Whether you\u2019re nearing the end of your lease or you want to know your options for moving out early, it\u2019s important to be clear about the rules around renewing and terminating housing agreements.<\/p>\n\n\n\n
Renewing a housing lease depends on the individual contract. Having said that, there are two main types of lease in Japan.<\/p>\n\n\n\n
The first type is a two-year agreement, in which the term automatically renews every two years, unless the tenant submits a cancellation notice. The contract simply renews for another two years with no requirements for the tenant and no paperwork. Almost all residential leases are this standard type.<\/p>\n\n\n\n
With a standard lease, the landlord may only refuse to renew with just cause. Such circumstances include:<\/p>\n\n\n\n
In any of these situations, the landlord must inform the tenant in advance and may need to pay compensation to the tenant (except where the tenant has committed a violation).<\/p>\n\n\n\n
The second type of housing lease contract is a fixed-term contract. Extending an agreement with a fixed term is a bit more involved. Fixed-term contracts have a \u201chard stop\u201d at the expiration date. When you near the end of the agreement, you\u2019ll need to initiate a renegotiation of the contract to extend it, likely for another fixed term. If you and the landlord agree on new terms, you will need to sign a new housing lease agreement to renew the contract.<\/p>\n\n\n\n
Properties with fixed-term contracts often rent at around 10% to 20% below market rates. The downside is there is no guarantee you\u2019ll be able to renew your lease when the contract ends.<\/p>\n\n\n\n
In some cases, a renewal may require the tenant to pay a fee, usually between half a month\u2019s rent and one and a half months\u2019 rent.\u00a0If you will need to pay a fee, the landlord will contact you with a bill. This is the most common scenario in cities like Tokyo and Yokohama<\/a>, whereas cities like Nagoya<\/a> and Osaka typically don\u2019t have leases with renewal fees.<\/p>\n\n\n\n If you are renting through a real estate agency, you may also need to pay a renewal administrative fee. Ranging from 5,500 yen to 22,000 yen, this covers paperwork processing at the agency.<\/p>\n\n\n\n Lastly, you\u2019ll most likely need to renew your renter\u2019s insurance. Although it\u2019s called fire insurance, the policy also covers damage or theft of personal belongings, any damage you cause to the property, and accidental water leaks. The typical cost is 15,000 yen to 20,000 yen for two years.<\/p>\n\n\n\n Beyond these fees, you shouldn\u2019t expect to have any additional expenses at renewal time. Rent increases are uncommon in Japan, typically only occurring several years after the original contract. However, you may need to pay more in rent if the landlord has carried out renovations or if property taxes in the area have risen.<\/p>\n\n\n\n In general, you can cancel two-year leases at any time with 30 or 60 days\u2019 notice within either the first or subsequent lease term. When the landlord is an individual, one month is more common. Two months is typically necessary when renting from a property management company. There is usually no fee associated with terminating a lease early if you give the proper notice.<\/p>\n\n\n\n If you have a fixed-term lease, you will usually be unable to terminate it early, except if you face unavoidable hardship. Check your contract to confirm the terms.<\/p>\n\n\n\n Companies supporting international employees in Japan may want to roll over a lease agreement signed for an outgoing worker to an incoming expat taking the old employee\u2019s place. This may be possible if the housing lease agreement is signed by the company.<\/p>\n\n\n\n A change of tenant (where the lessee name on the housing lease agreement actually changes) is not permitted, as this would require a whole new housing lease agreement, review, etc. If the housing lease agreement is signed by the company, there are a number of possible scenarios, depending on the details of the contract:<\/p>\n\n\n\n Like so much in Japan, every prefecture and region has different rules, requirements, and customs with regard to housing and real estate. In addition, any given contract will have variations. Your real estate agent must point out the type and details of your housing contract, in excruciating detail, when you sign the lease. If you have forgotten the details, refer back to the contract paperwork for clarification.<\/p>\n\n\n\n This basic primer on renewing, ending, or changing a housing lease agreement was brought to you by Japan Home Search.<\/a><\/p>\n\n\n\n Hirho<\/a>, CC BY-SA 4.0<\/a>, via Wikimedia Commons<\/p>\n","protected":false},"excerpt":{"rendered":" Whether you\u2019re nearing the end of your lease or you want to know your options for moving out early, it\u2019s important to be clear about the rules around renewing and terminating housing agreements. Extending or Renewing a Housing Lease Renewing a housing lease depends on the individual contract. Having said that, there are two main […]<\/p>\n","protected":false},"author":13,"featured_media":52027,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[60,139],"tags":[321,75,840,62,841,87],"class_list":["post-1826","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-hr-group","category-japan-home-search","tag-apartments","tag-housing","tag-leasing","tag-login","tag-moving-in-japan","tag-real-estate"],"acf":[],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\tTerminating a Housing Lease Agreement in Japan<\/h2>\n\n\n\n
Changing Tenants Within an Existing Housing Lease Agreement<\/h2>\n\n\n\n
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