The most trouble-prone aspect of rental property management is the move-out inspection. Disputes between owners and tenants over restoration costs often escalate, with cases going to court not being uncommon.
This article explains from a practical perspective the types of troubles that commonly occur at move-out inspections, what owners can and cannot claim, essential rules for preventing disputes, and location-specific checklists.
Three Common Complaints at Move-Out Inspections
① Restoration Cost Complaints
In principle, wear from normal use and aging does not fall on the tenant. Properly understand the Ministry of Land, Infrastructure, Transport and Tourism's "Guidelines for Disputes Concerning Restoration" to make appropriate judgments.
② Special Clause Complaints
Even if you include a special clause making the tenant responsible for house cleaning costs, to make the tenant bear costs for normal wear, you need evidence such as photos proving the damage exceeds that level.
③ Explanation Responsibility Complaints
If the tenant has not fully understood and agreed to the special clause content, it may be deemed invalid. Getting a signature on a document acknowledging receipt of explanation is essential.
What Owners Can and Cannot Claim
Damages Chargeable to Tenant (Breach of Duty of Care)
- Scratches on wallpaper or pillars from moving work
- Children's graffiti
- Yellowing and odor from cigarette tar
- Scratches and odor from pets
- Discoloration of tatami and flooring from neglected condensation
- Holes and marks from installing lighting fixtures
- Lost or damaged keys
- Overgrown weeds due to lack of garden maintenance
Non-Chargeable Damages (Normal Wear and Aging)
- Dents and marks from furniture placement
- Wall darkening from appliance use
- Natural fading of tatami, flooring, and wallpaper
- Thumbtack holes
- Screw holes for air conditioner installation
- Key replacement costs at move-in
- Damage from natural disasters
- Equipment failure due to aging
※While it is possible to set custom rules for repair scope through special clauses, content that is unreasonably unfavorable to the tenant is not recognized under civil law.
5 Essential Rules to Prevent Move-Out Disputes
① Clarify Restoration Rules
Article 616-5 of the Civil Code clearly states that repairs for normal wear and aging are not the tenant's obligation. Before signing a contract, clearly define and document the boundary between owner and tenant responsibilities.
② Define Security Deposit Handling
According to Article 622-2 of the revised Civil Code, security deposits can only be used for unpaid rent, damages, and repair costs, with an obligation to return any surplus to the tenant.
③ Set Maximum Amount for Guarantors
Under Article 465 of the revised Civil Code, guarantors cannot be charged beyond a certain amount. Specify the maximum amount in the contract.
④ Record Property Condition at Move-In
At move-in, both owner and tenant should be present to take photos and sign a condition report. Since the move-in condition becomes unclear after long-term occupancy, this record becomes the most critical evidence.
⑤ Conduct Move-Out Inspection with Empty Property
To avoid missing scratches and stains hidden by furniture, conduct the inspection after the move is complete with nothing remaining.
Move-Out Inspection | Location-Specific Checklist
Water Areas (Kitchen, Bathroom, Sink, Toilet)
- □ Are faucets and taps damaged (check by actually running water)
- □ Are there leaks, limescale, or mold
- □ Grease buildup around stove and inside ventilation fan
- □ Condition of bathtub, drain, and shower head
- □ Has the shower head been replaced with different parts from move-in
- □ Abnormalities in toilet bowl, seat, and flush tank
- □ Condition of storage shelves
Living Spaces (Living Room, Bedroom, Japanese-Style Room)
- □ Scratches and stains on walls, floors, ceilings (nail marks, tar stains, mold)
- □ Easily overlooked stains on wallpaper above doors and near floor edges
- □ Operational check of air conditioner, smoke detector, and lighting fixtures
- □ Condition of window glass, screens, and frames
- □ For Japanese-style rooms: condition of tatami, fusuma, and shoji
Entrance
- □ Scratches and damage to door and doorknob (pay attention as they are often shadowed)
- □ Door opening and closing (directly related to security)
- □ Presence of shoe cabinet shelves
- □ Confirmation of key and spare key return
- □ Operational check of intercom and door chain
Exterior Areas
- □ Garbage sorting status
- □ No abandoned bulky waste (check for collection stickers)
- □ Items left on veranda or balcony
- □ Damage to outdoor equipment
3 Ways to Handle Payment Refusal
① Consider Tenant Liability Insurance Coverage
This is a special clause included in fire insurance where insurance payouts are made to the owner for damage from accidental incidents. It is particularly effective when repair costs are high.
② Claim from Joint Guarantor
Joint guarantors have the same payment obligations as tenants. However, flexibility to accept installment payments according to financial circumstances is also necessary.
③ Delegate Move-Out Inspection to Management Company
Experienced management companies have guideline knowledge and trouble-avoidance expertise. Cases often complete from inspection to restoration work in about 10 days, also shortening vacancy periods.
Summary
Most move-out inspection disputes arise from inadequate move-in records, insufficient guideline understanding, and improper documentation. By taking photos at move-in and exchanging condition reports, clarifying cost-sharing rules in compliance with guidelines, and utilizing location-specific checklists at move-out, most disputes can be prevented.
INA&Associates Inc. provides rental management services that handle everything from move-out inspections to restoration work in one stop. Owners who wish to achieve smooth, trouble-free move-out procedures are welcome to contact us.
