Sample Lease Contract in Japan: Key Clauses and Explanations

Renting an apartment or house in Japan can be straightforward if you understand what’s written in your lease contract. A lease contract (賃貸借契約書, chintaishaku keiyakusho) is a legally binding agreement between the landlord (oyasan) and the tenant (kojin or borrower). This document outlines your rights, responsibilities, and the rules for living in the property. Below is a detailed guide and sample structure of a typical Japanese lease contract, explained in clear English for foreign residents.

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Understanding the Basics

A Japanese lease contract typically consists of multiple pages detailing rent, deposit, key money, contract period, renewal terms, and other conditions. It’s usually written in Japanese, but many real estate agencies provide English translations for foreign tenants.

There are two main types of lease contracts in Japan:

1. Ordinary Lease (普通借家契約) – Offers long-term stability; tenants have strong renewal rights.

2. Fixed-Term Lease (定期借家契約) – Ends automatically after the agreed period unless both sides sign a new contract.

Most rentals in Tokyo and other major cities use the ordinary lease system, usually for two years at a time.

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Key Sections of a Standard Lease Contract

1. Contract Parties and Property Information

This section lists:

• Landlord’s full name and address

• Tenant’s full name, nationality, and contact details

• Address and type of property (e.g., 1LDK apartment, detached house)

• Floor area and layout

• Use purpose (residential only, not for business use)

Example:

“The Lessor (Landlord) hereby agrees to lease the premises located at 3-2-1 Minato-ku, Tokyo, to the Lessee (Tenant) for residential use only.”

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2. Contract Term

The duration is usually two years, with an automatic renewal option.

• Start Date: e.g., April 1, 2025

• End Date: e.g., March 31, 2027

• Renewal notice is typically given one to three months before the end date.

Fixed-term leases will clearly state that renewal is not automatic and that the tenant must vacate the property upon expiration.

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3. Rent and Payment Terms

Monthly rent includes or excludes maintenance fees (kanri-hi) or common service fees (kyōeki-hi).

• Rent: ¥120,000/month

• Maintenance Fee: ¥5,000/month

• Payment Method: Automatic bank transfer (振込)

• Due Date: Usually the end or beginning of each month

Late payments can incur penalties, typically 10–14% per annum.

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4. Deposit and Key Money

These traditional upfront costs are detailed here.

• Security Deposit (敷金 / shikikin): Usually 1–2 months’ rent, refundable after deducting cleaning or damage costs.

• Key Money (礼金 / reikin): A non-refundable gratuity paid to the landlord, often 1 month’s rent.

• Agency Fee: 1 month’s rent + tax (to the real estate agent).

Example clause:

“Upon signing this contract, the Lessee shall pay the Lessor the amount of ¥240,000 as security deposit and ¥120,000 as key money.”

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5. Renewal and Termination

Renewal Fee (更新料) – Usually equivalent to one month’s rent when renewing for another two years.
Termination Notice: Tenants must give at least one month’s written notice before moving out.

For fixed-term leases, the tenant cannot terminate early unless the landlord agrees.

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6. Maintenance and Repairs

This section defines responsibilities:

• Landlord: Major repairs (roof, plumbing, structure)

• Tenant: Light maintenance and minor repairs (light bulbs, clogged drains, mold prevention)

Example:

“The Lessee shall maintain the premises in good condition and bear the cost of minor repairs caused by ordinary use.”

If you damage walls or floors beyond normal wear and tear, repair costs may be deducted from your deposit.

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7. Prohibited Acts

The following are often restricted:

• Keeping pets without permission

• Subletting or hosting guests long-term

• Altering the property (painting, drilling walls)

• Loud noise or nuisance behavior

• Using the property for commercial purposes

Violations may result in eviction or forfeiture of deposit.

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8. Insurance and Guarantor

Most landlords require tenants to enroll in:

• Fire insurance (火災保険) – Covers fire, water leaks, and accidents.

