When you rent an apartment in Japan you need “guarantor”.
We will explain in detail what guarantor is and why guarantor is necessary.
When asking for an apartment in a real estate agent, in most cases the agent will tell you about Japanese guarantor is necessary for rent apartment.
So, we will explain what a guarantor is.
What is a guarantor?
In the case where the borrower does not pay the rent by the due date, or the room is damaged, but the repair expenses are not paid, the landlord has the right to request payment to the guarantor.
In other words, a guarantor will legally bear the obligation to pay the borrower’s debt on behalf of borrower.
For example, many Japanese students are guaranteed by relatives or parents who pay tuition for them instead of students.
Real estate agents and landlords think when students do not pay the rental, “they can contact to parents to pay it”
If you do not have guarantor..
As a condition, if you can not undertake that you have income supporting family as a Japanese or certain income, it is impossible to perform it.
Naturally, In Japan renting a house with necessary guarantor is a custom of Japanese. Therefore it is a big problem for foreigners to rent a house.
The guarantee company is useful at that time.
A guarantor company is a company that will be a substitute guarantor of tenant to continue on making rental contract and enter into guarantor contract with a real estate tenant.
Even Japanese people can not find a guarantor so that situation have spread rapidly in recent years.
There are different rules in different company.
A guarantor established for obliges of joint guarantor.
A guarantor company established for obliges of emergency contacts.
There are few guarantor companies that do not install guarantors or emergency contacts, and even the overall ratio is very small.
Below is a reference and I will explain the charge when using guarantee company.
A guarantor company that is obliged to set up a guarantor pays approximately 30% to 50% of fixed cost for one month such as rent, common expenses, administration fee, parking lot and so on at contract. It is not monthly cost.
(There is a merit that it is easier to go through the tenure examination)
Companies that are obliged to set up only emergency contacts will pay approximately 1% of fixed costs such as rent, common expenses, administrative expenses, parking lot and so on, about approximately 50% ~ 100% at contract.
It is not monthly cost. In addition, in cases you just have pay only 10,000yen annually as an annual guarantee fee.
（There is no financial burden on emergency contacts）
Two cases above are the most frequent patterns, but it varies greatly depending on the guarantee company, please confirm details.
* Normally, the guarantor company is not selected by the tenant, in almost case it is specified by management company.