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Renewal fee on apartment 2011/12/14 16:45
Hi!

I'm coming towards the end of my current rental agreement in Tokyo (it expires 6 weeks from now).

I have just applied for another place and want to move there in 4 weeks (2 weeks before the official end of my current contract). This new application has not been finalized yet, but things are moving along gradually.

Unfortunately, I just checked my current contract. It says something along the lines of:

'if you want to leave, you need to tell us two months in advance, otherwise you need to pay the renewal free + 2 months rent from the day you notify us'.

I'm now faced with the prospect of paying 3 months rent on my current place, even although I only want to stay there for 1 more month.

I accept this is entirely my fault for not reading the contract closely (it's all in Japanese and I'm not so great at reading, especially a complex legal document).

Just wondering if anyone else has experienced this and what was the outcome? What would happen if I just refused to pay the renewal fee?

I'm willing to pay rent up to the end of the original two year contract if needs be (this is just 2 weeks extra rent on top of what I expected). However, it seems crazy to pay a renewal fee and extra rent if I have no intention of staying beyond the two year time frame.
by Worried (guest)  

Re: Renewal fee on apartment 2011/12/14 18:18
Well, firs thing you need to do is consult with your landlord immediately. I mean ASAP.

'if you want to leave, you need to tell us two months in advance, otherwise you need to pay the renewal free + 2 months rent from the day you notify us'.

The reason clauses like this exist is so that landlords have time to find new tenants and prevent vacancies, which lead to serious losses.
This is quite common for apartment housing contracts in Japan. However, landlords are human and so he/she may show some leeway. The most important thing is to be direct, up front, and quick about addressing this issue.

I'm now faced with the prospect of paying 3 months rent on my current place, even although I only want to stay there for 1 more month.
I accept this is entirely my fault for not reading the contract closely (it's all in Japanese and I'm not so great at reading, especially a complex legal document).

Just wondering if anyone else has experienced this and what was the outcome? What would happen if I just refused to pay the renewal fee?


What happens is that you are legally in debt to the landlord and he would have legal options including suing you but in reality he might decide it's not worth the trouble.

Now, what really happens is that you make an impression so poor due to your own failings, selfishness and irresponsibility that in all likelihood, the landlord never wants to rent to another foreigner again.

Think about that, please. It's hard enough for foreigners to find reasonable housing in Japan. We don't need people burning bridges because the screwed up and taking responsibility is inconvenient.


I'm willing to pay rent up to the end of the original two year contract if needs be (this is just 2 weeks extra rent on top of what I expected). However, it seems crazy to pay a renewal fee and extra rent if I have no intention of staying beyond the two year time frame.

Again, I hope you don't apply this logic to your final decision. You can't enter a contract and then all of a sudden find the terms crazy or unfair because you didn't bother to read the provisions.

I personally think renewal fees are archaic and ridiculous but you had options (including finding housing without a renewal clause or asking to have the contract translated) before you entered the deal.

Again, however, if you kindly ask the landlord to show some leeway you might come out okay. If they refuse, you then to talk with a lawyer about legally breaking the agreement (there have been successful cases) but who knows about the costs involved.
by kyototrans rate this post as useful

Re: Renewal fee on apartment 2011/12/14 18:56
Yes, I have made contact with the landlord and I am waiting to here what they say.

In fact the landlord is a huge company rather than an individual, which probably isn't so good for me.

I'm more annoyed at myself for not following up or finding out about this sooner. I made assumptions about the way things worked, and those assumptions were wrong.

Of course I understand that it takes time to find a new tenant, but I assumed 1 month would be the notice period (and a letter I received seemed to imply this, but it was really saying that I need to return the renewal document in that time frame).

When it comes to the crunch, I will likely pay the fees to avoid trouble. As you say, I don't want to leave a bad impression of myself never mind foreigners in general. Of course, by failing to understand the details of the contract I've no doubt already created a bad impression :(

In general I feel that having to give two months notice is a little long since that would likely involve telling the owner I am moving before I've found a new place (and that is something I wouldn't feel comfortable with).

Anyway, thanks for your reply.

by Worried (guest) rate this post as useful

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