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How to Prevent Key Troubles in Rental Properties? Costs and Responses for Loss, Replacement, and Security

A practical guide to key-related issues in rental properties. It explains what to do when keys are lost, who bears replacement costs, the benefits of introducing smart locks, and essential security measures, offering useful information for both owners and tenants.

Last updated: About 2 min read

Key-related trouble in rental properties is one of the most common issues reported to property management companies. This guide organizes the points that both owners and tenants should understand, including lost keys, responsibility for replacement costs, and security upgrades to improve safety.

Key-related trouble that frequently arises in rental management can be classified into the following four categories.

  1. Lost key : A case where the tenant loses the key and can no longer enter the unit
  2. Key damage or malfunction : A lock cylinder malfunction caused by age-related deterioration or improper use
  3. Key replacement at move-out : Risk of unauthorized entry using a spare key kept by a previous tenant
  4. Unauthorized duplication of keys : A case where the tenant makes duplicate keys without permission and does not return them at move-out

What is the response flow when a key is lost?

The response procedure when a tenant reports a lost key is as follows.

  1. Verify the tenant’s identity (to prevent unauthorized entry)
  2. Provide an interim response with a spare key (if the management company holds one)
  3. Arrange replacement of the lock cylinder (because the lost key may create a risk of unauthorized entry)
  4. Handle cost recovery procedures (as a rule, loss is the tenant’s responsibility)
  5. Advise the tenant to file a report with the police

What are the typical costs of key replacement and the allocation rules?

Type of keyReplacement costSecurity level
Disk cylinder (conventional type)8,000 to 15,000 yen★☆☆ (Low)
Dimple key15,000 to 30,000 yen★★★ (High)
Card key / keypad type30,000 to 60,000 yen★★★ (High)
Smart lock20,000 to 50,000 yen★★★ (High)

Rules for cost allocation

  • Loss or damage caused by the tenant : Tenant’s responsibility
  • Failure due to age-related deterioration : Owner’s responsibility
  • Key replacement at move-out : Generally the owner’s responsibility (though some agreements make it the tenant’s responsibility through a special clause)
  • Security upgrade : Owner’s responsibility (an investment to enhance asset value)

What are the benefits of installing smart locks?

A smart lock is an electronic lock that can be opened with a smartphone or a PIN code. Adoption in rental properties is advancing rapidly.

  • Elimination of lost-key risk : Physical keys are no longer required, so loss-related trouble can be eliminated
  • No key replacement needed at move-out : It can be handled simply by changing the PIN code (cost reduction)
  • Greater convenience during property viewings : Remote unlocking removes the need to hand over physical keys
  • Higher tenant satisfaction : It can be presented as a highly convenient amenity

Q1. Can the tenant be required to bear the key replacement cost at move-out?

Yes, if it is clearly stated as a special clause in the lease agreement and the tenant has agreed to it. However, because the Ministry of Land, Infrastructure, Transport and Tourism guidelines generally treat key replacement as the owner’s responsibility, the validity of the clause should be confirmed in advance.

Q2. What happens if a tenant replaces the lock without permission?

A tenant replacing the lock without permission may constitute a breach of contract. At move-out, the cost of restoring the original lock can be charged to the tenant as part of restoration. It is important to state clearly in the move-in guidance that prior approval is required for any lock replacement.

Q3. If an auto-lock key is lost, is replacement for the entire building required?

If an auto-lock key for the entire apartment building is lost, replacing the entire system is preferable from a security standpoint. However, because the cost can run from several hundred thousand yen to over one million yen, many cases are handled in practice by changing the security code or invalidating the lost key.

Daisuke Inazawa, President & CEO of INA&Associates Inc.

Author

President & CEOINA&Associates Inc.

President & CEO of INA&Associates Inc. Leads real estate brokerage, rental leasing, and property management across Greater Tokyo and the Kansai region. Specialises in income-property investment strategy and advisory for ultra-high-net-worth individuals.

Daisuke Inazawa is the President and CEO of INA&Associates Inc., a Japanese real estate firm headquartered in Osaka with a Tokyo branch. He leads the company's three core businesses — real estate sales brokerage, rental leasing, and property management — across the Greater Tokyo Area and the Kansai region.

His areas of expertise include investment strategy for income-generating real estate, profitability optimisation of rental operations, real estate advisory for ultra-high-net-worth individuals (UHNWIs) and institutional investors, and cross-border real estate investment. He provides data-driven, long-horizon advisory to investors in Japan and overseas.

Under the management philosophy "a company's most important asset is its people," he positions INA&Associates as a "people-investment company" and is committed to sustainable corporate-value creation through talent development. He also writes and speaks publicly on leadership and organisational culture in times of change.

He has passed eleven Japanese professional qualification examinations: Licensed Real Estate Broker (Takken), Certified Real Estate Consulting Master, Licensed Condominium Manager, Licensed Building Management Supervisor, Certified Rental Housing Management Professional, Gyōseishoshi Lawyer (administrative scrivener), Certified Personal Information Protection Officer, Class-A Fire Prevention Manager, Certified Auctioned Real Estate Specialist, Certified Condominium Maintenance Engineer, and Licensed Moneylending Operations Supervisor.

  • Licensed Real Estate Broker (Takken)
  • Certified Real Estate Consulting Master
  • Licensed Condominium Manager
  • Licensed Building Management Supervisor
  • Certified Rental Housing Management Professional
  • Gyōseishoshi Lawyer (Administrative Scrivener)
  • Certified Personal Information Protection Officer
  • Class-A Fire Prevention Manager
  • Certified Auctioned Real Estate Specialist
  • Certified Condominium Maintenance Engineer
  • Licensed Moneylending Operations Supervisor