Japan – Lease Agreements

What is the typical lease term for renting property in Japan?

Whether you are renting in a large city apartment block or a smaller private dwelling, most Japanese rental agreements run for two years. This level of uniformity is markedly greater than in many other countries, where lease lengths can span anywhere from six months to several years depending on the market.

Rental contracts in Japan fall into two broad categories: the ordinary lease contract and the fixed-term lease contract. These two types operate quite differently, making it essential to understand which one you are being asked to sign before you commit.

An ordinary lease contract is a self-renewing agreement covering a period of more than one year — typically two — in which a landlord cannot reject renewal without adequate justification. If the tenant does not give formal notice of their intention to vacate, the contract continues automatically. This gives tenants a meaningful degree of housing security, operating within Japan’s own specific legal framework.

A fixed-term lease, on the other hand, concludes definitively at the contracted end date, with no automatic right to renewal for the tenant. Continuation is only possible when the agreement itself includes an explicit re-contracting provision.

Roughly 90% of residential contracts in Japan are of the ordinary lease variety. Since fixed-term contracts were introduced in 2000, ordinary leases have remained overwhelmingly dominant.

At renewal, tenants typically pay a renewal fee of one month’s rent agreed with the landlord, and may additionally pay a commission to the real estate agency for processing the new agreement, along with a fire insurance premium for the upcoming term. In the Kantō region of eastern Japan — which includes Tokyo — a renewal fee known as kōshinryō is a standard expectation at the time of renewal.

For fixed-term leases, landlords are required to issue a termination notice between six months and one year before the contract end date. Should this notice not be delivered properly, tenants retain the right to remain in the property for a further six months after eventually receiving it.

What is the difference between furnished and unfurnished rental properties in Japan?

Long-term rental apartments in Japan are almost universally rented without furniture or appliances. Tenants are expected to source everything themselves — from curtains and refrigerators to light fittings and cooking appliances. This comes as a genuine surprise to many people arriving from countries where rentals include at least some basic fixtures or white goods as a matter of course.

In many international cities, long-term rentals routinely come with built-in kitchen appliances or fundamental furnishings. Japan operates very differently: even large appliances like washing machines or refrigerators must be arranged by the incoming tenant. Ceiling light fixtures are often absent as well, meaning you may need to purchase and install them before your first night in the property.

Furnished options do exist in Japan, but they are largely confined to short-stay or serviced accommodation formats — including what are marketed as “weekly mansions” (ウィークリーマンション). These come equipped with furniture, appliances, and often utilities, but monthly costs are considerably higher, and standard lease protections may not apply in quite the same way.

For expats on temporary corporate assignments or those needing somewhere to live while searching for a permanent home, furnished serviced apartments can serve as a practical short-term solution. That said, anyone intending to stay longer than a few months will almost always find an unfurnished standard lease to be the more economical choice over time.

When reviewing listings, make sure to verify precisely what is included. A property described as “furnished” might contain nothing more than a bed or a small table — a far cry from the fully equipped rentals common in places like Singapore or parts of Europe.

What are the standard clauses typically found in a lease agreement in Japan?

A lease contract (賃貸借契約書, chintaishaku keiyakusho) is a legally enforceable document between landlord and tenant that sets out your rights, obligations, and the conditions under which you may occupy the property. Japanese lease contracts typically run to multiple pages, covering rent, deposit, key money, the contract duration, renewal arrangements, and various other conditions. They are ordinarily written in Japanese, though many agencies will provide an English translation for international tenants.

While each rental agreement is different, clauses commonly encountered include a restriction of the property to use by the named occupants only — prohibiting subletting or commercial use — along with a two-year contract period and rent payable for the month ahead of each rental period.

Utility bills are almost always the tenant’s sole responsibility. A landlord may also reserve the right to revise the rent during the original contract term under specific circumstances, such as a rise in property tax.

Landlords are generally required to provide at least six months’ notice of cancellation, while tenants are usually required to give one or two months’ notice depending on the specific terms of their agreement. Insufficient notice from the tenant typically results in a one-month penalty charge.

A security deposit (shikikin) — usually equivalent to around two months’ rent — is payable by the tenant upon signing and is returned at the end of the tenancy, subject to any deductions for damage or outstanding rent. Some landlords routinely retain a portion to cover cleaning costs for the next occupant regardless of the property’s condition.

