If you are renting an apartment in Japan, you can sign the lease in your own name or in the name of a company. This choice determines who becomes the legal tenant, whose finances are reviewed, and who is responsible for meeting lease terms.
Under a personal contract, or kojin keiyaku (個人契約), you sign the lease and live in the apartment, and the landlord and guarantor company assess your income, employment, residence status, and ability to pay the rent.
Under a company contract, or hōjin keiyaku (法人契約), a corporation signs the lease and the person living in the apartment is listed as the occupant. The corporation is often the occupant’s employer, but it could also be their own KK or GK, another company within the same corporate group, or a corporate housing provider.
The difference in the type of contract affects the screening process, the documents required, whether a guarantor is needed, who pays the initial costs, and what happens to the apartment if the occupant leaves the company connected to the lease.
In this article, we’ll walk through each of these differences and compare both contract types so you can decide which one fits your situation.
Personal Lease Contracts in Japan
A personal lease contract is the standard arrangement for most renters in Japan. You sign the lease in your own name, you live in the apartment, and you are responsible for paying the rent and following the contract terms.
This is the simplest structure from a legal standpoint because there is no company between you and the landlord.
Personal lease contracts also give you the most independence. If you change jobs, your lease does not automatically end just because your employer changes. As long as you continue paying rent and following the contract, the apartment remains tied to you rather than to your workplace.
However, the downside is that the screening is also personal. The landlord, management company, and guarantor company will look at whether you can afford the apartment, whether your employment is stable, whether your residence status supports the lease period, and whether they can contact someone in Japan if there is an emergency.
Income Requirements
A common rule of thumb in Japan is that monthly rent should be no more than about one-third of your monthly income.
Some landlords are more flexible if you have strong savings, a stable employer, or a long history in Japan. Others are stricter, especially for newer buildings, popular properties, or applicants with short remaining visa periods.
Documents You Need
For a personal contract, you need the paperwork to mainly prove who you are, where you live, and whether you can pay the rent consistently.
Most applicants should expect to prepare these documents:
| Document | Why it is needed |
|---|---|
| Residence card | Confirms your identity, residence status, and period of stay in Japan. |
| Certificate of residence / jūminhyō (住民票) | Confirms your registered address and household information. |
| Proof of income | Shows whether your income can support the rent. This may include recent payslips, a withholding tax slip, or tax certificates. |
| Employment certificate | Confirms where you work, your role, and sometimes your salary or start date. |
| Emergency contact in Japan | Gives the landlord or guarantor company someone to contact if they cannot reach you. |
Foreign renters should also be prepared to provide employment verification. The guarantor company may call your workplace to confirm that you actually work there, and they may also contact your emergency contact during the screening process.
If you are not a salaried employee but a freelancer, sole proprietor, or company owner, you may be asked for tax returns, tax payment certificates, bank balance evidence, or other documents showing that the income is stable enough to support the lease.
Guarantor Company Requirements and Costs
Most personal lease contracts in Japan require either a personal guarantor or a guarantor company. For foreign renters, guarantor companies are now much more common than asking a Japanese friend or relative to co-sign.
A guarantor company is a paid service that guarantees the lease to the landlord. If the tenant does not pay rent, the guarantor company pays the landlord first and then collects the unpaid amount from the tenant. The tenant pays for this service, not the landlord.
The guarantor company also conducts its own screening. This is separate from the landlord’s review and can be a part of the process where an application fails. They may check your income, employer, residence status, phone number, Japanese bank account, emergency contact, and whether your overall profile fits their risk criteria.
Company Lease Contracts in Japan
A company lease contract, or hōjin keiyaku (法人契約), means the tenant named on the lease is a corporation rather than an individual.
In many cases, this corporation is the occupant’s employer, but it does not have to be. The tenant could also be the renter’s own company, such as a KK or GK, a related company within the same group, or a corporate housing provider that handles leasing and subleasing.
The person living in the apartment is listed as the occupant, not the tenant.
Who the Tenant Actually Is On a Company Lease?
Under a personal contract, the same person applies, signs the lease, pays the rent, and lives in the apartment. Under a company contract, the company signs the lease and carries the contractual responsibility, while the resident is approved to live there as the occupant.
