive different results depending on the property and guarantor company.

Fee calculation also differs

Guarantee fees may be charged as a percentage of total monthly rent at the start, as an annual renewal fee, or as a monthly add-on.

Even if the initial cost looks low, the total can change when renewal and monthly fees are included. Do not judge only by the initial payment.

Check the rent payment method

Depending on the guarantor company, rent may need to be paid by bank transfer, credit card, or collection agency service.

A monthly withdrawal fee may also apply. Even a small fee becomes meaningful over a long stay, so check the estimate.

Be careful with emergency contacts

Some guarantor companies call the emergency contact during screening.

An emergency contact is not the same as a guarantor, but if they cannot be reached, screening may stop. It is safer to tell them in advance that a call may come.

Changing guarantor companies may not be possible

If you are worried about screening, you may want to ask whether another guarantor company can be used.

However, when the management company or landlord specifies the guarantor company, changes are often not possible. Ask before applying whether multiple guarantor companies are available.

Summary

Differences between guarantor companies affect not only screening but also costs and payment methods.

Before applying, check the designated company, initial fee, renewal fee, monthly fee, withdrawal charge, and whether emergency contacts will be called.

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