How Guarantor Companies (Hoshokaisha) Screen Foreign Applicants
By Ibuki — Affarah Friendly Homes · 2026-07-21
Short answer: Guarantor companies (保証会社 - Hoshokaisha) have replaced traditional joint guarantors in 95% of Japanese leases. They screen applicants based on income stability (rent should not exceed 30% of gross salary), visa validity length, and language capability. The screening process takes 2 to 5 business days.
Typical Guarantor Company Fee Structure
Guarantor companies charge fees to guarantee your rent payment to the landlord:
| Fee Type | Average Cost | Payment Frequency |
|---|---|---|
| Initial Guarantee Fee | 50% - 100% of one month's rent | Paid once at move-in |
| Annual Renewal Fee | ¥10,000 - ¥20,000 | Paid every 12 months |
| Monthly Service Fee | 1% of monthly rent (or fixed ¥500) | Paid with monthly rent |
1. The Core Screening Criteria for Foreigners
When a guarantor company receives your application, they evaluate three main risks:
- Income-to-Rent Ratio: Your monthly gross income must be at least 3 times your monthly rent. For example, to rent a ¥100,000 apartment, you must earn at least ¥300,000 gross per month.
- Visa Term vs. Lease Term: Most rental contracts are 2-year renewable leases. If your working visa or student visa expires in 6 months, you will be rejected unless you show proof of extension plans or a corporate contract sponsorship.
- Japanese Language Skill: The screening agent will call you. If you cannot answer basic screening questions in Japanese (e.g. confirming your name, date of birth, and employer), they may reject you out of fear that you cannot read trash disposal rules or communicate during an emergency.
2. Expat-Friendly Guarantor Companies
Not all guarantor companies are equal. Some are notoriously strict, while others specialize in international residents.
- GTN (Global Trust Networks): The industry leader for foreigners. They support applications in English, Chinese, Korean, and Vietnamese, and do not require Japanese fluency.
- Nihon Safety / Casa: Mid-tier companies that require basic Japanese communication but have high approval rates if your corporate employer is a reputable Seishain sponsor.
If you are unsure whether your salary and visa status will pass screening, try our interactive Renter Eligibility Quiz. To calculate your total move-in budget including guarantor fees, use the Rent Upfront Cost Calculator.