How to Interpret Penalty Clauses in Lease Agreements

How to Interpret Penalty Clauses in Lease Agreements

While most prospective tenants understand the importance of thoroughly reviewing lease agreements in Japan, many find themselves overwhelmed by legal jargon and complex terminology. Among the most critical elements to scrutinize are clauses related to penalties. A...

Why Zero Key Money Properties May Not Always Be a True Bargain

Why Zero Key Money Properties May Not Always Be a True Bargain

In Japan’s rental housing market, initial costs often include “shikikin” (security deposit) and “reikin” (key money). Among these, key money refers to a non-refundable payment made to the landlord—essentially a gesture of appreciation with no expectation of return....

Why It’s Crucial to Clarify Restoration Costs Before Signing a Lease

Why It’s Crucial to Clarify Restoration Costs Before Signing a Lease

When renting a property in Japan, the concept of “restoration to original condition” is unavoidable. This refers to the tenant’s obligation to return the unit to its prior state upon move-out—typically involving the payment of restoration costs. In Japan, disputes...

Overlooking Early Termination Penalties Can Be a Costly Mistake

Overlooking Early Termination Penalties Can Be a Costly Mistake

One of the most important yet often overlooked aspects of residential lease agreements in Japan is the provision regarding early termination penalties. While prospective tenants tend to focus on factors such as rent, initial costs, amenities, and location, far fewer...

Is an Unannounced Visit by the Landlord Legally Permissible?

Is an Unannounced Visit by the Landlord Legally Permissible?

In Japan, some tenants have reported rare instances of landlords or property managers making unannounced visits. These may include attempts to unlock the door without permission or ringing the intercom without prior notice—actions that understandably cause significant...

Legal Consequences of Rent Default and the Risk of Eviction

Legal Consequences of Rent Default and the Risk of Eviction

One of the most critical responsibilities for tenants in a residential lease is the timely payment of rent. Under the terms of the agreement, tenants are required to remit payment by a specified date each month. Failure to do so can trigger a series of legal...

Top 10 Prohibited Clauses Commonly Found in Residential Lease Agreements

Top 10 Prohibited Clauses Commonly Found in Residential Lease Agreements

In Japan, residential lease agreements often include detailed clauses outlining prohibited actions. These restrictions are designed to protect the property’s value and ensure harmonious living conditions among tenants. Violations—whether intentional or accidental—can...

Are Verbal Agreements Binding If Not Stated in the Contract?

Are Verbal Agreements Binding If Not Stated in the Contract?

When leasing a residential property, many prospective tenants proceed with the contract after confirming key details—such as rent, amenities, and conditions—through discussions with the real estate agent. However, during these conversations, verbal assurances are...