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 The primary framework is established by the Japanese Civil Code (Minpo) (Act No. 89 of 1896), which was originally enacted on 27 April 1896 and significantly amended regarding security deposits on 1 April 2020, and the Tokyo Metropolitan Ordinance on the Prevention of Disputes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. 111 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 refundable security deposit (typically 1–2 months' rent). It serves as collateral for unpaid rent or damage caused by the tenant. Under Article 622-2 of the Civil Code, the landlord must return the balance after valid deductions.
• 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: The law now explicitly states that tenants are not responsible for "normal wear and tear" or "deterioration over time." This includes faded wallpaper from sunlight, dents in flooring from furniture, or small pinholes for posters.
• Tenant Liability: The tenant is only liable for damage resulting from willful intent, negligence, or improper use (e.g., cigarette burns, mold caused by failure to ventilate, or damage from a pet not permitted in the lease).

3. The "Tokyo Rule" Disclosure Mandate

Tokyo has stricter transparency requirements than the rest of Japan. Landlords and their agents are legally required to provide a written explanation of the following before the lease is signed:

1. The specific items that fall under "normal wear and tear" (Landlord's burden).
2. The items that fall under tenant-caused damage (Tenant's burden).
3. Any Special Clauses (Tokuyaku) that deviate from standard guidelines, such as a mandatory professional cleaning fee.

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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