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Guarantor and Screening

Rent Guarantor Company

Rent Guarantee Company

A company that fulfils a guarantee to the landlord for unpaid rent or other events covered by its contract. Registration under the ministry’s rent debt guarantor scheme is voluntary.

Sources checked

What a guarantee company does

The company pays the landlord when covered obligations, such as overdue rent, are not met. Its fee pays for the guarantee; it is not rent savings. After paying, the company seeks reimbursement from the tenant, whose debt is not forgiven.

Sources[1]

Registration and screening are different

MLIT registration is voluntary: an unregistered company may still operate. Registration does not guarantee approval of an application. It helps identify the operator, but you still need to read the particular guarantee agreement.

Sources[2]

Check the property requirements first

Ask management which guarantee arrangements it accepts and whether a personal guarantor is also needed. Prepare identity, income or student documents as requested. Obtain written details of initial and ongoing fees, their calculation basis and coverage. Complete documents still require screening and landlord approval.

Sources[3]

Practical checklist

  • Confirm which guarantee arrangements the property accepts.
  • Budget for both initial and ongoing fees.
  • Check reimbursement terms and keep the agreement.

References

Prepared from official and public sources. Checklists are ELB reading aids; confirm specific application, fee and contract terms with the relevant organization.

  1. MLIT-hosted reference: How rent guarantees work
  2. MLIT: Rent guarantee company registration
  3. MLIT: Practical guidance on renting to foreign nationals

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Read more: understanding and checking rent guarantor companies