Rent an apartment in Japan and you’ll quickly hear the term guarantor company (保証会社 / hoshō gaisha). This is a company that joins the rental contract to reduce the landlord’s risk and increase confidence that rent will be paid on time. Japan has many guarantor companies, such as Nihon Safety (日本セーフティ), Entrance (エントランス), JID (日本賃貸保証), and Zenhoren (全保連), among others.
For the real estate agency and the landlord, passing the guarantor company screening (審査 / shinsa) means a third party reviewed the applicant’s basic information and judged them suitable to proceed. Depending on the case, they may confirm your employment or student status, income stability, and sometimes contact details or additional verification.
For renters, the process often feels simple: you typically receive a phone call to confirm your identity, your current address, and the property you want to rent. If everything matches, that “OK” helps the contract move forward with more confidence.
Over time, guarantor companies have become increasingly common because the process has been standardized—and in practice, it isn’t always easy to provide the joint guarantor (連帯保証人 / rentai hoshōnin) that landlords may expect. That’s why today it’s normal for renters to be asked to join a guarantor company as part of the procedure.
The role of a guarantor company is easiest to understand when a payment issue occurs. If rent is overdue, the guarantor company may make a substitute payment (代位弁済 / daii bensai) to the landlord under the plan’s terms, and then follow up with the tenant to recover that amount. In other words, even if the landlord receives the money, the tenant’s obligation still exists—the tenant then owes the guarantor company instead. Some contracts also include items such as late-payment damages/interest (遅延損害金 / chien songaikin) or other conditions, which we recommend confirming in advance.
In practice, not all properties require the same arrangement. Sometimes the guarantor company alone is enough, but in other cases a joint guarantor (連帯保証人) is also required as extra security, and in rarer situations neither may be needed. In addition, it is common for the joint guarantor to be someone with Japanese nationality (日本国籍) or permanent residency (永住権).
One important point: in general, tenants cannot choose which guarantor company to use. In most cases, the real estate agency, property management company, or landlord already has a list of approved guarantor companies, and your application is processed through their chosen provider. This is why understanding the guarantor company (保証会社) system early can save time and avoid confusion during the application process.
As for costs, there are common patterns, but they vary widely. Often there is an initial fee calculated as a percentage of the rent, plus either an annual/biennial renewal fee or a monthly fee. For foreigner-oriented plans, the structure may be different and can include practical support such as multilingual service and interpretation/translation help. In some cases, this support is used for confirmation calls related to the contract, questions during move-in, or basic communication with property management and home utilities (electricity/gas/water/internet).
In summary, it is now very common to be asked to use a guarantor company (保証会社) when renting in Japan. Understanding what it does, how it works in case of late payments, and what terms are included in the plan makes the process clearer and reduces surprises. Because plan contents vary significantly by company and the conditions can be complex, it’s important to receive a clear explanation from a trusted real estate agency and feel fully comfortable with the details before signing.
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