2025/06/30
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 often arise over who bears the responsibility for wear and tear, minor damages, or deterioration of fixtures during the tenancy. Many tenants report being surprised by the amount charged at the end of their lease, often exceeding their expectations.

To avoid such misunderstandings, it is essential to review the breakdown of potential restoration costs before signing the lease. Understanding what portions of the costs fall under the tenant’s responsibility—and what is considered the landlord’s—can help prevent costly and unnecessary conflicts.

This article offers a practical overview of why this step is so important, along with key items to check during the leasing process.

Fundamentals of Restoration Obligations in Japan

Under Japanese lease agreements, tenants are generally required to restore the property to its original condition upon move-out. However, this obligation does not mean returning the property to a perfect, pre-move-in state. According to national housing guidelines, tenants are not responsible for natural wear and tear or deterioration resulting from normal daily use.

Conversely, any damage, stains, odors, or deterioration caused by the tenant’s negligence or intentional actions will typically be their responsibility. Common examples include nicotine stains on wallpaper, deep scratches on wooden flooring caused by furniture, and heavy grease buildup in the kitchen.

Failing to distinguish between these categories at the time of signing can result in significant disputes. Tenants may find themselves unfairly charged for restoration work unless the boundaries of responsibility are clearly understood in advance.

Common Restoration Clauses in Lease Agreements

Most Japanese lease agreements contain specific clauses addressing restoration obligations. Common phrases include:

  • “Restoration to original condition shall be carried out at the tenant’s expense.”

  • “The tenant shall bear the cost of interior cleaning upon vacating the premises.”

  • “Any damage or deterioration attributable to the tenant will be charged at actual cost.”

When such language is included, it is essential to interpret the extent of the tenant’s financial responsibility. In some cases, clauses may attempt to extend the tenant’s liability to cover normal wear and tear—which is not consistent with national guidelines and should be treated with caution.

Before signing the contract, carefully review these clauses and consult the real estate agent or property manager to clarify what is considered “normal use” versus what may trigger restoration charges. Doing so can help prevent disputes and unexpected costs at the end of the lease.

Fixed Restoration Charges Commonly Imposed Upon Move-Out

Some restoration-related costs are predetermined and will be charged regardless of how carefully the property was used. These fixed charges typically include:

  • House cleaning fees (usually based on the unit’s floor area)

  • Air conditioning cleaning fees (charged per unit)

  • Deodorizing and sanitizing fees, sometimes applied even if the tenant did not smoke

  • Key replacement fees, required in properties that change locks upon tenant turnover

If the lease states that certain charges are to be paid “uniformly” or “at actual cost,” these fees will be imposed regardless of how the property was used. When specific amounts are listed, it’s important to compare them with standard estimates to ensure they are reasonable. If the language in the contract is vague, it is highly advisable to request written clarification of the exact amounts and applicable conditions rather than relying on verbal explanations. This provides peace of mind and reduces the risk of future misunderstandings.

Understanding Restoration Costs Through Photographic Documentation and Inspection

Restoration charges are typically based on documented evidence showing when and where damage or wear occurred. Therefore, before signing the lease, it is essential to inspect the condition of the property—paying close attention to walls, floors, fixtures, and equipment—and to understand which restoration cost items are linked to these conditions.

For instance, if scratches are already visible on the wallpaper, taking clear photos during the pre-move-in inspection can protect the tenant from being wrongfully charged for repairs upon move-out. It’s also important to check whether the lease states that restoration is based on the property’s condition at the time of occupancy.

Proactively asking questions such as, “This area has minor wear—will this be subject to repair costs later?” can provide clarity and peace of mind during the tenancy.

How Restoration Costs Relate to the Security Deposit

In many cases, restoration costs are deducted from the security deposit that was paid at the start of the lease. As a form of advance payment, the security deposit is meant to cover any outstanding rent or damage-related expenses upon move-out. If there are no such liabilities, the deposit should be refunded in full.

However, if the lease states that “the deposit will be applied toward cleaning fees,” for example, that portion is non-refundable by default. Therefore, it is essential to understand in advance which deductions may apply and what portion of the deposit is realistically expected to be returned.

The issue is not necessarily that the refund is zero, but rather that unexpected deductions—those not clearly disclosed—often lead to disputes. Clear understanding of potential deductions prior to signing the lease is key to avoiding surprises at the end of the tenancy.

Request Written Clarification for Any Uncertainties

If you have any concerns or unanswered questions about restoration costs during the leasing process, it is essential to request a written explanation from the agent or property manager. Specific inquiries such as “What costs might I be charged upon move-out?”, “What are the minimum fees I should expect?”, or “Who is responsible for equipment malfunctions?” should be addressed clearly and in writing before finalizing the contract.

Verbal explanations can easily be forgotten over time and leave no proof. To avoid future disputes or claims such as, “I was never told that,” be sure to document all communications via email or written correspondence. This simple precaution is one of the most effective ways for tenants to protect themselves.