What is a Guarantor?
A guarantor is a person who is financially stable and ensures the property owner that in case the tenant cannot pay for the rent, the guarantor will be responsible for the rent.
The guarantor has nearly the same responsibility as the tenants.
Therefore it is advisable that you choose a relative. Generally, the guarantor has to be those who is residing in Japan.
Find a Guarantor for a foreigner
Many foreigners find out that it is difficult to find someone as their guarantor.
Generally the guarantor must be financially stable and has a Japanese citizenship.
Since there is a tradition of Japanese saying “don’t be a guarantor for others” it may be a problem finding your friend to be a guarantor.
Guarantor Agency(Guarantor Needless)
Even Japanese sometimes cannot find a guarantor, so guaranty companys which serve as a guarantor is increasing these days.The rules depend on various companies.
For instance the types of the guaranty companies are those that obligate to set a guarantor, emergency contact, or those without the obligation of having a guarantor or any emergency contact.
Furthermore, credit card account may be used as a guarantee.
The following are the examples of guaranty companies’ fee.
- Companies which obligate to set a guarantor: 30% of one month rent, includes public used area cleaning charge, administrative fee, and car parking fee has to be paid when signing the contract. You only have to pay it once.
- Companies which obligate to set an emergency contact: 50% to 70% of one month rent, includes public used area cleaning charge, administrative fee, and car parking fee has to be paid when signing the contract. You only have to pay it once. Furthermore, some companies may charge you to pay JPY 10,000 per year from the second year.
Above are common cases but it varies depending on the company. Please contact the company for the detail.
※The real estate management firm usually selects the guaranty company instead of the tenants.