What is the 'guarantor' system? What alternatives are available if I cannot find a guarantor?

Hello! Seeing this question, I'm guessing you might be preparing to come to Japan or have just arrived, feeling overwhelmed by this whole "guarantor" (hoshōnin) thing? Don't worry, it's practically a rite of passage for every foreigner coming to Japan – I went through it myself back in the day. Let me break it down for you in plain language.

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What is the "Guarantor" System?

Simply put, a "guarantor" (hoshōnin) is a "sponsor" that landlords require you to find when renting an apartment in Japan.

Think of it like this: What is the landlord most afraid of when renting to you?

1. You suddenly stop paying rent.
2. You trash the place and disappear.
3. You vanish without a trace, leaving a mess behind.

To the landlord, you're a foreigner, unfamiliar with the country. If something goes wrong, it's hard for them to hold you accountable. So, they need a "reliable local" to vouch for you. This sponsor is the "guarantor."

The guarantor's responsibility is extremely serious. If you default on rent, the landlord will directly demand payment from the guarantor. If you damage the property and can't pay for repairs, the guarantor has to cover it. Even costs for handling your belongings after your death could fall to the guarantor.

Because the responsibility is so heavy, the requirements for a guarantor are very high:

• They must usually be a Japanese citizen or Permanent Resident.
• They must have a stable and sufficiently high income.
• They must reside in Japan.

So you see, for a foreigner newly arrived in Japan, finding a friend or colleague who meets these conditions and is willing to take on such a big risk is almost an impossible task. It's not just foreigners; even many Japanese people struggle to find a guarantor these days.

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What if I can't find a guarantor? Alternative solutions are here!

Don't despair, there are solutions! Japanese society now recognizes how difficult finding a guarantor is, so several alternatives have emerged. For us foreigners, the most common and mainstream option is this one:

Option 1: Use a "Guarantor Company" (Hoshō Gaisha) - The Most Mainstream Choice

This is arguably the most perfect solution available now.

• What is it? A "Guarantor Company" is a company specialized in providing guarantee services. You pay a fee to this company, and it acts as your "guarantor." Landlords find companies more reliable than individuals, so they readily accept this.

• How does it work? It's very simple. When you find an apartment through a real estate agent, the agent will usually directly recommend a partnered guarantor company. You just need to fill out an application form (providing personal information, proof of income, Residence Card, etc.). Once you pass their screening, you pay the fee when signing the lease.

• How much does it cost? This fee is one of the mandatory initial costs when renting.

  • Initial Enrollment Fee: Typically 50% ~ 100% of one month's rent (including management fees). For example, if rent is 80,000 yen, you might pay a one-time fee of 40,000 to 80,000 yen.
  • Annual Renewal Fee: You need to pay a renewal fee every year afterward, usually a fixed amount around 10,000 yen.

Pros: Convenient, fast, accepted by almost all landlords, solves the biggest hurdle. Cons: It's an additional expense.

My Experience: Basically, nowadays in Japan, over 95% of rentals use a guarantor company. Just think of it as a necessary "processing fee" and don't overthink it.

Option 2: School or Company Provides Guarantee

• If you are an international student: Check with your school's "International Exchange Center" or "International Student Office." Many universities have systems to provide rental guarantees for international students, or have partnerships with specific guarantor companies that might offer you a discount.
• If you are a company employee: Ask your company's Human Resources (HR) department. Some larger companies, especially those that frequently hire foreign employees, have welfare systems that provide housing guarantees for their staff.

Pros: May be free or very low cost. Cons: Often comes with restrictions, like only allowing rentals at properties designated by the school or company.

Option 3: Find Properties That Don't Require a Guarantor (UR Housing Complexes, etc.)

Japan has a semi-governmental organization called UR Urban Renaissance Agency (UR).

• What is it? The biggest advantage of properties managed by UR (often called "UR Danchi" or UR Housing Complexes) is: No guarantor required, no agent fees, no key money (reikin), no renewal fees!

• Sounds great, are there any requirements? Yes. They have clear monthly income requirements for applicants (e.g., monthly income must be at least 4 times the rent, specifics vary by property). The application process is also more complex than regular rentals, and popular properties sometimes require a lottery.

Pros: Saves a significant amount on initial costs. Cons: Strict income requirements, limited choice of locations and apartment types, buildings may be older.

Tip: Besides UR, some real estate agencies advertise "保証人不要" (No Guarantor Required). However, this usually means you must use their designated guarantor company, which might charge higher fees.

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Summary

Final Advice for You:

For your first time renting in Japan, mentally prepare and budget for using a "Guarantor Company" from the start. This is the most reliable and hassle-free way. When apartment hunting, simply tell the agent, "I don't have a guarantor and need to use a guarantor company." They'll handle everything for you.

Hope this explanation helps! Settling down in Japan isn't easy, but take it step by step. Best of luck with your apartment search in Japan!