Virtually all residential leases in Japan require tenants to enrol in fire insurance, which provides protection not only for the tenant’s belongings but also covers liability for accidental damage to neighbouring properties.

Most contracts also include a clause addressing early termination — always confirm that such a clause exists and establish in advance how much notice you would need to give the landlord in that situation.

What additional or optional clauses might appear in a lease agreement in Japan?

Pet policies are determined on a property-by-property basis. Where animals are permitted, the lease may require an additional deposit, pet-specific cleaning fees, or detailed rules covering the size, species, and number of animals allowed. A great many Japanese apartments prohibit pets outright, so this is a point to confirm before submitting an application — not after signing.

Leases typically name all current occupants, and introducing long-term guests, roommates, or operating the unit as shared housing without landlord approval can breach the agreement and expose the tenant to penalties or eviction. If your household circumstances change — for instance through marriage, the arrival of a child, or a family member moving in to provide care — you should seek the landlord’s approval before that change takes effect.

Landlords and property managers are generally entitled to enter for inspections or essential repairs but must give reasonable advance notice except in genuine emergencies such as a suspected water leak or fire. The notice period required for routine entry is often set out in the contract, and this is worth reading carefully.

Restrictions on modifications to the property — including painting walls, installing shelving, or drilling — are common features of Japanese leases. Related to this are restoration obligations (原状回復, genjō kaifuku), which require tenants to return the property to the condition it was in at the time of their move-in. Precisely what constitutes required “restoration” as opposed to normal use-related wear and tear is a frequent source of disagreement, and tenants should ask the agent to walk them through this clause in detail before signing.

A guarantor clause is standard in Japanese residential leases. The guarantor undertakes to cover unpaid rent and certain associated costs if the tenant defaults. Landlords frequently require either a domestic guarantor or — as is increasingly common for foreign nationals — a professional guarantee company. Such companies charge an initial enrolment fee and sometimes annual renewal fees, with the terms of coverage set out in the lease or a separate guarantee agreement.

What should expats be especially aware of when signing a lease in Japan?

In many countries, moving into a new rental property involves little more than paying the first month’s rent and a deposit. Japan’s upfront payment structure is considerably more involved, frequently amounting to the equivalent of four to six months’ rent before you have spent a single night in the property. The Ministry of Land, Infrastructure, Transport and Tourism (MLIT) advises newcomers to budget for approximately four to seven months’ rent at the point of signing — covering the first month’s rent, the security deposit, key money, the agency fee, insurance, and miscellaneous charges (as of 2025). Always verify the most current guidance with the MLIT directly.

Key money — known as reikin (礼金), which translates literally as “gratitude money” — is a payment made directly to the landlord as a traditional expression of thanks for agreeing to rent out the property. Unlike the security deposit, reikin performs no protective financial function for the landlord; it is a purely ceremonial payment, and it is entirely non-refundable. Many tenants arriving in Japan incorrectly assume they will receive it back when they leave, which leads to disputes that could easily be avoided. Before signing, confirm clearly which fees are returnable and which are not.

Lease agreements in Japan are almost invariably written in Japanese. While many real estate agencies offer English translations for international tenants, this is not guaranteed, so it is worth confirming before you choose an agency. Japanese law does not require leases to be notarised, and there is no mandatory translation requirement for foreign nationals under standard residential tenancy legislation — but signing a contract you are unable to read carries obvious and significant risks. Always obtain a translated version or have every clause explained to you by a qualified bilingual professional.

Prior to signing, you have a legal entitlement to receive an “Explanation of Important Matters” — a structured briefing conducted by a licensed real estate agent covering all material aspects of the lease. Do not allow yourself to be rushed through this session or persuaded to bypass it.

Some agencies request an application deposit (azukarikin or moushikomikin) before the formal signing stage. Japanese law requires agencies to refund this amount if the applicant withdraws, but disputes over its return are not uncommon, and regulatory authorities encourage agencies to avoid requesting such deposits altogether. If an agency insists on one, it may be worth considering other options.

Vacating a property before the standard two-year term is up typically carries a financial penalty of one to two months’ rent (as of 2025). Review the early termination clause of your specific agreement carefully, as amounts vary between properties and landlords.

Are security deposits required in Japan, and what rules govern them?

The security deposit — called shikikin — works in a broadly similar way to deposits in other rental markets, giving the landlord a financial buffer against damage or unpaid rent. Most landlords ask for the equivalent of one to two months’ rent, though premium properties or those in highly sought-after locations may set higher requirements (as of 2025). In some cases involving luxury apartments, deposits of up to six months’ rent have been reported.

