Restoration to Original Condition Guidelines: Latest Edition — Practical Implementation After the 2020 Civil Code Amendment and Case Law Updates
Explores the practical implementation of restoration to original condition rules codified in the Civil Code amendment that took effect in April 2020. Thoroughly covers the relationship with MLIT guidelines, cost categories commonly disputed in case law, and best practices for using move-in inspection checklists.
The revised Civil Code (Article 621) that came into force on April 1, 2020, for the first time codified the tenant's obligation to restore rental properties to their original condition. Before the amendment, the Civil Code contained no explicit provision on this matter, and the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) guideline titled "Disputes and Guidelines Regarding Restoration to Original Condition" (originally established in 1998, revised in 2011) served as the practical standard. Now that several years have passed since its implementation, negotiations regarding move-out settlements based on this statutory provision and the MLIT guidelines have become significantly easier for tenants to navigate.
Summary of Revised Civil Code Article 621
"A tenant shall restore a rental property to its original condition, excluding damage resulting from normal use and enjoyment, and deterioration due to the aging of the property, arising after the tenant's receipt of the property."
This provision has two key points. First, it became legally clear that normal wear and tear (aging and deterioration from normal use) are not the tenant's responsibility. Second, the statute explicitly states that tenants are responsible only for damage resulting from intentional acts, negligence, or breach of the duty to exercise reasonable care.
Although the MLIT guidelines had long reflected this same principle, its incorporation into the Civil Code itself provided clearer legal grounds for challenging invalid contractual provisions that discount the guidelines.
Distinguishing Normal Wear and Tear from Intentional and Negligent Damage — Concrete Examples
Most move-out disputes revolve around determining whether a given type of damage constitutes normal wear and tear or is the tenant's responsibility. The following examples are drawn from MLIT guidelines and subsequent case law.
Tenant Not Responsible (Normal Wear and Tear / Aging)
•Discoloration of tatami mats and fading of wallpaper due to sun exposure and aging
•Dark marks on walls behind televisions and refrigerators (electrical burn marks)
•Indentations and marks on carpets from furniture placement
•Thumbtack and pushpin holes (when the underlying board is undamaged)
•Natural wear of locks (excluding loss or breakage)
•Natural equipment malfunction and aging of fixtures (air conditioners, water heaters, etc.)
Tenant Responsible (Intentional Acts, Negligence, or Breach of Duty of Care)
•Staining and odor damage to wallpaper and ceilings from smoking
•Mold and stains resulting from neglecting condensation (failing to wipe it away)
•Scratches, marks, and odors on flooring and walls from pets (including unauthorized pet ownership)
•Scratches on flooring from careless furniture movement
•Graffiti, nail holes, and large holes (extending to the wall substrate)
•Mold and dirt resulting from failure to maintain regular cleaning
Gray Areas (Judgment Depends on Circumstances)
•Mold in bathrooms and washrooms (depends on ventilation and cleaning practices)
•Damage during moving (depends on whether it was the moving company's mistake or the tenant's)
•Minor cracks in walls caused by earthquakes (depends on whether they are structural issues)
Even when tenants are responsible for damage, the MLIT guidelines apply the concept of "depreciation based on elapsed years" to wallpaper and carpets. For example, wallpaper is considered to depreciate to essentially no value after 6 years; thus, even if a complete replacement is necessary after six or more years of occupancy, the tenant's share of costs covers only a portion of the installation fees. This is the standard approach.
Validity of Special Provisions and the Impact of the 2020 Amendment
Lease agreements sometimes include special provisions such as "cleaning fees for all rooms are the tenant's responsibility" or "air-conditioner cleaning fees must be paid at move-out."
After the 2020 Civil Code amendment, such provisions are considered enforceable only when they meet the following conditions (based on Supreme Court case law and MLIT guidance):
The provision is necessary and not exorbitant
The tenant understands the provision's contents
The tenant clearly agrees to the obligations imposed by the provision
In practice, a provision stating "cleaning fees are ordinarily the tenant's responsibility" is often considered valid if the amount is explicitly stated. Conversely, broad and unlimited provisions such as "the tenant bears all repair costs at move-out" have been struck down by courts as violating the Consumer Contract Act, Article 10.
