When living abroad, finding a home is one of the first major challenges to overcome.In Japan, it is common that you are required to find a co-signer when renting a property.
However, the responsibility of the co-signer is quite significant more than you think, and even Japanese people tend to avoid becoming one for each other. For this reason, it is not easy for foreigners living in Japan without local relatives or acquaintances to find the co-signer when renting a property.
Japanese Rental Co-Signers Explained
When signing a rental contract, it is generally required to find the co-signer. For Japanese people, parents or relatives typically assume this role. This is because, as mentioned earlier, the responsibility of the co-signer is so heavy that there is no alternative person to ask.
By the way, do you know how heavy the responsibility of the co-signer is?
The co-signer does not have the rights of “Defense of demand” or “Defense of Debtor’s Financial Resources.”
(Defense of Demand)
Article 452 If an obligee has requested performance of an obligation from the guarantor, the guarantor may request the obligee to demand performance of the principal obligor first; provided, however, that this does not apply if the principal obligor is subject to an order commencing bankruptcy proceeding or if the principal obligor’s whereabouts are unknown.>
(Defense of Debtor’s Financial Resources)
Article 453 Even after the obligee has made a demand to the principal obligor in accordance with the provisions of the preceding Article, the obligee must first execute on the property of the principal obligor if the guarantor proves that the principal obligor has the financial resources to pay the obligation and that the execution can be easily performed.
The co-signer is responsible for covering the “certain maximum amount” agreed-upon in the contract, which typically ranges from one to two years’ worth of rent.
Becoming a co-signer is a legally binding commitment, and once undertaken, it cannot be easily terminated at the request of just one party. To stop being the co-signer, either the tenant must vacate the property or the landlord must agree to release the guarantor from their obligations.
For foreigners who cannot find a co-signer in Japan, using a rental guarantee company
is highly recommended.
Renting a Home with Guarantee Companies
By using Global Trust Networks (GTN)’s housing search services, foreigners can easily find properties that come with their foreigner-friendly guarantor services.
About Global Trust Networks (GTN)
GTN is a Japanese company offering comprehensive support services for foreigners living in Japan. Their main services include:
- Rental Guarantee Services: Acting as a guarantor for foreigners renting in Japan.
- Life Support Services: Providing multilingual customer support for tasks such as mobile phone contracts and bank account openings.
- Employment Assistance: Helping foreigners with job searches and career transitions in Japan.
- Student Support: Collaborating with Japanese universities and vocational schools to support international students.
GTN is known for its multilingual support (English, Chinese, Korean, Vietnamese, etc.) and flexible tenant screening criteria tailored for foreigners. They have partnerships with many real estate agencies across Japan.
Key Points About Guarantee Companies
Each property has a designated guarantee company, and only those companies can be used for that specific property. Therefore, it is important to ask the real estate agency,
“Is this property available for foreign tenants?” and then “Does this property have a partnership with a guarantee company that accepts foreigners?.”
This process can be time-consuming, so I recommend searching for properties directly on
guarantee companies’ website. It’s more efficient.
Alternatively, when browsing rental listings, look for properties that indicate the availability or requirement of a guarantee company under the “Guarantor Company” section.
If there is a note indicating that a guarantor company is necessary., you can inquire about its name and conditions before proceeding with your application at the real estate agency.