Japan does not operate a mandatory national deposit protection scheme of the kind seen in countries such as Germany or the United Kingdom, where deposits must be lodged with a government-approved third-party custodian. In Japan, the landlord holds the deposit directly, which makes thorough move-in documentation all the more important (see the section on condition reports below).

A revision to Japan’s Civil Code in 2020 brought greater clarity to deposit return obligations: tenants are not liable for deterioration attributable to ordinary use over time. This represents a meaningful legal protection, though disagreements over precisely what qualifies as “ordinary” deterioration remain common — particularly when the tenancy ends.

Security deposits are generally returned within one month of the tenant vacating, following a move-out inspection, assessment of any repair costs, and reconciliation of the final amount. Check your contract for the specific timeframe stated, as this can vary from one agreement to another.

Common sources of dispute include charges for faded wallpaper or minor flooring dents resulting from everyday use, or deductions for cleaning fees that were not itemised in the original agreement. Tokyo has enacted an Ordinance for the Prevention of Residential Rental Disputes that requires brokers to explain restoration and maintenance responsibilities in advance for covered contracts. Ask your agent or the Tokyo Metropolitan Government whether this ordinance applies to the property you intend to rent.

Deposit practices vary considerably by region. In the Kansai area, the deposit is often referred to as hoshōkin (guarantee money) rather than shikikin, and a practice called shikibiki — by which a defined portion of the deposit is treated as automatically non-refundable when the tenant moves out — is common. Always ask your agent to explain the conventions that apply in your specific area before signing.

Are condition reports or property inspection reports used in Japan before signing a lease?

Standardised move-in condition reports — such as those legally required in France (état des lieux) or Scotland (property inspection reports) — are not mandated under Japanese residential tenancy law. Nevertheless, carrying out your own comprehensive inspection at move-in is strongly advisable and can prove decisive when it comes to recovering your deposit in full.

Where possible, conduct a joint walk-through with the landlord or property management company and photograph the unit thoroughly. This creates a clear record of any pre-existing damage that cannot then be attributed to you when you eventually move out. Take date-stamped photographs of every room, wall, floor surface, and fixture, and document any marks, stains, or signs of wear in writing — ideally with the landlord or agent acknowledging the record in writing as well.

Before signing, ask your agent to clarify which types of deterioration fall under ordinary wear and tear and which would be classed as tenant-caused damage, along with any pre-agreed fees — such as cleaning or deodorising charges — that may be deducted from the deposit regardless of how well the property is maintained. These are conversations to have before signing, not points to discover on your departure date.

Certain management companies will offer a formal pre-move-in inspection with the incoming tenant, but this is at the discretion of the landlord or agency rather than a legal requirement. If one is offered, attend without fail. If none is arranged, request one. The more thoroughly the condition of the property is documented at move-in, the stronger your position will be when seeking the return of your deposit in full.

What qualifications or licences should letting agents hold in Japan?

Japan maintains a formal licensing framework for real estate brokers. Under the Building Lots and Buildings Transaction Business Act, only brokers holding a licence issued by either the Minister of Land, Infrastructure, Transport and Tourism or a prefectural governor — and meeting the requisite standards of capital adequacy and professional competence — are legally authorised to conduct real estate transactions including sales and brokerage activities.

The nationally recognised professional qualification in this field is the Real Estate Transaction Specialist (宅地建物取引士, Takuchi Tatemono Torihiki-shi), and the real estate agency sector operates under a registration framework. Each business office must have its representative holding this licence, and at least one in every five employees must be qualified.

The examination for this qualification — commonly known as the Takken exam — is taken by approximately 210,000 candidates annually, with a pass rate of around 15–16%. The syllabus covers a broad range of material across four subject areas, including property law and taxation.

The real estate agent licence carries a validity period of five years (as of 2025). Before any tenancy agreement is executed, the licensed agent is legally required to deliver the Explanation of Important Matters — a formal briefing on all significant aspects of the contract. Tenants should insist on receiving this briefing and should not allow it to be abbreviated or skipped.

Readers are advised to verify current licensing requirements and check whether a particular agency holds valid registration by consulting the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) or the relevant prefectural governor’s office. Rules and procedures are subject to change, so always confirm the current position with the relevant official authority.

Is there a professional association or regulatory body that reputable letting agents in Japan should belong to?

