No Guarantor? A Guarantor Company Guide for Foreign Residents
Joint guarantors are typically required for rental contracts in Japan. Learn how foreign residents can overcome this challenge, and understand how guarantor companies work.
When renting a residential property in Japan, a joint guarantor is required for most properties. A joint guarantor is a person who assumes the obligation to pay rent on behalf of the tenant if the tenant can no longer do so. For Japanese nationals, it is common to ask family members such as parents or siblings to serve as guarantors. However, for foreign residents, finding someone willing to serve as a guarantor within Japan is extremely difficult in reality. For those who have recently arrived in Japan, international students, and those who have just changed jobs, this "guarantor issue" is arguably the biggest hurdle in apartment hunting.
But don't worry. In recent years, services known as "guarantor companies" have rapidly gained popularity, and an increasing number of properties allow tenants to sign rental contracts without a joint guarantor. Here, we provide a detailed explanation of how guarantor companies work, their fees, the screening process, and services for foreign residents.
The Joint Guarantor System and the Role of Guarantor Companies
In Japan's rental market, joint guarantors have long been a mandatory requirement for contracts. This is to protect landlords from the risk of unpaid rent. However, as the nuclear family structure became more common and the population aged, even Japanese nationals found it difficult to secure guarantors. This led to the development of guarantor companies as a business model to "replace" traditional guarantors. Today, guarantor companies are used in over 80% of all rental contracts, and requiring their use has actually become the standard. Here's how they work: if a tenant falls behind on rent, the guarantor company first advances the payment to the landlord, then seeks repayment from the tenant. For landlords, this ensures reliable rent collection; for tenants, it allows them to sign contracts without a guarantor. It's a win-win system for both parties.
Benefits of Using a Guarantor Company
The greatest benefit of using a guarantor company is that you can sign a rental contract even if you don't have family or acquaintances in Japan. This is particularly reassuring for those who have recently arrived in Japan or international students. Additionally, since guarantor companies conduct their own screening, they can help you gain the trust of landlords. Some landlords feel uneasy about renting to foreigners, but with a guarantor company as an intermediary, this concern is often alleviated, and the chance of passing the screening increases significantly. Furthermore, guarantor companies that specialize in foreign residents often provide support such as translation of contracts and multilingual assistance with issues after moving in. Some guarantor companies also offer consultation services for general life matters, providing comprehensive support for your life in Japan—a major advantage.
How Guarantor Fees Work and Cost Estimates
Using a guarantor company requires paying a "guarantor fee." The typical fee structure is 0.5 to 1 month's rent for the initial fee, and then an annual fee of ¥10,000–¥20,000 at each renewal. For example, for a property with ¥70,000 monthly rent, the initial guarantor fee would be approximately ¥35,000–¥70,000. This initial fee is usually included in the upfront move-in costs along with the security deposit, key money, and agency fee. Since fee structures vary by guarantor company and plan, always request an itemized estimate before signing the contract. Note that guarantor fees are generally non-refundable. Some guarantor companies also offer monthly payment plans, which may be worth considering if you want to minimize upfront costs.
Screening Process and Required Documents
Guarantor company screening typically takes 3 to 5 business days. Documents required for application include your residency card, passport, proof of income (such as three months of pay stubs, employment contract, or proof of student status), and an emergency contact in Japan. The screening prioritizes whether you have stable income. As a general rule, it's recommended that your monthly income be at least three times your monthly rent. Even if you're not a full-time employee, having continuous income through part-time work or contract employment often allows you to pass. International students can improve their chances by submitting additional documentation such as proof of remittance from parents or proof of scholarship. The guarantor company may also call to verify your identity, so make sure you can answer calls at the phone number you register.
Guarantor Companies Specializing in Foreign Residents
Japan has several guarantor companies that specialize in supporting rental contracts for foreign residents. A prominent example is GTN (Global Trust Networks), which offers support in 14+ languages, a 24-hour multilingual call center, and lifestyle support services. Four Leaf is another guarantor company specializing in foreign residents, known for having relatively lenient screening criteria. These companies provide support in your native language, from explaining contract terms to offering life advice after moving in, which is reassuring even if you're not confident in Japanese. If you tell a real estate agency that you want to use a foreign resident-friendly guarantor company, they will almost always introduce you to their partners. Selecting a real estate agency that partners with foreign resident-friendly guarantor companies from the beginning will make the process smoother.
Important Precautions and Advice When Using a Guarantor Company
Even when using a guarantor company, it's essential to pay your rent on time each month. Although the guarantor company will advance payments on your behalf, this is only a temporary solution—the final obligation to pay rests with you as the tenant. If you fall behind on payments, a record will be kept in the guarantor company's database, which could affect your approval for future rentals. Some guarantor companies may also charge late fees for delinquent payments. If you find yourself in a difficult financial situation, consult with the guarantor company or property management company before falling behind on rent. By notifying them in advance, you may be able to arrange a payment plan. Think of the guarantor company as a "partner to prevent problems," and maintaining a good relationship with them will contribute to a stable rental life in Japan.
Just because you don't have a guarantor doesn't mean you should give up on renting a place in Japan. Make good use of guarantor companies and start your new life with confidence.
Common Reasons Why Foreign Residents May Fail Screening and How to Respond
The main reasons why foreign residents fail guarantor company screening can be summarized into three categories: (1) remaining residency period of less than six months, (2) monthly income less than three times the monthly rent, and (3) no emergency contact in Japan. International students, trainees, and those on specific skill visas who have recently arrived are especially likely to encounter these issues. If you fail once, don't give up—the following strategies can help you try again.
First, applying to a different guarantor company is the most effective approach. Guarantor companies fall into three main categories: credit card company-affiliated, independent, and LICC-affiliated—each with different screening criteria and credit reference standards. If you are rejected by one company, switching to an independent company that specializes in foreign residents (such as GTN, Four Leaf, or Casa) will increase your chances of approval.
Second, changing to a property with rent ¥10,000–¥20,000 lower is also effective. The three-times-monthly-income rule is strictly applied, so if you failed with ¥70,000 rent, you would likely pass with ¥55,000. Try adjusting the rental price range in SUMUIE's search screen and try again.
Finally, submitting an additional emergency contact who is a Japanese national (such as your workplace supervisor, university advisor, or Japanese spouse) can improve the guarantor company's impression of your application and help you pass on a second review. Since this person would not assume legal responsibility as a joint guarantor, it's a relatively low-barrier approach.
If you want to secure a property while still overseas, some real estate companies (such as GTN Rental and Apartment Japan) that handle "overseas application properties" allow you to complete the contract online before arriving in Japan. Since standard guarantor company screening typically cannot be completed before your residency card is issued, it's worth considering these specialized services.
