Rental Contracts Explained for Foreign Tenants

Chapter 1 — Understanding the Structure of Japanese Rental Contracts

Japanese rental agreements are far more complex than many foreign tenants expect.
Most English-speaking renters assume the contract = one document, but that assumption is incorrect in Japan.

A valid lease transaction normally consists of three core documents:

1. Explanation of Important Matters (重要事項説明書)
2. Lease Agreement (賃貸借契約書)
3. Ancillary Agreements / Addendums (覚書・特約書)

Each holds distinct legal weight and must be reviewed individually.

1.1 Explanation of Important Matters

This document is read aloud by the licensed real estate agent prior to signing.

It explains:

• Legal ownership status of the property
• Zoning restrictions
• Deposit and key money clauses
• Building usage limitations

Foreign tenants often misunderstand this step as a “formality.”
In reality, Japanese courts treat this document as binding disclosure evidence.

1.2 Lease Agreement

This document contains the enforceable obligations between landlord and tenant.

It defines:

• Term of lease
• Monthly rent and payment accounting rules
• Cancellation rights
• Restoration obligations

1.3 Special Clauses and Memorandums

This section frequently includes provisions not mentioned in marketing materials:

• Cleaning obligations at move-out
• Pet prohibitions
• Smoking penalties
• Early termination fees

日本語リスト：契約書類の構成

• 重要事項説明書
• 賃貸借契約書
• 覚書・特約条項

Chapter 2 — Term Length and Renewal Clause Interpretation

Contract length rules vary dramatically depending on lease structure.

2.1 Ordinary Lease (普通借家契約)

This is the standard long-term rental arrangement.

Characteristics:

• 2-year initial term
• Automatic renewals
• Renewal fee typically equivalent to 1 month’s rent

Foreign tenants often misinterpret renewal as optional.
In practice, refusal to pay the renewal fee can lead to non-renewal enforcement.

2.2 Fixed-Term Lease (定期借家契約)

A fixed-term contract includes no renewal rights unless explicitly stated.

This format is frequently used for:

• Short-term furnished housing
• Corporate leasing
• Buildings planned for future redevelopment

Failure to understand this distinction leads many tenants to believe
they may remain when legal tenancy has already expired.

日本語リスト：契約期間条項

• 普通借家：自動更新
• 定期借家：再契約なければ終了
• 更新料請求有無の明記必須

Chapter 3 — Lease Termination and Notification Clauses

Japanese lease contracts strictly regulate tenant withdrawal timing.

3.1 Notice Requirements

Most contracts require:

• One month written notice
• Submission deadline aligned to calendar rent cycles

Late notice often results in:

• Payment of the next month’s rent in full
• No daily proration applied

3.2 Early Termination Penalties

Fixed-term leases commonly impose:

• Remaining contract rent liability
• Early cancellation fees from 1 to 2 months’ rent

These clauses are often buried deep within special addendum sections.

日本語リスト：解約条文の重要点

• 予告期限
• 日割精算不可条項
• 違約金の有無

Chapter 4 — Contract Termination and Eviction Clauses

Contrary to online myths, Japanese tenants are not immune from eviction.

4.1 Eviction Conditions

Legally enforceable eviction may occur when:

• Rent is continuously unpaid
• Property rules repeatedly violated
• Subleasing or illegal lodging is detected

4.2 Legal Process Requirement

Landlords must obtain formal court judgments before eviction.

However, contract clauses enable:

• Immediate lease cancellation notices
• Guarantee company enforcement

These actions precede court orders and often pressure tenants to vacate sooner.

日本語リスト：解除関連条項

• 家賃滞納解除
• 義務違反解除
• 保証会社による催告

Chapter 5 — Restoration Obligations and the Truth About “Normal Wear”

One of the most misunderstood elements for foreign renters is restoration responsibility (原状回復).

Japanese law defines restoration as:

Returning the unit to the original leased state excluding normal wear and deterioration.

However, what constitutes “normal wear” differs from common expectations.

