Complete Guide to Renting Without a Guarantor [2024 Edition]
The 2020 revision of the Civil Code brought major changes to the joint guarantor system in rental agreements. Experts explain practical methods for renting without a guarantor, including how to use guarantor companies and find properties that don't require one.
The Civil Code revisions that took effect in April 2020 brought significant changes to the joint guarantor system in rental agreements. The most important change is the mandatory setting of a "maximum guaranteed amount."
Before the revision, there was no upper limit on the debt that a joint guarantor could be held responsible for, and cases existed where unpaid rent, restoration to original condition costs, breach penalties, and other charges were billed to the guarantor with no ceiling. After the revision, .
if a maximum guaranteed amount (the upper limit on the guarantor's liability) is not explicitly stated in the guarantee agreement, the entire guarantee agreement becomes invalid
In general, the maximum guaranteed amount is typically set at around "12 to 24 months of rent," making the guarantor's liability range clearer than before. However, conversely, there has been an increase in contracts that explicitly specify high maximum amounts and demand substantial guarantees. When requesting a guarantor, be sure to confirm the maximum guaranteed amount.
Due to this revision's impact, an increasing number of landlords and property managers are avoiding requesting guarantors altogether and instead switching to using guarantor companies (rental guarantor companies). Currently, it is said that more than 80% of new rental contracts use guarantor companies, and "no guarantor = guarantor company usage" has become almost the standard.
How to Find Properties That Don't Require a Guarantor
To efficiently find properties labeled "no guarantor required," use the search filters on major portal sites such as SUUMO and HOME'S.
How to Filter on SUUMO
From the search conditions' "Special Conditions" section, check the box for "No Guarantor Required," and only properties that do not require a guarantor will be displayed. However, it's important to note that "no guarantor required" does NOT mean "no guarantor company required." In most cases, this phrase means "an individual joint guarantor is not required, but enrollment with a guarantor company is mandatory."
How to Filter on HOME'S
On HOME'S, there is a "No Guarantor Required" option under "Add Condition" → "Move-in Conditions." Similarly, most properties assume guarantor company usage, but some properties exist that don't require a guarantor company either.
Points to Note
•Even if a property is labeled "no guarantor required," always confirm the conditions by checking the property details page or contacting the property management company directly
•Some properties require multiple specified guarantor companies, while others work with just one; if only one company is specified, there's a risk that if you don't pass their screening, you won't be able to move in
•UR Rentals (Urban Renaissance Organization) requires neither a guarantor nor a guarantor company, and you can move in if you meet certain income requirements; if such properties are available in your target area, they are an excellent option
Guarantor Company Screening Criteria and Tips to Improve Approval Rates
Guarantor company screening is primarily based on the following factors.
Main Screening Criteria
Income Stability and Amount: A general guideline is that monthly income should be at least 3 times the monthly rent
Length of Employment and Employment Type: Being a full-time employee and having a longer employment history is advantageous
Credit Information: Past rental payment defaults and credit card late payment history may be checked (particularly by credit-based guarantor companies)
Nationality and Residence Status: For foreign nationals, the duration of residence and type of residence status are also verified
Concrete Tips to Improve Approval Rates
•Keep rent within 25–30% of your income: If your monthly income is ¥250,000, choosing a property with monthly rent of ¥70,000 or less will make approval easier
•Check the Type of Guarantor Company: Credit-based guarantor companies (affiliated with credit card companies) scrutinize credit information carefully; if you have past late payment history, it's wise to choose properties that use independent guarantor companies
•Prepare an Emergency Contact: A family member's emergency contact serves as reassurance during screening (this is different from a guarantor)
•Clearly Communicate Your Reason for Moving and Your Employer: Ensure that the employer and income information listed on screening documents are accurate. False information can result in screening rejection or contract termination
•Choose Management Companies That Work With Multiple Guarantor Companies: You'll have more options than with companies that work with only one
Guarantor Fee Rates and Important Points When Signing a Contract
When using a guarantor company, you must pay a separate "guarantor fee." It's important to understand the market rates and carefully review the contract.
Guarantor Fee Rates
•Initial Guarantor Fee: Typically 0.5 to 1 month's rent, though this varies by property and guarantor company
•Annual Renewal Fee: Most commonly, around ¥10,000 or approximately 10% of monthly rent is charged with each lease renewal
•Total Payment: For a 2-year lease, the initial guarantor fee plus renewal fee typically totals approximately "0.7 to 1.5 months' rent"
Key Points to Confirm When Signing
•Confirm in writing the guarantor fee amount and payment timing (whether paid in full upfront or in installments)
•Always confirm whether a renewal fee exists and its amount
•Understand the scope of "rental debt guarantee" (whether it covers only unpaid rent or also includes restoration to original condition costs and litigation expenses)
•Confirm the relationship between the guarantor company and the landlord (whether the landlord specifies only certain companies) and ask whether you have a choice
Practical Advice for Foreign Nationals, Freelancers, and Those with Unstable Income
Those in positions where it's difficult to arrange a guarantor have specific strategies suited to their circumstances.
For Foreign Nationals
If your residence status is "Permanent Resident" or "Spouse of a Japanese National," you will be treated almost the same as a Japanese citizen during screening. For work visas and similar status, screening becomes stricter as your residence permit expiration approaches, so it's advantageous to sign a contract immediately after renewal. Additionally, you can use property management companies and guarantor companies specialized for foreign nationals (for example, Global Trust Networks).
For Freelancers and Self-Employed Individuals
Prepare your tax return documents (the most recent 2–3 years) as proof of income. Even if your income is unstable, submitting a bank balance certificate (ideally showing savings equivalent to 1–2 years of rent or more) will increase your approval rate. Your payment history with credit cards also helps strengthen your creditworthiness.
For Those with Low or Unstable Income
•Lower your rent to improve your income-to-rent ratio (highest priority)
•Choose properties with different initial cost structures (such as zero key money with 2 months' security deposit) to demonstrate financial reserves
•If you're a welfare recipient, choose properties that are "housing assistance eligible." Properties where you can use the proxy payment system (where rent is paid directly to the landlord by the municipal office) are easier to get approved for
The absence of a guarantor is no longer the major obstacle to renting that it once was. By understanding how the system works and selecting a guarantor company and property that fit your circumstances, you have a very good chance of successfully signing a lease. The most reliable method is to confirm any concerns directly with the property management company during an apartment viewing or before submitting your application.
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