The Guarantor Company System
Japan rental guarantor arrangements confuse almost every first-time tenant, because the person asking for money is not the landlord but a company most renters have never heard of.12 Understanding this intermediary before applying saves both money and a rejected application.
Procedures, fees, and requirements can change. Confirm current details at Japan's Ministry of Land, Infrastructure, Transport and Tourism (MLIT).
Overview
A guarantor company (保証会社, hoshō gaisha, "guarantor company") is a private business that guarantees a tenant's rent obligations to the landlord for a fee.12 It stands in for a personal guarantor, which most foreign renters cannot provide.
When the tenant cannot pay, the company pays the landlord first and then collects from the tenant.13 The fee therefore buys the landlord protection, not tenant insurance.
This guide covers the shift from personal to company guarantees, what the company does, how screening works, what contracts cost, and which options exist for renters without a Japanese guarantor.
From Personal Guarantors to Guarantor Companies
Japan's rental market once ran on personal guarantees. That model faded as households shrank and foreign tenancies grew, and a 2020 legal change finished the shift.
| Term | Meaning |
|---|---|
| 保証会社 / 家賃債務保証業者 (hoshō gaisha / yachin saimu hoshō gyōsha, "guarantor company / rent debt guarantee business") | A business that guarantees rent obligations for a fee14 |
| 連帯保証人 (rentai hoshōnin, "joint-and-several guarantor") | An individual who assumes equal responsibility with the tenant3 |
| 極度額 (kyokudogaku, "maximum guarantee amount") | The upper liability cap a personal guarantee contract must state3 |
The individual guarantor model
A personal guarantor was usually a parent or relative in Japan with stable income who accepted broad liability for the tenant's debts.3 A co-guarantor bears equal responsibility with the tenant. The landlord can demand payment directly from the guarantor without asking the tenant first.3
That responsibility can extend beyond monthly rent to management fees, renewal fees, restoration costs, damages, and penalties.3 For foreigners, the model was often impossible from the start. Family typically lives abroad, and conditions often assume a Japanese national or permanent resident with domestic income.3
Why the company model took over
Demand for guarantee companies rose as nuclear families spread and more elderly and foreign residents had no nearby relative to ask.1 Finding a joint guarantor became difficult even for many Japanese tenants.
The Civil Code revision added legal force to the shift. Since April 1, 2020, a personal guarantee must state a kyokudogaku cap in the contract itself, or the guarantee is void.156 This is a fixed statutory requirement, not an administrative fee schedule. Industry reporting places company usage at the large majority of new leases, though published shares vary by survey and date, so treat any single percentage as approximate.1
The MLIT registration system
MLIT runs a voluntary registration system for rent debt guarantee businesses, created by ministerial notice announced October 2, 2017 and effective October 25, 2017.4 Registration is voluntary. An unregistered business may still operate legally.4
Businesses that meet the stated requirements are published by the state. That published list works as selection reference material for landlords and tenants.4 MLIT also publishes a standing list of registered companies offering foreign-language support, counting 52 businesses (as of 2025-12-31; confirm current figures with MLIT).7
What the Company Actually Does
The company's role is narrow and often misunderstood. It guarantees the landlord gets paid, then turns to the tenant for the money.
A missed payment therefore starts a debt to the company, not a clean slate.3 Early contact with the company matters more than waiting for the demand letter.
The payment flow when rent goes unpaid
The standard sequence runs application, screening, contract with fee payment, then guarantee alongside the lease.3 When delinquency occurs, the company covers the landlord, usually within three to five business days (as of 2026-09-06), then issues a payment demand to the tenant.3
If the tenant cannot pay at once, Casa describes consultation on payment dates or installment plans when income drops through unemployment, sickness, or divorce.1 Continued non-payment moves toward collection activity and eventually legal steps.3
What the guarantee covers and does not cover
The guarantee protects the landlord's receipt of rent.32 Delinquency may also lead to registration with a credit information agency, depending on the company type.3
Tenants should verify each company's stated scope, period limits, and exemption clauses before signing.3 One landlord-facing product, Aplus, defines its own scope as monthly rent plus eviction-suit costs including attorney fees, leftover-property removal, and restoration, with attorney fees guaranteed up to 2 million JPY.8 That product description shows how scope is company-specific, not market-wide.
Paying the guarantee fee does not insure the tenant against arrears. The company pays the landlord first and collects the same debt from the tenant afterward.3
Screening: What Gets Checked
Screening is the step that most often surprises applicants. The landlord's approval and the guarantor company's approval are two separate decisions.
The full sequence typically takes about one week from application to contract (as of 2026-09-06; confirm current figures with the handling guarantor company).3 Document review takes two to three days, phone verification about one day, and result notice one to two days (as of 2026-09-06).3
Income, employment, and residence status
Screening inputs center on the balance between income and rent, plus residence status and period (as of 2026-09-06).3 The practitioner guideline is monthly income at least three times the rent (as of 2026-09-06), with stable employment and provable savings strengthening the file.3
Company types check different records. Credit-card-affiliated companies reference credit information agencies, association members share industry delinquency data, and independent companies weigh current income, status, and emergency contacts.3 Commonly requested documents include passport, residence card, employment contract, salary statements for the latest three months, tax withholding certificate, and bank balance certificate, with translations where needed.3
Nihon Safety's stated baseline is a residence card copy (front and back) plus a home-country emergency contact form in its format.2 Additional documents may be requested depending on the contract.
