What is a 保証会社 (hosho-gaisha)?
A 保証会社 (hosho-gaisha), or "guarantor company," is a private company that guarantees your rent to the landlord in exchange for a fee. If you stop paying rent, the guarantor company pays the landlord on your behalf — then comes after you to recover the money, sometimes with added collection fees.
This system largely replaced the older Japanese practice of using a 連帯保証人 (rentai hoshonin), a personal guarantor — usually a parent, relative, or in some cases an employer — who took on unlimited personal liability for your lease. That system worked reasonably well within Japanese family and social networks, but it created an obvious problem for anyone who didn't have a Japan-based relative willing to sign away their liability: students, single people living far from family, and especially foreign residents with no relatives in Japan at all.
Guarantor companies filled that gap. Today, most landlords and management companies in Japan require one regardless of nationality, and for many foreign renters, using a guarantor company is really the only realistic path to signing a lease. It's worth understanding the fee structure before you budget your move — see our full breakdown of why moving in Japan costs several times your monthly rent for how this fits into the bigger picture.
Two separate fees: initial and annual
One of the most common points of confusion is that the guarantor company charges you twice — once at move-in, and then again every year you stay.
The initial fee (paid at move-in)
The initial guarantor fee is typically calculated as a percentage of your monthly rent, commonly in the range of 50% to 100% of one month's rent. Some companies calculate this on rent alone; others calculate it on rent plus 管理費 (kanrihi, the monthly building management/common-area fee), which pushes the number slightly higher. A smaller number of guarantor companies instead charge a flat fee, often somewhere between ¥10,000 and ¥30,000, regardless of your rent level — this is more common for lower-rent units or certain regional companies.
This fee is due as part of your move-in costs, alongside deposit (敷金), key money (礼金) if applicable, agency commission, and fire insurance. If you want to understand how key money and guarantor fees stack up against each other, see our guide to key money (reikin).
The annual renewal fee (NOT part of move-in)
This is the part renters most often miss. Guarantor coverage isn't a one-time purchase — most companies charge a separate annual renewal fee, typically ¥10,000 to ¥20,000 per year, to keep the guarantee active for as long as you live in the unit. This fee is billed directly by the guarantor company, separately from your rent and separately from any lease-renewal fee (更新料, koshinryo) your landlord may also charge. Budget for it as an ongoing cost of renting, not a one-time move-in expense.
Quick tip: When comparing apartments, ask specifically for the guarantor company's name and fee schedule before signing. "Initial fee only" quotes from an agent sometimes omit the annual renewal, which can catch renters off guard a year later.
Why landlords require this, especially for foreigners
From a landlord's perspective, a guarantor company solves several problems at once. It removes the risk of an unpaid personal guarantor being unreachable or unable to pay. It gives the landlord a company to pursue, rather than an individual, if rent goes unpaid. And it reduces reliance on the landlord's own judgment about a tenant's reliability.
For foreign renters specifically, landlords and agents often cite a combination of factors: no local personal guarantor available, uncertainty about job stability or length of stay, language barriers in the event of a dispute, and simple unfamiliarity with international tenants. Whether or not these perceptions are fair, the practical result is that a guarantor company is usually mandatory for foreign applicants, even when a landlord might waive it for a long-term Japanese tenant with strong personal connections. If you're negotiating a lease, our guide on negotiating initial fees in Japan covers which costs are realistically flexible and which aren't.
You may still need an emergency contact
Here's a nuance that surprises many foreign renters: having a guarantor company usually does not eliminate the requirement for a 緊急連絡先 (kinkyu renrakusaki), an emergency contact person living in Japan. This person isn't financially liable — they won't be asked to pay your rent — but the landlord or agency wants someone reachable in Japan in case you can't be contacted directly, or in a genuine emergency.
If you don't have friends or family in Japan who can serve this role, options include asking a coworker, a supervisor at your company (some employers formally allow this), a close friend, or in some cases the guarantor company itself, which for an added fee will list itself or a partner service as the emergency contact. Ask your leasing agent early whether this is required and what alternatives they accept — it varies by landlord and by prefecture.
What the guarantor company actually covers
It's important to be clear-eyed about who this system protects. A guarantor company covers the landlord, not you. If you fall behind on rent, the company pays the landlord to keep them whole, then pursues you directly for repayment, often with interest or collection charges added. It does not forgive your debt, negotiate on your behalf, or offer you any tenant protections. Think of it as a financial product the landlord requires as a condition of the lease — you're paying for the landlord's peace of mind, not your own safety net.
Understanding this distinction helps set realistic expectations: paying the initial and annual fees keeps your lease valid, but it doesn't change your obligation to pay rent on time. For more on how these fees combine with everything else due at signing, try our move-in cost calculator, or check our FAQ for answers to other common questions foreign renters have about Japanese leases.
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