Consumer Center Complaints Begin Not at Move-Out, but at Move-In
In Japan-specific rental practice, many searches for “rental dispute consumer center” begin with tenant anxiety about whether a move-out settlement is fair. Typical complaints involve a small security deposit refund, high restoration charges, cleaning fees that were not explained, or charges for scratches that existed before move-in.
From the perspective of a property management company or owner, the dispute may appear to arise suddenly at move-out. In practice, however, points of dispute often surface at move-out because earlier documentation was insufficient: pre-contract explanations, pre-move-in photos, repair histories, move-out inspection records, and itemized settlement statements.
The important point is not to “persuade the other party,” but to create a record that a third party can evaluate later. Whether the matter goes to a local consumer affairs center, a lawyer, mediation, or small claims litigation, the final questions are not emotional. They are about the lease, explanations, evidence, and the basis for the amount charged.
Compared with some English-speaking markets, where deposit deductions may be explained mainly through a final invoice and landlord-tenant statute, Japanese practice places heavy emphasis on whether move-out costs were explained in advance and whether the charge fits Japan’s restoration guidance.
Causes of Complaints That Property Managers Should Understand First
Complaints in rental management do not arise only because of insufficient legal knowledge. More often, tenants receive a bill without understanding “what they agreed to” or “why this amount is being charged.”
| Situation likely to become a complaint | How the tenant perceives it | Required management response |
|---|---|---|
| Almost none of the security deposit is returned | The tenant cannot tell what it was used for | Separate the amount applied to unpaid rent, restoration costs, special-clause costs, and other items |
| Full replacement of wallpaper is charged | It looks excessive when only part of the wall is stained | Explain the damaged area, work unit, elapsed years, and burden allocation |
| House-cleaning fees are charged | The tenant feels it may be unfair to charge this even after normal use | Confirm the lease clause, important matters explanation, amount level, and scope of work |
| The tenant is charged for pre-existing scratches | The tenant feels the management company failed to check the condition | Present pre-move-in photos, move-in checklist, and repair history |
| Charges are based only on an estimate | The tenant cannot tell whether the work is really necessary | Link photos, work items, quantities, unit prices, and the tenant’s share |
If the management company simply says “it is written in the lease” without this breakdown, the tenant is more likely to consult a consumer center or outside advisory service. The lease is important, but in practice the clause must be connected to site evidence.
Explain Security Deposit Refunds by Breaking Down “What Can Be Deducted”
A security deposit, or shikikin (敷金), is money paid by the tenant to the landlord to secure unpaid rent and other tenant obligations. Under Japan’s amended Civil Code, which took effect in 2020, the definition of a security deposit and the basic approach to refunding it are expressly stated. At move-out, the basic rule is that the remaining balance is refunded after deducting unpaid obligations and similar amounts.
What property managers should avoid is treating the security deposit vaguely as “move-out costs.” Even when deducting from the deposit, at minimum the following categories should be shown separately.
- Unpaid rent, common-area fees, renewal fees, and similar obligations
- Restoration costs borne by the tenant
- Special-clause costs, such as cleaning fees, that are clearly stated in the contract and already explained
- Other costs that are agreed or supported by a clear basis
In deposit refund disputes, distrust is often caused less by the amount itself than by the fact that the breakdown is invisible. The settlement statement should clearly state the deposit received, deduction items, treatment of consumption tax, expected refund amount, and expected refund date. Even for a zero-deposit property, the landlord may be able to charge for tenant-responsible damage, but because there is no deposit to offset, the explanation of the basis for the claim must be more precise.
In many global markets, a “deposit-free” lease may feel like a lower-risk entry point for the tenant. In Japan, however, zero deposit does not mean zero move-out liability if the tenant caused damage beyond ordinary use.
Restoration Does Not Mean Returning the Unit to Its Original Borrowed Condition
The Ministry of Land, Infrastructure, Transport and Tourism’s “Guidelines on Problems Involving Restoration to Original Condition” explain genjō kaifuku (原状回復, restoration to original condition) as restoring wear or damage caused by the tenant’s intent or negligence, breach of the duty of care of a prudent manager, or use beyond ordinary use. In other words, restoration does not mean making the unit like new, nor does it mean returning it to exactly the same condition as at move-in.
