When renting a residential property in Japan, many properties require a "joint guarantor" (rentagin). A joint guarantor is a person who is responsible for paying the rent if the tenant can no longer do so. For Japanese people, it is typical to ask family members or relatives to serve in this role, but for foreigners, finding someone in Japan who can act as a guarantor is an extremely difficult reality. For those who have recently moved to Japan, international students, and those who have just changed jobs, this "guarantor issue" is arguably the biggest obstacle to finding a place to live.
However, rest assured. In recent years, a service called "guarantee companies" has rapidly expanded, and the number of properties where rental contracts can be concluded without a joint guarantor has increased significantly. Here we explain in detail the mechanisms of guarantee companies, costs, the screening process, and services available for foreigners.
Background of the Joint Guarantor System and the Role of Guarantee Companies
In Japan's rental market, joint guarantors have long been an essential condition for contracts. This is to protect landlords from the risk of unpaid rent. However, as nuclear families have become more common and the population has aged, even Japanese people have found it difficult to secure guarantors. As a result, guarantee companies have developed a business model to serve as a "substitute guarantor." Currently, it is said that more than 80% of all rental contracts use guarantee companies, and in fact, properties that require the use of guarantee companies have become the mainstream. Guarantee companies operate by first advancing rental payments to landlords when tenants fall behind on rent, and then pursuing payment from tenants. For landlords, this ensures certainty in rent collection, and for tenants, it allows them to sign contracts without needing a guarantor—a mutually beneficial system.
Benefits of Using a Guarantee Company
The greatest benefit of using a guarantee company is that you can sign a rental contract even without family members or acquaintances in Japan. This is particularly reassuring for those who have recently arrived in Japan or for international students. Additionally, because the guarantee company conducts its own screening, it becomes easier to gain trust from the landlord. Some landlords worry about renting to foreigners, but when a guarantee company is involved, that concern is often resolved, and the screening process tends to become smoother. Furthermore, guarantee companies that focus on supporting foreigners often provide services such as translation of contracts and multilingual assistance with trouble resolution after moving in. Some guarantee companies also have consultation windows for general living advice, offering comprehensive support for life in Japan, which is a major attraction.
Guarantee Fee Structure and Cost Guidelines
Using a guarantee company requires payment of a "guarantee fee." The standard guarantee fee is typically 0.5 to 1 month of rent for the initial payment, with annual renewal fees of approximately ¥10,000 to ¥20,000. For example, for a property with ¥70,000 monthly rent, the initial guarantee fee would be approximately ¥35,000 to ¥70,000. This initial guarantee fee is usually included in the initial costs of the rental contract and is billed together with deposit, key money, and broker fees. Fee structures vary by guarantee company and plan, so be sure to check the details in the estimate before signing the contract. Generally, guarantee fees are non-refundable. Some guarantee companies also offer monthly payment plans, which may be worth considering if you want to reduce upfront costs.
Screening Process and Required Documents
Guarantee company screening usually completes within 3 to 5 business days. Documents typically required when applying include: residence card, passport, income verification documents (3 months of pay stubs, employment contract, proof of enrollment, etc.), and a domestic emergency contact. In screening, stable income is the most important factor. As a guideline, monthly income should ideally be at least 3 times the monthly rent. Even part-time or contract workers pass screening if they have continuous income. For international students, submitting proof of remittances from parents or evidence of scholarship awards in addition to part-time work income can strengthen the application. A phone verification call may be made to confirm your identity, so ensure you can answer calls at the registered phone number.
Introduction to Guarantee Companies Specializing in Foreigners
Japan has several guarantee companies that specialize in supporting foreign rental contracts. GTN (Global Trust Networks) is a prominent example, offering support in 14 or more languages, a 24-hour multilingual call center, and living support services. Four Leaf is another guarantee company specializing in foreigners, known for having relatively low screening hurdles. These companies provide support in your native language from explaining contracts to offering lifestyle advice after moving in, so you can be reassured even if you don't have confidence in your Japanese language skills. If you tell a real estate agent that you want to use a guarantee company that supports foreigners, they can usually introduce you to affiliated companies. The process will go smoothly if you select a real estate agent that partners with foreign-friendly guarantee companies from the beginning of your property search.
Precautions and Advice When Using a Guarantee Company
Even when using a guarantee company, it is essential to always meet the rent payment deadline each month. While the guarantee company makes advance payments, this is a "temporary payment on behalf of the tenant," and the ultimate payment obligation remains with the tenant. If you continue to fall behind, a record will be kept in the guarantee company's database, which may affect your screening when you move next time. Some guarantee companies also charge late fees for arrears. If you find yourself in a situation where paying rent is difficult, consult with the guarantee company or management company before falling behind on payments. By contacting them in advance, you may be able to arrange a payment plan. View the guarantee company as a "partner to prevent problems" and build a good relationship with them to ensure stable rental living in Japan.
Just because you don't have a guarantor doesn't mean you should give up on renting a room in Japan. Use guarantee companies wisely and start your new life with peace of mind.