Checklist: Review Special Provisions Before Signing
It is important to review the special provisions before move-in and verify whether cost limits are explicitly stated and reasonable. Provisions that merely state "actual costs" without a defined upper limit often become sources of excessive charges at move-out. If you have questions about any provision, we recommend confirming and negotiating with the property management company or landlord before signing.
Proper Use of Move-In Inspection Checklists
The best way to prevent move-out disputes is to create a record documenting the property's condition at move-in.
Checklist Basics
Most property management companies provide documents such as a "move-in confirmation" or "condition report" when you move in. Accurately recording any scratches, stains, or deteriorated areas on this document, then submitting it to the management company (keeping a copy for yourself), becomes crucial evidence at move-out.
If the Management Company Does Not Provide a Checklist
The MLIT website provides a template inspection form as supplementary material to the "Disputes and Guidelines Regarding Restoration to Original Condition." Print and complete this form, send it to your management company, and keep it as evidence of the property's condition at move-in.
Document with Photos and Video (Most Important)
Photos and videos serve as clearer evidence than written notes. On move-in day, photograph the entire room, walls, floors, and wet areas using both wide-angle and close-up shots, and save them with date information. Your smartphone's photo metadata timestamp is powerful evidence supporting your move-in date. Pay special attention to the following areas:
•Scratches, stains, and discoloration on wallpaper
•Scratches and marks on flooring and tatami
•Mold and water stains in wet areas
•Scratches on windows and window frames
•Operational condition of fixtures (air conditioners, water heaters, bathroom ventilation)
Preventing Move-Out Disputes Through Proper Maintenance During Occupancy
Move-out disputes are prevented through daily habits during occupancy, not decisions made just before moving.
Ventilation and Condensation Management
Even after the 2020 amendment, court cases increasingly hold tenants responsible for mold resulting from poor ventilation. Run bathroom, washroom, and kitchen exhaust fans for adequate time after use, and develop the habit of wiping window condensation during winter months.
Fulfilling the Duty of Care
Civil Code Article 400's "duty of care as a reasonable manager" also applies to tenants. This means "performing the management reasonably expected given the circumstances." Examples include addressing pest infestations promptly (not ignoring them), reporting any water leaks to the management company immediately upon discovery, and regularly cleaning air-conditioner filters. Keeping copies of emails or app messages to the management company reporting discovered problems serves as valuable documentation that you fulfilled your duty of care.
Requesting a Pre-Move-Out Walkthrough
We recommend requesting an inspection walkthrough with the management company before your move-out date. A joint walkthrough at the property is less likely to lead to disputes than receiving a settlement statement later with costs already determined. When asked to sign documents after the walkthrough, carefully review the contents before signing. Avoid signing off on any charges for which the management company cannot explain the basis for the amount on the spot.
Security Deposit Return Deadlines and Procedures
The revised Civil Code, Article 622-2 (effective 2020), clarifies that the landlord's obligation to return the security deposit arises when "the lease ends and the rental property is returned."
Typical Return Timeline
While no specific deadline is set by law, in practice security deposits are typically settled within one to two months after move-out. If you have not heard from the management company within three months, request a written status update on the settlement.
If You Dispute Improper Deductions
If you are dissatisfied with the settlement statement, first lodge a written objection with the management company. If the matter is not resolved, you can seek assistance through the following channels:
•Prefectural real estate licensing board consultation hotlines
The move-in inspection checklist, photos, and videos serve as decisive evidence against improper deductions. This is where the value of your move-in day documentation becomes apparent. Approaching the move-out settlement process methodically based on evidence and guidelines, rather than emotional arguments, ultimately leads to the fastest resolution.
Did you know that some clauses written in a rental contract can become "invalid"? This guide explains how the Consumer Contract Act protects rental tenants and walks through typical examples of clauses you can challenge.
