A Guarantor Company Guide for Foreigners Without a Japanese Joint Guarantor—How to Pass Screening and Understand Costs

Joint Guarantor Culture and the Role of Guarantor Companies

Japanese rental contracts have long assumed that "a family member or acquaintance will serve as a joint guarantor." However, for foreigners—especially those who have just arrived in Japan—securing a joint guarantor domestically is practically difficult.

Guarantor companies bridge this gap. When tenants pay a guarantee fee to a guarantor company, if rent is ever unpaid, the guarantor company advances the payment to the landlord. Since the majority of nonpayment risk transfers to the guarantor company, landlords find it easier to enter into contracts without a joint guarantor.

In recent years, guarantor companies have adopted screening standards designed specifically for foreign tenants, and "not having a Japanese joint guarantor" is no longer necessarily a major obstacle. However, because each guarantor company emphasizes different screening points, requires different documents, and charges different fees, understanding the system in advance makes negotiations smoother.

Three Types of Guarantor Companies

1. Credit Card–Affiliated Guarantor Companies

Credit card company–affiliated guarantor companies check individual credit information (credit history). If there's a history of payment delays on credit cards within Japan or loans from consumer finance companies, approval is less likely. For foreigners who have just arrived with a blank credit record in Japan, they often receive a neutral evaluation—neither positive nor negative.

2. Independent Guarantor Companies

These don't consult credit databases and instead conduct screening based on their own criteria. Employment history, income, residency status, and past rent payment history become the focus. They tend to be relatively flexible with foreign applicants; cases of "rejected by a credit card–affiliated company but approved by an independent company" are not uncommon.

3. LICC and CGO–Member Guarantor Companies

Guarantor companies that belong to rent default databases (such as LICC or CGO) scrutinize tenants with a history of nonpayment. Foreigners renting for the first time in Japan have no records in these databases, so they are unaffected.

In practice, you will select which guarantor company to apply with from among several that the brokerage firm partners with. If rejected, it's important to confirm whether you can reapply with a different type of guarantor company for the property.

Five Screening Criteria

While each guarantor company's screening is somewhat of a black box, based on practical experience, the following five are universally evaluated.

1. Residency Status and Expiration Date

Having a work-related mid-to-long-term residency status is often rated favorably. If your residency expiration is shorter than the lease period, prepare documentation explaining your renewal plans.

2. Employer Size and Employment Type

Listed companies, government agencies, and major foreign firms score highly. For startups and self-employed individuals, additional documentation such as employment contracts, withholding certificates, and business statements may be required to demonstrate income continuity.

3. Income-to-Rent Ratio

Generally, rent is estimated not to exceed 30–33% of monthly income. For ¥80,000 rent, monthly income of ¥240,000–270,000 or more is a benchmark for easier approval; for ¥150,000 rent, ¥450,000–500,000 or more.

4. Payment Default History

A history of unpaid rent within Japan, utility bill arrears, or credit card payment delays is a negative factor. Foreigners newly arrived with no domestic payment history are unlikely to face disadvantage here.

5. Emergency Contact

A domestic emergency contact is often required. Designate one or two people (family, friend, or workplace colleague) who can be reached by phone. Some guarantor companies also accept only family in your home country.

Initial Fees and Renewal Charges

Guarantor company fees typically occur in two stages: at contract signing and at renewal.

Guarantee Fee at Contract Signing

• •Typically 30–100% of rent plus common service fees
• •For ¥80,000 rent, around ¥24,000–80,000
• •Guarantor companies conducting foreigner screening often set higher fees than standard offerings

Annual or Renewal Update Fee

• •Fixed annual fee of ¥10,000–20,000
• •Or 10–30% of rent every two years
• •Always confirm before signing whether renewal occurs annually, every two years, as a fixed amount, or as a percentage

Cost Estimate for Long-Term Residency

Example of total guarantee fees for a ¥80,000 rent property over 5 years:

• •Initial guarantee fee: ¥64,000 (80% of rent)
• •Annual renewal fee: ¥10,000 × 4 = ¥40,000
• •Total: ¥104,000

Because renewal terms and amounts vary significantly by property, comparing multiple properties before moving in is recommended.

Practical Preparation for Foreign Applicants to Pass Screening

Preparation 1: Gather Employment and Income Documentation Early

• •Certificate of employment (issued within 3 months of application)
• •Payroll stubs for the past 3 months
• •For job offers, the offer letter plus documentation showing the start date

Preparation 2: Organize Your Address and Contact Information

• •Current Japanese address (hotel address is acceptable in many cases while staying at a hotel)
• •Two domestic emergency contacts (coworker, friend, or family)
• •Email address and Japanese phone number

Preparation 3: Prepare Answers to Anticipated Questions

Guarantor companies sometimes call for direct questioning. If you're uncomfortable with Japanese, request the following from the brokerage in advance:

• •Select an English-capable guarantor company
• •Specify a time when a Japanese interpreter (coworker or friend) can take the call
• •Request that confirmation matters be handled in writing rather than by phone

Recovery Strategies If Your Application Is Rejected

Rejection on the first attempt doesn't mean you should give up. You can reapply using the following steps.

Step 1: Confirm the Reason for Rejection via the Brokerage

Guarantor companies typically won't disclose screening reasons to you directly, but the brokerage may be able to relay the general reason such as "insufficient income," "residency expiration date too close," or "incomplete documentation."

Step 2: Apply with a Different Type of Guarantor Company

If rejected by a credit card–affiliated company, try an independent one; if rejected by an independent company, switch to another independent company. Ask the brokerage for a list of partner guarantor companies and which ones have relatively flexible foreign screening.

Step 3: Propose Increasing the Security Deposit

If a guarantor company is hesitant, increasing the security deposit from the standard two months to three or four months can be an option to ease the landlord's concerns.

Step 4: Find a Japanese Joint Guarantor

Colleagues, friends, or your company's HR department may agree to serve as a joint guarantor. Using both a guarantor company and a joint guarantor can make approval easier for some properties.

Step 5: Adjust Your Property Budget

If you're being rejected for properties where rent significantly exceeds 30% of your income, lowering the rent can make approval easier. Focusing on properties with a track record of foreign tenants is also effective.

Commonly Used Guarantor Companies and Their Characteristics

In practice, guarantor companies that are relatively proactive about accepting foreign tenants include companies specializing in foreign applicants like Global Trust Networks (GTN), as well as major firms like Japan Rent Guarantee (Casa) and Aplus that have expanded multilingual support. Which guarantor company is available depends on the property, so inform the brokerage that you'd prefer properties using guarantor companies with relatively flexible foreign screening.

Summary

For foreigners to enter a rental contract in Japan without a joint guarantor, the fundamental approach is to understand how guarantor companies work and screening criteria, then apply with your employment history, residency status, and documentation in order. By understanding the differences between credit card–affiliated, independent, and database-member companies, and being willing to reapply with a different guarantor company if rejected once, contracts succeed in most cases. Consulting with a brokerage firm experienced in handling foreign tenants is the smoothest path.