In Japan, when a residential lease comes up for renewal, it is a routine event for the landlord to send the tenant a formal notice announcing a rent increase. Many tenants who receive this notice feel anxious or unsure how to respond, and that reaction is completely understandable — but it is worth stating up front what makes the Japanese system distinctive: Japanese tenants have a legal right to refuse a rent increase, and a landlord cannot raise the rent unilaterally. Having spent many years managing and operating rental properties in Japan, I have fielded a great many consultations from tenants facing exactly this situation.
As a matter of principle, any change to the rent amount requires the agreement of both landlord and tenant — rent revision is not something a landlord can impose by notice alone. This is a meaningful contrast for readers used to markets where a landlord can simply decline to renew a lease and set whatever rent the market allows for a new tenant, or where local rent-control ordinances cap increases by statute; in Japan, the mechanism runs through a different legal principle entirely, built around negotiation and, if necessary, the courts. Given this, the worst thing a tenant can do upon receiving an increase notice is to react emotionally. What matters most is understanding how the system actually works and following the right negotiation steps. This article lays out, from a practitioner's perspective, the legal thinking behind the Act on Land and Building Leases, the concrete steps for negotiating a rent increase, how to research comparable market rents, and what to do if talks break down.
Understanding the Legal Position of a Rent Increase in Japan
A rent increase is not something a landlord in Japan can impose simply because it suits them. Japan has a specific statute protecting tenants on this point: the shakuchi shakuya hō (借地借家法, the Act on Land and Building Leases), which sets out defined requirements a landlord must meet before a rent increase can take effect. This is a piece of legal infrastructure with no exact equivalent in most common-law jurisdictions, where the matter is often left to the lease contract itself or to a separate rent-control ordinance rather than to a dedicated leasehold statute. Understanding this framework up front lets a tenant defend their position calmly at the negotiating table, rather than reacting out of uncertainty.
What Is the “Right to Request a Rent Increase”?
Article 32 of the Act on Land and Building Leases grants both landlord and tenant a chinryō zōgaku gengaku seikyūken (賃料増減額請求権, the right to request an increase or decrease in rent). In practice this is a two-way mechanism: a landlord may request an increase, and a tenant may equally request a decrease, if market or economic conditions justify it — a right that few tenants outside Japan realize they hold. But being entitled to make the request is entirely different from that figure automatically taking effect. If the other party does not agree, the matter is ultimately left to the courts to decide.
“Requesting” and “Agreeing” Are Entirely Different Things
This is where confusion most often sets in. A landlord's rent-increase notice is, legally speaking, nothing more than a “request” for an increase — it is not a binding determination. The new rent only takes effect once the tenant agrees to it. What every tenant should know is the reverse side of that same rule: simply stating, in response to the notice, that “I cannot accept this” is enough to prevent the increase from being unilaterally finalized. For an overseas investor comparing this to their home market, the practical takeaway is that a Japanese tenant's silence carries far less weight than in jurisdictions where an unanswered notice is treated as acceptance by default — in Japan, non-agreement is the tenant's default protection.
What Legally Justifiable Grounds Allow a Landlord to Raise the Rent?
The Act on Land and Building Leases specifies the typical grounds on which a rent increase is recognized as valid. Put the other way around, a rent-increase request that does not fall under one of these grounds is more likely to be judged as lacking legitimacy. So the first thing a tenant should do upon receiving a notice is confirm exactly which of these grounds the landlord is relying on.
When Rents for Comparable Nearby Properties Have Risen
If rents for comparable properties in the immediate vicinity have clearly risen, a landlord can cite that as grounds for an increase. This ground tends to be invoked most often in areas that have become newly popular through urban development, redevelopment projects, or improved rail access — a pattern investors will recognize from any market where a new station or commercial complex reshapes local rents. The legal test, however, is specifically “buildings of a similar type in the same vicinity”; a comparison against properties with meaningfully different conditions (size, age, layout) is a weak basis for the claim, and a tenant should push back on any comparison that does not hold up on these terms.
When Property Taxes and Other Public Levies Have Increased
When the kotei shisan zei (固定資産税, fixed asset tax) and toshi keikaku zei (都市計画税, city planning tax) levied on the building and land increase, the landlord's cost burden rises accordingly, and this can serve as grounds for a rent increase. However, in regional and suburban areas, cases where these tax amounts rise significantly are limited, so it is essential to verify whether the figures the landlord has presented actually demonstrate an increase. Insisting on documentary evidence — rather than accepting a bare assertion — is one of the most important postures a tenant can take in this negotiation.
