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Guarantor vs Guarantor Company in Japan: What’s the Difference?

Guarantor vs Guarantor Company in Japan: What’s the Difference?

If you have ever searched for an apartment in Japan, you have almost certainly encountered the word guarantor.

For many foreign residents, this requirement is confusing and often becomes the biggest obstacle to renting — especially in cities like Tokyo.

This article explains the difference between a personal guarantor and a guarantor company, how each works in practice, what they cost, and why most landlords now prefer guarantor companies.

What Is a Guarantor in Japan?

In Japan, a guarantor (連帯保証人) is someone who legally agrees to take responsibility if the tenant fails to pay rent or causes damage.

This is not a symbolic role. A guarantor is:

  • Legally responsible for unpaid rent
  • Potentially liable for damages
  • Contacted directly if problems arise

Because of this liability, being a guarantor is a serious commitment.

Personal Guarantor: How It Works

A personal guarantor is usually:

  • A Japanese national or permanent resident
  • Someone with stable income
  • Often a family member or close acquaintance

In the past, this was the standard requirement for renting in Japan.

Why Personal Guarantors Are Difficult for Foreigners

  • Many foreigners do not have close contacts in Japan
  • Friends are understandably reluctant to take legal risk
  • Some landlords require the guarantor to live in Japan long-term

As a result, relying on a personal guarantor is often unrealistic.

Guarantor Companies: The Modern Alternative

A guarantor company (保証会社) is a private company that takes on the guarantor role in exchange for a fee.

Instead of asking an individual to take responsibility, the tenant:

  • Pays an upfront guarantor company fee
  • May pay annual renewal fees
  • Agrees to company terms and screening

This system has become increasingly common — and in many cases, mandatory.

Why Landlords Prefer Guarantor Companies

From a landlord’s perspective, guarantor companies reduce uncertainty.

They offer:

  • Professional debt collection processes
  • Clear contracts and enforcement
  • No personal relationships involved

For landlords, this is often simpler and safer than relying on an individual guarantor.

How Much Does a Guarantor Company Cost?

Fees vary, but typical costs include:

  • Initial fee: 30%–100% of one month’s rent
  • Annual renewal: ¥10,000–¥20,000 per year

This is an additional cost on top of deposit, key money, and agent fees.

These upfront costs are one reason many newcomers underestimate how much money they need when moving to Japan.

Related reading: How much money should you save before moving to Japan? .

Does Using a Guarantor Company Make Renting Easier?

In many cases, yes — but with trade-offs.

Guarantor companies:

  • Increase the number of apartments available to you
  • Reduce reliance on personal connections
  • Standardise the screening process

However:

  • Approval is not guaranteed
  • Fees increase total moving costs
  • Some landlords still impose additional conditions

Guarantor Companies and “No Guarantor” Apartments

Many listings advertised as “no guarantor required” actually mean:

No personal guarantor — guarantor company required.

This distinction is important and often misunderstood.

If you are specifically searching for apartments that do not require a personal guarantor, this guide explains your options in more detail: Renting in Tokyo without a guarantor .

Which Option Is Better?

For most foreign residents, the answer is straightforward:

  • Personal guarantor → rarely practical
  • Guarantor company → more realistic, but more expensive

The “better” option depends less on preference and more on what is actually available to you.

Key Takeaways

  • Personal guarantors carry serious legal responsibility
  • Guarantor companies are now standard in many rentals
  • Landlords prefer companies for risk management
  • Fees add to upfront moving costs
  • “No guarantor” often still means a guarantor company

Understanding the difference between guarantors and guarantor companies removes much of the confusion from renting in Japan — and helps you plan both financially and realistically.

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