Essential Tips for Japanese Housing Contracts

Description

Upon relocating to a Japanese rental unit, the lease agreement—often called a “rent contract” or “rental contract”—is a legal document that outlines everything from the monthly rent to the responsibilities of both tenant and landlord.
Because the language, terminology, and legal expectations often differ greatly from what you’re accustomed to, it’s essential to read the contract carefully and know what to watch for.
This guide will help you spot the key points that can make or break your rental experience in Japan.

1. Pinpoint the basic terms.
• The name of the property, its address, and the type of unit (apartment, house, share house).
• The real‑estate agent or landlord’s name who represents the property.
• The contract period, which is usually 1 or 2 years, and the start and end dates.
• The rent per month and the payment deadline (usually the 10th).
• Whether the rent is “furnished” or “unfurnished.”.
• The deposit (shikikin) and key money (reikin) amounts. The deposit can be refunded; key money is a non‑refundable goodwill payment to the landlord..

2. Grasp the deposit and key money.
• The deposit usually amounts to 1–3 months’ rent and covers damage or unpaid rent. The landlord should provide a receipt and a copy of the deposit slip..
• Key money generally amounts to 1–2 months’ rent, is a one‑time non‑refundable fee. If uneasy about the sum, negotiate beforehand; some landlords may lower or waive it for good tenants..
• Be alert for extra “security deposit” clauses that may be concealed in the wording. Some contracts use “保証金” (guarantee money) or “敷金” (shikikin). Ensure you understand the distinction and handling..

3. Know the guarantor or guaranty company.
• In Japan it is common to require a guarantor (guarantee person) or a guaranty company (e.g., Aoyama Gakuin, M&A, or a local bank)..
• The guarantor typically must cover the full rent plus several months’ extra. They must submit a written guarantee..
• If a guaranty company is used, remember they charge a fee, usually about 10% of the annual rent..
• Inspect the contract for the guarantor’s terms, particularly if the guarantor can be released after a set time or if the guarantee renews automatically..

4. Identify maintenance responsibilities.
• The contract should specify which repairs are the tenant’s responsibility and which are the landlord’s..
• It is common for tenants to handle small plumbing or electrical repairs..
• For major repairs (such as structural damage), the landlord should take responsibility..
• Some contracts include a clause for “property damage” that might impose a penalty if you accidentally damage fixtures..

5. Utilities and additional fees.
• Identify which utilities (electricity, gas, water, internet, garbage) are covered by the rent and which are billed separately..
• Certain contracts group utilities into a “maintenance fee” (管理費) or a “common area fee.”.
• With individual gas and electricity meters, the contract may require separate payments..
• Also watch for any “parking fee” or “storage fee” if the unit provides parking or storage..

6. Subletting and guests.
• Most Japanese contracts forbid subletting without the landlord’s written consent..
• Should you intend a long‑term guest or roommate, discuss it beforehand..
• Certain agreements permit “roommates” (同居人) only with landlord approval..
• Inspect the clauses that explicitly ban “転貸” (subletting) or “転居” (co‑living)..

7. Renewal and termination terms.
• The contract generally indicates whether renewal is automatic or requires a new agreement..
• Leases often renew yearly, though landlords may hike the rent..
• To terminate early, you typically need to give 1–3 months’ notice (often 60 days)..
• Early termination may trigger a penalty—perhaps forfeiture of the deposit or payment of a share of the remaining rent..
• If you intend to leave before the contract expires, negotiate a “退去料” (move‑out fee) or “退去手数料” (service fee) that may be waived..

8. Notice of changes in rent or contract terms.
• The landlord may raise rent only once annually during the renewal period..
• Rent hikes must be documented in the contract or via a formal notice (“賃料改定通知”)..
• The contract should include a clause for “賃料改定” (rent adjustment) and the procedure for notifying you..
• If the landlord wants to change the contract terms (e.g., add a pet clause), they must provide written notice..

9. Pet rules.
• Many Japanese apartments forbid pets. If you have a pet, make sure the contract explicitly allows it..
• Some landlords require a pet deposit (ペット保証金) and a pet fee (ペット賃料)..
• The contract may also specify breed and size limits..

10. Language and translation considerations.
• Contracts are generally in Japanese