Changes in General Price Levels and Economic Conditions
Rising general price levels and broader shifts in economic conditions are also recognized under the law as factors to be considered. This ground is abstract, however, and it is not easy for a landlord to justify a large increase on this basis alone. In practice, it is typically raised in combination with the more concrete figures discussed above — comparable market rents and tax burden — rather than as a standalone justification.
Can a Tenant Actually Refuse a Rent Increase?
Given everything above, the answer is unambiguous: refusing a rent increase is legally possible, and it is a legitimate right belonging to the tenant. Because any rent revision requires the agreement of both parties, a tenant is under no obligation to sign off on an increase they are not satisfied with.
Avoid Signing and Returning the Notice Too Quickly
One point that deserves real caution is how a tenant handles the increase notice itself. If a tenant signs and returns it without fully reviewing the content, that action can be treated as having given consent. But receiving the notice does not create any obligation to respond immediately. The wiser course is to set it aside, research comparable rents and the landlord's stated grounds, and only then decide how to respond.
How Rent Payments Are Handled While a Tenant Refuses an Increase
Even during the period when a tenant has not agreed to the increase, rent payments must never stop. In this situation, a tenant can avoid being treated as in arrears by continuing to pay the previous rent amount — the figure they consider appropriate. Doing the opposite and withholding payment, by contrast, can hand the landlord a pretext for terminating the lease. This is precisely the moment that calls for a level head rather than a defensive impulse.
The Concrete Steps for Refusing a Rent Increase
In this kind of negotiation, preparation is nine-tenths of the outcome. Assembling objective data rather than relying on emotion is what turns the conversation into a discussion between equals. The following sequence is recommended.
Step 1 — Confirm the Content and Grounds of the Notice
First, have the landlord clarify in writing the reason for the increase, the new rent figure, and the date it would take effect. A notice given only verbally is a common source of later disputes. Getting the answers to “on what grounds, from what amount to what amount, and starting when” down in a written document is the starting point for everything that follows.
Step 2 — Research Market Rents for Comparable Nearby Properties
Using rental listing sites, check the asking rents for comparable properties in the same area — matching on building structure, age, floor plan, and distance to the station. Comparison data against the surrounding market is, in practice, the single most powerful piece of leverage in this negotiation. Writing out your own unit's conditions and building a comparison table of roughly five properties makes the argument considerably more persuasive.
Step 3 — Request Objective Evidence Behind the Increase
If the landlord's explanation is simply “property taxes went up,” ask them to produce documentation showing the actual increase in the assessed value. Land price trends can be independently verified through the Zenkoku Chika Map (全国地価マップ, the “Nationwide Land Price Map”) operated by the Ippan Zaidan Hōjin Shisan Hyōka System Kenkyū Center (一般財団法人資産評価システム研究センター, the General Incorporated Foundation Real Estate Appraisal System Research Center), or through the kōji chika (公示地価, the government's Published Land Price) figures released annually by the Ministry of Land, Infrastructure, Transport and Tourism (国土交通省, MLIT). Where a landlord cannot substantiate the claimed grounds with data, there is considerably more room left for negotiation.
Step 4 — Put Your Position in Writing
Communicate your refusal or your intent to keep negotiating not only verbally but in writing — a letter or an email that creates a record. It is important to state clearly and courteously that “I cannot agree to the proposed figure at this time, and I will continue paying the previous rent.” Avoid emotional language; the preferred form is a plain, factual statement of the situation and what you are asking for.
The Path from Refusal to Resolution, and Where to Seek Advice
Sometimes the discussion simply does not reach agreement. The options available at that point are set out below, ordered from the least burdensome to the most — there is no need to jump straight to thinking about a courtroom.
| Stage | Typical Action | Characteristics |
|---|---|---|
| Direct discussion between the parties | Present comparable-market data and renegotiate | No cost, and the most flexible option |
| Consulting a professional | Consumer Affairs Center, a lawyer, or a judicial scrivener | A third-party view helps both sides think through the issue calmly |
| Minji chōtei (民事調停, civil mediation) | A structured discussion held at a Summary Court | A mediation committee facilitates the discussion; relatively low cost |
| Litigation | A lawsuit seeking confirmation of the rent increase | The last resort. The burden of proof rests with the party requesting the increase |
Start With Free Consultation Services
The shōhi seikatsu center (消費生活センター, Consumer Affairs Center) run by each local municipality, and the free legal consultations offered by regional bar associations, are places where a tenant can obtain expert opinion at little or no cost. Bringing the lease contract and the increase notice to the consultation lets you find out exactly how your position is likely to be evaluated under the law — a service many overseas readers will not have an equivalent of in their home market, where tenant consultation is often fee-based or handled entirely by private attorneys.
