When leaving a rental property in Japan, the most dispute-prone moment is the settlement of restoration costs and the return of the security deposit (shikikin). It is not uncommon for foreign tenants to receive a large repair bill from the landlord or management company, leaving little or nothing of the deposit to be returned — or even an additional charge on top. With the right knowledge and preparation, most of these disputes can be prevented. This article explains the legal framework for restoration obligations, what tenants are and are not responsible for, how the deposit return process works, and what to do if a dispute arises.
What Does "Restoration to Original Condition" Actually Mean?
The Japanese concept of genshō-kaifuku (restoration to the original condition) does not mean returning the unit to exactly the state it was in before you moved in. The Ministry of Land, Infrastructure, Transport and Tourism's "Guidelines for Disputes over Restoration to Original Condition" define it as: repairing damage caused by the tenant's willful misconduct, negligence, or care beyond what a reasonable occupant would provide.
The critical point is that normal wear and tear from everyday living is not the tenant's responsibility. The Civil Code (Article 622-2) is explicit: landlords bear the cost of deterioration arising from the passage of time and ordinary use. Examples that fall squarely in the landlord's camp include: wallpaper discoloration or fading from sunlight or lighting; natural surface wear on flooring; tatami mat fading and normal deterioration; floor indentations left by furniture; small holes from thumbtacks or picture-hanging nails (those that do not penetrate the backing board); and marks from mounting an air conditioner.
What Tenants Are Actually Responsible For
Tenants bear repair costs only for damage caused by their own negligence or misuse. Typical examples include:
- ・ Yellow stains or odor in wallpaper from cigarette smoke
- ・ Scratches, stains, or persistent odors caused by pets
- ・ Mold or mineral buildup resulting from failure to clean or ventilate
- ・ Large holes in walls (those that penetrate the backing board)
- ・ Scratches or stains caused during the move-out process
- ・ Lost or broken keys
- ・ Mold or rot resulting from condensation that was left unaddressed
If the damage does not fall into one of these categories, you should not be charged for it.
What to Do Before Moving Out
Deep-clean the entire unit
Thorough cleaning before the final walkthrough prevents cleaning-related charges. Pay particular attention to kitchen grease buildup, bathroom and sink mold and mineral deposits, ventilation fan interiors, and the toilet. These are the spots most likely to generate deductions.
Compare your move-in photos with the current condition
If you photographed the unit when you moved in, compare those images with what you see now. For any damage that was already present when you arrived, make sure you have documentation. Even without move-in photos, you are not responsible for pre-existing damage — but evidence makes the conversation much easier.
Attend the final walkthrough inspection
Always attend the final inspection conducted by the landlord or management company. Review each item of damage identified and the corresponding cost estimate on the spot. You are not required to sign anything immediately — if you have doubts, tell them you will respond in writing after reviewing the document.
Give notice to vacate in writing
Your lease will specify a notice period, typically one to two months before your intended move-out date. Always give notice by email or in writing, and keep a record of the date you sent it.
How the Deposit Return Process Works
Your security deposit should be returned within one to two months of moving out. The management company or landlord will send you a breakdown statement listing restoration costs and the resulting net refund (or charge). When you receive this document, review every line item carefully.
If you believe a charge is unjustified, start by sending written questions asking for the basis of each item. If a fee relates to wear that falls under the guidelines — the landlord's responsibility — state this clearly in writing and request its removal. If negotiation does not resolve the issue, you can seek help from a consumer affairs center, Legal Support Center (Houterasu), or housing dispute tribunal.
Where to Get Help If a Dispute Arises
- ・ Consumer Affairs Center (shōhiseikatsu sentā): Available in every municipality, free to use, handles all types of consumer disputes including rental issues.
- ・ Legal Support Center / Houterasu: Provides free lawyer consultations if you meet income requirements. Some locations offer support in foreign languages.
- ・ Housing Dispute Tribunal (jūtaku funsō shinsaikai): A specialist mediation body established by each prefectural bar association.
- ・ Foreign Resident Comprehensive Consultation Center (FRESC): Handles all aspects of life in Japan, including housing, in 14 languages.
If a refund is unreasonably withheld or an improper charge is made, the Small Claims Procedure (shōgaku soshō seido) allows you to pursue monetary disputes of up to ¥600,000 through the court system relatively quickly and without needing a lawyer.
Moving out is stressful, but most deposit disputes are avoidable. Document your unit from day one, keep all communication in writing, attend the final inspection, and know that the law is on your side when it comes to fair, reasonable restoration costs.