Many people looking for a rental place in Japan are confused about guarantor companies. Why are they necessary and are you responsible for finding your own guarantor company?
What is a guarantor company?
In Japan, a guarantor company, known as a "hoshōgaisha" (保証会社) or a "guarantor service," is often required when renting an apartment. This is because landlords want assurance that they will be compensated if the tenant fails to meet their obligations.
What is their purpose?
A guarantor company essentially acts as a third-party entity that vouches for the tenant. They assume financial responsibility in case the tenant is unable to pay rent. This helps reduce the risk for the landlord. Guarantor companies can be omitted in some rare cases like corporate contracts for employees of major companies.
How do you pass the guarantor company examination?
Keep in mind that the specific requirements for a guarantor may vary depending on the landlord or institution, so it's important to check with them for their specific policies. Your agent should be able to guide you to prepare all the necessary documents to pass the application. These include papers showing financial stability for example a job offer letter, 3 months of salary slips, and bank savings. Papers showing that you have a valid visa in Japan will also be necessary. Please provide all the information your agent asks from you and never skip any part. Unfortunately, you cannot choose your own guarantor company and you have to pass the examination of the guarantors that the landlord already has chosen. In conclusion, yes you have to pass the guarantor company examination to rent a good place. The owner of the house you are trying to rent will be already working with a guarantor company so you don't have to apply to one directly. However, you need to work with an experienced real estate agent who will guide you to pass the examination successfully.