• Guarantor or Guarantor Company – A Japanese citizen or company that covers unpaid rent if you default.

Example clause:

“The Lessee agrees to maintain valid fire insurance during the lease term and designate a guarantor approved by the Lessor.”

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9. Move-In and Move-Out Inspections

Upon moving in, the tenant and agent conduct an inspection report (genkyō kakuninsho). The same happens at move-out to determine cleaning and repair costs.

Tenants must return the unit to original condition, minus normal aging (jōkyōkaifuku principle).

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10. Early Termination

If you wish to leave before the end of your contract, the standard rule is to provide one or two months’ notice and pay rent for that notice period. Some contracts may include a cancellation penalty, especially for early termination within the first year.

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11. Subletting and Room Sharing

Subletting or adding additional occupants (other than those named in the contract) usually requires written permission. Unauthorized subletting can lead to contract cancellation.

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12. Governing Law and Dispute Resolution

Contracts specify that Japanese law governs the lease. In disputes, both parties agree to the jurisdiction of the local court (e.g., Tokyo District Court).

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Example Summary of Lease Contract (Model Format)

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Tips Before Signing

• Ask for an English translation of your lease before signing.

• Clarify move-out procedures and how cleaning fees are calculated.

• Confirm deposit deductions to avoid unexpected charges.

• Check pet or renovation rules if applicable.

• Review guarantor company policies, as they often charge annual fees (around ¥10,000).

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Sample Clause (in English and Japanese)

Clause Example: Maintenance and Repairs

“The Tenant shall keep the premises clean and in good condition. Any damage beyond normal wear and tear shall be compensated by the Tenant.”
「賃借人は、本物件を清潔かつ良好な状態に維持するものとし、通常の使用による損耗を超える損害については賠償の責任を負うものとする。」

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Final Thoughts

Understanding your lease contract is crucial to a stress-free rental experience in Japan. Although many terms may seem unfamiliar—like shikikin, reikin, or kōshinryō—they form part of Japan’s rental tradition and legal structure. Always read carefully, ask your agent to explain unclear sections, and keep a copy of the signed contract for reference.

A well-understood lease not only protects your rights but also ensures a smooth relationship with your landlord during your stay in Japan.

FAQs

What is a Japanese residential lease (chintaishaku keiyakusho)?

A Japanese residential lease is a legally binding contract between a landlord (lessor) and a tenant (lessee) that sets the terms for using a property as a home. It details rent, fees, contract length, renewal or expiration rules, responsibilities for maintenance and repairs, prohibited activities, insurance, and procedures for move-in and move-out. Most urban rentals use a two-year term, but the document controls the relationship from day one—so read every clause before signing.

What’s the difference between an Ordinary Lease and a Fixed-Term Lease?

An Ordinary Lease (futsu shakka keiyaku) generally renews and grants tenants strong renewal rights, though a renewal fee may apply. A Fixed-Term Lease (teiki shakka keiyaku) automatically ends on the stated date; there is no renewal right unless both parties sign a new contract. Fixed-term leases often suit owners who plan to reoccupy or redevelop; tenants must plan move-out earlier.

Which contract type should I choose as a foreign tenant?

If you value stability and expect to stay long-term, an Ordinary Lease is usually safer because renewal is common. If you know your end date (e.g., a one-year assignment) and the rent is favorable, a Fixed-Term Lease may be fine. Always confirm early termination rules—fixed-term contracts typically restrict mid-term cancellation without landlord consent.

What upfront costs should I expect at signing?

Expect several line items: first month’s rent, prorated rent if moving mid-month, security deposit (shikikin), key money (reikin) if charged, agency commission, lock exchange fee, fire insurance premium, and guarantor company fee. Not all properties charge every item, but the total can equal several months of rent. Your contract and cost breakdown (kessansho or estimate) should list each fee clearly.

