The First Hurdle for International Students Renting Property

Why Do Japanese Rentals Require a "Joint Guarantor"?

Many international students ask upon arriving in Japan: “Why do I need a guarantor when I have the money to pay rent?” Behind this requirement lies deep-rooted legal logic and Japan’s unique rental culture.

The Legal Background: Why Are Landlords So Cautious?

In Japan, legal regulations strongly favor tenants, viewing housing rights as a fundamental human right. As a result, landlords face a tough reality: it is extremely difficult to evict tenants who default on rent.

Comparison: Taiwan

In many regions, landlords can legally reclaim a property after 2 months of unpaid rent. However, in Japan, even with a lawsuit, courts usually require 3 to 6 consecutive months of completely unpaid rent to determine that the “relationship of trust has broken down” before approving eviction.

The combination of hefty legal fees, time costs, and lost rent during this period represents a severe financial disaster for landlords. Therefore, strict screening mechanisms serve as their primary line of defense.

"Joint Guarantor": A Legal Second Tenant

Because evicting a bad tenant comes at such a high price, landlords must find someone to share the risk. A Joint Guarantor (連帶保證人) carries heavy legal responsibilities:

Unconditional Compensation: If the tenant disappears or defaults on rent, the guarantor must unconditionally pay on their behalf.
Full Liability: In the event of accidents (such as fire or solitary death), the guarantor assumes all financial losses and legal responsibilities.

Extremely Strict Criteria:
Historically, landlords usually only accepted relatives within two degrees of kinship who reside in Japan as Japanese nationals with a steady JPY income. For international students, fulfilling this requirement is nearly impossible.

Modern Solution: Guarantor Companies

Due to the overly harsh conditions of traditional guarantors, Guarantor Companies (保証会社) have become the market standard over the past decade. This is a professional credit guarantee service.

Operating Model

Tenants pay a “guarantor fee” (guarantor charge, approx. 0.5 to 1 month’s rent) when signing the lease, followed by an annual renewal fee of around 20,000 JPY.

Subrogation Payment

If a tenant defaults on rent, the guarantor company advances the rent to the landlord and handles collection through a professional team, ensuring the landlord’s revenue.

Practical Advice for International Students

Today, over 80% to 90% of Osaka properties have shifted to mandatory enrollment in a Guarantor Company to replace traditional individual guarantors. This is actually great news for international students!