Guarantor system in Japan

What is Rentai-Hoshonin?

In Japan, Guarantors, known as “Rentai-Hoshonin” in Japanese, are requested in many situations when renting an apartment or taking out a loan etc.
Recently, opportunities for Rentai-Hoshonin to be requested have decreased, however, the system still remains.

I will explain the system of Japanese Guarantors called “Rentai-Hoshonin” which is like a cosigner.

“Rentai- Hoshonin” have a heavier responsibility.

Ordinary guarantors need to pay when debtors can’t pay their debts.
However,”Rentai- Hoshonin” have a heavier responsibility. Creditors can charge at any time either debtors or the “Rentai-Hoshonin”.

The case “Rentai-Hoshonin” is requested have decreased.

As I wrote, the cases for “Rentai-Hoshonin” to be requested have decreased.
Rentai-Hoshonin for apartment rent have almost been completely replaced by guarantor companies. Owners have been required to be Rentai-Hoshonin for taking out loans.
However, a new system shall be implemented after April 2023. Banks must explain rationally and specifically why the owner must be a Rentai-Hoshoninin in each case.

The rare case Rentai-Hoshonin is requested.

One of the cases in which “Rentai-Hoshonin” is requested is the membership of auction markets.
Japanese or permanent residence holders who have real estate can be “Rentai-Hoshonin” at an auction. It’s difficult for even Japanese to find “Rentai-Hoshonin”. Therefore, it is important to prepare in advance,