In short
A rent guarantor company (hoshō-gaisha) pays your landlord if you miss rent, taking the place of a Japanese co-signer. Initial guarantee fees are typically 50–100% of one month's rent (including the maintenance fee), and ongoing costs are usually around ¥10,000 per year or 1–2% of rent per month. Most properties require one, and the landlord usually decides which company you use.
What is a rent guarantor company?
When renting in Japan, a landlord's biggest worry is a tenant who can't pay the rent. A rent guarantor company (hoshō-gaisha) exists to remove that worry: if you fall behind or can't pay, the company pays the landlord on your behalf. In effect, it replaces the traditional Japanese co-signer (a personal guarantor who had to be a resident of Japan).
Why is one almost always required?
In today's rental market, using a guarantor company is the norm, and many properties make it mandatory. For foreign tenants this is actually good news: even if you have no friends or relatives in Japan to act as a co-signer, you can rent as long as you pass the guarantor company's screening. Some guarantor companies specialize in foreign applicants and assess your residence status and income accordingly.
Typical guarantee fees
Guarantee fees split into an initial fee and ongoing costs. Amounts vary by company, so always confirm them on your written estimate before signing.
- Initial fee: 50–100% of one month's rent (including the maintenance fee); often around 50%
- Ongoing / renewal cost: about ¥10,000 per year, or 1–2% of rent added monthly; some companies charge again every 1–2 years
- Exact amounts and billing methods differ by company — go by what your contract and estimate state
Documents foreign tenants usually need
- Residence card (if not yet in Japan, a passport or Certificate of Eligibility (COE) may be used instead)
- Passport
- Proof of income (certificate of employment, pay slips, bank balance, etc.)
- An emergency contact in Japan
- Depending on the property and company, a co-signer may still be requested
Common misunderstandings
- Myth 1: 'Paying the guarantee fee means I don't pay rent.' — No. The company only advances the money and later collects it back from you in full.
- Myth 2: 'I can pick a cheaper guarantor company.' — Usually the landlord designates it; tenants can't switch.
- Myth 3: 'One payment and I'm done.' — Most plans have an ongoing yearly or monthly cost.
Related guides
→Can You Rent an Apartment in Japan Without Speaking Japanese?→Can You Sign a Lease in Japan Before You Arrive (From Overseas)?→Can You Break a Lease Early in Japan? Are There Penalties?ieree supports foreign tenants in Tokyo and explains the guarantor company and initial costs before you apply, so there are no surprises after signing. Have a question? Message us on LINE.