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Guide · Monthly
Monthly rental contracts in Japan. Leases that end when they should, in two languages.
Fixed-term leases, deposits, notice and the move-out settlement, for operators who let furnished apartments for a month or more.
On this page
In short
- For stays of a month or more, the usual tool is a fixed-term lease (定期建物賃貸借契約). An ordinary lease shorter than a year is treated as having no fixed term, and is hard to end.
- A fixed-term lease needs a written contract and a separate written explanation, given before signing, that it ends without renewal. Both can be electronic since May 2022.
- Stays shorter than a month are generally treated as lodging, not tenancy: they need a minpaku notification or a hotel or ryokan licence.
- A deposit secures unpaid rent and damage. Normal wear and tear is the landlord’s cost, under the Civil Code and MLIT’s restoration guidelines.
- Write fees, utilities, notice and penalties plainly in both languages, and say which language governs.
General information, not legal or tax advice. Rules differ between prefectures, cities and wards, and they change. Check with your local authority or a qualified professional before you act. Updated October 2026.
Ordinary lease or fixed-term lease
Residential leases in Japan come in two kinds under the Act on Land and Building Leases (借地借家法). The difference matters most for short stays, because an ordinary lease is built to protect a tenant who wants to stay — the opposite of what a monthly operator needs.
| Ordinary lease (普通借家) | Fixed-term lease (定期借家) | |
|---|---|---|
| At the end of the term | Renews unless the landlord has a justifiable reason (正当事由) to refuse — hard to show | Ends. Staying on needs a new contract (再契約) |
| Terms under a year | Treated as a lease with no fixed term | Allowed, at any length |
| Form | Any; written in practice | Written or electronic contract, plus a separate explanation document |
| Rent changes | Either side can ask for an adjustment | Can be excluded by a clause in the contract |
| Tenant leaving early | As the contract allows, often on a month’s notice | Only if the contract allows — or, for homes under 200 m², when the tenant has to move for reasons such as a job transfer or illness, on a month’s notice |
| Before the end | — | For terms of a year or more, the landlord must notify the tenant 6 to 12 months before the end |
For furnished apartments let by the month, a fixed-term lease is the usual answer: it ends on the date you agreed, the rent is fixed for the term, and a resident who wants longer signs again.
The prior explanation
A fixed-term lease works only if, before the contract is signed, the landlord gives the tenant a written document stating that the lease will not be renewed and ends when the term expires — and explains it. The Supreme Court has held that this must be a separate document from the contract; a clause in the lease isn’t enough.
If the explanation is missing or defective, the no-renewal term fails and you are left with an ordinary lease. It is the most expensive mistake in this guide, and the easiest to avoid:
- Keep the explanation as its own document, in the resident’s language as well as Japanese.
- Give it, and explain it, before the contract goes out for signature — not in the same envelope.
- Keep proof: the resident’s signature or acknowledgment on the explanation, with the date.
Since May 2022 the contract can be electronic, and the explanation can be given electronically if the tenant agrees. If a licensed agent brokers the lease, the agent’s own important-matters explanation (重要事項説明) is a separate obligation.
Under a month is lodging
The line between renting and lodging sits at roughly one month. Letting a furnished room for three weeks is generally treated as lodging under the Hotel Business Act, whatever the contract is called, so it needs a minpaku notification or a hotel or ryokan licence. A month or more, on a proper lease, is tenancy.
That line is what lets one building mix the two: nightly guests in some rooms under minpaku or a licence, monthly residents in others on fixed-term leases. Keep the two kinds of contract apart, and keep the dates honest — a “monthly” contract that ends after 20 nights is a lodging stay. The minpaku guide covers the nightly side.
Deposits, fees and what’s included
Monthly residents compare the total, not the rent. Put every amount in front of them before they book, and in the contract under the same names.
| Item | What it is | Good practice |
|---|---|---|
| Deposit (敷金) | Security for unpaid rent and damage, returned at the end | State the amount and what it may be used for; hold it apart from income |
| Key money (礼金) | A one-off payment that isn’t returned | Less common in furnished monthly lets; if you charge it, say so plainly |
| Contract or short-stay fee | Paperwork and set-up | One fixed amount, named the same on the quote, the contract and the invoice |
| Cleaning or restoration fee | A fixed charge for the final clean | Holds as a special clause if the amount is clear and was explained |
| Utilities and internet | Often a flat monthly fee in furnished lets | Say what’s included, and whether there is a cap |
| Guarantee | A guarantee company, or an individual guarantor | An individual guarantor’s contract must state a maximum amount (極度額) |
The first and last months are prorated by the day. Say how in the contract — by the number of days in that calendar month is the usual method — and show the calculation on the first invoice.
