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5/31/2020

about Guarantor Company

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Rent management is one of the tasks of building management. Rent management is to check whether the rent of the building entrusted by the landlord is paid monthly by the lessee, receive the rent, pay the necessary expenses, and transfer it to the landlord. If the rent has not been paid, we will petition for demand for payment, request payment and keep the rent properly. If the rent is not paid even if a demand for payment is made, a request for a replacement is made to the guarantee company, the renter's rent will be reset and paid, and the rent will be received.

Typically, rent is paid in advance, and June rent is paid at the end of May. The rent is paid to the management company by the end of the month, and the rent payment is confirmed at the beginning of the month as a management task. If the last day of the month is a Saturday or Sunday like this month, we will confirm the payment on the following Monday, and if the payment has not been made on the first day, we will contact each tenant and remind them to transfer the rent. If we do not receive a transfer of the rent by the transfer request of the telephone, a reminder is issued by the letter. But in most cases, it's only forgetting of the transfer. we receive the rent immediately. 

If the rent cannot be paid even if we send the reminder letter, we will request the guarantor company for the advance payment. The guarantor company will pay the rent on behalf of the lessee.
The guarantor company first informs the lessee that the rent has not been paid, but if the rent is still not paid, the rent is remitted to the management company. The guarantee company will receive the rent for the advance payment directly from the lessee. 
The role of the guarantor company is to perform a tenants screening at the time of moving in and to reimburse late rent. The main income of the guarantee company is the guarantee fee received from the lessee at the time of contract and the annual guarantee contract renewal fee. Basically it will be a recurring revenue model, and the more the number of guarantees increases, the more stable fees will come. However, if the economy becomes excessively depressed and rents are often delayed, the amount of money in hand will decrease as a result of the advancement. Even after the Great East Japan Earthquake, the warranty company suffered enormous damage.

However, the use of a guarantee company is now mandatory for most rental contracts, regardless of whether you are Japanese or an international student. By using a guarantee company, the landlord will find it easier to rent a room, and the tenant will find it easier to rent a room by using a guarantee company, or by not needing a guarantor. This is now a common business practice in Japan for lease agreements. 
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Real Estate agent in Kyoto, Buy and Sell, Leasing, Renovation and Construction, Management for Investment and Vacation Property, Professional Services for International Customers. We deal in KyoMachiya houses, detached and attached Houses, new and old Condominium Apartments, Block of Apartments and Buildings for Commercial, Residential and Investments use, Manage and Support Operation and New Development of Guesthouse, Ryokan and Hotel, Total Supports for Land and Buildings Real Estate in Kyoto.
Yours sincerely, Founder Ken Hayashi
Real Estate Broker Company License No. Kyoto-Fu Governor ( 1 ) 14044 , ​Member of Kyoto Association of Residential Land Building Business
  • Home
  • Study
    • Rights of Property >
      • Real Right and Credit
      • Rights to the land and Rights to the building
    • the Building Lots and Buildings Transaction Business Act >
      • Laws Related to Real Estate Transaction in Japan
      • (1) Laws Concerning Land Use
      • (2) Laws Concerning Construction of Buildings
      • (3) Laws Regulating Real Estate Companies
      • (4) Laws and Regulations Concerning Advertisement
      • (5) Laws Concerning Contracts Including Sales Contracts and Lease Contracts
      • (6) Laws concerning Titles and Rights
      • (7) Laws Concerning Real Property Registration
      • (8) Laws Concerning Condominium Management
      • (9) Laws Concerning Defects (Faults, etc.) of Housing Properties
    • How to and Procedures >
      • Process of Real Estate Sale
      • Process of Real Estate Purchase >
        • the Process of Buying a House
        • Housing Prices
        • the Living Environment
        • the Budget
        • Find a Home
        • Choosing a Real Estate Agency
        • Financial Planning and Mortgage
        • Making the Final Decision to Purchase
        • Concluding a Sales Contract
        • Delivery of the Property
      • Cost by Transaction
      • Important Points Explanation
      • Real Estate Sales Contract
      • Property Condition Confirmation
      • Facilities and Equipment List
    • Building Management >
      • Process of Residential Property Management
      • Process of Real Estate Leasing >
        • Idea of Lease Agreement
      • Process of Vacation Home Management
    • Related Acts
    • Glossary >
      • Real Estate Glossary in Japan
    • Tax in Japan >
      • Consumption Tax
      • Property Tax
      • Capital Gain Tax
      • Withholding Tax
      • Taxes on Gifts and Inheritances
    • Q&A >
      • Q&A
  • Local
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