Rent Increase Notice Received? Understanding Article 32 of the Lease and House Act and Your Legal Rights

When renting an apartment in Japan, you might one day suddenly receive a notice stating that your rent is being increased. Even if the notice shocks or upsets you, the most important thing is to stay calm and organize your thoughts. In fact, Article 32 of the Lease and House Act provides strong protections for tenant rights when it comes to rent adjustments. Understanding this law correctly will help you respond appropriately to any unilateral rent increase.

What Is Article 32 of the Lease and House Act?

Article 32 of the Lease and House Act defines the right to request an increase or decrease in rent in a rental agreement. In simple terms, both landlords and tenants have the right to "request" a rent adjustment if certain conditions are met.

However, this "request" is merely the starting point for negotiation. Even if a landlord unilaterally announces "your rent will increase starting next month," you have the legal right to continue paying the old rent as long as you do not agree to the increase. A rent increase becomes final only through mutual agreement or through a final decision reached via legal procedures such as mediation or litigation.

Conditions When a Rent Increase Can Be Approved

Article 32 of the Lease and House Act recognizes a rent increase request in the following circumstances:

1. Public taxes and public charges (such as fixed asset tax) on the land and building increase
2. The market value of the land and building increases
3. The prevailing rent for similar buildings in the neighborhood increases

Conversely, if a landlord attempts to raise the rent without any of these changed circumstances, you can argue that there is no legal basis for the increase.

What to Do When You Receive a Rent Increase Notice

Step 1: Make sure the notice is in writing

First, verify that the rent increase notice is in writing. A verbal-only rent increase request has unclear legal standing. If you receive a written notice, carefully review the stated reason for the increase, the amount of the increase, and the effective date.

Step 2: Assess whether the increase reason is valid

Check whether the notice provides a clear reason, such as "neighboring rents have increased" or "fixed asset tax has increased." If the reason is unclear or insufficient, you have the right to submit a written inquiry to the landlord or property management company requesting clarification.

Step 3: Continue paying your current rent

If you do not agree to the increase, you have the legal right to continue paying your current rent (Article 32, Paragraph 2 of the Lease and House Act). However, to prepare for a situation where a rent increase might eventually be confirmed, it is prudent to set aside the difference amount separately as a precaution.

Step 4: If negotiations stall, pursue mediation or court action

If negotiations with the landlord do not progress, you can file a civil mediation request (民事調停) at the court to challenge the rent increase. If mediation does not resolve the matter, you can ask for the court's judgment. In practice, most cases are resolved at the mediation stage.

What If the Landlord Refuses Your Rent Payment? You Can Use an Escrow Deposit

If rent negotiations break down and the landlord refuses to accept your current rent payment, claiming they will only accept the higher amount, you face a difficult situation. Failing to pay rent could expose you to claims of breach of contract. In such cases, you can protect yourself by making a deposit in custody (供託) at the Legal Affairs Bureau. By depositing your rent this way, you receive the same legal protection as if you had paid rent directly, preventing the landlord from claiming you are in default or attempting to terminate your lease. You carry out this procedure at the Legal Affairs Bureau with jurisdiction over the property location, and you should continue to make deposits on each payment date.

"If I Refuse the Increase, Will I Be Evicted?" This Is a Common Misunderstanding

Many tenants worry that if a rent increase is proposed at lease renewal and they refuse to agree, they will lose the right to renew their lease. However, under a standard (indefinite) lease, a landlord's refusal to renew the lease or demand for termination requires just cause. Simply refusing to accept a rent increase does not constitute just cause. Because of statutory renewal protections, your lease will continue under the same conditions as before (as an indefinite-term lease), so even if a landlord demands you move out because you declined the rent increase, you are not obligated to comply.

Note that a fixed-term lease operates under different rules: the lease ends automatically at the expiration date, and you need the landlord's agreement to renew. Make sure you understand which type of lease you signed.

When You Want to Request a Rent Decrease

Article 32 of the Lease and House Act also gives tenants the right to request a rent decrease in these situations:

• •The market rent for similar properties in your area has decreased
• •The building and its facilities are aging and are not being properly repaired and maintained
• •Property values and land prices have fallen significantly

In these circumstances, you have the right to proactively negotiate a rent reduction. The negotiation process mirrors the increase scenario: if the landlord refuses, you continue paying the current rent, and if an agreement cannot be reached, mediation or court action will determine the outcome.

Pay Attention to "No Increase" and "No Decrease" Clauses

If your contract includes a clause stating "rent will not be increased for a certain period," the landlord cannot request an increase during that time. Such a clause is favorable to the tenant.

Conversely, some contracts contain "no decrease" clauses that prevent rent from being lowered. Such clauses may be valid in fixed-term leases, but in standard indefinite leases, they may be considered invalid as an unfair restriction on tenant rights (consulting with a lawyer regarding consumer contract law protections is advisable).

Checklist: Prepare Before Negotiating

• •Review your rental agreement to confirm the rent amount, any special clauses (including no-increase clauses), and your lease type (standard or fixed-term)
• •Keep all written communications regarding the proposed increase, and record the date and time of any conversations
• •Research asking rents for comparable units in your building and nearby properties using real estate portals; save this information to support your negotiation position
• •Document any maintenance issues and repair requests since you moved in (this information is useful for negotiating reductions or countering increase requests)
• •If given a deadline for your response, do not panic. You can simply reply that you will "consider the matter and respond in writing"

Conclusion: Stay Calm When Facing a Rent Increase Notice

When you receive a rent increase notice, many people become anxious and worry, "If I refuse, will I be forced to move out?" However, the law protects your right to continue living in your rental home at the current rent as long as you do not agree to an increase. What matters most is staying calm and keeping your communications in writing rather than allowing emotions to drive your response.

If you find negotiations difficult or feel uncertain about legal procedures, consider reaching out to Houterasu (Legal Support Center) or local free legal consultation services in your area. Many communities throughout Japan offer access to professional legal advice at no cost.

Even if a rental property owner passes away, the rental lease agreement is automatically transferred to the heirs and the tenant's rights are protected. This guide explains how to handle changes to rent payment destinations, deposit procedures when multiple heirs exist, and how to respond to requests for contract modifications from the new owner.