Osaka Security Deposit Rules: Shikibiki System

Legal Framework for Security Deposits in Osaka

Managing rental properties in Osaka requires navigating a unique regional custom known as the Hoshokin/Shikibiki system. While the 2020 Civil Code Amendment established national standards for security deposits (shikikin), Osaka's traditional "fixed-deduction" model remains legally enforceable and widely practiced.

1. Shikikin vs. Shikibiki (Kansai Custom)

In Tokyo, deposits are typically fully refundable minus damages. In Osaka, the structure is often different:

• Hoshokin (Guarantee Deposit): A larger upfront sum (often 3–6 months' rent).
• Shikibiki (Deduction): A non-refundable portion of the Hoshokin. This amount is never returned to the tenant, regardless of the property's condition. It essentially serves as a combined "Key Money" and a fixed cleaning/restoration fee.
• Status: The Japanese Supreme Court has ruled that Shikibiki clauses are valid as long as the amount is not "excessively high" (typically up to 2–3.5 times the monthly rent).

2. The 2020 Civil Code Amendment: Tenant Protections

Despite the local custom, all contracts signed after April 1, 2020, must comply with new national standards for restoration:

• Normal Wear and Tear: Under Article 621, the landlord is responsible for "normal wear and tear" (e.g., wallpaper fading from sunlight, furniture marks on carpet).
• Tenant Negligence: The tenant is only liable for damage caused by willful intent or negligence (e.g., cigarette burns, pet scratches, mold from lack of ventilation).
• Deduction Limits: If a contract uses the Shikibiki system, the landlord generally cannot charge additional cleaning fees unless they are explicitly itemized as separate from the Shikibiki amount in the written agreement.

3. Tokyo-style Shift in the Osaka Market

Modern developments in Osaka are increasingly moving toward the Tokyo-style Shikikin/Reikin system to attract international and corporate tenants who prefer transparency. Landlords should clearly state in the Important Matters Explanation (Juyo Jiko Setsumei) which system is being used to avoid disputes at the end of the tenancy.

Osaka Compliance Snapshot

Professional Advice: The Documentation Burden

In Osaka, the burden of proof for any deductions beyond the fixed Shikibiki amount rests entirely on the landlord. To protect your investment, always perform a high-resolution photographic move-in inspection. This is critical for rebutting tenant claims that damages were "pre-existing" or "normal wear."

How Landager Helps

Landager's "Kansai Module" allows you to configure your properties using either the Shikikin/Reikin or the Hoshokin/Shikibiki model. Our system automatically calculates the non-refundable portion according to your specific contract terms and generates a clear settlement statement for the tenant, ensuring your deductions remain within the "reasonable" limits established by the Supreme Court.

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