In Japan, residential lease agreements typically span two years, and many tenants renew their contracts multiple times to remain in the same home over the long term. However, it can be deeply unsettling to suddenly receive a notice stating:
“Your lease will not be renewed upon expiration.”
Naturally, this may raise concerns such as: “Did I do something wrong?” or “Am I truly required to vacate?”
In reality, there are legal conditions and restrictions surrounding non-renewal of leases. This article offers a clear and composed overview of what to do if your lease renewal is declined—covering your legal standing, your rights as a tenant, and proactive steps you can take to safeguard your residency.
Understanding the Foundation: Two Types of Lease Agreements
Before responding to a non-renewal notice, it’s essential to identify the type of lease you hold—as renewal rights vary significantly depending on the agreement structure.
✅ Ordinary Lease Agreement
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This is the standard two-year residential lease
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Principally, tenants enjoy strong legal protections and residency rights
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Upon contract expiration, renewal is generally expected
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Landlords must present a legitimate and justifiable reason to deny renewal
✅ Fixed-Term Lease Agreement
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The contract ends automatically upon the expiration date
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No renewal is required, and landlords are not obligated to provide justification
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Tenants wishing to stay must undergo a new screening process for a completely new lease (not a renewal)
If you receive a non-renewal notice and feel it may be unjustified, the first step is to confirm the exact type of lease agreement you signed.
Lease Non-Renewal Under an Ordinary Rental Agreement: Generally Not Permitted
What Constitutes a Justifiable Reason?
Courts evaluate the following factors comprehensively:
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The landlord intends to demolish and rebuild the property
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The landlord needs to occupy the property for personal use
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Significant lease violations, such as long-term non-payment of rent
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Serious incidents or disturbances caused by the tenant
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Structural deterioration of the building, raising safety concerns
In addition to these conditions, courts also expect landlords to show consideration for the tenant’s livelihood. This may include:
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Offering relocation compensation
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Assisting in finding alternative housing options
Without such efforts to mitigate the tenant’s hardship, a non-renewal request is unlikely to be upheld as valid.
Lease Expiration Under a Fixed-Term Rental Agreement: Non-Renewal Is Generally Enforceable
In contrast to ordinary leases, a Fixed-Term Rental Agreement is structured to automatically terminate at the end of the contractual period. The landlord has no legal obligation to renew, and the tenant generally has no legal basis to contest a non-renewal.
However, in some cases, a new lease may be considered. To assess this possibility, carefully review the following:
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Does your lease agreement contain clauses about recontracting or the conditions for reapplication?
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Did you express your intent to reapply within the designated timeframe?
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Have you received a clear explanation from the property manager regarding why renewal is not being offered?
Steps to Take If Your Lease Renewal Is Declined
① Review Your Lease Agreement
Begin by identifying the type of lease—Ordinary Lease or Fixed-Term Lease. Carefully examine clauses related to renewal, termination conditions, and any special provisions.
② Request a Clear Explanation
Reach out to the landlord or property management company and ask for a formal explanation, either in writing or verbally, outlining the reason for non-renewal. This helps determine whether the refusal is legally justified.
③ Seek Professional Advice if You Disagree
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Your local Real Estate Transaction Association
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The Consumer Affairs Center
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A legal professional or Japan Legal Support Center
If there is no tenant fault and the landlord cannot demonstrate legitimate cause, negotiating to remain in the property or pursuing legal recourse may be a viable option.
Preparing for Departure and Negotiating Fair Terms
If vacating the property becomes unavoidable, tenants retain the right to negotiate fair compensation.
▶ Negotiating Relocation Compensation
It is customary for landlords to offer a relocation fee to cover moving costs, initial expenses for a new residence, and potential emotional distress. This amount often ranges from tens of thousands of yen to several months’ rent, depending on the circumstances.
▶ Adjusting the Move-Out Timeline
In consideration of the time required to secure a new home and organize relocation, tenants may negotiate a reasonable extension of the move-out deadline.
Key Lease Clauses to Review Before Signing to Avoid Future Disputes
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Is there a clause clearly stating whether the lease is renewable upon expiration?
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For Fixed-Term Lease Agreements, did you receive a written explanation at the time of signing, as legally required?
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Are there any special provisions explicitly stating that renewal is not permitted?
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If the property is an older building, has the landlord disclosed any upcoming plans for reconstruction or redevelopment?
Lease Non-Renewal Marks the Beginning of Negotiation, Not the End
Receiving a lease non-renewal notice does not mean you must vacate immediately. Tenants in Japan are protected under law, and unless the landlord provides a clear and justifiable reason, you may have the right to challenge the decision.
The key is to remain composed: carefully review your lease and assess your situation logically—not emotionally. Negotiation should begin from a place of understanding and strategy, not panic.
If you truly wish to continue living in the residence, know that your options may not yet be exhausted. Thoughtful action, supported by legal knowledge, can open doors even after a non-renewal notice is issued.