Instead of a human guarantor many leases now require a rent guarantee company. The provider advances unpaid rent and then recovers from the tenant. Because coverage and pricing vary by company you should confirm the numbers before signing.

⸻

1. What Is Covered

Most plans cover base rent common charges parking fees, with total caps ranging from several months up to 24 months. Restoration costs penalties and fines are often excluded. Litigation expenses may be partially covered only under paid riders. Corporate leases can require additional identity and credit documents from officers.

⸻

2. Typical Pricing

Initial fee is typically 30% to 100% of monthly charges with a minimum of ¥10,000. Renewal is either ¥10,000 per year or 10% of monthly charges, and bank debit fees are a few hundred yen per month. Refunds on cancellation are uncommon. Even when the fees look similar the cap months grace days and treatment of legal costs change the real cost, so read the terms and disclosures carefully.

⸻

3. Screening and When Arrears Occur

Screening results usually take 1 to 3 business days. Standard documents include ID income proof and an emergency contact and some cases require a residence card or a domestic phone number. If arrears occur the provider generally advances within several days to one week and begins SMS or phone reminders. After two months of nonpayment many providers move to repayment plans or legal action.

⸻

Case Study

For a ¥120,000 monthly rent 1LDK the initial fee was ¥48,000 at 40% and the annual renewal ¥10,000. After two months of arrears the provider advanced ¥240,000. A six month repayment plan normalized cash flow from the next month and reduced the manager’s collection workload.

⸻

Takeaway

Focus on initial fee renewal cap months grace days and legal cost rules. Do not judge by the 30% to 100% fee headline alone. By matching coverage terms to risk tolerance you can quantify and control collection risk while protecting cash flow.