Do You Always Have to Pay a Renewal Fee? How Lease Renewals and Renewal Costs Work in Japan
Written by：SUMIMOTO Inc.Editorial Policy
Rent a home in Japan and, around two years in, a renewal notice usually arrives. Many tenants are surprised to see a line such as "renewal fee: one month's rent."
This article explains how renewals work, what costs can arise, why a renewal fee may be due, and how to proceed if you would rather not renew. All amounts are rough guides; always check your own lease agreement.
What rules govern a lease renewal in Japan?
Most ordinary rental homes are let under a standard (non-fixed-term) lease, and a term of two years is common. If the landlord does not give notice of non-renewal within a set window, the lease continues on the same terms. This is called "statutory renewal."
A landlord who wants to refuse renewal or end the lease needs a "justifiable reason," which can involve paying relocation compensation, so tenants are strongly protected. A tenant who wants to leave generally follows the notice period in the contract, often one to two months.
Governing laws
- Act on Land and Building Leases, Article 26, Paragraph 1
- If no notice of non-renewal is given between one year and six months before the term ends, the lease is deemed renewed on the same terms.
- Act on Land and Building Leases, Article 28
- A landlord may refuse renewal or give notice of termination only where there is a justifiable reason.
- Act on Land and Building Leases, Article 30
- A special clause that conflicts with the renewal provisions and is unfavorable to the tenant is void.
What costs can arise at renewal?
The renewal fee is not the only cost. Check the lease and the renewal notice to see which items apply and how much each is. The table shows typical examples; amounts vary by area, company and contract.
Typical renewal costs (rough guide)
| Item | Paid to | Typical amount |
|---|---|---|
| Renewal fee | Landlord (via the property manager) | Often about one month's rent |
| Renewal administration fee | Property manager or agent | Sometimes about half a month's rent, or a flat fee |
| Fire insurance premium | Insurer | Often about JPY 10,000–20,000 for two years |
| Guarantor company renewal fee | Guarantor company | Often about JPY 10,000 a year, or a share of the rent |
Key figures in this article
- Common lease term
- 2years
- Typical renewal fee
- 1month's rent
- Sample total at renewal
- 145,000JPY
Typical for standard leases
Depends on the lease
Based on JPY 120,000 monthly rent
Is the renewal fee always payable?
A renewal fee is not required by statute; it is set by a special clause in the lease. Where the lease states the amount and the due date, the clause generally governs.
In 2011 the Supreme Court held that a renewal fee clause is not automatically void unless special circumstances exist, such as an amount that is excessively high compared with the rent and the renewal period. Whether a fee is owed on a statutory renewal can depend on the contract and the circumstances, so ask for the clause the landlord relies on.
As an example, with rent of JPY 120,000, a renewal fee of one month (JPY 120,000), fire insurance of JPY 15,000 and a guarantor company fee of JPY 10,000, the total is JPY 145,000. Spread over 24 months, that is about JPY 6,000 a month.
What if you do not want to renew or want different terms?
If you plan to move out, tell the manager in writing or by email within the cancellation notice period in your lease. Leaving before the renewal date may avoid the fee, but how the final month is handled depends on the contract, so confirm in advance.
If you want to negotiate rent or the renewal fee, contact the manager as soon as the notice arrives. The landlord is not legally obliged to agree, but you can cite nearby rents when you ask.
Common oversights and fixes
✕Ignored the renewal notice and missed the payment deadline.
→Check the deadline when the notice arrives and ask questions before it passes.
✕Looked only at the renewal fee and left the admin fee, insurance and guarantor costs out of the budget.
→List every renewal cost from the lease and work out the total in advance.
✕Decided to leave but gave notice after the cancellation period and paid an extra month's rent.
→Check the notice deadline in the lease and give written notice, keeping a copy.
✕Changed the terms by word of mouth and had a dispute later.
→Put any change in rent or term into a memorandum or a new contract.
Pre-renewal checklist
- I checked the lease term and renewal clauses
- I confirmed the renewal fee amount and due date in writing
- I calculated the total including admin, insurance and guarantor costs
- I checked the cancellation notice period and how to give notice
- I put the reply deadline in my calendar
- I arranged to put any changed terms in writing
Frequently asked questions
- Q. Are there rentals with no renewal fee?
- A. Yes. Many leases have none, and it varies by area and property. Check the contract before you move in.
- Q. Can I keep living there without renewing?
- A. Generally, if neither side gives notice, the lease renews by law on the same terms. Whether a fee is due depends on the contract and circumstances, so check with the manager.
- Q. Can I negotiate the renewal fee?
- A. It is not a legal right, but you can raise it based on market rents and your length of stay. It is up to the landlord to agree.
- Q. Can the rent go up at renewal?
- A. A landlord may ask for an increase. If you disagree, ask for the reasons and get them in writing.
In the SUMIMOTO Hub app, the 24-hour AI advisor explains renewal clauses and renewal costs in your language. For final decisions on contract terms, also consult your property manager or a licensed real estate transaction specialist.
Want advice on renting or finding a home in Japan?
We will send materials that outline leases and renewals.
Free, takes about a minute
References & Sources
This article provides general information as of its publication date and is not individual legal, tax or investment advice. It was written with the help of generative AI.Editorial Policy
Related Articles
Can Garbage Day Get You in Trouble? Sorting, Collection Times and Bulky Waste for Renters in Japan
With more visitors to Japan, street littering has become a problem, and Tokyo is considering an ordinance with administrative fines. Here is a renter's guide to the basics of garbage disposal in Japan and what happens if you break the rules.
How Much Are Move-In Costs When Renting in Japan?
Move-in costs for a Japanese rental, including deposit, key money, agency fee, guarantee fee and fire insurance, often total around four to six months' rent. Here is what each one is, and which you get back.
Do Foreigners Need a Guarantor to Rent in Japan?
Usually not. Most Japanese leases now use a rent guarantee company instead of a personal guarantor, and foreign nationals can sign without problems. Here is how guarantee companies work, what to prepare and what to check before signing.
How Much of Your Deposit Do You Get Back When Moving Out in Japan?
In principle, normal wear and tear and ageing are not the tenant's cost, so part of the deposit is usually returned. Tenants pay for damage they caused. Here is what the Civil Code says and what to watch at the move-out settlement.