When renting an apartment in Japan, you will quickly hear the term guarantor company (保証会社 / hoshō gaisha). In the past, you needed a personal “Joint Guarantor.” This was usually a Japanese family member. Today, professional companies have replaced that system. This change makes renting faster and more secure for everyone.
What is a Guarantor Company?
Think of the guarantor company as a specialized insurance provider for the landlord. They join the rental contract to achieve three main goals:
- Reduce Risk: They ensure the landlord receives rent even if the tenant is late.
- Verify Tenants: They perform a background check to judge if an applicant is suitable.
- Support Foreigners: Many companies, like Nihon Safety or Zenhoren, now offer support in English and Chinese.
How the Screening (Shinsa) Works
The screening process is a third-party review of your application. For the real estate agency and the landlord, passing this stage is vital. It means a third party reviewed your basic information and approved you.
The company may confirm your employment, student status, and income stability. Sometimes, they check your contact details or ask for additional verification. For you, the renter, the process is usually simple.
| Factor | What They Check |
| Identity | Valid passport and Residence Card. |
| Stability | Your job or school enrollment status. |
| Income | Is your monthly income 3x the rent? |
| Contact | A phone call to verify your identity. |
What to Expect During the Call
You will typically receive a phone call during the process. The staff will confirm your identity, your address, and the property details. If everything matches, the contract moves forward with confidence.
Guarantor companies are now standard because the process is predictable. In practice, finding a personal joint guarantor (rentai hoshōnin) is difficult for many. That is why landlords now ask most renters to join a guarantor company instead.
Understanding the Costs and Fees
Using a guarantor company makes renting easier, but it does come with a cost. Fees vary widely, but they usually follow these patterns:
- Initial Fee: Typically 50% to 100% of one month’s rent.
- Renewal Fee: A flat fee of ¥10,000 to ¥20,000 every one or two years.
- Monthly Fee: Some plans charge a small monthly fee (about ¥500–¥1,000).
For foreigner-oriented plans, the structure might be different. These often include multilingual services and translation help for your move-in.
What Happens if Rent is Late?
The role of the company is clearest when a payment issue occurs. If rent is overdue, the company makes a substitute payment (daii bensai) to the landlord.
However, your debt does not disappear. You still owe that amount to the guarantor company. You must repay them directly. Some contracts also include late-payment interest (chien songaikin). We recommend confirming these conditions in advance.
Can You Choose the Company?
In general, tenants cannot choose which guarantor company to use. The real estate agency or landlord usually has a pre-approved list. Your application goes through their chosen provider. Understanding this system early can save you time and avoid confusion.
Joint Guarantors vs. Companies
Not all properties require the same setup. Sometimes the company alone is enough. In other cases, you might still need a personal joint guarantor for extra security. These individuals usually need Japanese nationality or permanent residency.
If you want to learn more about guarantor companies we recommend the following article: here
Conclusion: Plan Ahead for Your Move
It is now very common to use a guarantor company when renting in Japan. Knowing how they work reduces surprises. Because plan details vary, you should receive a clear explanation from a trusted agency. Make sure you feel comfortable with the details before you sign.
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