Do You Need a Guarantor to Rent in Japan? Guarantor Companies Explained

Many landlords in Japan ask for a guarantor. For foreigners, this is one of the hardest parts of renting: in a government survey, 41% of foreign residents who had looked for a home had been turned down because they did not have a Japanese guarantor (see Why Is It Hard for Foreigners to Rent an Apartment in Japan?). This guide explains what a guarantor is, how guarantor companies work, and what to do if no one can be your guarantor.

What is a guarantor?

A guarantor (hoshonin) is a person or company that promises to pay the landlord if the tenant does not pay rent or cannot pay for damage. In Japan, a personal guarantor is usually a joint guarantor (rentai hoshonin). This means the landlord can ask the guarantor to pay without first asking the tenant.

Traditionally, the guarantor was a relative or friend in Japan with a steady income. Many newcomers do not have anyone like this. Today, guarantor companies are common.

Since April 2020, Japan’s Civil Code says that when an individual guarantees a rental contract, the guarantee agreement must state the maximum amount the guarantor may have to pay. If it does not state this amount, the guarantee is not valid.

How guarantor companies work

A guarantor company (hosho gaisha) takes the place of a personal guarantor. You pay the company a fee, and if you do not pay your rent, the company pays the landlord. Then you must pay the company back.

• Fees. The first payment is often 50–100% of one month’s rent. Many companies also charge a yearly renewal fee, and some charge a small monthly fee instead of a yearly one.
• Screening. The company checks your application before the landlord accepts you.
• Who chooses the company. Usually the landlord or the agent decides which company you must use.

What guarantor companies check

• Your residence card and how long you can stay in Japan
• Your job or school, and your income
• A Japanese phone number where they can reach you
• An emergency contact (some companies accept someone outside Japan, but others want someone in Japan)

The company may call you to confirm your details. If these calls are only in Japanese, it can be hard to pass the screening. This is why it helps to use a company that offers support in your language.

Guarantor companies with language support

Since 2017, Japan’s Ministry of Land, Infrastructure, Transport and Tourism (MLIT) has run a registration system for guarantor companies. Registration is voluntary, but registered companies must meet certain standards. MLIT also publishes a list of registered companies that offer support in foreign languages. If you are looking for an apartment, ask your agent whether you can use one of these companies.

How to prepare

• Have your residence card and passport ready.
• Get proof of income or employment, such as a job offer letter, a certificate of employment, or recent pay stubs. Students can use a student ID or a certificate of enrollment.
• Get a Japanese phone number before you apply, if you can.
• Ask a colleague, your school, or a friend in Japan whether they can be your emergency contact. An emergency contact is not a guarantor and does not have to pay anything.

Other options if you have no guarantor

• Ask your school or employer. Some schools and employers can act as your guarantor or offer housing.
• Look into UR rental housing (homes run by the Urban Renaissance Agency, a public agency). UR does not require a guarantor. You need a residence card and a certain level of income or savings.
• Choose a share house. Many share houses do not ask for a guarantor, and some operators do their own simple screening instead.

To learn more about the costs involved, read How Much Does It Cost to Move Into an Apartment in Japan?

Sources

• Ministry of Justice, The Civil Code Rules on Guarantees Changed on April 1, 2020 (PDF). moj.go.jp (Japanese)
• MLIT, Registration System for Guarantor Companies. mlit.go.jp (Japanese)
• MLIT, List of Registered Guarantor Companies Offering Language Support. mlit.go.jp (Japanese)
• Urban Renaissance Agency, UR Rental Housing Guide (English, PDF). ur-net.go.jp