Do I need a guarantor to rent a share house?

When applying for a rental contract for a typical apartment or condominium, you can prevent losses in the unlikely event that you are unable to pay the rent by appointing a guarantor or using a guarantor company.
In the case of a shared house, what is the situation regarding a guarantor?

In most cases, a guarantor is not required

In fact, there are many shared houses that do not require a guarantor.
In the case of a regular rental property, the three parties involved - the rent guarantee company, the management company, and the owner - each conduct an inspection, so there is a high chance that you will fail the inspection.
On the other hand, in the case of shared houses, the screening is usually carried out by the company that operates the shared house.
In addition, the screening process does not involve any investigation into credit card usage history or personal bankruptcy, and you may be able to pass the screening if you can present documents to verify your identity.
The reasons for this include the fact that originally many people were attracted to share houses because of the financial aspects, that many people are looking for convenience, and that the screening process for share houses places emphasis on whether or not you can live without causing any trouble with the other housemates.
In addition, due to the revision of the Civil Code in 2020, it has become more difficult to ask for a guarantor, and currently very few shared houses require a guarantor when you move in.

Some share houses require a guarantor company

Some share houses do not require a guarantor, but do require you to sign a contract with a guarantor company.
A guarantor company is a system whereby, by paying a small monthly fee, the guarantor company will pay the rent on your behalf if you are unable to pay the rent.
Even in the case of rental properties, due to the effects of the 2020 revision of the Civil Code, an increasing number of properties no longer require a guarantor but instead require a contract with a guarantor company.
The monthly payment is only a few hundred yen, so as long as you keep paying your rent regularly, there is no problem.
However, by signing a contract with a guarantor company, you will be subject to screening from another company in addition to the share house management company.

If you are unable to provide a guarantor when signing a share house contract

When signing a contract for a shared house, you may not be required to have a cosigner, but you may be asked to have a guarantor.
The scope of responsibility of a guarantor differs between a joint guarantor and a guarantor.
Guarants are granted certain rights, and can demand a reduction in the amount of rent that the contract holder has not been able to pay, or can insist on making a claim against the contract holder.
On the other hand, a guarantor does not have the right to refuse to pay on behalf of the contract holder.
Nowadays, due to the trend toward nuclear families and an aging population, many people find that they do not have anyone they can ask to be a guarantor.
So, what should you do if you are unable to provide a guarantor when signing a contract for a shared house?

Use a guarantor service

The first method is to use a guarantor agency service.
A guarantor agency will act as a guarantor in exchange for a contract fee and a monthly fee.
The cost will vary depending on the contents of the guarantee, so if you would like to use a guarantor agency service, we recommend that you first receive a free consultation.
A guarantor agency service merely lends its name to act as a guarantor, so if you happen to fall behind on your rent payments, you will be obligated to pay the guarantor agency service.

Use a guarantee company

Another option is to use a guarantee company.
A guarantor company is a system in which, by paying a monthly fee, if you happen to fall behind on your rent, the guarantor company will pay it on your behalf.
By using these services, you can move into a property that requires a guarantor even if you are unable to provide one.

Checklist for moving into a share house

The specific screening criteria for moving into a shared house are often not made public.
However, as mentioned earlier, the screening process for applying to a shared house not only considers financial aspects, but also whether you will be able to live without causing any trouble with your roommates.
Even if you can't change the financial terms, you can change the impression you give to others with a little ingenuity.
In order to make the best possible impression and pass the screening, be sure to pay close attention to the following points when viewing the property and applying for a contract.

Appearance

First of all, appearance.
It is often said that "appearance determines 90% of what someone says," and the information that enters through the eyes determines the impression we form of that person.
Be sure to take care of your appearance by shaving any stubble and keeping your hair well-trimmed.

Clean clothes

Also, make sure your clothing is clean and neat.
Everything needs to be adapted to the time and the occasion.
The latest fashionable fashions are nice, but since you're signing a contract for a house, it's better to dress cleanly and give a neat impression.
You don't need to wear expensive things.
Just paying attention to very basic things like making sure your clothes are washed properly, there are no strange wrinkles, and that shirts etc. are properly ironed can make a big difference in the impression you give to others.

wording

Next, let's look at language usage.
Remember, unlike talking to a friend, you are there to sign a contract for a place to live.
However, there is no need to use difficult words or words that you don't normally use in order to make yourself look better than necessary.
By simply avoiding rough language and being mindful to use polite language, the impression you give to others can change dramatically.

Enjoy a fun life in a share house without a guarantor

So far, we have introduced how in most cases you do not need a guarantor when applying to move into a shared house, and how if you need a guarantor but are unable to provide one, you can resolve the issue by using a guarantor agency or guarantor company.
Another attraction of shared houses is that they allow you to easily start living alone, with low initial costs and a relatively easy screening process.
Why not consider a shared house as an option for starting a new life?
Cross House operates a number of share houses, mainly in the Tokyo metropolitan area.
If you are interested in a share house, please feel free to contact us.