About Guarantee Company
The other day, we received an application to rent a property at renovated Kyo-Machiya, where we manage the building. It is a renovated townhouse that was purchased by the owner last year. The house had been occupied since early fall of last year, but the tenants moved out this spring. Due to the effects of the COVID-19, the property has been vacant since then, but we were able to get an application the other day.
The contractor is an individual who lives in Tokyo, but he is going to start a new business in Kyoto while he keeps his current job. This time we will use 4C'S Co., Ltd. as a guarantor on contract. Today, we would like to introduce this company, which is also our partner company.
Company Name 4c’s Co., Ltd.
Business Real estate guarantor service
〒105-0004 4c's Shimbashi BLDG. 5-13-7, Shimbashi, Minato-ku, Tokyo Japan
〒530-0001 Osaka Ekimae Daiichi BLDG 5F. 1-3-1, Umeda, Kita-ku, Osaka-shi, Osaka Japan
Customer Support Center
〒812-0013 4c’s Hakata BLD. 1-9-5 Hakataeki Higashi, Hakata-ku, Fukuoka-shi, Fukuoka
TEL ： +81-92-433-3725
FAX ： +81-92-441-3726
Open Hours ： 10 a.m.-5 p.m. (Except New Year holidays)
4C’S GUARANTEE SYSTEM
4c’s guarantee system is the service that 4c’s will pay rent instead of tenants who made contract with 4c’s when they cannot pay their rent. Each country has different rules to rent a room. Today, it is general to use the guarantee system when people lease a room from a real estate agent in Japan. Most of landlords expect tenants to sign up the contract of guarantee system, and it is one of the important conditions to lease a room from real estate agents in Japan. In order to ensure untroubled living conditions for both of landlords and tenants, our guarantee system is necessary. 4c’s understand that it is hard to get used to different cultures and customs, so let us support you when you try to start new life in Japan. The following inset shows you how 4c’s guarantee system is concluded among landlords, tenants and 4c’s.
1. Object of contract
5. About guarantee system and warranty scope
7. About guarantee charge (initial cost) In order to use 4c’s guarantee system, it is necessary to pay guarantee charge. Basically, the charge amount is equal to the monthly rent (minimum charge is 35,000 yen); however, there is a few discount service.
The above are the contents of the guarantor company and the details of payment. When you sign a lease contract in Japan, a guarantor company is required in most cases nowadays.
Therefore, you will need to use one of the above mentioned companies or a similar company, please contact your brokerage for more information.
about Guarantor Company
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.
Arrows International Realty Corp.