Skip to content
Real Estate Intelligence
COLUMN

What is restoration work? Scope, expenses, and payment trouble countermeasures that rental owners should know

Restoration work is the repair, cleaning, and replacement work that takes place after a rental property has been vacated, in order to restore it to a condition that can be rented out to the next tenant. However, this work does not restore t

Last updated: About 4 min read

Restoration work is the repair, cleaning, and replacement work that takes place after a rental property has been vacated, in order to restore it to a condition that can be rented out to the next tenant. However, this work does not restore the property to the exact same condition as when it was rented. In rental management, it is important to distinguish between normal wear and tear and deterioration over time and damage caused by the tenant's intentional or negligent actions.

If you look at the room after you move out and decide that the renter has to pay because it's dirty, you're more likely to have trouble paying the rent. Owners need to organize a series of procedures that include not only the construction itself, but also photographs taken when moving in, records of attendance at moving out, written estimates, and explanations of burden classification.

Key points of this article

  • Regarding restoration work, consider separately the work required for the next recruitment and the work that can be billed to the tenant.
  • As a general rule, normal wear and tear and deterioration over time are not included in the tenant's burden.
  • Check the estimate based on location, quantity, unit price, and burden classification, not the total amount.
  • If the tenant is responsible for the damage, there must be evidence to explain the condition at the time of moving in and the cause of the damage.
  • Prioritizing construction makes it easier to manage both vacancy periods and repair costs.

What is restoration work?

Restoration work is the work that is done to prepare the room after the tenant has moved out so that the next tenant can live in it with peace of mind. Includes wallpaper reupholstery, floor repair, equipment replacement, house cleaning, lock replacement, etc.

On the other hand, we need to be careful about the term "restoration to its original state." Article 621 of the Civil Code states that, as a general rule, wear and tear and aging caused by normal use and earnings are not included in the tenant's obligation to restore the property to its original condition. In other words, the work carried out by the owner for recruitment purposes is not the same as the work that can be billed to the tenant.

If you submit an estimate without drawing this line vaguely, you will not be able to explain when the tenant asks why you are paying for the cost. Restoration work is not only construction management, but also explanation management for moving out payments.

Items that are and are not subject to restoration work

Tenant liability can be considered in cases where there is intentional or negligent damage, damage beyond normal use, or violation of the duty of care of a prudent manager. In many cases, it will be difficult for the tenant to pay the rent if the furniture is simply old, tanned, or has signs of being left behind.

Location Examples where it is easy to consider paying the tenant Examples where the owner is likely to pay
Walls/Cross Tar stains from smoking, pet nail scratches, graffiti Discoloration from sunlight, slight stains from normal use
Floor Deep scratches from dragging heavy objects, discoloration from leaving it wet Light dents from installing furniture, fading due to age
Water area Significant oil stains and damage due to lack of cleaning Life of equipment, dirt that comes off with regular cleaning
Fittings Holes, cracks, unauthorized processing Natural deterioration due to opening and closing
Equipment Failure due to misuse by tenant Failure due to expiry of service life

The starting point for judgment is not who will pay?'' butwhy the construction work was necessary.'' Construction items for which the cause cannot be sorted out will be difficult to explain as being borne by the tenant.

Points to note when looking at cost prices

The cost of restoration work cannot be determined solely by the unit price. It varies depending on the scope of construction, material grade, presence or absence of groundwork repair, delivery conditions, and construction period. It is important to check not only whether the quote is higher or lower than the market price online, but also whether you can explain the details of the quote.

Construction items Points to check
Cross reupholstery Construction area, partial or full reupholstery, presence or absence of base repair
Floor repair Is it sufficient to repair or needs to be replaced? Material model number
House cleaning Price per square meter, presence or absence of additional costs for cleaning the inside of the air conditioner and plumbing
Equipment replacement Reason for irreparability, year of existing equipment, warranty after replacement
Key exchange Presence of special agreement, necessity for crime prevention, type of key

If the estimate only says ``a complete set of restoration work'', it will be difficult to explain to both the tenant and the owner. At a minimum, separate the location, work items, quantity, unit price, and burden classification.

Practical flow from leaving to re-recruitment

During restoration work, time management from witnessing the move out to re-recruitment is directly linked to profits. The longer the construction decision is delayed, the longer the vacancy period will be, and the greater the loss of rental income.

Procedure Implementation details Records to be kept
Before moving out Check cancellation date, witness date, key return method Cancellation notice, contact history
Attendance Check damaged areas, tenant declaration, and photos Record of witnessing move-out, interior photos
Obtaining a quote Separating work items and burden categories Estimate, contractor comments
Settlement explanation Clarify security deposit, unpaid amount, and amount borne by the tenant Settlement details, explanation history
Construction ordering Assemble a process to meet the re-recruitment start date Process schedule, purchase order
Re-recruitment Photo update, review of recruitment conditions Recruitment drawings, response status

The important thing is to start preparing as soon as you know you plan to move out, rather than making the first move after you move out. The history of repairs and complaints made during the tenancy will also be used as a basis for making decisions about moving out.

Necessary evidence to explain tenant burden

When seeking compensation from the tenant, photos of the damage alone are not enough. You need to explain the condition at the time of moving in, the details of the contract, the cause of the damage, and the validity of the estimated amount.

Trail What can be explained
Photo taken when moving in Are the scratches there before you moved in, or did they occur after you moved in?
Contracts/Special Terms Agreement details such as cleaning fees, key exchange, pet keeping, etc.
Contact history during your stay When did you become aware of water leaks or equipment problems
Record of witnessing departure Damage details confirmed with tenant
Estimate Construction items, quantity, unit price, tenant burden

When the trail is connected, payment explanations are less likely to become emotional. On the other hand, if there is a lack of records, it may be safer in the long run to handle the burden as the owner's responsibility rather than insisting that the tenant bear the burden.

Priority when determining the scope of work

The closer everything is to new, the better it will look. However, cost effectiveness is also important in rental management. We decide how much construction to do based on the age of the building, estimated rent, target tenants, and surrounding competition.

When prioritizing, it will be easier to organize if you consider the following order:

  1. Repair equipment and damage related to safety
  2. Check the plumbing and air conditioning, which are directly connected to the residents' lives.
  3. Arrange the walls, floor, and lighting that affect the impression when viewing the property
  4. Only invest in improvements that will lead to higher rents.
  5. Don't force the work to be done at the same time if it can be repaired next time.

Restoration work is more than just cleaning up after you move out. It is also an investment decision on how to create the conditions for the next recruitment.

Frequently asked questions (FAQ)

Q1. Can all costs of restoration work be billed to the tenant?

A.No. As a general rule, normal wear and tear and deterioration over time are the responsibility of the owner. In order to make a claim against the tenant, grounds such as intentional/negligent damage, damage beyond normal use, or a special agreement are required.

Q2. Can I start construction immediately after moving out?

A. If there is damage that is subject to settlement, you should take photos, witness records, and estimates before proceeding. If construction is carried out without leaving a trail, it will be difficult to explain later.

Q3. How many companies should I get a quote from?

A. For high-cost work or work with a wide scope, it is easier to confirm the validity of the estimate by obtaining multiple estimates. However, please compare not only the amount, but also the granularity of work items, warranties, construction period, and handling of additional costs.

Q4. How can I shorten the vacancy period through restoration work?

A. Once we know the plan to move out, we will make arrangements for witnessing, estimating, construction schedule, and updating recruitment photos. If you think about it in order after you move out, it will be easier to extend the vacancy period.

I also want to read

Citations/References

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