The company documents show whether the tenant is financially and legally reliable, and the occupant documents confirm who will actually live in the property.
This structure helps when the company has stronger financial standing than the individual. An employee who has just moved to Japan may have no local income history, but their employer may already be well established.
However, it also has its limits. Changing the occupant, adding a family member, switching the lease into an individual name, or staying after leaving the company may all require separate approval from the landlord, because the lease belongs to the company rather than to you.
Documents Required for Company Lease Contracts
A company contract requires more paperwork than a personal contract because the landlord and management company need to confirm that the corporation exists, that the person signing has authority, and that the company can support the rent.
| Document | Purpose |
|---|---|
| Certificate of registered matters (履歴事項全部証明書) | Confirms the company’s legal name, address, representative, and registration details. Usually must be issued within the last 3 months. |
| Corporate seal certificate (印鑑証明書) | Confirms that the company seal used for the contract is officially registered. |
| Company profile or brochure | Helps the landlord understand the company’s business, size, and background. |
| Financial statements (決算書) | Shows the company’s financial condition. Landlords typically ask for the most recent three fiscal years. |
| Representative’s ID | Confirms the identity of the person representing the company. |
The occupant also provides personal documents, such as a residence card, certificate of residence, employee ID or employment confirmation, and emergency contact details. Even though the company is the tenant, the landlord still needs to know who will live in the unit.
A company contract does not always remove the need for a guarantor. If the company is large, established, and financially strong, the landlord may accept it as the tenant without an individual co-signer. For smaller or newer companies, the landlord often requests additional protection. This can mean a guarantor company, the company representative signing as a joint guarantor, or the occupant guaranteeing the lease personally.
If you own the company and also live in the apartment, the landlord may still ask you to sign personally. The contract is in the company’s name, but the financial risk comes back to you as an individual.
Do Landlords in Japan Prefer Personal or Company Contracts?
In general, most landlords prefer a company contract when the company is financially solid.
If the company is large, established, and financially stable, the landlord may see less risk of late payment. Company housing arrangements can also feel easier to manage because payments are often handled by an accounting or HR department, not by the occupant personally. Some landlord-focused guidance describes corporate tenants as appealing because they may reduce rent default risk and support more stable rental income. (東京カンテイ マンション図書館)
That does not mean every company contract is stronger than every personal contract.
For a corporate application, the landlord will look at the company itself, how long it has been operating, its capital, business activity, sales, profit, and general financial condition. This is why an employee of a well-known company may have an easier time applying under a company contract.
However, a newly established KK or GK with limited revenue, no full set of financial statements, or weak cash flow may raise more questions than an individual applicant with stable employment and a clear income record. Some leasing guidance notes that newly established companies or companies with unstable financial results may face stricter screening, be asked for a guarantor company, or be required to provide a larger deposit. (バックオフィスの業務効率化なら「マネーフォワード クラウド」)
In that case, a personal contract may be the cleaner option. If the applicant has a stable job, income comfortably above the rent requirement, a valid residence status, and complete documents, the landlord may feel more comfortable with the individual than with a small company that is difficult to assess.
A personal contract is also usually more direct because the tenant signs for themselves. The application, guarantor company screening, payment, and contract signing can move quickly if the documents are ready. However, a company contract may involve corporate registry documents, company seal certificates, internal approval, HR or accounting checks, and representative seal procedures.
For renters, the practical approach is to ask which application is stronger for this apartment. If your employer or company has solid financials and can move quickly, a company contract may improve your chances. If the company is new, slow to approve contracts, or likely to require extra explanations, a personal contract may be easier to pass and faster to complete.
Find Your Perfect Apartment In Tokyo
Tokyo Portfolio is a bilingual, expat-led team that handles both contract types regularly. We work with corporate tenants arranging housing for employees, business owners renting through their own KK or GK, and individual renters navigating screening for the first time.
We know which landlords accept company contracts, which properties screen personal applications favorably, and how to prepare an application so it passes the first time.
Browse our apartments for rent in Tokyo to start your search, or if you are considering ownership instead of renting, explore our properties for sale in Tokyo. You can also contact our team directly and we will walk you through which contract type fits your situation before you apply.
