Guarantor or co-signer fee, included in the initial cost, is usually required for apartment rentals in Japan. This payment acts as an insurance policy for the landlord, where the guarantor is accountable for any financial obligations if the lessee is delinquent on payment.
Who can I have as a guarantor?
The guarantor (which excludes tenants of the same apartment unit) may be a member of your family, relatives, friends, or place of employment.
The guarantor is required to:
- reside in Tokyo (or be within reasonable distance to co-sign the contract);
- be employed;
- be fluent in Japanese.
Additionally, he or she may be required to provide documents similar to the items required in your application process. The guarantor fee is usually 1 to 2 months' rent, but may vary depending on the contract. If you do not have a guarantor, we can help you apply to a third-party guarantor company.
Guarantor Company
The roll of a guarantor company is to cover for any financial obligations if the lessee is not able to make payment. They are also responsible for screening your application, during which, you may get a call from them confirming your personal information. In most cases, enrolling in a guarantor company negates the need for a personal guarantor. However, smaller property management companies or landlords may ask for both, depending on your place of employment. In recent years, there as been a trend where property management companies require you to enroll in a guarantor company to complete an application, regardless of whether you have a personal guarantor.
