# Guarantor 101



## Patch66 (Nov 25, 2012)

friend has asked me "so just what do you get for your guarantor fee (hoshonin) if not being sponsered". What comfort do you as a tenant get from paying such a fee if any ?. Insurance in the event of default on rent or damage caused to property ? , what if you default eg 2 months before lease ends, Management Company are already eg holding 2 months security deposit, you have gifted them 1 months key money, you have paid 100k for Guarantor, just where in the lifecycle of your lease does the Guarantor become of use to Management Company/Tenant, could it be that tenants are somehow protected and can default on a number of months rent hence the insistance of a Guarantor. Its a bit of a blur to be honest but if you are not sponsered and have to pay this fee from your own pocket you would want to know exactly what your paying for, right, it can come in at 100K so it's not cheap.


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