Guarantors in Japan: Solutions for Foreign Renters

Japan's Traditional Co-Signer System

What Is a Personal Co-Signer (連帯保証人)?

A personal co-signer (連帯保証人) is a third party who shares joint liability for rent and damages with the tenant in a rental contract. If the tenant can't pay rent or causes damage, the co-signer is obligated to compensate — unlike a regular guarantor, a co-signer cannot demand the landlord pursue the tenant first; they are equally liable from the outset.

Why Does Japan Have This System?

It stems from Japan's traditional social trust framework: landlords, when accepting a stranger as a tenant, need a "credit anchor." In the past, this was usually a family member (parent, sibling) who would ensure accountability if anything went wrong.

Why Do Foreigners Struggle to Find a Co-Signer?

1. No Japanese relatives: Foreigners typically don't have family members in Japan
2. Japanese friends are unwilling to take on the risk: Joint liability is a major financial commitment — even close friends may be reluctant
3. Overseas co-signers not accepted: Most landlords won't accept a co-signer based outside Japan
4. Employers don't provide: Smaller employers may be unwilling to act as a guarantor for working holiday participants

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Rental Guarantor Companies (家賃保証会社): The Modern Solution

What Is a Rental Guarantor Company (家賃保証会社)?

A rental guarantor company (家賃保証会社) is a commercial service that replaces a personal co-signer. The tenant pays a fee, and the guarantor company promises to compensate the landlord if the tenant can't pay rent.

After Japan's 2020 Civil Code revision, the guarantor company model became more widespread. Today, most rental properties require you to pass a guarantor company's screening rather than finding a personal co-signer.

Guarantor Company Screening Criteria

Criteria	Notes
Monthly income	Typically required to be 3× monthly rent or more
Resident status (在留資格)	Must confirm valid legal status in Japan
Visa expiry	Some require visa validity to extend beyond the lease term
Length of stay in Japan	Recently arrived applicants may face tougher screening
Credit history	Confirms no prior record of unpaid rent
Emergency contact	Must provide an emergency contact (overseas family is acceptable)

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Major Guarantor Companies

1. 全保連 (Zenhoren)

• Features: One of Japan's largest rental guarantor companies; widely used nationwide
• Foreign applicant screening: Relatively strict — requires stable income and valid visa
• Fees: 30%–50% of first-year monthly rent; annual renewal ~¥10,000

2. ORICO フォレントインシュア (ORICO FS)

• Features: Many affiliated properties nationwide; high landlord acceptance
• Foreign applicant screening: Standard
• Fees: 50% of first-year monthly rent; annual renewal 10% of monthly rent

3. SBI Guaranty (SBI 保証)

• Features: SBI Group subsidiary; relatively transparent
• Foreign applicant screening: Standard
• Fees: First year from ¥15,000 flat; annual renewal ¥10,000

4. ROOM iD (ルームiD) — Highly Recommended for Foreigners

• Features: Specifically designed for foreign residents; multilingual support (Chinese, English, Korean, and others)
• Foreign applicant screening: Most foreigner-friendly; can apply even just after arriving in Japan
• Fees: 30%–50% of first-year monthly rent
• Affiliated properties: Major cities nationwide; more foreign-friendly properties

5. Global Trust Networks (GTN) — Foreigner-Exclusive

• Features: Designed exclusively for foreigners; not just a guarantor company but also a platform for finding foreigner-friendly properties
• Services for foreigners: Multilingual contract translation, application support
• Properties: Has its own foreigner-exclusive apartment inventory

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Guarantor Fee Calculation Example

For a 1K apartment with ¥80,000/month rent (2-year lease):

Fee Item	Amount	Notes
First-year guarantee commission	¥24,000–¥40,000	30%–50% of monthly rent
First renewal fee	¥10,000	After one year
2-year total	~¥34,000–¥50,000

Compared to using a personal co-signer (free), guarantor companies add an extra cost — but for foreigners, this is the most practical option.

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Housing Options That Don't Require a Guarantor

If you can't pass a guarantor company's screening or don't want to pay the fee, these options don't require a personal guarantor:

1. Share House

Share houses are managed directly by the operating company — no guarantor is typically required. Just pay the first month's rent and management fee to move in.

• Rent: ¥40,000–¥80,000/month (utilities usually included)
• Upfront costs: Low — usually just 1–2 months of costs to move in
• Downsides: Shared bathroom and kitchen; less privacy

For more detail, see: Apartment vs. Share House in Japan

2. Foreigner-Specialist Apartments (外国人専用マンション)

Some real estate companies and management firms offer apartments designed specifically for foreign residents, with adjusted screening criteria:

• Usually accept a copy of your Residence Card in lieu of a guarantor
• Multilingual contracts provided
• Lower upfront costs in some cases

3. UR Rental Housing (公営住宅) — Top Recommendation

Housing managed by the Urban Renaissance Agency (UR) is one of the best housing options for foreigners in Japan.

UR Advantages

Advantage	Details
No guarantor needed	No personal co-signer or guarantor company required
No key money	Saves 1–2 months of key money
Simple process	Apply directly to UR — no real estate agent involved
No agent fee	Saves 1 month of agent fees
Strong lease protections	Publicly managed; fewer unreasonable contract terms

UR Eligibility

• Resident status: Must have valid resident status (working holiday, work visa, permanent residency, etc.)
• Income requirement: Monthly income must be at least 4× the monthly rent (if income is insufficient, savings may be substituted)
• Savings alternative: If income doesn't meet the threshold, you can provide proof of savings equal to at least 100 months' rent

UR Property Distribution

UR properties are mainly located on the outskirts of cities and in suburban areas — fewer options within Tokyo's 23 wards (mostly Adachi, Katsushika, etc.), with more in Saitama, Chiba, and Kanagawa. Those wanting to live centrally may find the options limited.

Search all UR properties nationwide at ur-net.go.jp.

4. Monthly Rental Apartments (マンスリーマンション)

Short-term furnished apartments with leases from as short as 1 month — ideal for those who just arrived in Japan and haven't yet secured long-term housing.

• Rent: approximately ¥60,000–¥150,000/month (varies by location and room type)
• Pros: No guarantor needed, quick move-in, fully equipped
• Cons: Monthly rate is much higher than a long-term lease

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Common Questions for Foreign Renters

Q: Can a working holiday participant (1-year visa) pass a guarantor company screening?

Yes, but be mindful of your visa validity. Many guarantor companies require your visa to remain valid beyond the lease term. With a 1-year working holiday visa, you may only be able to sign a ~6-month lease, or need to use a company (like GTN or ROOM iD) that doesn't apply that restriction.

Q: Can my parents overseas be my co-signer?

Generally no. Japan's co-signer system requires the guarantor to reside in Japan, and most landlords won't accept an overseas guarantor. Even if a landlord agrees, pursuing the guarantor later is extremely difficult in practice. The guarantor company route is strongly recommended.

Q: Can I negotiate the guarantor company's fee?

Guarantor company fees are set by the company — usually non-negotiable. However, in some situations (e.g., a property with high vacancy), the real estate agent may be able to negotiate a fee reduction or have the landlord cover the first-year guarantee fee. Worth asking.

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