5.1 Tenant Financial Responsibility

Tenants typically pay for:

• Wall staining beyond natural fading
• Pet-related damage or odor removal
• Unauthorized renovations

5.2 Landlord Responsibility

Landlords remain responsible for:

• Flooring discoloration from sunlight
• Aging wallpaper
• Appliance deterioration from use

日本語リスト：原状回復条項の要点

• 経年劣化は貸主負担
• 不注意・故意破損は借主負担
• 特約で負担範囲拡張あり

Chapter 6 — Repair Responsibilities and Maintenance Clauses

Japanese rental contracts clearly distinguish between minor tenant upkeep and structural landlord obligations, yet misunderstandings frequently lead to disputes.

6.1 Tenant Maintenance Duties

Tenants are contractually obligated to perform daily upkeep such as:

• Regular cleaning to prevent mold growth
• Ventilation of moisture-prone areas
• Replacing expired light bulbs and batteries

These duties appear in maintenance addendums, not the primary lease body.
Failure to comply may constitute breach of care obligations (善管注意義務違反).

6.2 Landlord Repair Obligations

The landlord must handle major repairs including:

• Plumbing malfunctions
• Air conditioner failure without tenant misuse
• Electrical systems and gas supply faults

Repair timelines are stated vaguely, allowing landlords reasonable discretion.

日本語リスト：修繕義務条項

• 軽微修繕：借主負担
• 構造修繕：貸主負担
• 善管注意義務明記

Chapter 7 — Prohibited Use Clauses

Usage restrictions are among the strictest sections of Japanese rental contracts.

7.1 Common Prohibited Activities

Contracts routinely forbid:

• Operating businesses from residential units
• Hosting short-term accommodations
• Excessive visitors or cohabitation without approval

7.2 Violation Consequences

Breaches may trigger:

• Written warnings
• Immediate cancellation rights
• Penalty fee enforcement via guarantee companies

Violations rarely require court confirmation prior to contractual termination notices.

日本語リスト：使用制限条項

• 転貸禁止
• 営業行為禁止
• 同居人数制限

Chapter 8 — Guarantee Company Clauses

Most foreign tenants must rely on guarantee company agreements.

8.1 Contractual Role

Guarantee companies:

• Underwrite rental payments
• Perform non-payment recovery
• Conduct tenant screening

Their agreements exist as separate contracts, yet legally bind tenants directly.

8.2 Guarantee Company Penalties

Guarantee contracts authorize:

• Late payment fees
• Legal reimbursement demands
• Automated debt collection escalation

Tenants often overlook this second binding agreement when signing.

日本語リスト：保証会社条項

• 保証契約は賃貸契約と別契約
• 遅延損害金設定あり
• 回収手続きの包括委任

Chapter 9 — Security Deposit and Refund Clauses

Deposits (敷金) are frequently mishandled due to poor contract comprehension.

9.1 Permitted Deductions

Contracts allow deduction for:

• Unpaid rent or utility costs
• Contractually agreed cleaning charges
• Damage repairs exceeding normal wear

In many agreements, mandatory “cleaning fees” are specified regardless of unit condition.

9.2 Refund Timeframe

Refund timing is not regulated by statute.

Contracts commonly state:

• 30 to 60 days after unit inspection
• Pending contractor invoicing finalization

日本語リスト：敷金返還条項

• 未払相殺可
• クリーニング費控除
• 返還期限は任意設定

Chapter 10 — Final Review Checklist Before Signing

Before executing a Japanese rental contract, foreign tenants must confirm these document-critical checkpoints.

10.1 Contract Confirmation Items

• Lease type clearly labeled (普通借家 or 定期借家)
• Renewal fee stated explicitly
• Cancellation penalties fully disclosed
• Restoration obligations standardized
• Guarantee agreement attached and signed

10.2 Translation and Explanation Verification

Tenants should verify:

• Whether legally valid English translations exist
• Whether explanations were officially recorded by the agent

Signed Japanese originals override translation discrepancies.

日本語リスト：署名前チェック項目

• 契約種別の確認
• 更新料有無
• 解約条件
• 原状回復条項
• 保証契約別紙確認

Conclusion

Understanding Japanese rental contracts is not optional for foreign residents—it is the only protection against hidden obligations and unjust penalties.

Every clause discussed in this guide determines financial exposure, exit flexibility, and personal liability. Ignoring document details may cost far more than monthly rent itself.