LEASING PRACTICES

Typical Lease Tenure: The standard lease tenure is typically 2 to 3 years.
Standard Term Lease: The tenant has the statutory rights to renew after a typical 2 years term.
Fixed Term Lease: The landlord has the right to ask the tenant to leave at the end of the 2 years, or to negotiate for new terms.

Responsibility of Landlord: The landlord is responsible for repairs of common areas, external or structural (Eg. lobby, lifts, stairs etc).
Responsibility of Tenant: The tenant is responsible for utilities bill, internal repairs, and reinstatement of the apartment to original condition at the end of lease term.

Shikikin (Security deposit): The tenant will have to pay a security deposit to the landlord when entering into a lease agreement. Money from the security deposit will be used to cover the cost of repairs and outstanding rent, if any. The amount of security deposit is typically 1 to 3 months of rental.
Reikin (Key money): Key money is usually considered as a gift from the tenant to the landlord at the start of the lease. The amount of key money is generally around 1 to 2 months of rental. It is not refundable and does not need to be returned to the tenant when the tenancy expires.
Koushin-ryo (Renewal charge): Renewal charge refers to the money paid to the landlord when the lease contract is renewed. It is not always required.