Since the 2020 Civil Code reform, a guarantee by an individual that doesn’t state a maximum amount is void, so most operators use a guarantee company. Several specialise in foreign residents.
Foreign residents and two languages
Many monthly residents come from abroad — on assignment, studying or between homes. A few habits keep everyone on the same page:
- Check the residence card (在留カード) or passport, and that the permitted period of stay covers the lease.
- Give the contract in Japanese and in English (or the resident’s language), and say which version governs if they differ — usually the Japanese.
- Mid- to long-term residents must register their address at the ward office within 14 days of moving in. Say whether the apartment can be used for that.
- Explain rubbish sorting, quiet hours and overnight guests at move-in. They cause more friction than rent does.
- Agree one channel for messages — LINE, WhatsApp or email — and keep it with the booking, not on one staff member’s phone.
A resident under 18 is a minor and needs a parent’s or guardian’s consent to sign.
Signing online
Residential leases can be signed electronically, and since May 2022 that includes fixed-term leases. What makes an electronic contract hold up is what you can show afterwards: who signed, when, and that the document hasn’t changed since.
- Send each signer their own link — the resident, co-occupants, and a guardian where needed.
- Seal the signed PDF and time-stamp it, so any later change shows.
- Keep an audit trail of when each link was sent, opened and signed.
- Give the resident a copy they can download at any time.
Notice, renewal and leaving early
Write down the notice period, how it is counted and what leaving early costs. Vagueness here is where most disputes start.
One policy that works in practice, from a portfolio of furnished buildings in Tokyo:
- 30 days’ notice, counted including the move-out day. Notice filed on 1 June for 30 June is exactly 30 days.
- Short notice is charged for the missing days only, prorated by the day.
- Leaving before the end of the term is charged for the remaining days, capped at one month’s rent.
- The two charges never stack: the larger one applies.
- Every penalty is a separate charge on the resident’s account, never something quietly taken from the deposit.
Penalties have a legal ceiling. Under the Consumer Contract Act (消費者契約法), the part of a cancellation charge above the average loss such a cancellation causes the business is void. A cap such as one month’s rent is far easier to defend than “the rest of the term”.
If residents can stay on after the term, decide which contract they stay under and write it down. With a fixed-term lease, the cleanest way is a new fixed-term contract for each extension.
Move-out and the deposit
The deposit has to be returned, less what the resident owes, once the lease has ended and the apartment has been handed back (Civil Code, article 622-2). What the resident owes for the state of the room follows MLIT’s guidelines on restoration (原状回復をめぐるトラブルとガイドライン):
| Who pays | Examples |
|---|---|
| Landlord — normal wear and ageing | Wallpaper faded by the sun, marks left by furniture, pin holes from posters, equipment wearing out with age |
| Resident — damage beyond normal use | Cigarette burns and smell, stains left uncleaned, damage from a leak that wasn’t reported, screw holes |
Even where the resident pays, age counts. Wallpaper, for example, is written down over about six years, so a resident who damages six-year-old wallpaper pays little or nothing for it. In Tokyo, a dispute-prevention ordinance (東京ルール) also requires the agent to explain these principles in writing before the contract.
What prevents arguments is evidence from both ends of the stay:
- A move-in condition report with photos, completed by the resident in their first days.
- A room check after move-out, compared with that report.
- An itemised settlement: the deposit held, each deduction with its reason and photo, and the refund.
- A fixed window for the resident to question it, then the refund.
In OmniPM
How OmniPM handles it
OmniPM runs monthly residents in the same dashboard as nightly stays, from booking to deposit refund.
Contracts signed online
Contracts in English or Japanese, with names, dates, rent and fees filled in from the booking. The resident, co-occupants and a legal representative where needed each get their own link, and residents can download the signed contract.
Your own contract templates
Write templates in the editor or import them from Word, add clauses that print only when conditions match, and preview them against real reservations. Signing inside OmniPM, with sealed and time-stamped PDFs, is switched on per workspace.
Contract-explanation meetings
Residents book the explanation meeting before move-in from a staff member’s booking page, and it lands on the team’s schedule.
Rent that prorates itself
Move-in and move-out months are prorated by the day, deposits are tracked in Rent Roll, and deposits held stay out of income in the P&L.
Notice from the portal
The resident picks a move-out date; any penalty is shown before they send it, and the last month’s rent is prorated.
A settlement that adds up
Room-check findings become charge lines beside the move-in photos, and AI flags damage that was reported at move-in. The resident has seven days to dispute before it locks.
Contracts that end when they should. Signed online, settled without the argument.