Is key money mandatory? What about the deposit?

Key money is a traditional, non-refundable gratuity to the landlord. It is not legally mandatory; some listings have zero key money. Security deposits are common (often one to two months’ rent) and are refundable minus legitimate deductions for cleaning and repairs beyond normal wear and tear. Your lease should specify the deposit amount, how it’s held, and the conditions for deductions and refund timing.

How are rent and fees paid and when are they due?

Most leases require monthly bank transfer or automatic withdrawal. Due dates are commonly the first of the month or a specified day. Late payment clauses may include interest or a fixed late charge. Verify the transfer account, payer name format, who covers bank fees, and what happens if a payment date falls on a bank holiday.

What is included in “maintenance/common area fees” (kanri-hi or kyoeki-hi)?

These monthly charges typically cover building cleaning, elevator and hallway electricity, trash area upkeep, and minor shared facility maintenance. They are separate from utilities inside your unit. Your lease should state the exact monthly amount and whether it can be adjusted during the term (for example, after a building budget review).

Do I need fire or renter’s insurance?

Yes—most leases require a tenant insurance policy that covers fire, water leaks, and liability to neighbors (e.g., if your washing machine leaks). The policy term often matches the lease term. Keep your policy certificate and renewal reminders. If the lease mandates a specific insurer or broker, it will be noted; otherwise, you can typically choose from approved options.

What is a guarantor or guarantor company and why is it required?

A guarantor (co-signer) promises to cover unpaid rent and certain costs if you default. Many landlords require a domestic guarantor or, more commonly for foreign tenants, a guarantor company. The company charges an initial enrollment fee and sometimes annual renewal fees. Your lease or a separate guarantee agreement will state the fee schedule, coverage scope, and what triggers claims.

Can I add roommates or family after signing?

Only if the contract allows it or the landlord consents in writing. Leases usually list all occupants. Adding long-term guests, roommates, or converting to shared housing without approval can violate the contract, risk penalties, or trigger termination. If your household changes (marriage, new child, caregiver), request approval before the change happens.

Are pets allowed?

Pet policies are strictly property-specific. If pets are allowed, the lease may require higher deposit, pet cleaning fees, or pet rules (size, number, type). “No pets” usually means no animals—including small dogs, cats, and sometimes even small caged pets. Violations can cause eviction, fines, or deposit forfeiture. Confirm pet rules before signing and keep written permission.

What am I responsible for in terms of maintenance and repairs?

Tenants handle day-to-day upkeep and minor fixes (light bulbs, basic mold prevention, simple drain clogs). Landlords handle structural and major system issues (roof, main plumbing). If you cause damage beyond normal wear and tear—like deep scratches, unauthorized wall drilling, or water damage—you may be charged. Report issues promptly and document communications and photos.

What is “original condition” and how do move-out deductions work?

Japan applies the jokyo kaifuku principle: you must return the unit in the condition it was leased, minus ordinary aging. Typical tenant-borne costs include professional cleaning, deodorizing for heavy odors, and repairs for damage beyond normal use. The lease may attach a cleaning fee schedule or refer to national guidelines. Walk-through inspections at move-in and move-out, with photos and checklists, help avoid disputes.

How much notice must I give to terminate?

Many ordinary leases require at least one month’s written notice (some require two). If you leave earlier than required, you usually owe rent through the notice period. Fixed-term leases generally do not allow early termination unless there’s a specific clause or mutual agreement; some include early termination penalties, especially within the first year.

What is a renewal fee (koshin-ryo)?

In many regions, renewing an Ordinary Lease for another term incurs a one-month-rent renewal fee, plus administrative charges. The lease should state if a renewal fee applies, the calculation method, and the billing process. Confirm timelines for renewal notices—landlords and tenants often exchange notices one to three months before expiration.

Can the landlord enter my apartment?

