{"id":50136,"date":"2025-11-14T18:00:00","date_gmt":"2025-11-14T09:00:00","guid":{"rendered":"https:\/\/blog.villagehouse.jp\/?p=50136"},"modified":"2025-11-23T18:47:36","modified_gmt":"2025-11-23T09:47:36","slug":"deposit-deductions-tenant-rights-what-you-should-know-before-signing","status":"publish","type":"post","link":"https:\/\/blog.villagehouse.jp\/en\/japanese-apartment-life\/deposit-deductions-tenant-rights-what-you-should-know-before-signing\/","title":{"rendered":"Deposit Deductions & Tenant Rights: What You Should Know Before Signing"},"content":{"rendered":"\n

Two common issues that arise when it comes to rental contracts in Japan are how security deposits are handled, and the cost of restoring the property to its original condition upon moving out. Security deposits are typically used to cover the cost of repairs to restore the property to its original condition upon moving out. However, many people may be concerned about whether they have to pay for all the repairs upon moving out and how the security deposit refund is processed. <\/p>\n\n\n\n

In this article, we will explain the typical initial costs of renting in Japan, the legal rules surrounding restoration obligations, how the security deposit refund is processed, and where to go if you run into any problems. Make sure to check these points carefully before signing your rental contract to avoid unnecessary problems later. <\/p>\n\n\n\n

At Village House<\/a>, we offer affordable rental properties starting from around \u00a520,000 per month! Plus, no key money or handling fees are required, allowing you to significantly save on initial move-in costs. Not to mention, you might also qualify for an exemption on deposits! We have over 1,000 properties all across Japan, so if you’re looking to save on initial costs, be sure to take a look at our website. <\/p>\n\n\n\n

Understanding rental deposits in Japan (shikikin, reikin, and more) <\/h2>\n\n\n
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When signing a rental contract in Japan, you\u2019ll need to prepare initial move-in costs in addition to the monthly rent. In many cases, this amounts to four to six months\u2019 worth of rent. For example, if the monthly rent is \u00a580,000, you will generally need around \u00a5400,000 in total. <\/p>\n\n\n\n

Let\u2019s take a look at the typical initial costs required when renting a property in Japan: <\/p>\n\n\n\n

Security deposit (shikikin) <\/td>One month\u2019s rent <\/td>This deposit is used to cover the cost of restoring the property to its original condition upon moving out. Generally, the deposit will be refunded to the tenant after deducting all the expenses incurred. <\/td><\/tr>
Key money (reikin) <\/td>One month\u2019s rent <\/td>A non-refundable payment made as a token of appreciation to the landlord after signing the rental contract. It is not refunded to the tenant upon moving out.  <\/td><\/tr>
Advance rent <\/td>One month\u2019s rent <\/td>If you move in starting from the month after signing the contract, you\u2019ll need to pay the first month\u2019s rent in advance. When moving in mid-month, the rent is calculated on a per-day basis. <\/td><\/tr>
Agency fee <\/td>One month\u2019s rent + consumption tax <\/td>This is a fee paid to the real estate agency that helped you find the property and handled the contract procedures. Legally, the maximum amount is one month\u2019s rent plus consumption tax*. <\/td><\/tr>
Guarantor fee <\/td>Half a month\u2019s rent + common service fees <\/td>This fee is required when using a rental guarantor company, which acts as a backup in case you\u2019re unable to pay the rent.  <\/td><\/tr>
Fire insurance fee <\/td>\u00a515,000  <\/td>This is an insurance policy to prepare for potential damages such as fire, water leaks, etc. The payment is made to a property insurance company. <\/td><\/tr>
Lock replacement fee <\/td>\u00a515,000\u301c25,000 <\/td>Costs vary depending on the type of lock. <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

*Reference: Ministry of Land, Infrastructure, Transport and Tourism (MLIT) \u2013 Information on Real Estate Transactions for Consumers<\/a> <\/p>\n\n\n\n

To save on initial move-in costs, consider options such as Zero-Zero Properties (which have no deposits or key money), negotiating the agency fee, or taking advantage of free rent promotions. Initial costs may vary depending on the management company or landlord, so be sure to check with the person in charge if you have any questions. <\/p>\n\n\n\n

For more info, check out our blog: Zero-Zero Properties: The Best Deal You\u2019ve Never Heard Of?<\/a> <\/p>\n\n\n\n

Legal responsibility and rules between a tenant and a landlord <\/h2>\n\n\n
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With the enforcement of the Revised Civil Code (2020 Amendment) in April 2020, the legal standards regarding security deposits and property restoration in rental agreements were updated. <\/p>\n\n\n\n

Many people assume that \u201crestoring the property to its original condition\u201d means returning it exactly as it was when they moved in, even though that\u2019s not actually the case. Restoration to the original condition does not include repairing normal wear and tear or damages that occur naturally through everyday living. <\/p>\n\n\n\n

In other words, the cost of repairs caused by natural deterioration from everyday living is not the tenant\u2019s responsibility, but should be borne by the landlord (lessor), and covered through the rental income. <\/p>\n\n\n\n

So, what exactly counts as normal wear and tear, and what types of damages or stains should the tenant be responsible for? Let\u2019s take a closer look at some common examples: <\/p>\n\n\n\n

