A practical guide to rent hike notices, tenant rights, and the legal deposit system in Japan.
For Tokyo renters who do not want inflation pressure to turn into a lease-renewal cash grab.
This guide covers what to do when your landlord tries to raise your rent at renewal in Tokyo, when you can push back, and how to protect yourself without missing rent. It is for foreign tenants, long-term renters, and expats facing sudden renewal pressure in Japan. It matters now because rents in Tokyo have started moving again: apartment rents in the capital rose 1.3% year on year in April and May 2025, the biggest gain since 1994, while average asking rents in Tokyo’s 23 wards hit a record high of ¥16,085 per tsubo in October 2025, up 14.1% from a year earlier.
This is where many renters panic. A renewal packet lands, the landlord points to inflation, and suddenly the new number is framed like something you have no choice but to accept. That is the trap. Under Japan’s Act on Land and Building Leases, a landlord can request a future rent increase when the current rent has become unreasonable, but if there is no agreement, the tenant may keep paying an amount the tenant considers reasonable until a final court decision says otherwise.
Why This Guide Matters
The most important thing to understand is that a rent increase notice is not the same thing as an automatic legal increase. Article 32 of the Act on Land and Building Leases gives both sides the right to request an increase or decrease when rent has become unreasonable because of taxes, property values, economic conditions, or nearby comparable rents. But the same article also says that if the parties do not agree, the tenant can keep paying an amount deemed reasonable until a final binding judicial decision is made.
That matters because many renewal notices are written to make the tenant feel cornered. The wording often implies that the new amount is already fixed, when the law says the increase is still a request unless both sides agree or a court confirms it. That is the gap most renters miss.
There is another protection point that matters during renewal pressure. In ordinary building leases, Article 28 says the landlord cannot refuse renewal or terminate the lease unless there are justifiable grounds, judged by the lease history, how the building is used, the building’s condition, and other circumstances. In plain English, a landlord does not get a free legal shortcut just because you said no to a rent hike.
What This Is and Who Needs It
This guide is most useful for tenants in standard residential leases who received a rent increase request during renewal and are being pressured to sign quickly. It is especially important if you have been paying on time, following building rules, and are now being told that “market conditions” mean the new amount is non-negotiable. Article 28’s justifiable-grounds standard and Article 32’s reasonable-rent rule are the two legal anchors that matter most in that situation.
It is also useful if the renewal papers are mixing separate charges together. A rent increase request is one issue. A renewal fee, or koshinryo, is another line to check separately in the paperwork. The practical mistake is treating the whole renewal packet as one unavoidable number instead of separating the proposed new rent from every other fee line before you respond.
One important caution: this guide is aimed at ordinary leases, not every fixed-term lease. Under Article 38, a fixed-term building lease can end without renewal if the landlord gave the required written explanation in advance and proper notice before expiry. If your contract is fixed-term, check that section first before assuming the standard renewal protections apply.
Costs, Documents, or Setup Steps
Start with a simple three-part check before you sign anything:
- Confirm whether your contract is an ordinary lease or a fixed-term lease
- Separate the proposed new rent from any renewal fee or admin charge
- Compare the landlord’s stated reason with your current rent, payment history, and nearby market reality under Article 32’s “unreasonable rent” standard
If you decide the increase is unfair, the next practical move is a written refusal. The safest version is not emotional. It should identify the property, state that you do not agree to the proposed increase, and state that you will continue paying the current or otherwise reasonable amount under Article 32 until agreement or a final court decision. The official sources reviewed here do not provide a magic refusal sentence, but that structure follows the statute directly.
Then comes the most important money-protection step: kyotaku. The Ministry of Justice says that when a landlord demands an unfair increase, the tenant can tender the rent amount they consider reasonable, and if the landlord refuses to accept it, the tenant can extinguish the rent obligation by making a performance deposit based on “recipient refusal.” The Ministry also publishes a specific sample form for depositing a “reasonable rent” in response to a rent increase demand.
That point is critical because many renters make the same mistake. They think, “If I do not pay the higher amount, I look delinquent.” The law does not force that choice. What matters is that you keep paying an amount you consider reasonable and use the proper deposit route if the landlord refuses it. The Ministry of Justice also makes clear that, before using a recipient-refusal deposit, you must first properly offer the payment to the landlord.
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Common Mistakes and Practical Tips
The first mistake is signing the renewal under pressure and trying to “fix it later.” Once you agree to the new number, your leverage drops. If you believe the increase is unfair, pause before signing and get your position in writing first.
The second mistake is refusing the increase verbally but not creating a paper trail. A safer file usually includes:
- the rent increase notice
- your written refusal
- proof that you offered the current or reasonable rent
- proof of payment or kyotaku steps if payment was refused
The third mistake is confusing a rent increase request with every other renewal charge. Inflation language can hide other lines in the packet. Check whether the landlord is also trying to push through a separate renewal fee, insurance change, or admin fee at the same time. Even when the market is moving, you should still review each renewal line item separately before signing.
What To Do Next
If your renewal deadline is close, act in order.
- Check the lease type first
- Do not sign the new rent amount on instinct
- Send a written refusal if you do not agree
- Keep paying the current or other reasonable amount
- If the landlord rejects that payment, look at kyotaku immediately and follow the Ministry of Justice process carefully
The bigger goal is simple: do not let market headlines do the negotiating for the landlord. Yes, Tokyo rents are rising. But the law still requires more than a scary renewal notice to make a higher rent legally final.
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Official Note
This guide is based on the current text of Japan’s Act on Land and Building Leases, including Article 28 on refusal to renew ordinary leases and Article 32 on rent increase disputes, plus Ministry of Justice materials on rent-payment deposits and sample forms for deposits made against an increase demand. It does not replace case-specific legal advice, especially for fixed-term leases or unusual contract wording.
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The most expensive renewal mistake in Tokyo is not rising rent by itself. It is believing a landlord’s first number is automatically the legal number.
Question for readers: Have you ever pushed back on a rent increase in Japan, or did the renewal pressure make you sign first and regret it later?