Tokyo Security Deposit Rules: Shikikin & The Tokyo Rule

Legal Framework for Security Deposits in Tokyo

Renting property in Tokyo involves a unique combination of national laws and regional ordinances. The primary framework is established by the Japanese Civil Code (Minpo) (Act No. 89 of 1896), which was significantly amended regarding security deposits on 1 April 2020, and the Tokyo Metropolitan Ordinance on the Prevention of Disputes Concerning the Lease of Residential Buildings (Ordinance No. 95 of 2004), which came into effect on 1 October 2004 (commonly referred to as the "Tokyo Rule").

1. Shikikin vs. Reikin (Key Money)

It is essential to distinguish between the two primary payments made at the start of a Tokyo tenancy:

• Shikikin (敷金): A security deposit used to secure the lessee's obligation to pay rent and other obligations. While typically 1–2 months' rent by market convention, this is not a statutory limit. Under Article 622-2 of the Civil Code, when the lease is terminated and the property returned, the landlord must return the amount after deducting any monetary debt the lessee owes under the lease.
• Reikin (礼金): A non-refundable "gratitude" payment to the landlord. Unlike shikikin, this is not a deposit and is never returned to the tenant.

2. The 2020 Civil Code Amendment: Restoration Rules

The 2020 amendment codified the rules regarding restoration to the original state (Genjo Kaifuku).

• Normal Wear and Tear: Under Article 621, the lessee's obligation to restore the property to its original state does not apply to wear and tear resulting from the ordinary use of the leased property or any other deterioration of the leased property over time (e.g., faded wallpaper from sunlight or carpet indentations from furniture).
• Tenant Liability: The tenant is liable for damage resulting from willful intent, negligence, or improper use that exceeds ordinary wear and tear.

3. The "Tokyo Rule" Disclosure Mandate

Under Tokyo Metropolitan Ordinance No. 95 of 2004, real estate brokers are legally required to provide a written explanation and a separate document detailing restoration and repair obligations before the lease is signed. This must include:

1. The basic principles of restoration to the original state (distinguishing between normal wear and tear, which is the landlord's burden, and damage caused by the tenant's negligence or intent).
2. The specific items and costs that the tenant will be responsible for under the proposed contract.
3. The contact information for repairs and maintenance during the tenancy.

Professional Cleaning Fees (Tokuyaku): Under the Tokyo Ordinance and MLIT Guidelines, professional cleaning costs are generally the landlord's responsibility. However, a "Special Clause" (Tokuyaku) may shift this cost to the tenant if it is clearly stated in the contract and explained before signing, provided the amount is reasonable.

Tokyo Compliance Snapshot

Professional Advice: The "Important Matters" Document

In Tokyo, most disputes are won or lost based on the Important Matters Explanation (Juyo Jiko Setsumei). Ensure your agent explicitly notes the condition of the property at handover with a photographic record. Without this, the burden of proof rests on the landlord to show that damage was caused by the tenant.

How Landager Helps

Landager is designed to handle the specific documentation requirements of the Tokyo rental market. Our system stores your Juyo Jiko Setsumei and move-in inspection reports in a secure vault. We also provide a "Tokuyaku Tracker" to ensure any cleaning fees or special maintenance clauses are clearly communicated and tracked during the return of the shikikin.

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