 <\/td>Tenant\u2019s responsibility <\/td>Landlord\u2019s responsibility <\/td><\/tr>
Keys <\/td>Paying the cost to replace keys that are lost or damaged through carelessness. <\/td>Paying the cost to replace keys for a new tenant. <\/td><\/tr>
Water heater <\/td>Paying for repairs or replacement if the unit is damaged due to improper use. <\/td>Paying for replacement when the unit has reached the end of its service life. <\/td><\/tr>
Wallpaper <\/td>Paying for cleaning or replacement if nicotine stains or mold appear due to smoking indoors or leaving condensation untreated. <\/td>Covering the cost of normal discoloration or marks on walls behind furniture, such as a TV or refrigerator. <\/td><\/tr>
Floor <\/td>Paying for repairs if scratches, dents, or other damage occur (for example, from a chair with casters). <\/td>Covering the cost of normal indentations or marks caused by placing furniture on vinyl or carpet flooring. <\/td><\/tr>
Fixtures <\/td>Paying for repairs if pillars, doors, or other fittings are damaged. <\/td>Covering the cost of repairs for glass that cracks or breaks due to an earthquake. <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

In the case of flooring, natural fading caused by sunlight is considered normal wear and tear and therefore falls under the landlord\u2019s responsibility. On the other hand, if the tenant leaves a window open and rainwater seeps in, causing discoloration to the floor, it is considered the tenant\u2019s negligence, and the repair costs must be covered by the tenant. <\/p>\n\n\n\n

Similarly, small pinholes from thumbtacks or pins used to hang posters or calendars, or discoloration of wallpaper due to sunlight, are considered to be caused by normal use and are the landlord\u2019s responsibility. However, if the tenant creates large holes from installing shelves using screws or nails, they will be responsible for the repair costs. <\/p>\n\n\n\n

For more info, check out our blog: Tips on How to Repair Minor Damages to Get Your Deposit Back<\/a> <\/p>\n\n\n\n

Lease clauses that affect your deposit (restoration & cleaning fees) <\/h2>\n\n\n
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Restoration to original condition <\/strong><\/p>\n\n\n\n

According to the Ministry of Land, Infrastructure, Transport and Tourism (MLIT)\u2019s \u201cGuidelines on Restoration to Original Condition and Related Disputes<\/a>\u201d, normal wear and tear, daily-use stains, and deterioration due to everyday living are not subject to restoration. However, the old Civil Code did not clearly state this, causing ambiguous judgments. The April 2020 Civil Code amendment now explicitly states that tenants are not obligated to restore the property to its original condition for wear and tear or deterioration caused through no fault of their own <\/p>\n\n\n\n

When the leased property has sustained damage after being handed over to the tenant (excluding deterioration over time or wear and tear resulting from normal use and the natural aging of the property), the tenant is obligated to restore the property to its original condition upon termination of the lease. However, this obligation does not apply if the damage is due to reasons beyond the tenant\u2019s fault or negligence. <\/p>\n\n\n\n

Cited from: Article 621 | Tenant’s Restoration Obligation<\/a> <\/p>\n\n\n\n

That being said, depending on the contract details and the scope of repairs, there may be cases where the above rule does not apply. Some agreements may include special clauses that specify different arrangements. To avoid misunderstandings, make sure to check carefully with the landlord or real estate agency about which areas need restoration and who is responsible for the costs. <\/p>\n\n\n\n

Cleaning fees <\/strong><\/p>\n\n\n\n

According to the Ministry of Land, Infrastructure, Transport and Tourism’s \u201cGuidelines on Restoration to Original Condition and Related Disputes<\/a>\u201d, cleaning fees are normally incurred when a tenant moves out. Thus, charging a flat fee at the time of move-in is not a legal requirement. However, if the rental contract includes a special clause that specifically states that the tenant is responsible for house cleaning fees, then the tenant is legally obligated to cover those expenses. <\/p>\n\n\n\n

Average cleaning costs (in the absence of intentional damage or negligence) <\/p>\n\n\n\n

Property Size <\/td>Cleaning Costs <\/td><\/tr>
1K <\/td>\u00a520,000 ~ \u00a535,000 <\/td><\/tr>
1DK, 1LDK <\/td>\u00a535,000 ~ \u00a550,000 <\/td><\/tr>
2DK, 2LDK <\/td>\u00a540,000 ~ \u00a580,000 <\/td><\/tr>
3DK, 3LDK <\/td>\u00a550,000 ~ \u00a590,000 <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

If you have any concerns, such as \u201cThe cleaning fee is too expensive\u201d or \u201cDo I really need to pay a cleaning fee when moving out?\u201d, make sure to confirm with the person in charge for clarification before signing your contract. <\/p>\n\n\n

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Expenses deducted from the security deposit <\/h2>\n\n\n
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The cost of restoring the property to its original condition is generally deducted from the security deposit paid when you move in. If the repair costs exceed the deposit amount, you will be required to pay the difference. Conversely, if the repair costs are lower, the difference will be refunded to you. <\/p>\n\n\n\n

As mentioned earlier, based on the Ministry of Land, Infrastructure, Transport and Tourism\u2019s guidelines, the security deposit is generally refunded in full if the damage is limited to normal wear and tear or deterioration over time. However, keep in mind that deductions may be made from the security deposit in the following cases: <\/p>\n\n\n\n