How to Extend or Terminate a Lease in Japan

Understanding Japanese Lease Structures & How Lease Renewal Works

Japan’s rental housing system is unique, rule-driven, and often confusing for foreigners. Unlike many Western countries where leases automatically renew or switch to a month-to-month format, Japan has its own structure of renewal fees, notification rules, and “just cause” requirements for landlords. This section explains everything in detail so that foreign residents can navigate renewal (更新, kōshin) or decide whether it is better to move out.

1. Types of Lease Contracts in Japan

Before discussing renewal, it is essential to understand what kind of contract you have. Japanese leases fall into two main categories:

1.1 Ordinary Lease (普通借家契約 / futsū shakuyakeiyaku)

This is the most common contract—roughly 90% of apartments use this type.

Key features:

• Standard contract term: 2 years
• Automatic right to renew for the tenant
• Landlord cannot refuse renewal unless there is “just cause”
• Renewal fee is common
• Tenant can terminate early with notice (typically 30 days)

This contract gives tenants the strongest legal protection in Japan.

1.2 Fixed-Term Lease (定期借家契約 / teiki shakuyakeiyaku)

Increasingly used in urban areas.

Key features:

• Ends automatically on expiration
• NO right to renew (you must sign a new contract if both sides agree)
• Often used for newly renovated units, furnished units, or high-demand properties
• Renewal fee is usually not charged
• Must receive a written explanation before signing

If your contract says “定期借家契約,” your lease ends at the date stated unless the landlord agrees to another term.

2. Lease Renewal in Japan

For ordinary leases, renewal happens every two years (or sometimes one).

Renewal is not automatic—the tenant or landlord must take action.

2.1 How Renewal Works

About 1–3 months before the contract expires, the property manager sends:

• A renewal notice
• Renewal documents
• The amount of renewal fee
• The next contract period
• Any changes (new rent, new rules, insurance requirement, etc.)

The tenant returns:

• Signed documents
• Payment of renewal fee
• Updated emergency contact information
• (Sometimes) updated residence card copy

3. Renewal Fees Explained

Renewal fees are unique to Japan and often surprise foreigners.

3.1 What is a Renewal Fee?

A renewal fee (更新料 / kōshinryō) is usually:

• 1 month of rent, or
• 0.5–1.5 months depending on region and landlord preference

It is paid every time you renew.

Why does this fee exist?

It is a traditional practice in Japan. Historically, it was a goodwill payment to the landlord in exchange for continued occupancy.

3.2 Renewal Administrative Fee

In addition to the renewal fee, many real estate agencies charge:

• 更新事務手数料 (kōshin jimu tesūryō)
• Administrative renewal fee
• Usually 5,500–22,000 yen

This goes to the agency for processing the paperwork.

3.3 Renter’s Insurance Renewal

Japanese management companies often require fire insurance.

• Cost: 15,000–20,000 yen every 2 years
• Mandatory for most renewals

4. Notice Period for Renewal

Most contracts state that tenants must notify the landlord if they do not intend to renew.

Typical notice periods:

• 1 month before expiration
• Sometimes 2 or 3 months, depending on the building

If the tenant fails to notify, the landlord assumes the tenant will renew the contract.

5. When Can a Landlord Refuse to Renew?

Under Japanese law, a landlord cannot simply say “I don’t want to renew.”
They must have 正当事由 (just cause).

Legal just cause includes:

• Landlord needs to move in due to unavoidable personal circumstances
• Structural problems requiring demolition
• Severe nonpayment of rent
• Tenant’s illegal activity
• Extreme neighbor complaints

Even with just cause, the landlord must usually offer compensation (立退料) unless the tenant has committed a serious violation.

So, tenants in ordinary leases have strong protection.

6. Rent Increases at Renewal

While rent increases are not extremely common, they do occur.

Landlords may request a rent increase at renewal if:

• Market prices have risen
• Building renovations were performed
• Property taxes increased
• Long time has passed since last adjustment

Can a tenant negotiate?

Yes.

Tenants may:

• Provide market comparisons
• Provide similar listings as evidence
• Request to maintain the same rent
• Negotiate a smaller increase

If both sides cannot agree, the tenant can move out instead of renewing.

7. Negotiating Renewal Terms

Common negotiation points:

• Renewal fee amount
• Rent increase
• Removing agency administrative fees
• Contract period (e.g., extending 2 years → 3 years)
• Adding or removing clauses (pets, music instruments, etc.)

Landlords are not required to accept changes, but many are open to negotiation in long-term tenancy cases.

8. When You Should Not Renew

Renewal might not be the best option if:

• Rent is significantly higher than new listings in the same area
• Building maintenance is poor
• You plan to move or leave Japan within the next year
• The renewal fee is too high
• The apartment is small or inconvenient
• You had serious issues with noise or neighbors

If two years of rent + renewal fee > moving costs + new rent savings, then moving is financially better.

9. What Happens If You Don’t Renew?

If you choose not to renew an ordinary lease, you simply:

1. Notify the landlord (usually in writing)
2. Follow the standard termination process (described in Part 2)
3. Vacate the property by the expiration date
4. Conduct the move-out inspection
5. Return keys and settle the security deposit

This is considered normal and does not harm your rental record.