Japan’s real estate industry has two principal membership organisations that businesses can join: the Zenkoku Takuchi Tatemono Torihikigyo Kyōkai (全国宅地建物取引業協会, also known as the National Association of Realtors Japan, or Zen-Takken) and the Fudōsan Hoshō Kyōkai (不動産保証協会). Affiliation with one of these bodies is linked to the business’s obligation to maintain security deposits that protect consumer funds in the course of transactions.

The principal regulatory authority over licensed real estate agents in Japan is the Ministry of Land, Infrastructure, Transport and Tourism (MLIT). Members of the public can verify whether a real estate broker holds a valid licence using the MLIT’s online search system for building constructors and housing land and building dealers, accessible (in Japanese) at: etsuran2.mlit.go.jp. As this system is currently available in Japanese only, those who need assistance navigating it may wish to ask a bilingual agent or contact the MLIT directly. Always confirm that URLs and contact details are current via official sources, as these are subject to change.

When choosing a letting agent, look for firms that clearly display their licence number, their affiliated membership organisation, and the names of their in-house qualified Real Estate Transaction Specialists. Agencies with established experience serving international clients will typically offer multilingual assistance and be upfront about all applicable fees from the outset. A bilingual agent can add considerable value by helping match your needs — including lifestyle preferences, commuting requirements, and budget — to suitable properties.

What are a tenant’s rights and legal protections under rental law in Japan?

The primary legislation governing residential tenancy in Japan is the Act on Land and Building Leases (借地借家法, Shakuchi Shakka Hō). This law regulates the conditions under which landlords may decline to renew contracts, bring tenancies to an end, or seek rent adjustments, and it affords tenants — particularly those on ordinary lease contracts — a substantial degree of protection.

Under an ordinary lease contract, a landlord must have valid legal grounds to refuse renewal. Absent a formal notice to vacate from the tenant, the contract continues automatically. Terminating an ordinary lease without valid justification is heavily restricted, and tenants benefit from robust protections under the Act on Land and Building Leases.

Both parties to an ordinary lease have the right to seek a rent review, but any revision must rest on a legitimate basis — such as a material change in economic conditions. A landlord cannot impose a unilateral mid-contract rent increase without cause.

Tenants holding fixed-term residential leases covering properties of less than 200m² have the right to terminate the agreement on one month’s notice if they face unavoidable personal circumstances, such as a mandatory job relocation or the need for medical treatment elsewhere.

The 2020 Civil Code revision confirmed that tenants bear no liability for deterioration arising from ordinary, day-to-day use of the property — an important safeguard against unfair deposit deductions when the tenancy ends.

Foreign nationals are entitled to the same fundamental tenancy rights as Japanese residents under Japanese law; there is no legal distinction that affords overseas nationals lesser protections based on their nationality. In practice, however, language barriers, unfamiliarity with the system, and difficulty securing a guarantor can place foreign tenants at a disadvantage. Engaging an agent or housing support service with proven experience in assisting international residents can make a significant practical difference.

For authoritative and current information on tenant rights, consult the following official sources: the Ministry of Land, Infrastructure, Transport and Tourism (MLIT); the Tokyo Metropolitan Government (which publishes a Guidebook for Tenants and Landlords); and the National Consumer Affairs Center of Japan for guidance on handling disputes. Always verify that URLs remain active and current before relying on them.

How do I apply for a rental property in Japan as an expat?

Securing a rental property in Japan involves a series of well-defined steps. The process generally takes between two and four weeks from an initial viewing to receiving the keys, although tenant screening and property preparation can extend this timeframe in some cases.

1. Establish your requirements. Think carefully about your total budget — factoring in all upfront costs, not merely the monthly rent — as well as your preferred neighbourhood, daily commute, and any specific requirements such as pet-friendliness or a furnished unit. In Japan, a property’s proximity to the nearest train station is the single greatest influence on its rental price.
2. Identify a suitable real estate agency. Look for an agency with experience assisting foreign residents, so you can receive support in a language you understand throughout the property search and contracting process.
3. View properties and submit an application. Once you have found a property that suits you, complete an application form. Key documents typically required include a residence card, passport, and proof of income. Students may need enrolment certificates and evidence of financial support. Landlords may also ask for an emergency contact in Japan or information about other household members.
4. Complete the tenant screening process. The landlord or agency will assess your financial capacity to meet the rent. If you pass, you will be invited to proceed to contract.
5. Arrange a guarantor. It is common for foreign tenants to use a professional rent guarantee company in lieu of an individual domestic guarantor. Your agent can advise on suitable providers.
6. Attend the Explanation of Important Matters and sign the lease. A licensed agent must walk you through all key aspects of the agreement before signing. Ensure every clause has been read or translated and that you fully understand its implications.
7. Pay all upfront fees. This will typically include the security deposit, key money where applicable, the first month’s rent, the agency commission, and the fire insurance premium. Payment is usually made by cash or bank transfer.
8. Collect your keys and move in. On move-in day, arrange for electricity, gas, and water to be connected. Before unpacking, take thorough date-stamped photographs of every part of the property to document its condition — this record can be invaluable when reclaiming your deposit at the end of the tenancy.

