Lease Renewal in Tokyo: Renewal Fees Explained for Foreign Tenants (2026)

Most apartment leases in Tokyo run for two years. When that period ends, many tenants are surprised to receive a renewal notice asking them to pay a renewal fee (更新料) in order to stay. If you are new to renting in Japan, this can feel like an unexpected cost. This guide explains how lease renewal works in Tokyo, what the renewal fee is, whether it is legal, what other costs to expect, and how to decide whether to renew or move.

How a Standard Lease Works in Japan

Most rental apartments in Japan use a standard lease (普通借家契約). Key points:

• Two-year term is common: The contract states a fixed term, usually two years.
• Renewal is the norm: If you want to stay, the lease is normally renewed. Under Japan's Act on Land and Building Leases, a landlord needs a justifiable reason (正当事由) to refuse renewal or terminate a standard lease.
• Different from a fixed-term lease: A fixed-term lease (定期借家契約) ends when the term expires unless both sides agree to a new contract. Always check which type you are signing.

What Is the Renewal Fee?

The renewal fee is a one-off payment made to the landlord when the lease is renewed. It is common in the Tokyo area, but not every property charges one. The amount is set in your contract, often expressed as a number of months' rent.

• Check the contract: The renewal fee, if any, should be written in your lease and explained before you sign.
• It varies by property: Some landlords charge no renewal fee at all, especially in competitive markets or newer buildings.
• It is separate from rent: You pay it in addition to your normal monthly rent.

Is the Renewal Fee Legal?

This question went all the way to Japan's Supreme Court. In a decision on July 15, 2011, the Court held that a renewal fee clause is generally valid if it is clearly and specifically written in the lease and the amount is not excessively high compared with the rent and the length of the renewal period.

In practice, this means that if you signed a lease with a clearly stated renewal fee, you should expect to pay it. If you believe an amount is unreasonable, consult a lawyer or your local consumer affairs center rather than simply refusing to pay.

Other Costs at Renewal

• Administrative renewal fee: Some management companies charge a separate handling fee for processing the renewal.
• Fire insurance renewal: Tenant fire insurance policies often run for the same two-year term and need renewing.
• Guarantor company renewal: If you use a rent guarantee company, there may be an annual or renewal fee.
• Possible rent adjustment: With Tokyo rents rising, some landlords propose a rent increase at renewal. Changes to rent generally require discussion and agreement, so review any proposal carefully.

The Renewal Timeline

• 2–3 months before the end date: Your management company usually sends a renewal notice with the new terms and costs.
• Decide: Choose whether to renew or move out. Check your contract's notice period for moving out, which is often one to two months.
• Sign and pay: If renewing, sign the renewal agreement and pay the renewal fee and any other costs by the deadline.
• Update documents: Renew your fire insurance and guarantor contract if required.

Renew or Move? How to Decide

Compare the total cost of staying with the total cost of moving:

• Cost of renewing: Renewal fee + admin fee + insurance + guarantor renewal + any rent change.
• Cost of moving: Deposit, key money, agency fee, first month's rent, guarantor fee, insurance, moving company and time off work.
• Your plans: If you might leave Japan or change jobs within a year, check the early termination rules before renewing.

In most cases, moving costs several times more than a renewal fee, so renewing makes sense unless the apartment no longer fits your needs or the rent is well above market.

If You Decide to Move Out Instead

Choosing not to renew is simple, but timing matters. Most leases require written notice a set period before you leave, commonly one to two months. If you give notice late, you may have to pay rent for the notice period even after you move.

• Give notice in the required form: Some management companies accept an online form; others require a signed document.
• Book the move-out inspection: The management company checks the apartment and calculates restoration costs.
• Understand restoration: Normal wear and tear from everyday living is generally the landlord's responsibility, while damage caused by the tenant is usually charged to the tenant. Guidelines published by Japan's Ministry of Land, Infrastructure, Transport and Tourism are widely used as a reference.
• Deposit refund: Any remaining deposit is returned after restoration costs are settled, usually by bank transfer.

Common Questions

• Can I negotiate the renewal fee? You can ask, especially if you have been a reliable tenant, but the landlord is not obliged to agree.
• What if I miss the renewal paperwork? Contact your management company immediately. Do not assume the lease has ended or that you can stop paying rent.
• Does the renewal fee change if rent changes? If the fee is expressed as a number of months' rent, it will usually be based on the rent stated in the renewal agreement.

Tips for Foreign Tenants

• Read the renewal notice carefully: Ask your agent for an English summary if needed.
• Check your visa period: Make sure your residence card will remain valid, and let your management company know when it is renewed.
• Keep records: Save copies of your lease, renewal agreement and payment receipts.

How Access Japan Real Estate Can Help

Access Japan Real Estate is a licensed real estate broker in Minato-ku, Tokyo, supporting foreign residents in English and Japanese. We can explain your renewal terms, compare the cost of renewing with moving, and help you find a new home if it is time for a change.

Final Thoughts

Lease renewal in Tokyo usually means paying a renewal fee plus a few related costs. The fee is generally valid when it is clearly written in your contract and reasonable in amount. Check your lease early, compare your options, and contact us if you would like help reviewing your renewal.

This article is general information, not legal advice. For your specific contract, please consult a qualified professional.

Cover photo: Estée Janssens / Unsplash