In management practice, wear and damage should first be separated as follows.
| Category | Typical examples | Basic approach |
|---|---|---|
| Age-related deterioration | Wallpaper discoloration from sunlight, natural deterioration of equipment | Generally borne by the landlord |
| Ordinary wear and tear | Minor floor dents from furniture placement, dirt from normal use | Generally borne by the landlord |
| Tenant intent or negligence | Tobacco tar, pet scratches or odor, stains from spilled drinks left untreated | May be borne by the tenant |
| Expanded damage due to insufficient care | Mold caused by neglected condensation, damage worsened because a leak was not reported | May be borne by the tenant depending on circumstances |
| Cosmetic work for the next leasing | Full renovation or upgrade to attract the next tenant | Generally borne by the landlord |
Even when the tenant may bear responsibility, the full amount is not always chargeable. The MLIT guidelines present the idea of considering elapsed years and the unit of work. A practical key to reducing settlement disputes is to base the claim on restoration of the damaged portion and, wherever possible, judge the necessary minimum scope.
Pre-Move-In Photos Must Be Stored in a Usable Form, Not Merely Taken
Pre-move-in photos are central to preventing rental disputes. However, simply having photos is not enough. If the shooting date, room number, photographer, photographed location, file name, and storage location are not organized, the photos become difficult to use as evidence at move-out.
In practice, fixed-point photos should be taken of the entrance, corridor, four corners of each room, walls, floors, fittings, windows, equipment, bathroom, kitchen, toilet, balcony, air conditioner, water-heater remote control, and similar areas. If scratches or stains are present, both overall photos and close-ups should be kept. Video may also be used, but for day-to-day operations, a photo ledger is usually easier to manage because the relevant location can be found later.
The tenant should also receive a move-in checklist, with a process allowing additional reports within a defined period. What matters here is not only receiving the report, but recording the management company’s confirmation result. Records such as “reported,” “confirmed,” “repair planned at landlord expense,” or “agreed to use as-is” help reduce move-out disputes.
Important Matters Explanations and Lease Clauses Are Not Enough If They Are Only “Read”
The jūyō jikō setsumei (重要事項説明, important matters explanation) and the lease agreement describe move-out costs, restoration, prohibited acts, repair reporting, equipment treatment, special clauses, and similar matters. However, the existence of a clause and the ability to prevent practical disputes are different things.
Items requiring particular care include cleaning fees, air-conditioner cleaning, key replacement, early termination penalties, restoration when pets are kept, smoking-related costs, and settlement methods for corporate leases. Items that tenants are likely to later say they “were not told that clearly” should be orally explained at contract signing, with a record of that explanation kept.
However, giving an explanation does not make every special clause valid. Under the Consumer Contract Act and basic principles of the Civil Code, clauses that impose a one-sided and excessive burden on the tenant may be challenged. A management company should not compete over how strong its clauses are. It should prepare reasonable scope, clear amounts, and an operation that can be explained.
Treat the Move-Out Inspection as Fact Confirmation, Not a Settlement Negotiation
A common mistake at move-out inspections is moving directly into price negotiation on site. Emotions can run high, and if the staff member casually states “you must pay all of this” or “your deposit will not be returned,” the later estimate may no longer align with the guidelines or supporting evidence.
At the move-out inspection, first focus on confirming facts. Check whether damage exists, where it is, its degree, comparison with pre-move-in records, tenant statements, key return, remaining personal property, and equipment defects. The signature field should clearly state that “the current condition was confirmed,” not that “the tenant agreed to bear the cost.”
It is safer to present the amount after organizing the construction estimate and burden allocation. When sending the settlement statement to the tenant, match photo numbers with charged items. For example, instead of merely writing “bedroom wallpaper replacement,” the statement should be explainable as “east wall wallpaper in bedroom, discoloration from tobacco tar, photos 12 and 13, work area ○ square meters, tenant share ○% after considering elapsed years.”
Before Being the Owner’s Agent, the Management Company Is the Designer of Records
The role of a rental management company is not only to relay the owner’s wishes to the tenant. In practice, it designs the records and operations needed to protect the owner’s asset while reducing dispute risk with the tenant.
Even when the owner wants to charge as much as possible, the management company must check consistency among the guidelines, lease, photos, repair history, and estimates. Pursuing weakly supported claims increases tenant distrust and can lead to consumer center consultations, worse reviews, and higher collection costs due to prolonged disputes.
