In rental properties such as apartments and condominiums, disputes over restoration work are a common source of conflict between landlords and tenants. As a property manager, it is essential to handle restoration work properly at every move-in and move-out. This article provides a detailed explanation of the definition of restoration work, what it covers, typical costs, and how to prevent disputes with tenants.
What Is Restoration Work?
Restoration work refers to the repairs required to return a rental unit to the condition it was in when the tenant moved in. Under Article 621 of the revised Civil Code, tenants are obligated upon move-out to restore the unit for any damage caused by intentional or negligent acts. However, ordinary wear and tear from normal use and deterioration due to aging are not included.
Three Key Criteria for Determining Whether Restoration Is Required
Whether an item falls under restoration work is assessed using the following three criteria:
- Reduction in property value: Includes equipment failures and wallpaper staining from smoking—but only if caused by the tenant's intentional act or negligence
- Breach of duty of care: Includes mold and staining from insufficient cleaning, and failure to report water leaks
- Intentional act or negligence: Deliberate damage and wear not attributable to normal use
What Is the Difference Between "Restoration," "Current-State Restoration," and "Return to Original State"?
These terms are similar but have distinct meanings:
- Restoration (genjo kaifuku): Returning the unit to its move-in condition. This is the correct term in rental property contexts.
- Current-state restoration (genjo kaifuku written differently): Implies leaving things "as they currently are," which is inappropriate usage in rental contexts.
- Return to original state (genjo fukki): Synonymous with restoration, but primarily used in the construction industry.
What Does Restoration Work Actually Cover?
Costs can be charged to tenants for damage caused by intentional acts or negligence. Here are the main areas covered:
Holes in Walls
Damage from furniture bumping into walls, screw holes, and nail holes is covered. Small holes from thumbtacks are often excluded.
Wallpaper (Wallcovering)
Discoloration from aging and sun exposure is excluded, but damage from pet scratching, tobacco tar stains, and DIY modifications are covered.
Flooring
Dents and scratches from dropped objects are covered, but dents from heavy furniture such as refrigerators are not. Rain leak staining that was not reported and left unaddressed is also covered.
Kitchen and Bathroom
Significant dents in the sink may require repair or countertop replacement. Burn marks and grease buildup from neglected cleaning, and cracks in the washbasin are also subject to restoration work.
Other Areas
- Cushion flooring: Heat burns and water damage from neglect are covered; dents from heavy furniture are not
- Toilet: Damage from dropped objects, and removal of toilet seats installed by the tenant without authorization
- Air conditioning: Removal work required only if installed without permission
- Doors and fittings: Scratches and holes caused by intentional acts or negligence can be charged
- Front door key: Lock replacement costs at move-out can be charged if specified in a special clause
What Is the Difference Between Aging Deterioration and Normal Wear?
In most cases, damage from aging deterioration or normal wear is not subject to restoration work and cannot be charged to the tenant.
- Aging deterioration: Natural discoloration and yellowing of wallpaper and flooring over time
- Normal wear: Minor scratches and furniture imprints from everyday life
Property managers must carefully distinguish between damage caused by intentional acts or negligence and that which is due to aging deterioration or normal wear.
What Are the Typical Costs for Restoration Work?
The following are typical costs for common restoration work items:
| Work Item | Typical Cost |
|---|---|
| Wallpaper replacement | ¥750–¥1,500 per m² |
| Flooring replacement (tear-out) | ¥30,000–¥60,000 per tatami unit |
| Flooring replacement (overlay) | ¥20,000–¥50,000 per tatami unit |
| Carpet replacement | ¥8,000–¥15,000 per tatami unit |
| Cushion flooring replacement | ¥10,000–¥30,000 per tatami unit |
| Tatami replacement (turn/resurfacing/new) | ¥4,000–¥10,000 per mat |
| Full kitchen replacement | ¥150,000–¥1,000,000 |
| Washbasin replacement | ¥100,000–¥350,000 |
| Toilet replacement | ¥100,000–¥300,000 |
| Unit bath replacement | ¥200,000–¥800,000 |
| Window replacement (hatsuri method) | ¥80,000–¥400,000 |
| Door repair | Approx. ¥35,000 |
| Ventilation fan replacement (duct type) | ¥25,000–¥60,000 |
Wallpaper replacement due to tobacco tar staining tends to cover a large area, making it one of the more expensive restoration items.
What Benefits Does Restoration Work Offer Property Owners?
Higher Occupancy Rates
A clean interior attracts tenants even in older buildings and can reduce advertising costs.
Preservation of Asset Value
Conducting restoration work as part of regular maintenance prevents rent declines and helps maintain the property's asset value.
How Long Does Restoration Work Take, and What Is the Process?
The timeline ranges from a few days to about one month, depending on the extent of repairs needed.
- Move-out inspection with the tenant
- Cost estimate from the contractor
- Construction work
- Completion of work
If you are using a management company, it is important to clarify your budget and the scope of work in advance.
What Causes Disputes Over Restoration Work?
Disagreement Over What Constitutes Normal Wear
A common scenario is a tenant disputing a repair charge, claiming "this is just normal wear." Calculate charges with consideration for the age of the property and explain the basis for the charges clearly.
Unclear Records of Damage
Photographing the unit's condition before move-in allows for a smoother assessment at move-out.
High Charges Due to Special Clauses
When including special clauses, thoroughly explain them to the tenant at the time of signing and obtain their understanding to prevent disputes.
Summary
Restoration work is a critical activity directly tied to occupancy rates and the preservation of asset value. A clear understanding of what restoration entails, combined with thorough explanations of the rules at move-in and careful documentation, can prevent disputes at move-out. If you notice areas of concern, get a quote early.
Frequently Asked Questions (FAQ)
Who bears the cost of restoration work?
As a general rule, damage caused by the tenant's intentional acts or negligence is at the tenant's expense, while aging deterioration and normal wear are at the landlord's expense. This is determined under Article 621 of the revised Civil Code.
Are thumbtack holes subject to restoration?
Small holes from thumbtacks are typically considered normal wear and are often excluded. However, screw holes and nail holes are usually covered.
How long does restoration work take?
Depending on the scope and content of the work, it generally takes anywhere from a few days to about one month. Wallpaper replacement alone may take just a few days, while a complete bathroom renovation can take several weeks.
How can move-out disputes be prevented?
Photograph the unit's condition before move-in, clearly define the scope of restoration in the rental agreement, and always conduct a move-out inspection with the tenant.
