What Is a Guarantee Company in Japan, and Do You Need One?
Guarantee companies exist to replace the traditional cosigner system in Japan. They're helpful for foreigners, but they cost money, require screening, and add complexity.
If you want to skip all of that, Cove Japan offers no-guarantor rentals in prime Tokyo locations, fully furnished and ready to move into.
If you're a foreigner planning to rent an apartment in Japan, you've probably seen the phrase "guarantor required" pop up during your search. It can feel like a wall, especially when you're new to the country and don't know anyone who can vouch for you. Here's what it actually means, how the system works, and the good news: there's a way around it.
Why Japan Requires a Guarantor
In Japan, most landlords require some form of financial security before handing over keys. Traditionally, this meant finding a cosigner (a person who agrees to pay your rent if you can't). The cosigner had to be Japanese, financially stable, and willing to put their name on a legal document for you.
For foreigners, this is almost impossible. You likely don't have a network of Japanese contacts yet, and even if you do, most people understandably don't want to take on someone else's financial obligations.
This is where guarantee companies (hoshō gaisha) came in.
What Is a Guarantee Company?
A guarantee company is a business that acts as your financial guarantor in place of a personal cosigner. The landlord is protected because if you miss rent or cause damage, the guarantee company covers it and then collects from you.
For the tenant, the main advantage is simple: you don't need to know anyone in Japan to rent an apartment. You just sign up with the guarantee company, pay a fee, and you're covered.
How Much Does It Cost?
Guarantee company fees vary, but the typical structure looks like this:
- Initial fee: 50% to 75% of one month's gross rent (rent + management fees)
- Ongoing fee: A small monthly or annual renewal charge
So if your rent is 100,000 yen per month, expect to pay around 50,000 to 75,000 yen upfront just for the guarantor service. This is on top of the security deposit, key money, and agency fees that are standard in Japanese rentals.
Will the Guarantee Company Approve You?
Not automatically. Guarantee companies do their own screening, and approval is not guaranteed just because you can pay the fee. They typically check:
- Your rental payment history
- Your income and employment status
- Whether you have an emergency contact in Japan (some companies require this contact to be Japanese)
Different companies use different criteria, so getting rejected by one doesn't mean you'll be rejected by all. However, the process adds time and uncertainty to an already stressful move.
Choose Cove Japan to Skip the Hassle Entirely
Here's the thing: you don't have to go through any of this.
At Cove Japan, there is no guarantor required. No guarantee company fees. No key money. Just a straightforward rental process designed for people like you: professionals, students, and anyone relocating to Tokyo who wants a smooth move-in experience.
All Cove apartments are fully furnished, utilities are included, and the team offers English support throughout the process. You can literally land in Tokyo and have a home ready to go.
If you're tired of hitting walls before you've even started your Tokyo life, browse available Cove apartments here and see how different renting can actually be.