The move-out inspection of a rental property is an important process directly tied to the security deposit settlement. Disputes over restoration costs occur frequently and can create significant risk for landlords. In this article, we explain the problems that commonly arise during move-out inspections and how to avoid them, while also referencing the restoration guideline.
What is the obligation to restore the property to its original condition?
Restoration to original condition means the tenant's obligation to repair damage caused to the rented room through intent or negligence. It does not mean "returning everything completely to its original state," and normal wear and tear from ordinary use is excluded.
Japan's Ministry of Land, Infrastructure, Transport and Tourism provides the "restoration guideline," which sets out a general standard for how costs should be shared between tenants and landlords. However, it is not legally binding, so it is used as a practical guide for preventing disputes.
The importance of useful life
Items that have lost their value after exceeding their useful life (the statutory service life of equipment or building components) are generally considered the owner's responsibility. It is important for both parties to confirm the condition at move-in and move-out and agree on a cost allocation they can both accept.
The process from move-out inspection to additional billing
- Inspect the room together with the tenant：Check whether scratches or stains existed before move-in or were caused by the tenant
- The real estate company reports to the owner：Report the damaged areas, scope of repairs, and estimated cost
- House cleaning：Professional cleaning carried out by a cleaning company
- Bill the tenant for repair costs：Charge for damage caused through intent or negligence
What can and cannot be charged to the tenant?
Items that can be charged (damage caused by intent or negligence)
- Wallpaper discoloration or odor caused by cigarettes
- Drink stains and scratches caused by pets
- Stains or corrosion caused by leaving an air conditioner water leak unattended
- Water scale, rust, or mold caused by inadequate cleaning
- Marks from nails or screws put into the wall
Items that cannot be charged (aging and normal wear and tear)
- Wallpaper discoloration (caused by sunlight)
- Pin holes
- Dents in floors or walls caused by furniture placement
- Fading of flooring or tatami mats
- Failure of equipment that has exceeded its useful life
Defining the repair scope through special clauses
If the owner and tenant agree, they can set their own rules that differ from the guideline as special clauses. However, all three requirements must be met: a reasonable basis, the tenant's recognition, and a clear expression of intent.
Common trouble cases during move-out inspections
Complaints about restoration costs
This is the most common issue. The rules became clearer after the 2020 amendment to the Civil Code, but disputes still occur. It is important to understand the guideline in advance.
Complaints about special clauses
The most common disputes concern who bears the cost of house cleaning. These can be prevented by explaining the special clauses thoroughly at the time of contract signing.
Complaints about the duty to explain
If the tenant is charged even for normal aging, disputes can arise because the tenant feels the charge is "not acceptable." Taking photos before move-in and obtaining signatures on written explanations are effective precautions.
Points to check during the move-out inspection
Water-related areas
Check the faucets in the kitchen, bathroom, washbasin, and toilet, along with the ventilation fan, water leaks, and any mold. You should also carefully check for signs of water leakage.
Living spaces
Check whether the air conditioner is working, whether there is dirt on the walls (especially below eye level), and the condition of the window glass and frames.
Outdoor areas
Check the intercom at the entrance, the condition of the garbage area, and whether any bicycles have been left in the bike parking area.
Six ways to avoid move-out disputes
- The owner should attend in person：Because this only happens once, it is important to confirm the condition firsthand
- Have a professional present：So that an appropriate amount can be judged from a neutral standpoint
- Read the guideline carefully：To accurately understand the difference between normal aging and intent or negligence
- Conduct the inspection when the unit is vacant：If belongings remain, damage may not be found
- Keep a written record of what was confirmed：Obtain signatures and take photos as well
- Confirm utility cancellations：Prevent missed procedures for electricity, gas, and water
Frequently Asked Questions (FAQ)
Q. Is additional billing after move-out possible?
Yes, it is possible. Since the timing of the claim is not specified by law, there is no problem with making an additional claim after move-out.
Q. Are pin holes the tenant's responsibility?
Small holes such as pin holes are generally considered normal wear and tear, so they usually cannot be charged to the tenant.
Q. Can a special clause make the tenant responsible for house cleaning costs?
Yes, it can. However, all three requirements must be met, and the tenant must receive a sufficient explanation and give consent at the time of contract signing.
Q. What happens to move-out costs for properties with no security deposit?
Repair costs are billed after move-out. If a lump-sum payment is difficult, payment in installments may also be possible.
