Understanding a Japanese Rental Contract: Renewal Fees, Notice and Break Clauses

Published August 28, 2026 | Kurabeel

Japanese leases are handed over as a stack of dense documents, explained aloud in Japanese during the explanation of important matters (重要事項説明), and signed the same day. Most tenants nod through it. But four or five clauses decide what the next two years and the exit will actually cost you.

This guide walks through those clauses in the order they will affect you.

The standard structure: two years, then renewal

Almost all residential leases in Japan run for two years. This is not a lock-in — you can leave earlier with notice — but it is the cycle on which fees and paperwork are built.

At the end of two years, an ordinary lease (普通借家契約, futsu shakuya keiyaku) is renewed. Under Japanese law this contract type strongly protects the tenant: the landlord cannot simply refuse renewal without a legally justified reason. In practice you will keep renewing for as long as you want the apartment.

Fixed-term leases are different — check which you have

A fixed-term lease (定期借家契約, teiki shakuya keiyaku) ends on its stated date with no right of renewal. Continuing requires the landlord's agreement to a new contract, on new terms.

These appear most often where an owner is temporarily abroad, or where a building is scheduled for demolition. Rent is sometimes noticeably below market — which is exactly why the type matters. Ask directly which type you are signing before you apply, not at the signing table.

The renewal fee (更新料, koshinryo)

In the Tokyo area, renewal usually costs one month's rent, paid to the landlord every two years. There is often a separate renewal administration fee of ¥10,000–20,000 to the managing company, and the guarantor company charges its own renewal fee annually.

Renewal fees are legal where clearly stated in the contract. They are not universal — practice varies by region, and some Tokyo landlords charge nothing. Since a renewal fee is effectively half a month of rent per year spread over the lease, it belongs in any honest cost comparison between two apartments.

Cancellation notice: usually one month

Nearly every lease requires written notice one month before you leave; some require two. Miss the deadline and you pay rent for the notice period whether or not you are living there.

• Notice is normally given to the managing company, not the agency you signed through
• Many contracts include a designated cancellation form — find it when you sign, not when you leave
• The clock starts when they receive it, not when you send it

Short-term cancellation penalties

Apartments advertised with no deposit and no key money frequently carry a clause charging one to two months' rent if you leave within the first year or two. This is how the landlord recovers the discount that attracted you.

The clause is enforceable when clearly written, so read it before applying — especially if your job or visa situation could change within a year.

The restoration clause — the one that decides your deposit

Restoration (原状回復, genjo kaifuku) is the obligation to return the apartment to its original condition. What matters is where the contract draws the line between normal wear and tenant damage.

Ministry guidelines say aging and ordinary wear are the landlord's responsibility, and courts have generally followed them. But a specific written clause — a fixed cleaning fee, for instance — will usually stand. Look for the number now; see moving out of a Japanese apartment for how the settlement works.

Other clauses worth reading

• Occupancy — who may live there; adding a partner later often needs approval
• Pets and instruments — prohibitions are enforced, and breaches can end a lease
• Subletting — listing on short-stay platforms is almost always forbidden
• Fire insurance — required, but you may usually choose your own provider
• Guarantor company renewal — an annual cost that rarely appears on the move-in estimate

Before you sign

1. Ask which lease type it is
2. Confirm the notice period in writing
3. Find the short-term cancellation clause and the cleaning fee
4. Ask for the renewal fee and the guarantor renewal fee as figures
5. Request an English summary; a licensed agent can walk you through it in advance

You are entitled to receive the documents before the signing appointment. Asking for them a day early is normal and reasonable — a good agency will send them without hesitation.

* The agency fee is as low as ¥0. Listings for which the landlord pays no advertising fee (AD) may not qualify. We always confirm the exact amount in a written estimate before you sign.