Restoration to Original Condition and Security Deposit Refund at Move-Out: What You Should Know to Prevent Disputes
Experiencing problems such as "being charged high repair fees" or "receiving little of your security deposit back" at move-out is a particularly common concern among foreign nationals living in Japan. Learn the correct knowledge to prevent these disputes.
When moving out of a rental property, issues such as "being charged high repair fees" or "receiving very little of the security deposit back" are among the most common problems experienced by foreign nationals living in Japan. However, with the correct knowledge, most of these disputes can be avoided or handled appropriately. This article explains the rules for restoration to original condition at move-out and the system of security deposit refunds in an easy-to-understand manner.
Basic Principles of Restoration to Original Condition
The approach to restoration to original condition in Japanese rental properties is based on the "Guidelines on Disputes and Restoration to Original Condition" formulated by the Ministry of Land, Infrastructure, Transport and Tourism. These guidelines establish the following principles for restoration to original condition at move-out:
Items the tenant is NOT responsible for (landlord's responsibility):
•Discoloration or fading of wallpaper and tatami mats due to sun exposure or natural color change
•Wax wear on flooring due to age-related deterioration
•Dents in flooring from appliances or furniture such as refrigerators or televisions
•Small holes from thumbtacks or pins
•Mold that resulted from condensation when the management company failed to address it despite being reported
Items the tenant IS responsible for:
•Significant discoloration or soiling of wallpaper due to cigarette residue or odor
•Scratches and odor stains caused by pets
•Large scratches or holes in walls or floors caused by carelessness
•Mold or grease stains resulting from neglected cleaning
•Large scratches made during moving
While these guidelines are not legally binding, they are referenced by courts as a standard and serve as a strong basis for negotiations at move-out.
How Security Deposits Work and When They Are Returned
A security deposit is money paid at the time of signing the rental contract and is used to cover repairs needed at move-out and any unpaid rent. If repair costs are within the amount of the security deposit, the remainder is refunded; if costs exceed the deposit amount, you may be charged additionally.
Security deposit refunds typically take about 1 to 2 months after the management company completes its inspection of the property following move-out. If the refund is delayed, contact the management company. Civil law stipulates that the landlord has an obligation to refund the security deposit when "the rental contract ends and the landlord has received the property back."
What to Do If You Receive an Excessive Bill
If you are charged an unreasonably high repair bill at move-out, follow these steps:
1. Always request an itemized repair cost statement: Rather than a lump sum deduction from your security deposit, request a written itemization of repairs—specifying which areas were repaired and how much each repair cost.
2. Cross-check against the Ministry of Land, Infrastructure, Transport and Tourism guidelines: Verify the basis for each item being charged to the tenant, and you can refuse to pay for items that fall under age-related deterioration or normal wear and tear.
3. File a written objection: For items you disagree with, submit a formal objection in writing via email or registered mail rather than verbally. A written record becomes important evidence for future negotiations or legal proceedings.
4. Use consultation services: You can consult with the National Consumer Affairs Center, local Consumer Affairs Centers (located in each municipality), the Japan Legal Support Center (free legal consultation), and local real estate industry associations in each prefecture.
Preparing to Prevent Move-Out Disputes
Most move-out disputes arise from insufficient documentation at move-in. Be mindful of the following points from the time you move in.
Document the condition at move-in: After receiving the keys but before moving in your belongings, take photos and videos of the entire room. Document the condition of walls, floors, ceilings, and fixtures (plumbing, air conditioning, water heater) with dates, and save them to the cloud or email. If the property includes a move-in inspection checklist, always complete it and keep a copy for yourself.
Provide written notice of move-out: Notify the management company of your intent to move out in writing (via email) rather than verbally. Typically, you must give 1 to 2 months' notice before move-out (check your contract). Be sure to review Key Points of Lease Agreements when you move in.
Important points during the move-out inspection: Always attend the move-out inspection with the management company representative and have them provide a written summary of what was confirmed. Ask questions about anything unclear on the spot, and only sign if you agree with the findings.
By acquiring knowledge about restoration to original condition and security deposits in advance, you can significantly reduce disputes at move-out. For information about tenant rights in Japanese rental properties, also see An Explanation of Tenant Rights.