Emergency contacts and backup guarantors
Casa screening may include calls to the applicant, the workplace, or the emergency contact.1 Nihon Safety requires emergency contact information at application.2 GTN advises providing reliable contacts and, where possible, acquaintances who can communicate in Japanese.3
GTN's corporate page states its service needs no joint guarantor and sets no Japanese-level requirement, with multilingual service included in all plans.9 Some properties still ask for a parent or backup guarantor on top of the company, so confirm the exact requirement for the specific property rather than assuming one company's terms apply everywhere.31
Timeline and the confirmation call
Phone verification covers identity confirmation and employment checks.3 Nihon Safety describes the same shape: application through the agency, company examination, result notice back through the agency, then signing the guarantee-consignment contract with fee payment.2
Applications may be rejected on the basis of the information submitted.2 Rejection reasons cluster around insufficient income, short residence validity, and unverifiable employment, which is why document preparation before applying matters more than reapplications after.3
New arrivals with thin files should assemble an employment contract or offer letter, recent salary statements or bank balance proof, a valid residence card, and translations before the first application.3
Contract Terms and Fees
Costs follow a recognizable band across the market, but the exact figure is set per company and per property. The table below carries the currency signal for every row; the prose note covers the table as a whole (as of 2026-09-06; confirm current figures with the handling guarantor company).3
| Item | Amount | As of | Notes |
|---|---|---|---|
| Initial guarantee fee | 50–100% of one month's rent | 2026-09-06 | Paid at contract3 |
| Annual renewal fee | 10,000–20,000 JPY | 2026-09-06 | Paid yearly3 |
| Administrative fee at contract | 5,000–10,000 JPY | 2026-09-06 | Charged by some plans3 |
| Casa annual guarantee fee | 10,000 JPY each year | company page fetched 2026-09-06 | Business use and some agencies may differ1 |
Initial fee and renewal fee bands
The market-typical initial fee is 50 to 100 percent of one month's rent at signing (as of 2026-09-06).3 Annual renewal runs 10,000 to 20,000 JPY, with some plans adding an administrative fee of 5,000 to 10,000 JPY at contract.3
Casa's company-stated term is an initial fee plus 10,000 JPY each year (as of company page fetched 2026-09-06).1 Fees may differ for business use and between real estate companies.1 Nihon Safety sets a one-year guarantee period with yearly renewal and a per-renewal safety fee, non-refundable even on mid-period cancellation (as of company page fetched 2026-09-06).2
Who chooses the company and whether fees are negotiable
Tenants apply through the real estate agency, and rentable properties vary by which company's system the agency handles.2 Casa's flow runs the same way: application through agency and landlord, company screening, then contract with initial fee payment.1
In practice the landlord or management company designates the company and the tenant pays the set fee. Budget for the stated amount rather than planning to negotiate it down.
Foreigner-Facing Companies and No-Guarantor Routes
No ranking follows. The companies below are described as system options because they handle foreign applications or appear on the state's language-support list, not because any one is recommended over another.
GTN is a foreigner-specialized rent guarantee company stating about 43,000 partner real estate agencies, with multilingual service on all plans, no joint guarantor, and no Japanese-level requirement.9 Its comparison table reports support in 25 languages including English, Chinese, Korean, Vietnamese, Nepali, and Thai (as of 2026-09-06; confirm current figures with GTN).3
Casa appears on MLIT's foreigner language-support registered list and describes foreign residents without nearby relatives as part of its service background.71 Nihon Safety states it helps non-Japanese residents with guarantor difficulty and applies no nationality, age, or vocation restriction provided monthly payment is reliable; its system also covers stores and offices beyond dwellings.2 Aplus operates a management-company-side guarantee service with bank-transfer collection and screening, needing no joint guarantor from the tenant side, for residences of 10,000 JPY monthly rent or more.8
Companies that handle foreign applications
The neutral directory for verifying foreign-language support is MLIT's registered-company language-support list, counting 52 businesses (as of 2025-12-31; confirm current figures with MLIT).7 Use it to check whether a property's designated company actually supports the applicant's language.
Screening stringency still varies by company type and applicant profile. Longer residence validity widens the options, while short stays and limited Japanese point toward independent or foreigner-specialized companies.3 Japanese ability alone does not decide the outcome; income proof and reachable contacts carry more weight.
Routes that avoid the company step
Some institutions run their own guarantee channels. Universities offer systems for international students, employers offer housing or corporate-contract guarantees, and municipal or exchange-association support exists in some areas.3 Availability is case by case, so ask the school, employer, or local office directly.
Specialized guarantor-agency and NPO or exchange-organization support also exists as a category.3 Treat these as leads to verify locally, not as guaranteed substitutes for a company the landlord designates.
Good to know
Landlord approval is not guarantor approval
Passing the agency or landlord screening does not guarantee the guarantor company approves the same file.2 The company runs its own examination and may reject on the submitted information alone. Budget time for this second decision before the lease is final.
One company's rejection is not a market-wide verdict
Screening criteria differ across credit-card-affiliated, association, and independent company types.3 A rejection at a strict screener says little about a foreigner-specialized company's view of the same file. Applying for a different property that designates a different company is usually the realistic fresh start.
Guarantee charges are non-refundable sunk costs
Nihon Safety states its guarantee charge is not a deposit and is never returned, even on mid-period cancellation.2 Casa's annual fee recurs each year for as long as the guarantee runs.1 Price these as ongoing costs of the tenancy, not as recoverable deposits.
Thin files need paperwork before the first application
Applicants with short residence history, new employment, or freelance income should lead with an offer letter or contract, bank statements showing savings or regular transfers, and accurate translations.3 Filling every form field accurately and keeping documents within validity dates avoids the most common preventable delays.
See also
- How Renting Works in Japan
- Move-In Cost Breakdown: What 4-6 Months Actually Buys
- Foreigner-Rejection Patterns and How to Navigate Them
- Negotiation in the Japanese Rental Market
- UR Rental Housing: The Foreigner-Accessible Default
- Reading a Japanese Rental Listing