Landlords or managers may enter for necessary inspections or repairs, but must provide reasonable notice except in emergencies (such as a suspected water leak or fire). Your lease should outline notice procedures and emergency exceptions. Unannounced non-emergency entry is generally not allowed. If concerned, request written notice and keep records of entry dates and reasons.

Am I allowed to make alterations (paint, shelves, bidet installation)?

Most leases prohibit alterations without consent. Even minor changes—like painting or drilling—can trigger restoration charges at move-out. If you want to install items (e.g., a washlet/bidet), seek written approval and follow specifications (qualified installer, keep original parts). The default rule: return the unit to original condition unless the landlord explicitly waives restoration.

What documents will I receive at move-in?

Common documents include the signed lease, house rules, key handover receipt, move-in inspection checklist, insurance certificate, and emergency contacts. Complete the inspection checklist within the stated deadline (often 7–14 days) to record pre-existing defects; submit photos and the signed form to prevent unfair charges later.

How should I handle utilities and address registration?

Check the lease or welcome guide for utility setup (electricity, gas, water, internet). Some buildings require gas activation appointments. Arrange services before moving in to avoid delays. Update your address with your city ward office, bank, employer, and immigration authorities as applicable. Keep copies of application confirmations and contract numbers.

What happens if I lose the keys or want additional keys?

Lost keys usually require a lock exchange at the tenant’s expense for security. Additional keys may require landlord approval and a fee. The lease or house rules will specify whether key duplication is allowed and who may perform it (often the management company only). Always report lost keys immediately.

Can I sublet or use the apartment for business or short-term rentals?

Subletting, running a business that increases traffic, or operating short-term rentals (e.g., nightly stays) is typically prohibited. Violations can lead to immediate termination, damages, and deposit forfeiture. If you plan any commercial or home-based activities, obtain written permission and ensure building by-laws allow it.

How are disputes resolved and which law applies?

Leases generally specify that Japanese law governs. Dispute resolution clauses often point to the local summary or district court with jurisdiction over the property. Before escalating, try to resolve issues through documented communication with the agent and landlord. Mediation services may be available through local real estate associations.

What should I check before signing?

Confirm contract type and term, all upfront costs, rent due date and payment method, deposit and deduction rules, pet policy, alteration restrictions, early termination and renewal provisions, required insurance, guarantor terms and fees, and inspection procedures. Ask for an English translation or bilingual contract and clarify any unclear clauses in writing. If something matters to you (e.g., satellite dish, musical instruments, bicycle storage), make sure it’s explicitly permitted.

How can I reduce the risk of deposit disputes at move-out?

Complete and return the move-in condition report with photos; keep all receipts for repairs and cleaning you perform; report maintenance issues promptly; avoid unauthorized alterations; follow humidity and mold prevention tips; use felt pads on furniture; and schedule a pre-move-out walk-through to align expectations on cleaning scope and restoration items.

What if I need to leave Japan suddenly (job change, family emergency)?

Review your termination clause immediately. For Ordinary Leases, serve the required notice in writing; be prepared to pay rent through the notice period. For Fixed-Term Leases, request a negotiated exit—some landlords agree if a replacement tenant is found or if a reasonable penalty is paid. Return keys, settle utilities, provide a forwarding address, and confirm deposit refund procedures and timeline.

How long does it take to get my deposit back?

Contracts typically specify a refund window after key return and completion of inspection—often two to eight weeks. The landlord or agent will send an itemized statement listing cleaning and repair deductions. If you disagree, raise specific, documented objections promptly, referencing the move-in report and photos.

Any final tips for foreign tenants?

Ask questions early, get permissions in writing, keep organized records (lease, addenda, receipts, inspection forms, photos), and maintain courteous, prompt communication with your agent and landlord. Understanding key terms—shikikin (deposit), reikin (key money), koshin-ryo (renewal fee), and jokyo kaifuku (original condition)—will make your tenancy smoother and help you avoid surprise costs.

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