Japan Rent Control and Increase Rules

Unlike many jurisdictions, Japan does not allow a landlord to simply issue a "Notice of Rent Increase" to unilaterally hike the rent at the end of a lease term. The adjustment of rent in Japan must fundamentally be based on Mutual Agreement (Kyogi) between the landlord and the tenant.

Disclaimer: This guide provides general legal information for educational purposes only and does not constitute legal advice. Always consult a licensed attorney in Japan for advice specific to your situation. Information last verified: March 2026.

The Right to Request Rent Increase (Article 32)

Under Article 32 of the Act on Land and Building Leases, either the landlord or the tenant may request an increase or decrease in rent for the future only if the current rent has become demonstrably "unreasonable" due to specific, objective economic factors:

1. Fluctuations in Taxes: A significant increase or decrease in property taxes or city planning taxes on the land/building.
2. Economic Changes: Fluctuations in land values, building prices, inflation, or the general economic climate.
3. Market Discrepancy: The current rent is significantly disproportionate compared to the market rent of similar properties in the neighboring area.

The burden of proof lies entirely on the landlord to demonstrate (via data, appraisals, or tax records) that the current rent is unreasonably low compared to the market.

The Rent Negotiation Process

1. Notification and Discussion

While a landlord can legally request a rent increase at any time if conditions are met, it is standard practice to attempt negotiations prior to the 2-year lease renewal. The landlord sends a written notice detailing the proposed new rent and the objective reasons (e.g., surrounding market data) for the increase.

2. Tenant Refusal and Deposit (Kyotaku)

If the tenant refuses the increase, the landlord cannot forcibly evict them for "non-payment," nor can the landlord refuse to accept the old rent. The law protects the tenant from becoming delinquent as long as they continue paying what they believe is the "reasonable amount" (which is almost always the current, pre-increase rent). If a frustrated landlord refuses to accept the old rent payment, the tenant can avoid default by officially depositing the rent money at the government's Legal Affairs Bureau (a system called Kyotaku).

3. Mediation and Lawsuit

When parties cannot reach an agreement, the landlord must follow a strict legal sequence before a forced rent increase is possible:

• Rent Mediation (Chotei): The dispute must first be brought to civil mediation at a Summary Court. A mediation committee attempts to reconcile the parties. You cannot skip this step to go straight to trial.
• Rent Lawsuit: If mediation fails, the landlord files a formal lawsuit. The court will order a Real Estate Appraiser to determine the "fair rent."

If the court ultimately rules that the rent increase was justified from the date of the original notice, the tenant must retroactively pay the shortfall (the difference between the old rent they've been paying and the new court-ordered rent) along with statutory interest.

Special Rent Clauses in Fixed-Term Leases

For a standard lease, any clause stating "The landlord can increase the rent every 2 years by 5%" or "The tenant waives the right to request a rent decrease" is strictly void (Article 32 is a mandatory provision).

However, in a Fixed-Term Tenancy Agreement (Teiki Shakka Keiyaku)—where the contract absolutely terminates at the end of the term—Article 32 does not apply. If a landlord negotiates a specific Rent Increase Clause (Tokuyaku) in a Fixed-Term agreement (e.g., "The rent will increase by 3% in the second year"), that clause is fully valid and enforceable.

Landager helps you manage your lease types accurately, monitor local area market averages, and track the progress of ongoing rent negotiations to provide data-driven backing for your legal requests under Article 32.

Back to Japan Landlord-Tenant Laws Overview.