When moving out of a rental property, concepts such as "wear and tear," "aging deterioration," and "restoration to original condition" inevitably come up. From our position as a management company that answers questions from both residents and owners every day, we have compiled in a clear way the knowledge you should understand to prevent disputes over move-out costs.
What is aging deterioration? Key points for judgment in property management practice
Aging deterioration refers to a decline in value that occurs naturally over time. Typical examples include wallpaper fading or discoloration from sunlight and yellowing of equipment packing or seals. For aging deterioration, repair costs cannot be charged to the resident. Those responsible for management need to apply this principle in light of the age of each property.
What is wear and tear? The difference between ordinary wear and special damage
Wear and tear is a general term for damage and dirt caused by living in and using a property. In property management practice, distinguishing between "ordinary wear and tear" and "special damage" is important.
What is ordinary wear and tear?
Ordinary wear and tear refers to natural deterioration that is unavoidable in daily living. Examples include dents in flooring caused by furniture, small pinholes from pushpins, and discoloration on walls caused by household appliances. The cost burden falls on the landlord (owner or management company).
What is special damage?
Special damage refers to damage caused by intent, negligence, or a breach of the duty of due care. Typical examples include walls yellowed by cigarette tar, mold caused by neglected cleaning, and scratches caused by pets. Repair costs for special damage are borne by the tenant.
How are aging deterioration and ordinary wear and tear different?
Aging deterioration can be understood as "natural deterioration caused by the passage of time," while ordinary wear and tear refers to "consumption caused by normal daily use." Both are the same in that they do not become the tenant's responsibility, but the basis for that judgment differs. Aging deterioration is judged on the axis of time, while ordinary wear and tear is judged by whether the use was within normal bounds.
In what cases does the tenant bear the cost?
Cases that fall under special damage are the tenant's responsibility. Below are common cases seen in property management practice.
Stains from cigarette tar and ash
Tar stains, blackening, and floor scorch marks caused by indoor smoking are considered special damage. This is a case in which post-move-out cleaning costs and wallpaper replacement arise, often resulting in a high claim amount to the tenant.
Dirt and mold caused by neglected cleaning
Mold and dirt caused by a failure to carry out regular cleaning in places such as bathrooms, toilets, and washstands are regarded as special damage. This is because damage that should have been preventable through regular cleaning is considered a breach of the tenant's obligations.
Dirt and damage caused by pets
Damage caused by keeping pets in a property where pets are prohibited is naturally the tenant's responsibility. Even in pet-friendly properties, move-in checks and comparative records at move-out provide the basis for appropriate claims. Typical claimed items include peeling wallpaper, floor scratches, and clogged drainage pipes.
How do restoration obligations and security deposits work?
Restoration to original condition means the tenant's obligation to return the property to the state it was in at the beginning of the lease when moving out. However, this does not include aging deterioration or ordinary wear and tear.
Restoration costs are settled from the security deposit
Repair costs for special damage are applied against the security deposit. If the issues are only aging deterioration or ordinary wear and tear, the guideline-based principle is that the full security deposit should be returned. If repair costs exceed the security deposit, an additional charge is made; if they are less, the difference is refunded.
What happens if there is no security deposit, such as in a zero-zero property?
In a zero-zero property with no security deposit or key money, special damage at move-out will be billed separately. While initial costs can be kept low, there is a risk of higher move-out costs, so it is important for management to explain this to residents in advance.
How to respond if you receive an excessively high claim
If you receive an unreasonably high claim at move-out, please compare your contract with the Ministry of Land, Infrastructure, Transport and Tourism's "Guidelines for Troubles and Restoration to Original Condition". If there is doubt, there are cases where the matter can be brought back to an appropriate level by consulting the management company first and then the National Consumer Affairs Center.
Recommended reading
- A Must-Read for Landlords: The Complete Guide to Pre-Move-In Checks That Determine the Success of Rental Management | Keys to Preventing Trouble and Preserving Asset Value
- Restoration Costs for Installing Security Systems in Rental Housing: Cost-Burden Rules Every Owner Should Know
- How to Choose a Property Management Company for Rental Real Estate | Seven Points Owners Should Prioritize and the Keys to Success
FAQ: Common Questions About Wear and Tear and Restoration to Original Condition
Q. Are dents left by a dresser the tenant's responsibility?
A. Dents in flooring or tatami caused by placing furniture fall under ordinary wear and tear, so in principle they are not the tenant's responsibility.
Q. Are there cases where aging deterioration still becomes the tenant's responsibility?
A. If the contract includes a "special provision" stating, for example, that "the tenant shall bear all wallpaper replacement costs," it may be considered valid. However, because some cases may raise issues under the Consumer Contract Act, it is important to confirm the contents before moving in.
Q. How much does it cost to move out of a zero-zero property?
A. If there is no special damage, often only cleaning costs are incurred (roughly JPY 10,000 to 30,000), but if there are tar stains or pet-related damage, the total may exceed JPY 100,000 to 300,000 or more.
Q. When should I consult the management company?
A. We recommend confirming an approximate restoration cost when you give notice 1 to 2 months before moving out. Understanding the likely cost early helps prevent disputes.
Q. Can I consult the National Consumer Affairs Center?
A. If the issue cannot be resolved through discussions with the management company, consulting the National Consumer Affairs Center or a local consumer affairs center can be effective. In some cases, pointing out discrepancies with the guidelines can encourage an appropriate response.
