The 2026 amendments to the Housing Safety Net Act will introduce a new certification system for guarantor companies. We explain how this improves audit transparency, the benefits for tenants, and how to choose a guarantor company wisely.
Reviewed by: Nobuyuki MoriPresident, M-Assets Co., Ltd. / Licensed Real Estate Transaction Specialist (Miyagi #018212)
Even if you don't pass a guarantor company screening, there's no need to give up. By understanding the main reasons for rejection and putting into practice multiple solutions—such as reapplying with a different guarantor company, utilizing a joint guarantor, or changing properties—your chances of successfully signing a rental agreement will expand significantly.
We explain in detail how joint guarantors and guarantor companies work in rental contracts. This guide covers the differences between joint guarantors and ordinary guarantors, the guarantor company screening process, solutions if you cannot arrange a guarantor, and information for seniors, freelancers, and foreign nationals.
The joint guarantor system, once commonplace in Japan, has undergone dramatic changes due to the widespread adoption of guarantor companies. This guide explains the key differences between the two, the latest industry trends, and how both tenants and landlords should approach the decision.
The 2026 amendments to the Housing Safety Net Act and related legislation will establish a certification system for guarantor companies. The purpose of this system is to ensure that people facing difficulty securing housing—including seniors, people with disabilities, foreigners, low-income individuals, and single mothers (those requiring housing security support)—can confidently use rental housing by bringing guarantor company service standards and audit criteria up to a consistent level.
Until now, guarantor companies have not been subject to qualification requirements or mandatory industry registration, resulting in inconsistent audit methods, standards, and service offerings. Audit stringency varied significantly between providers, and applicants with similar profiles could pass with one company while being rejected by another. The new certification system aims to address this lack of transparency.
Guarantor companies that receive certification (certified guarantor companies) will be required to meet the following standards.
First is transparency in audit standards. Discussions are underway to require companies to provide explanations regarding the conditions under which audits are conducted. This will make it easier for applicants to understand why their application may have been declined.
Second is support for those requiring housing security assistance. To receive certification, companies may be required to demonstrate flexible accommodations for seniors, people with disabilities, foreigners, and others who typically face rejection when seeking housing.
Third is cost reasonableness. There is an expectation that industry standards will emerge regarding guarantor fees and renewal charges to prevent excessive pricing.
From a tenant's perspective, using a certified guarantor company provides peace of mind that a certain level of fairness in the audit process is assured.
In the current guarantor market, audit standards vary significantly between providers. Some companies conduct strict credit inquiries (CIC, JICC) and rigorous income verification, while others use more lenient standards.
One reason seniors, foreigners, and non-regular employees often face disadvantages in audits is the inconsistency in these standards. Once the certification system begins to function, certified guarantor companies may be less likely to blanket-reject applicants based on their status.
However, not all guarantor companies will seek certification once the system launches. Non-certified companies will continue to operate. When applying for an apartment, confirming whether the guarantor company is certified will become an important factor in your property selection process.
As of June 2026, the system's details are still being finalized and communicated to the public. However, it is expected that real estate agencies and property managers will increasingly highlight their use of certified guarantor companies.
These amendments address not only the guarantor company certification system but also establish a broader framework for housing security support.
This includes expanding the role of residential support organizations (NPOs and others that assist people requiring housing security support), promoting the supply of registered housing (safety net housing), and establishing guidelines for post-death residential support (such as handling abandoned belongings).
These amendments benefit not only those currently facing housing insecurity but also those concerned about whether they will be able to rent when they are older. The institutional confirmation that Japan's rental market is moving toward broader access is a step toward long-term housing security.
While awaiting the full implementation of the system, there are steps you can take now when selecting a guarantor company.
First, determine which guarantor companies are available for the property. While some properties require a specific guarantor company, when you have a choice, we recommend comparing the audit tendencies and fees among different providers.
Second, verify the guarantor fees. Check the initial fee (typically 0.5–1 month's rent) and annual renewal fees (usually around ¥10,000/year) in advance to understand the total cost of a long-term lease.
Third, if your application is declined, know that other companies may approve you. Asking your property manager or real estate agent about alternative guarantor companies can open doors.
Finally, explore public support options. If you receive public assistance such as welfare benefits or housing assistance, programs like proxy payment arrangements and public guarantee systems (such as prefectural housing support programs) may be available to you.
The guarantor company certification system introduced by the 2026 Housing Safety Net Act amendments is an important step toward greater transparency and fairness in the rental market. Tenants can expect that guarantor company selection will be based on clearer standards and that audit opacity will be reduced.
As the full details of the system become clear, real estate agencies and property managers will provide more comprehensive information. When selecting a property, thoroughly review the guarantor company's certification status and fee structure to ensure a confident move-in process.
Housing is the foundation of life. Use your understanding of this system to make informed decisions and secure a rental agreement you can feel confident about.
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