10. Common Foreign Tenant Misunderstandings

Misunderstanding 1 — “My lease will automatically renew.”

Incorrect. Renewal requires documentation and payment.

Misunderstanding 2 — “I don’t have to pay a renewal fee.”

In Japan, renewal fees are standard unless stated otherwise.

Misunderstanding 3 — “I can refuse a rent increase.”

You can negotiate, but the landlord may decline renewal if no agreement is reached (within legal bounds).

Misunderstanding 4 — “The landlord can evict me anytime.”

Japan has strict eviction laws. Without just cause, eviction is very difficult for landlords.

11. Renewal vs. Non-Renewal: Decision Checklist

Ask yourself:

• Am I satisfied with the rent?
• Does the renewal fee make sense?
• Would moving save money long-term?
• Are there better apartments at similar prices?
• Am I planning to leave Japan soon?
• Am I planning to change jobs or commute?

This checklist helps determine whether renewing is worth it.

12. Summary of Part 1

This first section established the foundation:

• Two types of leases (ordinary vs. fixed-term)
• Renewal rules and required fees
• How notice periods work
• When landlords can refuse renewal
• How to negotiate rent
• When tenants should consider moving
• Common mistakes foreign tenants make

Terminating a Lease in Japan
A Complete Guide to Ending Your Rental Contract, Moving Out, and Avoiding Deposit Disputes
Ending a lease in Japan—called 解約 (kaiyaku) or 退去 (taikyo)—is usually straightforward, but foreign tenants often encounter misunderstandings, unexpected fees, and disagreements about cleaning or repairs. This section explains, step-by-step, how to properly terminate your lease, avoid unnecessary charges, and complete the move-out process smoothly.

1. How to Give Notice to Terminate a Lease
In Japan, tenants are required to notify the landlord or management company before moving out.
This is called:
解約予告 (kaiyaku yokoku)
退去通知 (taikyo tsūchi)
Cancellation notice or Move-out notice (in English)
1.1 Typical Notice Period
Most leases require:
30 days’ notice (the standard)
Some buildings may require:
45 days
60 days
90 days (rare but exists in high-end or furnished rentals)
The period is always written in the contract.

1.2 Accepted Ways to Give Notice
You can usually notify through:
Email
Written form provided by the agency
Online “move-out form” (common for large management companies)
In-person submission
Certified mail (if necessary in disputes)
Many agencies accept email, but confirm it is “officially received.”

1.3 What Happens After You Notify
After submitting the notice, you will receive:
A move-out confirmation
Your final rental payment schedule
Details about the inspection date
A checklist for cleaning or preparing the unit
Instructions for returning keys
Agency contact information for questions

2. Rent and Final Payment Rules
One of the most confusing aspects for foreigners is how rent is calculated during the final month.
2.1 Rent Is NOT “Daily Prorated” by Default
In Japan:
Rent is usually charged monthly,
NOT prorated by day unless your contract provides for prorating.
Many leases say:
“Rent is calculated on a monthly basis”
“No daily prorating”
However, some modern contracts do allow daily calculation.
Therefore:
💡 Always check your lease contract’s section about “Rent for cancellation month (解約月家賃)”.

2.2 Utilities and Fees
You are responsible for utilities until:
The day you move out,
Or the day you return keys (whichever is later).
More details are in section 4.

3. Preparing for Move-Out
Here is what tenants should do in the final weeks.
3.1 Book the Moving Company Early
Especially during peak season:
February–April
August
Weekends
Prices increase dramatically.

3.2 Dispose of Large Garbage
Japan requires special disposal procedures.
Furniture → 粗大ごみ (sodai gomi) reservation
Electronics → special recycling rules
Mattresses → paid pickup
Bicycles → deregistration at the police (防犯登録解除)
Failure to do this can lead to extra charges at move-out.

3.3 Minor Cleaning Before the Inspection
Light cleaning helps reduce disputes:
Remove all trash
Wipe bathrooms and kitchen
Vacuum and basic floor cleaning
Remove hair from drains
Clean refrigerator space, ventilation covers, etc.
You do NOT need professional cleaning—this is the landlord’s cost, not the tenant’s—but leaving the property extremely dirty can result in extra charges.

4. Canceling Utilities and Services
You must cancel:
Electricity
Gas
Water
Internet
Home delivery services
Newspaper delivery (if any)
4.1 Electricity
Call or use the website of your provider:
TEPCO
Kansai Electric
Chubu Electric
Kyushu Electric
etc.
Select:
“Move-out (Stop Service)”
Choose date
Provide meter location
Provide forwarding address

4.2 Gas
This requires a technician to visit.
On move-out day:
They will shut off the gas
Must inspect the meter
You should be present (usually required)

4.3 Water
Handled by the local city office or its water department.
Usually can cancel online.

4.4 Internet
Fiber internet (光回線) needs early cancellation.
Depending on the provider, you may need:
Return of router
Return of ONU or modem
Cancellation fee (varies by contract)

5. Move-Out Inspection (退去立ち会い)
This is one of the most important steps.
During the inspection:
The agent checks damage
They record cleaning condition
They check walls, floors, doors, fixtures
Renters return keys
Photos are taken for documentation

5.1 Who Attends the Inspection
Usually:
Tenant
Management company staff
Sometimes a third-party maintenance company
The landlord rarely attends.

