Guarantor company fees in Japan: typical costs and what they actually cover

Quick conclusion

Most apartments in Japan now require a guarantor company (保証会社, hoshou-gaisha), even if you have a personal guarantor. Expect an initial fee of roughly 50 to 100 percent of one month's rent and a renewal fee of around 10,000 to 20,000 yen per year (or a percentage of rent). The exact numbers vary by company and property, so the most important step is simple: get the fee schedule in writing before you pay the application money.

If you are still comparing total costs, read this together with initial costs when renting in Japan, because the guarantor fee is only one of several move-in charges.

What a guarantor company actually does

The company promises the landlord that your rent will be paid. If you miss a payment, the company pays the landlord and then collects the money from you. Two points surprise many foreign residents:

• It does not protect you. You still owe the full amount to the guarantor company, and late fees can apply.
• An emergency contact is usually still required. Even with a guarantor company, most applications ask for a contact person in Japan (a friend, colleague, or relative).

Typical fee structure

"Total rent" here usually includes management fees (管理費), so the base for the calculation can be higher than the advertised rent. Ask the agency which amount the percentage applies to.

Can you choose the company?

Usually the landlord or management company designates one company, and you cannot switch. This matters for language support: some companies aimed at foreign residents offer help in English, Chinese, Vietnamese, and other languages, while standard companies operate only in Japanese. If multilingual support is important, tell the agency early - they can sometimes propose properties that work with foreigner-friendly guarantor companies. The service notes on this page list examples to compare.

Screening: what they look at

Guarantor company screening is separate from the landlord's screening. It typically covers income relative to rent (a common rule of thumb is rent within about 30 percent of gross monthly income), job type and length of employment, and past payment problems. Prepare the same documents as the rental application itself - see documents you need to rent an apartment for the full list.

Questions to ask before signing

• What is the initial fee, and is it calculated from rent only or rent plus management fee?
• Is the renewal fee charged every year, or only at the two-year contract renewal?
• If I move out early, is any part of the fee refunded? (Usually not, but confirm.)
• What happens step by step if I am late on rent once?
• Is the guarantee limited to rent, or does it also cover restoration costs when I move out?

The last point connects to your exit costs: some guarantee contracts also cover move-out and restoration charges, which changes what happens if you dispute a cleaning bill.

When this fee is worth it - and when to be careful

For most foreign residents without a Japanese personal guarantor, a guarantor company is simply the entry ticket to renting, and paying the fee is reasonable. Be careful if the fees are quoted only verbally, if the renewal terms are not written in the contract, or if the total of guarantor fee, key money, and agency fee pushes your move-in cost far beyond the typical 4-6 months of rent described in our rental contract guide. Fee levels themselves are rarely negotiable, but you can always choose a different property.