Frequently Asked Questions

Do leases in Japan have to be written in Japanese?

In practice, yes — the vast majority of standard residential lease agreements in Japan are produced in Japanese, and there is no legal obligation on landlords or agencies to provide them in any other language. Many real estate agencies will supply English translations for international tenants, but this is not universal, so confirm the position before selecting your agency. Under no circumstances should you sign a contract whose contents you are unable to understand — always obtain a translated copy or arrange for a bilingual professional to explain every clause to you.

Can foreigners face restrictions when renting in Japan?

Under Japanese law, foreign nationals hold the same tenancy rights as domestic residents. In practice, however, some landlords are reluctant to rent to applicants who lack a Japanese-based guarantor, an established address history in Japan, or long-term visa status. The increasing acceptance of professional guarantee companies has improved matters considerably, as these companies provide the financial assurance many landlords seek without requiring the tenant to produce an individual domestic guarantor. Choosing an agency experienced with international clients substantially increases the likelihood of a successful application.

What happens if a tenant needs to break a lease early?

Leaving a property before the standard two-year term expires typically triggers a penalty of one to two months’ rent (as of 2025). Most ordinary leases require a minimum of one month’s written notice — some require two — and if you vacate before the notice period concludes, rent for the remaining notice period is generally still owed. Review the early termination clause of your specific agreement carefully before signing, and ask the agent to confirm the applicable penalty in writing.

How are rent increases regulated in Japan?

Both parties to an ordinary lease contract may request a rent adjustment, but any change must be grounded in a legitimate reason — such as a significant shift in economic conditions or property taxes. Landlords cannot impose an arbitrary mid-contract rent increase without cause. Under a fixed-term lease, rent adjustment provisions are typically specified within the contract itself, and unless an explicit clause allows for it, the agreed rent remains unchanged throughout the contract term.

How are disputes with landlords resolved in Japan?

When a disagreement arises — most commonly over deposit deductions — the first course of action is to seek resolution directly with the landlord or property management company. If that approach is unsuccessful, tenants may contact the National Consumer Affairs Center of Japan (kokusen.go.jp) or the relevant prefectural consumer advice centre. The Tokyo Metropolitan Government operates a dedicated housing consultation service as well. For unresolved or serious disputes, civil mediation or legal proceedings remain available. Retaining copies of your lease, all written communications, and your move-in photographs is essential to building a credible evidential record.

What is key money (reikin), and is it legally required?

Reikin (礼金) is a payment made to the landlord as a customary expression of gratitude for being granted tenancy. It has no financial protective purpose for the landlord — unlike a security deposit — and is entirely non-refundable. It is not required by law, but many landlords include it as a condition of renting. That said, properties marketed without reikin are becoming increasingly common, particularly in newly built developments and those targeting international tenants. Zero key money listings are now considerably more visible across cities such as Tokyo and Osaka than they were a decade ago.

Is there a standard lease contract template in Japan?

The Ministry of Land, Infrastructure, Transport and Tourism makes a sample Regular Rental Housing Agreement available on its website. While landlords and agencies are free to use their own versions, this MLIT template provides a useful structural reference and gives tenants a basis for comparison. Visit the official MLIT website to access current resources, and verify that all materials remain up to date before relying on them.

Are there housing options that avoid the standard key money and deposit system?

There are alternatives worth exploring if the conventional rental system feels financially prohibitive. UR (Urban Renaissance Agency) public housing, for example, does not require key money, making it an attractive option for cost-conscious renters who qualify. Share houses are another popular choice among newly arrived expats, typically offering lower upfront costs, shorter minimum stays, and rooms that come furnished — providing a practical transitional base while you search for a longer-term apartment on the standard market.