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How to do Corporate Contracts for Housing Lease

When it comes to leasing residential properties in Japan, there are two major scenarios to consider: Personal Contract 個人契約(kojinkeiyaku) and Corporate contract 法人契約 (houjinkeiyaku) Some companies provide housing assistance as part of their employee benefits. Instead of adding the rent to the employee's salary sometimes they require the housing lease to be made under the corporation's name to receive tax benefits. This type of arrangement offers several advantages, including smoother approval processes due to the higher creditworthiness of corporations. However, it's important to be mindful of company policies.

Application Form Submission: Completing the rental application form is a standard procedure, similar to individual leases. The distinction lies in the entity's name on the application—being the corporation rather than an individual. It's common for the applicant to provide personal identification and a seal. Even if the corporation pays the contract must state who is the employee who stays in the residence.

Document Submission: In corporate lease contracts, document exchanges are often handled by the company's administrative department. While the specific requirements may vary based on the company's size and policies, commonly requested documents include:

- Corporate Registration Certificate

- Financial Statements

- Company Brochure for Overview

- Corporate Tax Payment Certificate

- Employee ID Copy

- Occupant's Resident Certificate

- Corporate Seal Certificate

Awaiting Approval: Once the necessary documents are submitted for the screening process, await the results. Established, reputable corporations typically face fewer rejections during the approval process, and results are usually swift.

Initial Payment and Contract Execution: Upon successful approval, the leasing process progresses. Initially, transfer the required funds and proceed with the signing of the contract. Whether the initial expenses are covered by the occupant or the company depends on the corporate policies.

Guarantor Companies:

The necessity for a guarantor company when entering a corporate lease varies from property to property. Landlords make this determination based on factors like the company's establishment tenure, employee count, capital, and listing status. Big corporations usually require their employees to find properties that won't require guarantor company examination from them.

Securing a corporate lease for residential purposes in Japan offers a range of benefits, including potential financial support from the company. It's important, however, to be mindful of potential limitations imposed by both company policies and landlord discretion. By understanding the process and considering key factors, individuals can navigate this unique leasing arrangement to find a suitable and comfortable home.

Remember, always consult legal or real estate experts if you have specific questions or concerns about your particular situation. Happy home hunting! Author K

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