On the other hand, if damage that should fairly be borne by the tenant is treated vaguely, the owner’s income and asset value suffer. What is required of the management company is not an intuitive decision about whether to charge. It is a practical judgment to charge items with a proper basis and organize weakly supported items as landlord responsibility.
If Agreement Cannot Be Reached, Narrow the Issues Before Escalating the Claim
If the tenant does not accept the settlement, break down the issues before immediately moving to demands or legal procedures. The response will differ depending on whether the dissatisfaction concerns the total amount, a specific construction item, a claim that the scratch existed before move-in, or insufficient explanation of a special clause.
First, organize each charged item by “contractual basis,” “evidence such as photos,” “guideline-based approach,” “basis for the estimate,” and “room for reduction.” If the other party’s claim has merit, correcting it early may ultimately reduce the loss. Conversely, if tenant negligence is clear and the materials are complete, avoid emotional exchanges and explain calmly in writing.
Consumer centers are mainly consultation windows for consumers. If an owner or management company wants legal judgment on a specific case, consulting a lawyer, real-estate association, or specialist familiar with management operations is more practical. When considering small claims litigation or mediation, assess not only the amount claimed but also the quality of evidence, recoverability, and staff time required.
Preventing Recurrence Depends More on Fixed Operations Than Checklists
Rental dispute prevention loses reproducibility if it depends on the experience of individual staff members. Omissions become more likely as conditions change, such as busy leasing seasons, staff turnover, transfer of management, corporate leases, foreign-national tenants, or pet-friendly properties.
At minimum, the following operations should be fixed.
| Timing | Operation to standardize | Purpose |
|---|---|---|
| Before marketing | Create a ledger of restored areas, unrepaired areas, and equipment condition | Establish the baseline pre-move-in condition |
| Before contract | Explain and record move-out costs, prohibited acts, and special clauses | Reduce “I was not told” disputes |
| Immediately after move-in | Collect move-in checklists and photo reports | Prevent existing scratches from becoming disputed issues |
| During occupancy | Save histories of reports on leaks, mold, noise, and equipment failures | Show prudent-care duties and response history |
| At move-out notice | Include the settlement process and required time in move-out guidance | Adjust expectations at move-out |
| After move-out | Review settlement results and objections by case | Avoid repeating the same disputes |
A checklist should not be created and then left unused. It must be linked to the management system, photo storage rules, settlement statement templates, and staff training. In particular, companies that store pre-move-in photos and move-out settlement statements in separate locations often face the problem of having evidence but being unable to use it. Centralized management by property and unit is therefore important.
FAQ
If a Tenant Consults a Consumer Center, How Should the Management Company Respond?
First, confirm the issues without blaming the other party. If the consumer center contacts the company, organize the lease, important matters explanation, pre-move-in photos, move-out inspection record, estimate, and settlement statement so that the facts can be explained. Do not handle the response only verbally; keep written records where necessary.
Can Restoration Costs Be Charged Even for a Zero-Deposit Property?
The absence of a deposit and the existence of tenant-responsible damage are separate issues. If there is tenant intent or negligence, or wear beyond ordinary use, and the lease, evidence, and basis for the amount are in order, charges may be possible. However, because the amount cannot be offset against a deposit, the precision of the invoice explanation and agreement formation becomes more important.
If There Are No Pre-Move-In Photos, Does That Mean Move-Out Charges Cannot Be Made?
The absence of pre-move-in photos does not automatically make charges impossible, but it makes the management company’s explanation more difficult. Supplement with repair histories, photos from previous listings, tenant reports, the nature of the damage, equipment replacement dates, nearby construction history, and other materials. However, for items where the possibility that the damage existed before move-in cannot be ruled out, it may be necessary not to force the charge.
How Far Is a Special Clause for Cleaning Fees Valid?
It cannot be said uniformly that such clauses are always valid or invalid. It is important that the clause be clearly written in the lease, that the amount and burden are specific, that it was explained at contract signing, and that it does not impose an excessive burden on the tenant. In practice, the actual explanation record and the reasonableness of the charged amount should be checked, not only the wording of the special clause.
Related Links
- What Is Restoration Work? Scope, Costs, and Settlement Dispute Prevention Measures Rental Owners Should Know
- A Must-Read for Rental Owners: Pre-Move-In Checklist and Cost-Burden Guidelines to Prevent Restoration Disputes
- How to Avoid Move-Out Settlement Disputes: Reading Settlement Statements, Restoration Guidelines, and Checkpoints
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