RENTAL INSURANCE: GUARANTEED RENT IN JAPAN

Guarantor companies usually cover lost rent and restoration of the property to the original condition. In next week’s article I will go into more detail about the different guarantor companies’ coverage but for now it is important to know that the guarantor company is what makes the tenancy as risk free as possible.
They do their own screening, but they also rely heavily on the guarantor company’s screening too. Their screening as an insurance company is more comprehensive than what they have access to as property managers.
They screen the tenant for stable employment and whether they can afford the apartment or not but guarantor company screenings look further into whether the tenant has existing unpaid debt as well as criminal history of the applicant.

Despite the tenancy laws being heavily in favor of the tenant, due to the guarantor system Japan is actually one of the safest and most reliable rental markets in the world. That isn’t to say you won’t have problems with renters but no matter what happens, requiring tenants to apply for use of a guarantor company coupled with the Japanese tendency to save face in all financial transactions means you’ll have a safe and sound investment for years to come.

Ask me for any real estate investment in Japan
Koji Kitada Licensed real estate agent