How to Renew an Apartment Lease in Japan: Renewal Fees and Timeline

Renewing an apartment lease in Japan involves understanding specific fees, a typical timeline, and your rights as a tenant. The process is generally straightforward, but being aware of what to expect, especially regarding renewal fees (更新料 - koshinryo) and other associated costs, is crucial to avoid surprises. Most standard leases in Japan, often with a two-year term, automatically renew unless either the tenant or landlord gives notice to terminate, providing significant security for tenants. This guide will walk you through the renewal process, detailing the financial aspects and the general timeline you can expect.

What is a Lease Renewal in Japan?

A lease renewal in Japan refers to the process of extending your rental contract beyond its initial term, which is typically two years. Unlike some other countries where leases might automatically convert to month-to-month, in Japan, a new fixed-term contract is usually established. This continuation of tenancy is the default mechanism for standard leases, protected by the Land and House Lease Act. As of January 2026, landlords face significant legal barriers to refusing renewal, requiring "valid grounds" to do so.

What Fees Can I Expect During Lease Renewal?

When renewing your apartment lease in Japan, several fees might apply. These are distinct from your initial move-in costs and monthly rent. While not every property will charge all these fees, it's essential to check your original lease agreement carefully, as these charges are contractually rather than legally mandated.

1. Renewal Fee (更新料 - Koshinryo)

The koshinryo, or renewal fee, is the most significant and widely discussed fee associated with lease renewal in Japan.

• Purpose: Historically, this fee was seen as a "gift" or gesture of gratitude to the landlord for allowing the tenancy to continue. Today, it primarily serves as an additional revenue stream for landlords.
• Legal Status: While there's no specific law mandating koshinryo, if it's clearly stated in your lease agreement at a reasonable amount, it is legally binding. A Supreme Court ruling from July 15, 2011, affirmed that such fees, if clearly stipulated, do not violate the Consumer Contract Act and are enforceable, recognizing their "complex nature, including supplementing rent, making advance payments, and serving as consideration for the continuation of the contract",. Renewal fees of up to two months' rent have been deemed legally binding.
• Typical Cost: The nationwide average for a renewal fee is approximately one month's rent. For example, if your monthly rent is ¥70,000, your renewal fee would likely be ¥70,000.
• Regional Differences: The prevalence and amount of koshinryo vary significantly by region as of January 2026:
• Tokyo Metro Area, Central Japan, Kansai Region: One month's rent is standard.
• Kanto Region (Tokyo, Kanagawa, Chiba, Saitama): One month's rent is common,.
• Kansai Region (Osaka, Hyogo): Renewal fees are often not required, though security deposits and key money might be higher initially.
• Hokkaido, Tohoku, Kyushu: Many properties charge no renewal fee at all.
• Kyoto, Aichi, Kanagawa: Two months' rent remains customary in some areas.

2. Renewal Processing Fee (更新事務手数料 - Koshin-jimu-tesuryo)

This fee is paid to the property management company or real estate agency that handles the administrative aspects of your lease renewal, such as preparing the new contract.

• Typical Cost: This can be 0.5 months of rent plus tax, or a flat fee ranging from ¥20,000 to ¥30,000 as of January 2026.

3. Guarantor Company Renewal Fee

If you used a guarantor company (保証会社 - hoshō gaisha) instead of a personal guarantor when you first moved in, you will likely need to renew their contract as well.

• Typical Cost: This fee varies by company. It can be an annual or biennial fee, often around ¥10,000 to ¥20,000 per year, or sometimes 30-50% of your rent every two years. Some structures charge 10% of the total annual rent.

4. Fire Insurance Premium (火災保険料 - Kasai Hokenryo)

Fire insurance is typically a mandatory part of a rental agreement in Japan, and its policy period often aligns with the lease term (e.g., two years). Therefore, you'll likely need to renew your fire insurance alongside your lease.

• Typical Cost: Around ¥10,000 to ¥20,000 for a two-year policy as of January 2026.

Comparison of Common Renewal Fees (as of January 2026)

Fee Type	Typical Cost (Estimated)	Frequency	Notes
Renewal Fee (更新料 - Koshinryo)	1 month's rent (common); up to 2 months' rent (some areas)	Every 2 years	Varies by region: common in Kanto (Tokyo, Kanagawa), less so in Kansai (Osaka). Not all properties charge this. Must be stated in contract to be enforceable.
Renewal Processing Fee (更新事務手数料)	0.5 months' rent + tax; or ¥20,000-¥30,000 flat fee	Every 2 years	Paid to the management company for administrative work.
Guarantor Company Renewal Fee	¥10,000-¥20,000/year; or 30-50% of rent every 2 years; or 10% of annual rent	Annually or biennially	Varies significantly by guarantor company.
Fire Insurance Premium (火災保険料)	¥10,000-¥20,000	Every 2 years	Mandatory for most rentals.

The Lease Renewal Timeline

The lease renewal process in Japan typically begins a few months before your current contract expires. Staying aware of this timeline can help you prepare financially and make informed decisions.

1. 2-6 Months Before Expiration: Receive Renewal Notice

Your landlord or property management company will usually send a "renewal notice" (更新のお知らせ - kōshin no oshirase) via mail. This notice will include:

• The proposed new contract term (typically another two years)
• The total renewal fee amount (combining koshinryo, processing fees, etc.)
• Any updated rent amount (if applicable)
• Administrative processing fees and other associated costs (e.g., fire insurance, guarantor fees),.
• Important Note: Your landlord is generally required to notify you of renewal terms (or intent not to renew) at least 6 months in advance for standard leases.