How the Burden of Proof Works in Mediation and Litigation
When landlord and tenant cannot reach agreement over a rent increase or decrease, the law generally requires that mediation be attempted before litigation — a mandatory step known as chōtei zenchi shugi (調停前置主義, the mediation-first principle), which has no direct counterpart in many Western legal systems that allow a landlord to file suit immediately. Even if the matter does proceed to litigation, the burden of proving that the increase is reasonable rests with the landlord seeking it, not with the tenant. In practice, where the grounds are insufficiently supported, the increase is unlikely to be approved by the court.
Do Not Confuse This With Lease Non-Renewal or Eviction
A fear that comes up constantly in these consultations is: “If I refuse the increase, won't I just get evicted?” But under Japanese law, a rent increase and a landlord's refusal to renew the lease (or a demand that the tenant vacate) are entirely separate legal questions. Keeping the two apart is what prevents a tenant from making an unnecessary concession out of fear.
Refusing to Renew a Lease Requires Strict Legally Justifiable Grounds
For a landlord to refuse to renew the lease, or to demand that a tenant vacate, the Act on Land and Building Leases requires seitō jiyū (正当事由, legally justifiable grounds). This is a genuinely strict standard — courts weigh factors such as the landlord's own need to use the property and whether the landlord has offered tachinokiryō (立退料, a relocation compensation payment), among other considerations, in the round. This is a much higher bar than the no-fault, notice-only termination available in some jurisdictions, and it means a landlord cannot evict a tenant for the sole reason that the tenant refused a rent increase.
The INA Perspective: A Rent Increase Should Be Resolved Through Dialogue
At INA&Associates, we think of rental property management as work whose purpose is to sustain the long-term wellbeing of both landlord and tenant at the same time. That is precisely why we never take the approach of imposing a rent increase unilaterally. Even when we propose an increase to a property owner, our basic policy is to share the comparable market data and supporting evidence carefully, and to make every effort to explain the reasoning in a way the tenant can genuinely accept.
To be candid, a rent increase does carry real drawbacks for the tenant. We believe that being upfront about those drawbacks, rather than glossing over them, and having the conversation openly regardless, is what ultimately builds the kind of trust that keeps a tenant living in the property for years. Putting the wellbeing of everyone involved — owner and tenant alike — at the center of the relationship is, in our view, the foundation of sound rental property management. To tenants navigating this situation, we strongly recommend a constructive, data-driven negotiation over an emotional one. For more on Japanese rental market conditions and our approach to management, see the ina-network category page.
In Summary: Exercise Your Right Calmly
A rent-increase notice in Japan is never a final, binding determination. The governing principle is that tenants have the right to refuse, and an increase without agreement simply does not take effect. What matters is not signing the notice in a hurry, researching comparable rents and the landlord's supporting evidence, and negotiating calmly while continuing to pay the previous rent.
If the matter still does not resolve, avenues such as the Consumer Affairs Center, professional advisors, and civil mediation remain available. In practice, though, most cases land on a resolution through a dialogue built on objective data. Knowledge itself is the tenant's best defense and strongest negotiating asset. We hope this article helps you continue living in your home with confidence.
Frequently Asked Questions
If I refuse a rent increase, can I be evicted?
No. Refusing a rent increase alone cannot get you evicted. A notice along the lines of “leave, or the lease will be terminated” is improper unless it is backed by legally justifiable grounds, and you are under no obligation to comply with it. Falling into rent arrears, however, is a separate matter and can itself constitute grounds for termination — so make sure you keep paying the previous rent without interruption.
Are lease non-renewal and a rent increase the same thing?
No, they are different. Non-renewal is a landlord's refusal to continue the lease, which requires the strict legally justifiable grounds set out in the Act on Land and Building Leases. A rent increase, by contrast, can be requested whenever legitimate grounds exist, but it cannot be imposed without the tenant's agreement. Treating these as two distinct issues, rather than conflating them, is essential to responding correctly.
If I don't agree to the increase, will it end up in court?
It is possible that a landlord could file a lawsuit seeking confirmation of the rent increase, but the law generally requires mediation to be attempted first. Even if the matter does reach litigation, the burden of proving the increase is justified rests with the landlord bringing the claim. Where the grounds are insufficient, the increase is unlikely to be approved — so you will not suddenly find yourself at a disadvantage. There is no need for excessive fear of this outcome.
Is there a percentage limit on how much rent can be increased?
There is no clear statutory ceiling. The test the courts apply is consistency with comparable market rents, and an increase that departs significantly from that market is unlikely to be recognized as legitimate. In practice, the realistic path is to weigh the surrounding market and any change in the tax burden, and then negotiate toward a level both parties can accept — rather than relying on a fixed percentage benchmark, judge the request on the strength of its supporting evidence.