5.2 Typical Duration
15–30 minutes for small apartments
45–60 minutes for larger units

5.3 What Inspectors Usually Focus On
Wall stains or holes
Burn marks
Mold in bathroom
Scratches on floor
Heavy dirt
Cigarette smell
Broken fixtures
Unauthorized modifications
Pet damage
Abnormal wear and tear

6. Understanding “Restoration to Original Condition” (原状回復)
This is a legal concept often misunderstood.
According to 国土交通省 (the Ministry of Land, Infrastructure, Transport, and Tourism):
Tenants are responsible only for “damage beyond normal wear and tear.”
Landlords cannot charge you for ordinary aging.

6.1 Tenant Responsibility Examples
These are typically billed to tenants:
Cigarette burns
Mold caused by poor ventilation
Large wall holes
Pet scratches
Broken glass from negligence
Damage from dropping heavy objects
Oil stains from not cleaning for years

6.2 Landlord Responsibility Examples
Landlord must pay for:
Normal aging (経年劣化)
Sunlight discoloration
Minor scratches
Wallpaper aging after 6 years
Floor deterioration over time
Water stains from natural use
Screw holes from furniture (if within normal number)

7. Security Deposit (敷金) Settlement
After the inspection, the management company calculates cleaning costs and damage costs.
7.1 Cleaning Fee
Most contracts include:
Fixed cleaning fee (e.g., 25,000–50,000 yen)
Sometimes higher for larger units (up to 80,000–120,000 yen)
This fee is normal.

7.2 Deposit Refund Timeline
Usually:
2–6 weeks after move-out
Sometimes:
Up to 2 months for complicated cases
You must provide a forwarding bank account, domestic or international.

7.3 When Charges Are Unfair
Unfair charges may include:
Full wallpaper replacement for small stains
Floor repair due to normal aging
Overcharging for cleaning
Charging for renovations unrelated to your tenancy
You can negotiate by:
Asking for detailed invoices
Requesting photos
Citing the government guidelines

8. Early Termination & Penalties
Some contracts include a penalty for early termination.
8.1 Common Penalties
1 month’s rent if leaving before 1 year
1–2 months’ rent if leaving before 2 years
Extra costs for furnished rentals or corporate leases
Always check the “Mid-term cancellation (中途解約)” section.

8.2 Exemptions
Penalties may be waived if:
The job requires relocation
Domestic violence or safety concerns
The apartment becomes uninhabitable
Landlord breaches the contract

9. What To Do After Moving Out
Even after returning keys, you must:
Submit a 住所変更届け (change of address) at city hall
Update residence card address at immigration (if applicable)
Set up Japan Post mail forwarding
Cancel any rental services or subscriptions
Deregister bicycle if left behind

10. What To Do If Unexpected Charges Arrive
Sometimes tenants receive:
Extra cleaning charges
Repair invoices
Claims for wallpaper replacement
Claims for lost items
Claims sent months later
How to respond:
Request an itemized list
Request photos
Request contractor estimates
Compare with government guidelines
Negotiate if unreasonable
If negotiation fails:
Consumer Center (消費生活センター)
Real Estate Association
Legal support organizations for foreigners

11. English Templates for Tenants
Here are useful templates.

11.1 Notice to Terminate Lease

Subject: Notice of Lease Termination Dear [Management Company / Landlord], I would like to officially notify you of my intention to terminate my lease for the property located at: [Address] My planned move-out date is: [Date] Please confirm the inspection schedule and any required procedures. Thank you for your assistance. Sincerely, [Name]

11.2 Request for Deposit Breakdown

Subject: Request for Detailed Deposit Settlement Dear [Management Company], Thank you for sending the move-out report. Could you please provide a detailed breakdown of the charges, including: - Itemized list - Photos of damage - Repair estimates - Cleaning cost details I appreciate your cooperation. Best regards, [Name]

11.3 Renewal Confirmation Template

Subject: Lease Renewal Confirmation Dear [Management Company], This message is to confirm that I would like to renew my lease for the next contract period. Please send the renewal documents and payment details. Thank you. Sincerely, [Name]

12. Checklist for Foreigners
✔ Know your notice period
✔ Return keys properly
✔ Cancel utilities
✔ Clean lightly before inspection
✔ Understand normal wear vs tenant damage
✔ Ask for photo evidence
✔ Provide forwarding bank account
✔ Do not accept unfair charges without verification

13. Final Summary
Ending a lease in Japan is not difficult, but it requires following the correct procedures:
Provide written notice
Understand rent calculation
Prepare for inspection
Know your rights under the restoration rules
Check the validity of cleaning and repair charges
Request detailed invoices if necessary
Keep communication polite and professional
With proper preparation, you can avoid unnecessary costs and complete your move smoothly—even if you don’t speak Japanese perfectly.