2. 1-2 Months Before Expiration: Review Documents and Make a Decision

Upon receiving the renewal notice, you typically have 1-2 months to decide whether to renew or move out.

• Carefully Review: Examine all documents, including the "Lease Agreement Renewal Agreement" (賃貸借契約更新合意書 - chintai shakukeiyaku kōshin gōi-sho), for any changes to rent, terms, or conditions.
• To Renew: If you agree to the terms, you will sign and stamp (with your hanko or signature) the renewal agreement, then submit it back to the management company. You will also arrange for payment of the renewal fees,.
• To Move Out: If you decide not to renew, you must give notice according to the termination notice period specified in your contract, which is typically 1-2 months in advance (two months being common in Tokyo),. Failing to give adequate notice can result in owing additional rent. Verbal notice is usually not valid; most contracts require written notice, often by postal mail or registered letter.

3. By Expiration Date: Payment of Fees

Ensure all renewal fees and other associated costs (fire insurance, guarantor fees) are transferred to the designated account by the due date specified in the renewal notice.

4. After Renewal: Receive New Contract

Once the process is complete and payments are confirmed, you will receive a copy of your new, updated contract, often stamped with the landlord's or management company's seal. Keep this document safe for your records.

What if I Don't Respond to the Renewal Notice?

If you don't respond to the renewal notice and the lease term expires, the Land and House Lease Act Article 26 provides for "statutory renewal" (法定更新 - hōtei kōshin). This means the lease automatically continues on the same terms as the previous contract. However, it's always best practice to actively engage in the renewal process to avoid potential misunderstandings or issues.

Can My Rent Be Increased Upon Renewal?

Rent cannot be unilaterally changed by your landlord in Japan. According to Japan’s Borrowing and Lending Act (借地借家法 - Shakuchi Shakka Hō), rent can only be changed by mutual agreement between the tenant and landlord.

If your landlord requests a rent increase, you have the right to negotiate or refuse. You cannot be evicted simply for refusing a rent increase. While rent disputes can ultimately be resolved through the courts, in practice, most are settled through negotiation. The landlord might factor your refusal into future renewal negotiations, but your tenancy is secure under a standard lease.

Landlord's Right to Refuse Renewal: "Valid Grounds"

Under a standard lease, the Land and House Lease Act Article 28 provides strong tenant protection. A landlord must provide "valid grounds" (正当事由 - seitō jiyū) to refuse renewal:** A landlord can offset weaker grounds for non-renewal by offering the tenant moving compensation (立退料 - tachi-nokiryo). This compensation typically ranges from 6 to 24 months' rent (commonly around 12 months) and may include actual moving costs, estimated security deposit (敷金 - shikikin), key money (礼金 - reikin), and agency fees for new housing. The amount varies by location, building age, and length of tenancy.

• Early Termination: If you leave before the lease term officially ends, your contract might stipulate an early termination penalty, often equivalent to one month's rent. Always check your contract for these clauses.
• Move-out Condition: Japan's rental system expects the unit to be returned in a clean condition with all your belongings removed. Ensure you understand your responsibilities regarding cleaning and potential repair costs for any damage beyond normal wear and tear.

Key Takeaways for Foreigners

• Read Your Contract Carefully: All fees and procedures for renewal should be clearly stipulated in your original lease agreement. This is your primary reference.
• Budget for Renewal Fees: Be prepared for koshinryo and other associated costs, especially if you're in the Kanto region.
• Understand the Timeline: Be aware of when your lease expires and when you can expect to receive renewal notices.
• Your Rights are Protected: Standard leases offer strong tenant protection against arbitrary non-renewal or rent increases.
• Don't Be Afraid to Ask: If anything in the renewal notice is unclear, don't hesitate to contact your real estate agent or management company for clarification.

FAQ

Q1: Is the renewal fee (koshinryo) mandatory in Japan?

A1: The koshinryo is not legally mandated nationwide, but if it is clearly stated in your lease agreement at a reasonable amount (typically one month's rent, up to two months in some areas), it becomes a contractual obligation and is legally binding. Its prevalence and amount vary significantly by region.

Q2: How far in advance will I be notified about my lease renewal?

A2: Landlords or property management companies typically send a renewal notice 2-6 months before your lease expires. This notice outlines the new terms, fees, and the deadline for your decision.

Q3: What happens if I don't respond to the renewal notice?

A3: If you don't respond to the renewal notice, your lease will generally undergo "statutory renewal" (法定更新), meaning it automatically continues on the same terms. However, it's always best to formally engage with the renewal process to avoid potential complications.

Q4: Can my landlord refuse to renew my lease?

A4: For standard leases, landlords must have "valid grounds" (正当事由) as defined by the Land and House Lease Act Article 28 to refuse renewal. These grounds are strictly evaluated and often require significant reasons like the landlord needing the property for personal use, or offering substantial moving compensation to the tenant.

Q5: Can my rent be increased when I renew my lease?

A5: Your rent cannot be unilaterally increased by your landlord. Any rent increase requires mutual agreement between you and the landlord. You have the right to negotiate or refuse a proposed increase without fear of immediate eviction.

Q6: What other fees might I pay besides the koshinryo?

A6: Besides the koshinryo, you might encounter a renewal processing fee (koshin-jimu-tesuryo), a renewal fee for your guarantor company, and the renewal premium for your mandatory fire insurance policy. Always check your contract for all stipulated fees.