Japan Security Deposit Rules and Restoration Guidelines

In Japan, disputes over the return of security deposits (Shikikin) are historically the most frequent cause of friction between landlords and tenants. The 2020 revision of the Japanese Civil Code legally codified the definition of the security deposit and strictly clarified the rules surrounding its return to protect consumers.

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.

Security Deposit Definition and Limits

Under Article 622-2 of the Civil Code, a Security Deposit (Shikikin) is defined as money paid by the tenant to the landlord to guarantee any obligations arising from the lease, such as unpaid rent or damage repair costs.

While there is no strict statutory maximum on how much a landlord can charge for a residential security deposit, the market standard across Japan is 1 to 2 months' rent. Charging exorbitantly high deposits for standard apartments could run afoul of the Consumer Contract Act.

(Note: "Key Money" or Reikin, which is a non-refundable gratuity equivalent to 1-2 months' rent paid to the landlord, is legally distinct from the security deposit and is entirely non-refundable).

Return Deadlines and Obligations

The landlord bears the legal obligation to return the remaining balance of the security deposit after deducting legitimate unpaid rent and allowed restoration costs when:

1. The lease agreement ends and the property is vacated/returned.
2. The tenant legally transfers the lease rights (with permission).

While Japanese law does not specify an exact number of days (unlike the 21-day rule in some US states), it mandates that the deposit must be returned "without delay" after the tenant moves out. In practice, sending an itemized statement and wiring the remaining funds within 1 to 2 months post-move-out is standard.

Ordinary Wear and Tear (Normal Use)

The most heavily regulated aspect of Japanese security deposits is the Restoration to Original Condition (Genjo Kaifuku). Under Article 621 of the Civil Code, while a tenant must restore the property to its original condition when vacating, tenants are explicitly NOT responsible for repairing:

1. Ordinary wear and tear (damage resulting from normal, intended use).
2. Natural aging/deterioration (depreciation over time).

The Ministry of Land, Infrastructure, Transport and Tourism (MLIT) publishes the highly influential "Guidelines for Disputes over Restoration to Original Condition". Although technically guidelines, Japanese courts use these as the defacto legal standard.

What the Landlord Pays For (Normal Wear):

• Sun-faded wallpaper or tatami mats
• Indentations on floors/carpets from heavy furniture (beds, sofas)
• Black smudges from the back of refrigerators (electrostatic burns)
• Natural discoloration of fixtures

What the Tenant Pays For (Intentional/Negligent Damage):

• Deep scratches on floors from dragging furniture
• Wall discoloration or odor from heavy indoor smoking
• Scratches and odors left by pets
• Lack of basic cleaning/mold caused by neglecting ventilation

Special Clauses (Cleaning Fees)

A landlord can include a "Special Agreement" (Tokuyaku) requiring the tenant to pay for professional house cleaning (typically around 1,000 to 1,500 JPY per square meter) regardless of how clean the tenant leaves the apartment.

However, for such an agreement to be legally valid under the Consumer Contract Act, it must meet strict requirements:

1. The tenant must be explicitly aware they are taking on a burden beyond ordinary restoration duties.
2. The specific cost (or a clear calculation method) must be explicitly written in the lease.
3. The clause must not be excessively expensive or exploitative.

Vague clauses stating "the tenant pays all cleaning costs" without specifying an amount are frequently struck down as void by Japanese courts.

Best Practices for Compliance

To avoid violations and streamline move-outs:

• Move-In/Move-Out Checklists: Conduct a joint inspection with the tenant before handing over the keys. Record all existing damages with timestamped photographs and a signed checklist.
• Depreciation Calculation: When a tenant genuinely damages a fixture (e.g., wallpaper), you cannot charge them for brand-new wallpaper. You must calculate the remaining value based on its statutory useful life (e.g., wallpaper depreciates to 1 JPY value after 6 years).
• Itemized Statements: Provide a highly detailed deduction receipt mapping repairs to actual contractor invoices before deducting from the Shikikin.

Landager’s platform facilitates digital move-in checklists and tracks the useful life of room fixtures, allowing owners to automatically generate compliant, depreciation-adjusted deduction statements upon tenant move-out.

Back to Japan Landlord-Tenant Laws Overview.