Guarantor Services for Apartment Rental in Japan
To rent an apartment in Japan you need something called a "hoshonin", or guarantor. This guarantor or co-signer, is a person or company that acts as insurance for your rental contract, promising to cover any rent or damage costs if you can't pay or suddenly terminate your contract without proper notice or payment. A guarantor will usually have to provide their financial information and prove that they can take responsibility if you as a tenant are no longer, for whatever reason, unable to fulfill your financial responsibility.
In most cases,
landlords will only accept a Japanese national as your guarantor as becoming one is a huge responsibility. As this is the case it may be very difficult for many foreign people to find a guarantor unless you have a very close friend or a Japanese family member that is willing to support you. This person will also become the person who is the primary contact for any issues that arise. Needless to say, it is a thankless job.
Even for Japanese people, the guarantor system can be a complicated process and a major obstacle in securing an apartment given the strict financial requirements that guarantors must fulfill. Many Japanese people ask their parents to take on the responsibility, however any guarantor must be able to prove that the rent is not above 30% of their income. This ends up excluding many parents who work part-time or are retired, which is increasingly becoming a problem for retired non-homeowners. As such, Japanese landlords and management companies would prefer to have someone other than parents take on the responsibility.
Enlist the Services of a Professional Guarantor
One alternative to burdening family or friends the responsibility is choose a guarantor company. What a guarantor company does is act as the responsible party when you sign a lease with a landlord or management company. They usually charge an upfront fee that can be up to the equivalent of once month’s rent and a monthly fee that can vary in size but is normally a small percentage (up to 10%) of the monthly rent. These fees may vary based on the service provided.
The benefit of using a company as a guarantor are:
- They are usually approved very quickly. This means there will be no delay in renting your desired property.
- You don’t need to worry about them terminating their responsibility. With individuals this could occur due to death, financial hardship, a falling out, etc.
- They will take care of your all the contract work and help you navigate through the process. This is probably the biggest benefit of the three as the contract process is almost always in Japanese and the management company and owner usually don't speak English. This assistance (depending on the service provided by the guarantor company) will enable you to avoid problems moving forward as legal aspects of the contract and responsibilities required of you as a tenant can be explained in detail.
Interlink Can Help
If you are looking for a guarantor company you can call Interlink KK at +81 (0)52-229-8576 to assist you or contact us via this website.
Our fully bilingual staff will assist you throughout the process.
Interlink KK has been providing bilingual guarantor services for over 20 years.
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