Guarantor vs Guarantor Company in Japan (保証人 vs 保証会社): What Foreigners Need
By Ibuki — Affarah Friendly Homes · 2025-06-15
Executive Summary: When renting an apartment in Japan, landlords require security against unpaid rent or property damage. Traditionally, this required a Joint Guarantor (連帯保証人 Rentai Hoshonin)—a Japanese citizen relative willing to assume full financial liability. Today, over 85% of Japanese rentals utilize a Guarantor Company (保証会社 Hoshokaisha) instead. For foreign residents, guarantor companies act as a paid replacement for a personal guarantor, charging an initial fee (30%–100% of 1 month's rent) plus an annual renewal fee (¥10,000/year).
Key Differences: Personal Guarantor vs. Guarantor Company
| Feature | Personal Joint Guarantor (連帯保証人) | Guarantor Company (保証会社) |
|---|---|---|
| Who They Are | Japanese citizen, usually close relative with income | Commercial financial screening corporation |
| Initial Fee | ¥0 | 30% to 100% of 1 month total rent |
| Annual Fee | ¥0 | ¥10,000 to 10% monthly rent per year |
| Legal Liability | Personally responsible for 100% of unpaid debt | Pays landlord, then collects debt from tenant |
| Foreigner Accessibility | Extremely difficult (Must be Japanese resident with income) | Standard pathway for foreign residents |
| Landlord Preference | Declining in modern urban rentals | Strongly preferred by corporate management companies |
1. What is a Guarantor Company (Hoshokaisha)?
A Hoshokaisha (保証会社) is an institutional screening firm that guarantees your rent payments to the landlord. If you fail to pay rent on time, the guarantor company pays the landlord immediately on your behalf and then recovers the debt from you.
Why Landlords Require Hoshokaisha
- Guaranteed Rent Cashflow: Landlords never experience rent defaults.
- Standardized Screening: Corporate algorithms evaluate tenant credit, income stability, and employment history far more objectively than an individual landlord.
2. Emergency Contact (緊急連絡先) vs. Guarantor: The Big Confusion
Many foreign tenants confuse an Emergency Contact (Kinkyuu Renrakusaki) with a Guarantor. They are legally completely different:
┌────────────────────────────────────────┬────────────────────────────────────────┐
│ Emergency Contact (緊急連絡先) │ Joint Guarantor (連帯保証人) │
├────────────────────────────────────────┼────────────────────────────────────────┤
│ • Zero financial liability │ • 100% legal & financial liability │
│ • Contacted ONLY in emergencies/accidents│ • Must pay rent if tenant defaults │
│ • Can be a coworker, friend, or boss │ • Must submit Japanese tax certificate │
│ • Can often be a foreign national │ • Almost strictly Japanese relative │
└────────────────────────────────────────┴────────────────────────────────────────┘
⚠️ Screening Rule: Even when using a Guarantor Company, almost all Japanese rentals require an Emergency Contact residing in Japan. If your emergency contact does not answer the screening verification phone call, your lease application will be stalled or rejected.
3. How Guarantor Companies Screen Foreign Applicants
When you submit a rental application, the guarantor company evaluates your file based on three criteria:
- Rent-to-Income Ratio: Your gross monthly income should be at least 3 times the monthly rent (or rent should not exceed 33% of income).
- Visa Status & Duration: A valid long-term visa (Work, Spouse, Long-Term Resident, Student) with at least 6–12 months validity remaining.
- Japanese Communication Ability: Major guarantor companies (e.g. Casa, Nihon Safety, GTN, EPOS) call applicants to verify basic Japanese comprehension or use English-capable screening agents (like GTN - Global Trust Networks).
4. Top Foreigner-Friendly Guarantor Companies in Japan
- GTN (Global Trust Networks): Specialized exclusively in foreign residents. Offers multi-language screening (English, Chinese, Korean, Vietnamese) and does not require a Japanese emergency contact for certain visa types.
- EPOS Card / Orico / JACCS (Credit Card Based): Offers lower initial fees (usually 30%–50%) if you pass credit checks; payment is automatically deducted via credit card.
- Casa / Nihon Safety / JID: Traditional Japanese guarantor companies used widely by individual landlords across Tokyo and Osaka.
FAQ
Can I choose which guarantor company to use?
No. The landlord and property management company select the specific guarantor company tied to that building listing.
What happens if I don't have a Japanese friend for the Emergency Contact?
Some foreigner-friendly realtors or guarantor companies (such as GTN) can accept an overseas family member or employer as the emergency contact. UR Housing requires no guarantor or emergency contact. See our UR Housing vs Private Rental Comparison.
🤝 Need Help Navigating Apartment Approvals?
Affarah works directly with foreigner-friendly guarantor companies to ensure high application approval rates. Find your apartment with Affarah.