Finding a home in Tokyo is an exciting milestone, but the terminology in a Japanese rental contract can be overwhelming. Japanese law strongly protects the tenant’s right to remain in the property while imposing strict obligations regarding its ‘restoration’ upon move-out.
Today, we analyze two key points of a Tokyo rental contract that determine the beginning and end of your stay. Understanding these will help you identify hidden risks before you sign.
1. Ordinary Lease (Futsu) vs. Fixed-Term Lease (Teiki)
The first thing to verify is the ‘type’ of contract.
- Ordinary Lease (Futsu Chakuya): The most common type in Japan. It typically lasts for 2 years and automatically renews unless the tenant chooses to leave. For a landlord to refuse renewal, they must provide ‘justifiable grounds,’ which are very difficult to prove in court. This provides high security for the tenant. (Note: A renewal fee of ~1 month’s rent is common.)
- Fixed-Term Lease (Teiki Chakuya): This contract terminates definitively at the end of the term. There is no right to renew. If you wish to stay longer, you must negotiate a new contract with the landlord, who has no legal obligation to agree. These are often used for high-end properties or temporary rentals.
2. Restoration (Genjo Kaifuku): The Golden Rule for Move-Outs
The biggest source of conflict in Japan is the refund of the security deposit (Shikikin).
- Tenant’s Responsibility: Damage caused by negligence or intent (e.g., wallpaper stains from smoking, mold due to poor ventilation, or deep scratches from heavy furniture).
- Landlord’s Responsibility: Normal wear and tear or aging (e.g., faded wallpaper from sunlight, minor carpet indentations from furniture, or dust behind appliances).
- The 6-Year Rule: Items like wallpaper are considered to have a ‘useful life’ of 6 years. If you have lived there for 6 years or more, the value of the wallpaper is effectively zero. You should not be charged for its full replacement even if it’s dirty.
3. Guarantors and Services for Foreigners
A major hurdle for foreigners is the requirement for a ‘Joint Guarantor.’ Today, using a Guarantor Company (Hoshō Gaisha) is the standard.
- GTN (Global Trust Networks): One of the most foreigner-friendly companies, offering multilingual support and high approval rates for international residents.
- Initial Costs: Beyond monthly rent, be prepared for upfront costs totaling 4 to 6 times the monthly rent, including Shikikin (deposit), Reikin (gift money), agent fees, and insurance.
4. Conclusion: “Documentation Saves You”
The most important step on move-in day is to take photos and videos of every scratch and mark in the apartment. Emailing these to the management company creates a timestamped record that protects you from being wrongly charged for repairs when you leave. A smooth life in Tokyo starts with a meticulous contract review.
Investor Action: Session Summary & Check
- Contract Type: Confirm if your lease is ‘Ordinary’ or ‘Fixed-term’ (Teiki) to understand the risk of non-renewal.
- Restoration: Check if the Tokyo Metropolitan Government guidelines (6-year depreciation) are overridden by special clauses.
- Initial Cost: Prioritize properties with zero ‘Reikin’ (Key money) to minimize upfront financial burden.
