What are my legal responsibilities and obligations as a landlord in Japan?

Okay, no problem. Being a landlord in Japan definitely has many points to be aware of, and the customs are quite different from those back home. I'll break it down for you, keeping it as straightforward as possible.

Your Legal Responsibilities and Duties as a Landlord in Japan (Simple Version)

The most crucial thing to understand when being a landlord in Japan is this: Japanese law is extremely, extremely protective of tenants. You absolutely must keep this fundamental principle in mind. Many things that seem perfectly reasonable back home might not fly here. Let me break down your responsibilities and duties into a few key areas.

1. Providing a "Livable" Property (Duty to Repair)

This is the landlord's most basic and important obligation, legally called the 「修繕義務」 (Shuzen Gimu) or "Duty to Repair".

What does this mean? It means the property you rent out must be safe and functional. If essential fixtures break down, you are responsible for repairing them and covering the costs.
What counts as "essential fixtures"?
- Air conditioners, water heaters, gas stoves (if provided): If these break down due to natural wear and tear (e.g., AC stops cooling, water heater doesn't produce hot water), you must repair or replace them. This is often the biggest expense.
- Structural issues: Such as leaking walls, clogged pipes (not caused by tenant misuse), windows that don't close properly, etc.
- Attached fixtures: Like broken door locks or malfunctioning toilet flush systems.
For example:
- Tenant calls: "Landlord, the AC seems broken, it's not blowing cold air." You need to arrange for a technician to inspect and repair it at your expense.
- However, if the tenant breaks a light bulb themselves or accidentally tears the wallpaper badly, that's usually the tenant's responsibility.

Tip: Remember a key principle: "Natural wear and tear" is the landlord's responsibility; "damage caused by the tenant or consumables" is the tenant's responsibility. This line can sometimes be blurry, so it's best to clarify details in the lease agreement.

2. Money Matters (Security Deposit and Restoration)

Collecting rent is your right, but handling the security deposit (敷金, Shikikin) involves obligations. A very important concept here is 「原状回復」 (Genjō Kaifuku) or "Restoration to Original Condition".

What is "Restoration to Original Condition"?
- Many landlords mistakenly think this means "restoring the property to brand-new condition." This is completely wrong!
- Legally, "restoration" means: deducting deterioration caused by "normal living" (経年劣化・通常損耗, Keinen Rekka / Tsūjō Sonshō) and returning it to the condition it was in at the start of the lease.
Examples to understand:
- Small nail holes from hanging pictures, indentations in flooring/wallpaper from furniture, yellowing wallpaper due to sunlight. These are "normal wear and tear." You cannot deduct from the deposit to fix these.
- Tobacco stains yellowing the wallpaper, children drawing on walls, deep scratches on the floor from moving furniture. These are "intentional or negligent acts by the tenant." You can deduct from the deposit for repairs.
Obligation to Return the Security Deposit (Shikikin):
- When the tenant moves out, you must inspect the property together to confirm what needs repair and the cost.
- You must provide a detailed breakdown of costs, explaining exactly what each deduction is for. You cannot vaguely say, "Cleaning and repairs total 50,000 yen."
- After deducting reasonable costs, you must return the remaining deposit to the tenant.

Crucial Note: Disputes over deposits are very common. If you wrongfully withhold the deposit, the tenant can complain to the Consumer Affairs Center or even sue you – and you will almost certainly lose.

3. "Easy to Invite, Hard to Send Away" (The Tenant's Right of Occupancy)

This is perhaps the most counterintuitive point for foreign landlords. In Japan, as long as the tenant pays rent on time, it's almost impossible to make them move out.

You cannot arbitrarily terminate the lease or evict:
- The lease expires and you don't want to renew? No. If the tenant wants to stay, the lease automatically renews (法定更新, Hōtei Kōshin).
- Want to raise the rent? You must negotiate with the tenant. If they disagree, you cannot unilaterally force an increase.
- Tenant is one or two months late on rent? You cannot just change the locks and kick them out. This is illegal in Japan! You must first send a formal demand letter. If that fails, you must file a lawsuit. This process can take over six months and be very costly.
When can you ask a tenant to leave?
- You must have "justifiable cause" (正当事由, Seitō Jiyū). For example, you need to reclaim the property for your own residence because you have no other place to live and face significant hardship. Even then, the court may require you to pay the tenant a substantial "relocation fee" (立退料, Tachidairyo), often equivalent to 6 months' rent or more.

In a nutshell: The tenant's "right of occupancy" is sacrosanct. This is why screening tenants carefully upfront is crucial. It's also why the vast majority of landlords require tenants to join a 「保证会社」 (Hoshō Gaisha) or "Guarantor Company". If the tenant stops paying rent, the guarantor company will cover it for you initially.

4. Other Important Miscellaneous Points

Requiring a Guarantor Company (Hoshō Gaisha): This is practically standard practice in Japan now. It's the best way for you to mitigate rent default risk and communication hassles. Make sure your tenant joins one.
Handling Neighborhood Disputes: If your tenant causes noise pollution or improper garbage disposal leading to neighbor complaints, the property manager or neighbors will usually contact you, the landlord. You are obligated to remind and instruct your tenant.
Fire Insurance: Tenants are usually required to purchase fire insurance (借家人賠償責任保険付き, Shakunin Baishō Sekinin Hoken-tsuki) when signing the lease. This insurance covers their belongings and also accidental damage they cause to your property. As the landlord, you also need separate fire insurance for the building itself.
Compliance with Laws: Your rental activities must comply with Japanese laws like the Land and House Lease Law (借地借家法, Shakuchi Shakka Hō) and the Civil Code (民法, Minpō).

Final Advice for You

Feeling a bit overwhelmed? It's true, being a "hands-off landlord" isn't easy in Japan. Therefore, for most people, especially overseas landlords, the best choice is:

Delegate to a reliable property management company (管理会社, Kanri Gaisha).

Although you'll pay them around 5% of the monthly rent as a management fee, they handle almost all the headaches mentioned above:

Finding tenants and screening them
Lease signing and renewals
Rent collection and chasing late payments
Handling repairs and maintenance
Dealing with tenant and neighbor complaints
Final inspection, settlement, and "restoration" negotiations upon move-out

This way, you can simply sit back and collect the rent each month. It saves you time, effort, and helps you avoid pitfalls stemming from unfamiliarity with Japanese laws and customs.