Guarantor companies are becoming essential in rental contracts. This guide examines the differences between credit card-affiliated, LICC-affiliated, and independent companies from a foreign resident's perspective, covering initial and renewal fee ranges, approval criteria, and multilingual support options.
Reviewed by: Nobuyuki MoriPresident, M-Assets Co., Ltd. / Licensed Real Estate Transaction Specialist (Miyagi #018212)
Japan's rental guarantor companies are divided into three main categories based on their industry associations and information-sharing networks. Understanding these differences is the first step to choosing a guarantor company that suits your needs.
A detailed explanation of the screening process for foreigners renting properties in Japan, required documents, and tips for passing screening. We also introduce precautions by visa status and helpful support programs.
Explains the role of "guarantors" required in Japanese rental contracts and practical alternatives available to foreign residents without Japanese guarantors (guarantor companies, UR rental housing, and properties welcoming foreign residents).
A guide for foreign nationals, returnees, and non-Japanese citizens unfamiliar with Japanese, covering how to find English-friendly real estate companies, how to use multilingual rental portals, and key terminology and precautions when signing contracts.
Comprehensive guide to the rental application process for foreign nationals in Japan, covering the screening procedure, required documents, how to choose a guarantor company, and important considerations after moving in. We also share common screening obstacles and strategies to overcome them.
Credit card-affiliated guarantor companies are backed by credit card issuers or consumer credit firms. Examples include Aplus, Jaccs, Orico, and SBI Guarantee. Their key feature is checking credit history with credit information agencies (CIC and JICC). Those with a clean credit card payment history tend to pass approval easily, while anyone with a history of late payments on credit cards or consumer loans faces stricter scrutiny.
LICC-affiliated companies (members of the General Incorporated Association Rental Guarantee Organization) belong to a network where guarantor companies share rental delinquency records. Examples include Nihon Safety and Four Seizes. While they don't review credit card history, any past delinquency or eviction through other LICC-affiliated companies will immediately affect your approval.
Independent guarantor companies don't belong to either the credit card-affiliated or LICC-affiliated systems and offer more flexible approval for groups who struggle with other companies—including foreign residents, self-employed individuals, and freelancers. Examples include GTN, Casa, and Zen Horen. GTN in particular specializes in serving foreign residents and offers multilingual support in 15+ languages.
Guarantor company fees fall into two categories: initial guarantee fees and renewal fees (annual costs). The initial guarantee fee is a one-time payment at the time of contract, typically ranging from 30% to 100% of monthly rent across the industry.
The median initial fee is 50% of monthly rent; for an ¥80,000/month apartment, expect around ¥40,000. Low-cost companies may charge 30% (¥24,000), while independent companies targeting foreign residents sometimes charge a full month's rent (¥80,000). Although independent guarantor fees appear high at first glance, they reflect added value: easier approval, acceptance of applicants rejected elsewhere, and robust multilingual support.
Renewal fees occur annually or every two years starting in year two of the contract. The two most common models are a fixed annual fee (typically ¥10,000/year) and a percentage-based fee (around 10% of monthly rent). Fixed annual fees have become more common in recent years. Since renewal fees accumulate over a longer tenancy, choosing a guarantor company with lower renewal fees is key to minimizing total costs if you plan a long-term stay.
For example, if you plan to stay in the same apartment for 10 years and choose a company charging 50% initial fee (¥40,000) plus ¥10,000/year renewal fee on ¥80,000/month rent, your total payment is ¥40,000 + ¥100,000 = ¥140,000. With the same terms but a company charging 10% renewal fee (¥8,000/year), the total is ¥40,000 + ¥80,000 = ¥120,000—a ¥20,000 difference. However, with a higher-cost company (100% initial fee plus 10% renewal fee), the total reaches ¥180,000, creating a ¥60,000 difference depending on your choice.
When a foreign resident applies for guarantor company approval, the most critical factors are the type of visa and its remaining validity. Permanent residents, spouses of Japanese nationals, and long-term residents are treated nearly the same as Japanese citizens in the approval process. For work visas (such as those for specialists in humanities/international services), the lease contract period must not exceed the visa validity period in most cases.
For student visas, specified skilled worker visas, and technical intern training visas, choosing an independent or foreign-resident-focused guarantor company is the practical approach. Even with a short visa period (such as one year), some companies readily approve two-year contracts while others require the contract period to fall within the visa validity. Check in advance.
Income requirements typically call for monthly earnings about three times the monthly rent. Employees can provide three recent pay stubs or a tax withholding certificate; self-employed individuals submit tax returns; students can use proof of family remittances or scholarship notifications. An emergency contact does not need to be a joint guarantor, so overseas family members are fine.
For foreign residents, being able to communicate in their language when problems arise after signing a lease is critical. Misunderstandings about automatic rent payment failures, restoration cost settlements at move-out, or contract renewal notifications can lead to being marked as delinquent—or in the worst case, trigger eviction.
GTN offers phone and chat support in 15+ languages including English, Mandarin, Korean, Vietnamese, Nepali, Tagalog, Portuguese, and Spanish. Casa also supports English, Mandarin, and Korean, while Nihon Safety has recently expanded its multilingual offerings.
More guarantor companies now offer apps to check rent payment status, renewal notifications, and submit inquiries. GTN and Casa apps in particular are known for user-friendly multilingual interfaces. For recently arrived foreign residents with limited Japanese, prioritizing app usability and comprehensive multilingual support when choosing a guarantor company significantly reduces post-move-in stress.
Lesser-known fact: some properties allow you to choose from multiple guarantor companies. While a real estate broker may present only one "designated" company, landlords often approve multiple options, and switching is possible if you express your preference.
For foreign residents in particular, clearly telling your broker "I'm concerned about post-contract issues if the guarantor company doesn't offer adequate multilingual support, so I'd prefer a multilingual-capable company" often results in them proposing alternative options.
Some unscrupulous guarantor companies have been reported to include clauses charging excessive late fees or collection charges for delinquency. Typical violations include late fees exceeding the legal cap (14.6% annual interest under the Interest Rate Regulation Act) or "administrative fees" reaching several months' worth of rent.
When you receive a contract, always verify any fees beyond the initial and renewal charges (administrative fees, early termination penalties, late payment fees). If your Japanese is uncertain, you can have a consumer hotline at 188 (toll-free, no area code) or your local government's foreign resident support center review the contract for you.
A guarantor company is not just a part of the rental contract process—it's a long-term partner tied to your rent payments throughout your tenancy. By weighing not just fees, but also approval ease, multilingual support, and contract fairness, you can choose wisely and begin your rental life in Japan with confidence.
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