If you're from Hong Kong or Taiwan and getting ready to move to Fukuoka, or have only just arrived, the Japanese rental market usually brings your first culture shock: "I clearly have enough money, and I'm even willing to pay one to two years' rent up front in one go, so why won't the landlord rent to me unless I find a guarantor?"
As someone who has been through it myself here in Fukuoka, and who helps clients from Hong Kong and Taiwan find homes on the front line every day, I completely understand the frustration. In this column, I'll break down the biggest unwritten rule of the Japanese rental market: what exactly are a "joint guarantor" and a "guarantee company"? And do foreigners really have to use one?
What is a joint guarantor?
In the traditional Japanese approach to renting, landlords protect their interests by asking the tenant to provide a joint guarantor (rentai hoshōnin, 連帯保証人). This is not a guarantee in name only; it is a heavy legal responsibility.
- Who can be a guarantor? They must be a Japanese national with a stable income in Japan, or a long-term resident who meets the requirements.
- Scope of responsibility: If the tenant falls behind on rent, damages the property, or even disappears and leaves belongings that cost money to dispose of, the guarantor must pay on the tenant's behalf.
※ Did you know? In the past, guarantors were liable without limit, but since recent legal reforms in Japan the contract must set a maximum liability amount (kyokudogaku, 極度額), usually around one to three years' rent.
Even with this legal cap, it is still extremely hard to ask a friend or relative to take on that kind of risk. For a foreigner who has just arrived in Fukuoka and doesn't know anyone yet, finding a joint guarantor is almost mission impossible.
What is a guarantee company?
To solve the problem of finding a guarantor, the guarantee company (hoshō kaisha, 保証会社) system has become widespread in Japan. Put simply, it is a service where you pay for a guarantee.
- Initial fee: In Fukuoka, the norm is 50–100% of the total rent.
- Ongoing fees: Most commonly ¥20,000 a year. Some companies charge monthly instead (1–2% of the total rent).
- How it works: If the tenant falls behind on rent, the guarantee company pays the landlord first and then recovers the money from the tenant.
Note: A guarantee company protects the landlord, not the tenant.
If you fall behind on rent, the guarantee company pays the landlord first and then turns round and collects the debt from you. This is not insurance but a "credit guarantee fee". A record of unpaid debt goes into the credit system and will affect every contract you sign in Japan in future.
The key question: do foreigners have to use a guarantee company?
The answer: in the vast majority of cases, yes, and it is usually compulsory.
Many people overseas think: "I have relatives in Japan who are willing to be my guarantor, so can I save the cost of a guarantee company?" The reality is:
- Standardised management: To cut down the hassle of chasing late payments, management companies usually make it compulsory to join a designated guarantee company.
- Double protection: Some properties even require both a guarantee company and a joint guarantor.
- Paying in advance doesn't count: Japanese tenancy law is extremely protective of tenants, and landlords worry not only about rent but also about risks such as restoration on moving out (genjō kaifuku, 原状回復) and tenants refusing to leave when the contract ends. That is why paying rent in advance cannot replace a guarantee company's credit screening.
Honest advice from a local agent
The guarantee company system is not aimed at foreigners; it is the standard procedure for almost everyone who rents in their own name in Japan, Japanese people included.
Guarantee company screening focuses on two things:
- Can you stay in Japan reliably? (type of visa, period of stay)
- Can you pay the rent reliably? (proof of income, job stability)
Basic Japanese communication skills also matter a great deal, because screeners often phone you directly to confirm your identity and what your job involves.
Whether you're coming to Fukuoka from Hong Kong or Taiwan to start a new life, the paperwork really is more involved than you might expect. We have handled many cases on the front line. Besides helping you choose a property, more importantly, we check these application details for you, such as how to handle the screening call, to improve your chances of approval. If you're getting ready to move and still have questions about any of these procedures, feel free to get in touch with me any time. I hope my local experience can help you get off to a smooth, worry-free start in Fukuoka.