We are currently looking for a new apartment and it is quite frustrating because in many cases foreigners aren’t accepted at all or a personal guarantor is required. While we have some Japanese friends we don’t want to ask them to be financially liable for us.
When searching online for this problem most of the answers are to use a guarantor company. But from our experience, that is not possible or a personal guarantor is still needed in addition. Am I missing something?
by crushotep
14 comments
>a personal guarantor is required
Not accepting foreigners is frustrating, yeah – but a personal guarantor is required for Japanese as well in the overwhelming majority of cases. They are able to use their parents, or other family members, to serve as guarantor though.
Whichever agent you are working with will be able to explain the guarantor requirements, and likely facilitate the setup of your guarantor contract with a company.
Unlikely that you’ll need to set this up with a private party
You can definitely ask for a guarantor company, the agency will help find one, but you’ll have to pay extra money. It’s virtually super difficult to find a personal guarantor as a foreigner.
Per other comment, your realtor should be able to set this up by recommending a guarantor company.
I’m working for a 100% Japanese owned real estate company that specialises in expat luxury housing (starting approx 800k yen per month).
Feel free to message me if we can help.
Not all properties have such strict requirements. In general, one can expect about 90% failure rate, higher in more in demand areas and newer buildings. Foreigners generally is expected to pay a significant premium (I’d say about 30~50%) on rent in Japan or settle for less desirable buildings (e.g. older buildings, bad areas, etc. ) that is willing to open to foreigners.
And yes, many guarantor companies also requires a in person guarantor as well. The owners typically will specify the guarantor company, so you will need to apply for a lot of apartments until you can get one that specifies a guarantor company that does not require in-person guarantors.
Do you have permanent residency? It is far easier to get a better location and lower monthly payment if you buy and apply for mortgage vs. renting, and you can write off your taxes.
The irony is that I was forced to use a guarantor company instead of a personal guarantor
When I was searching for an apartment, there were often cases where I needed both a guarantor company and a personal guarantor (I was assured this was a common occurrence in Fukuoka prefecture), but I explained to them that I was unable to get a personal guarantor. They were able to filter on properties that were okay with just a guarantor company. Maybe your realtor also has this function, which should hopefully save you some frustration and headache.
in general the real estate agent has a connection with the guarantor company, so you will need to pay a yearly fee. on top of that you might need a contact person (連絡先) which only help to reach you incase of emergency but people tend to mix it up with personal guarantor, usually HR can help, or your boss or your friend.
guarantor company is the one that will pay in case some financial related issue happens.
it is frustrating when they reject foreigners so dont hang up too much in one place and prepare back up.
You are both foreigners I suppose right? will be tough, probably your search will be restricted to more expensive apartments that are ok to accept foreigners with “special conditions” (no guarantor) and “only” using an overly expensive guarantor company…
Write down your details to the real estate agent and they can filter out just the apartments willing to accept you
Sounds like your realtor isn’t great at screening properties (not applying to ones not foreign friendly or at least neutral). Get a new realtor who doesn’t waste your time. I found personal success just taking with real estate companies near stations where I want to rent, my Japanese is okay but in no way fluent.
A decent realtor will know the difference between likely and unlikely to accept your application. Of course no realtor will get it right every time, but mines were fairly accurate in letting me know my chances so I didn’t get my hopes up.
given the amount of key money & deposit everyone has to leave, I’ve never understood the point of a guarantor
my wife and I – both in our 50’s, I’ve lived in Japan 20 years – need to get her **father** as a guarantor, and there was even light-weight check on his company…
When we rented, even with a significant salary, we had to do both a personal guarantor and a guarantor company.
Partner and I both students. Tried looking through REAs, no real luck. Decided to try UR, we found a 2LDK in no time for us and our daughter. No 礼金, no guarantor required whatsoever. We did have to pay a years rent in advance but that’s only because we are unemployed. Building is concrete and was built in the 2010s. Insulation seems good it’s 15c indoors while near freezing outside… ground floor might have something to do with it though. Keep in mind there are older buildings ofc.. you can choose which ones you want though and you’ll be put on a waiting list and they’ll let you know when something becomes available. You don’t have to even compete with others haha. Anyway, if you have any UR where you’re looking it’s a fantastic option i think.
In one place, the apartment ad small print only mentioned guarantor company. After moving in, *then* the owner came round and asked me for a personal guarantor. When I came to renew, I was told the guarantor was no longer needed cos I’d “proved myself a trustworthy foreigner”…which explained why it hadn’t been on the original building info sheet for those *trustworthy enough* from the get-go. But saltiness aside, it’s possible the personal guarantor won’t be on the hook financially anyhow, which may make it easier to ask a friend if you find a building you like with similar requirements.
It’s okay to use a gurantor company. Most of everyone does.
When I applied for a new apartment, I just need a guarantor company + Japanese friend, just like a POC in case they can’t contact you. That person doesn’t have to bear any finanical responsibilities.
You should check again if that’s what they mean.