Will You Get Your Deposit Back? Who Pays for Move-Out Repairs in Japan

If you're moving out of a rented apartment in Japan, one of the biggest questions is whether you'll get your security deposit (shikikin) back in full, and who has to pay for repainting the walls, replacing the flooring, or professional cleaning. The short answer: in principle, a landlord generally cannot charge tenants for normal wear and tear or age-related deterioration of the property. Tenants are generally only responsible for damage caused by their own negligence or misuse. This distinction is written into Japan's Civil Code, but in practice disagreements are common, so it helps to understand how the split is usually judged before you sit down for the move-out walkthrough.

This guide covers what the deposit is actually for, how restoration costs are typically divided between tenant and landlord, what happens at the move-out walkthrough and settlement, and what to do if you disagree with the final statement.

What is the security deposit (shikikin), and how is it different from key money (reikin)?

The shikikin is money a tenant hands over to the landlord when signing the lease, and functionally it works as collateral. It's held to cover things like unpaid rent or damages owed at move-out. Civil Code Article 622-2 defines it this way: regardless of what it's called, a security deposit is money paid by the tenant to secure obligations arising from the lease, such as unpaid rent, and once the lease ends and the property has been returned, the landlord must refund the balance after deducting whatever the tenant owes (summary).

The shikikin is often confused with reikin, or key money. Reikin is a one-time payment made to the landlord as a kind of thank-you for being granted the lease, and it is generally not refunded. Where the shikikin is money you get back if there's a balance left over, reikin is money you should assume you won't see again. Understanding this distinction before you sign a lease can prevent confusion at move-out.

What actually counts as ‘restoration to original condition’ (genjo kaifuku)?

Many tenants assume genjo kaifuku means returning the unit to a like-new state, but that's not accurate. Civil Code Article 621 states that a tenant who has caused damage to the rented property after receiving it is, in principle, obligated to restore it to its original condition when the lease ends — but this obligation does not extend to ordinary wear and tear from normal use and enjoyment of the property, or to deterioration from the mere passage of time (summary).

In other words, things like sun-faded tatami or wallpaper, or indentation marks left by furniture that was in place for years, are generally treated as falling within normal use. In principle, those costs should be borne by the landlord and should not be deducted from your deposit.

How is normal wear and tear actually separated from tenant-caused damage?

In practice, the reference point most often used to decide who pays for a given item of wear is the Ministry of Land, Infrastructure, Transport and Tourism's Guideline on Disputes over Restoration to Original Condition. Its underlying logic is straightforward: since rent already factors in the ordinary depreciation of the unit over time, tenants shouldn't be charged a second time for that same wear.

The guideline also gives worked examples for specific materials. For wallpaper and wall cloth, it references a typical depreciation period as a rough guide (around 6 years is a commonly cited example), calculated on a straight-line basis, with the residual value treated as effectively zero — often cited as around 1 yen — once that period has passed. So if you've lived in a unit longer than that typical depreciation period, even visible staining on the wallpaper may result in a fairly limited charge in practice. That said, the actual depreciation period, material, and calculation method vary by property and lease, so treat this as a rough guide rather than a fixed national rule.

What happens at the move-out walkthrough and deposit settlement?

On move-out day, landlords or management companies typically arrange a walkthrough where a staff member and the tenant jointly inspect the unit's condition and note where any damage is and whether it looks like ordinary wear. This on-site record is often the basis for the later settlement, so it's an important step to take seriously.

About one to two weeks after the walkthrough (a rough guide only — timing varies by management company and lease), the tenant typically receives an itemized settlement statement listing each deduction and its amount. Once it arrives, it's worth checking each line item against what would normally count as tenant-borne damage and against any special clauses (tokuyaku) written into the lease.

What can you do if you disagree with the settlement statement?

If something on the statement doesn't seem right, the general approach is to ask the management company for a detailed calculation behind each charge, and compare it against your move-in photos and the lease's special clauses item by item. In many cases, a written exchange or direct negotiation is enough to reach a resolution both sides can accept.

If that doesn't resolve things, a local consumer affairs center is a common next stop for advice, and small claims court is generally available as a last resort. Either way, it's worth avoiding agreement to anything you don't fully understand simply because of pressure in the moment.

Because how restoration costs get split often comes down to the exact wording of your lease and the actual condition of the unit, it helps to have somewhere to ask questions as they come up. The SUMIMOTO Hub app includes a 24-hour multilingual AI advisor that can walk you through your lease's special clauses and explain how a settlement statement is typically structured — and before finalizing any amount, it's also advisable to confirm the details with a licensed real estate transaction agent (takuchi tatemono torihikishi) or your property management company.