When a tenancy in Japan ends, disputes over the security deposit refund are surprisingly common — landlords and tenants alike often say the amount returned was far less than expected, or that they were billed steep restoration charges they never anticipated. In Japan this deposit is called shikikin (敷金), a security-deposit system with its own statutory logic that has no exact equivalent in most English-speaking rental markets. Most of these disputes come not from bad faith but from a simple lack of understanding of how the system works — a gap the right knowledge closes before it becomes a fight. This guide covers what shikikin is, how much of it typically comes back, how restoration costs (genjō kaifuku, 原状回復) are split between landlord and tenant, and the practical steps that protect your refund, from the perspective of a firm that manages these settlements every day.
What Is Shikikin (敷金), Japan’s Rental Security Deposit?
Shikikin is a distinctly Japanese institution: unlike a typical US or UK security deposit, which is usually a flat sum defined loosely in a lease, shikikin’s legal definition is written directly into Japan’s Civil Code (民法). Under the 2020 revision, the Code defines shikikin as money a tenant hands to a landlord — whatever it is called — to secure the tenant’s monetary obligations under the lease, rent or otherwise. In plain terms, it is money held by the landlord as security, not a fee and not the landlord’s to keep outright. At move-out, any unpaid rent and the tenant’s share of restoration costs are deducted, and the landlord returns whatever remains.
Market norms vary by region and property type, but for residential rentals shikikin typically runs one to two months’ rent — noticeably higher than the deposit conventions many English-speaking tenants know, such as the UK’s five-week-rent cap under the Tenant Fees Act. The spread of rent-guarantee companies (家賃保証会社) and growing awareness of the government’s restoration guidelines have pushed many landlords toward zero-zero properties (ゼロゼロ物件) — units charging neither shikikin nor reikin (key money) at move-in. For an overseas investor evaluating a property to buy, this is more than a marketing detail: a zero-zero unit shifts the entire restoration-cost burden onto a pay-as-you-go basis at move-out, which changes how an owner should budget for turnover expenses.
Shikikin vs Reikin vs Hoshōkin vs Shikibiki: Japan’s Deposit Terminology, Decoded
Japanese leases can involve up to four different one-time payments at move-in, and — unlike the US, where “security deposit” covers nearly everything — each term carries a different legal treatment on refund. Sorting them out before signing prevents a large share of the disputes that follow.
| Term | Nature | Refundable? |
|---|---|---|
| Shikikin (敷金) | A deposit held to secure the tenant’s obligations | Yes, in principle (balance after settlement) |
| Reikin (礼金, “key money”) | A one-time gratuity payment to the landlord | No |
| Hoshōkin (保証金) | A deposit structure used mainly in the Kansai region | Usually refundable, except for the shikibiki portion |
| Shikibiki (敷引き) | A non-refundable portion withheld from the hoshōkin | No (fixed amount set by contract) |
In the Kansai region (Osaka, Kyoto, Kobe, and surrounding areas), the hoshōkin-and-shikibiki structure is common: a fixed amount is automatically withheld at move-out regardless of the unit’s actual condition — a mechanism with no real Western parallel, where deductions are normally tied to documented damage rather than a pre-agreed lump sum. Japanese courts generally uphold shikibiki clauses, though case law has voided them where the withheld amount was excessively high relative to rent. Always confirm in writing, before signing, whether a shikibiki applies and how much it is; for an investor structuring a lease on a Kansai-area asset, this clause can materially change the unit’s effective turnover economics.
How Much of Your Shikikin Actually Comes Back?
The refund is essentially: deposit paid in, minus costs settled at move-out. Those costs include any unpaid rent plus the tenant’s share of restoration work. The figures below are general market benchmarks — they vary by region, contractor, and property — but they are a useful reference for a departing tenant or an owner projecting turnover costs, converted here at a reference rate of 155 JPY/USD.
| Item | Approx. cost |
|---|---|
| Wallpaper (cross-cloth) replacement | approx. ¥1,000–1,500 per square meter (approx. $6.50–$9.70) |
| Re-covering tatami mat surfaces | approx. ¥5,000 per mat (approx. $32) |
| Re-papering fusuma (襖, sliding paper doors) | approx. ¥2,000–3,000 per panel (approx. $13–$19) |
| Professional house cleaning | approx. ¥15,000–30,000 for a studio unit (approx. $97–$194) |
Mold from neglected condensation, pet-related scratches and odors, tar stains from smoking, and broken or lost keys are billed to the tenant most often, and tend to be the costliest lines on a settlement statement. If restoration costs exceed the shikikin on deposit, the tenant is billed the difference directly. Shikikin is not money a tenant is guaranteed back in full — it is the funding source for settlement — and understanding that distinction from day one avoids a great deal of end-of-tenancy friction.
Getting the Restoration Cost Split Right: Japan’s Genjō Kaifuku Framework
Most shikikin disputes trace back to a mismatched understanding of genjō kaifuku (原状回復, “restoration to original condition”) — who owes what when a tenancy ends. Japan’s Ministry of Land, Infrastructure, Transport and Tourism (国土交通省, MLIT) publishes formal guidance on exactly this question, titled “Trouble and Guidelines Concerning Restoration of Rental Property” (原状回復をめぐるトラブルとガイドライン), and it functions as the de facto national standard cited in most disputes and court rulings. Unlike many US or UK leases, where a landlord’s ability to deduct from a deposit is governed mainly by scattered state or local statute with little technical guidance on allocating wear and tear, Japan has one detailed administrative framework both sides can point to.
Landlord (Owner) Responsibility
Ordinary deterioration from the simple passage of time — keinen henka (経年変化, natural aging) and tsūjō sonmō (通常損耗, normal wear from ordinary use) — is, in principle, the landlord’s responsibility. Furniture indentations in flooring, wallpaper discoloration from sunlight, and small pinholes from thumbtacks all fall here. Japanese practice treats these costs as already priced into the rent, so a landlord cannot bill the tenant for them. For an overseas owner used to itemizing wear-and-tear more liberally at turnover, this is a meaningfully stricter standard than many home markets apply.
Tenant (Resident) Responsibility
Damage from the tenant’s intent or negligence, a breach of the tenant’s duty of care as a good manager (善管注意義務), or use beyond what counts as normal, falls to the tenant. Typical examples: stains from spilled drinks, deep gouges from a careless furniture move, or mold that spread because condensation was left unaddressed. The test the MLIT framework applies is simple to state and harder to apply in practice: did the damage arise from ordinary living, or from carelessness a reasonably attentive tenant would have avoided?
How Years of Tenancy Change the Bill
The guidelines also build in a depreciation concept for interior finishes such as wallpaper: fixtures are treated as having a useful life, and the longer a tenant has lived in the unit, the smaller the share of the repair cost they owe. Even where damage is clearly the tenant’s fault, a long tenancy reduces the bill to a fraction based on the item’s remaining value, not its full replacement cost — a built-in depreciation schedule with no direct counterpart in most Western deposit-deduction practice, and a useful data point for an owner modeling turnover cost against average tenancy length.
Practical Steps to Maximize Your Shikikin Refund
Photograph Pre-Existing Damage Before Move-In
Keeping dated photographs of any scratches or stains that already exist at move-in is the single most effective way to prevent an unfair charge at move-out. Take the photos on a smartphone and store them so the date is clearly attached. Check and document these areas immediately after moving in:
- Entryway: the condition of the door, doorbell/chime, and mailbox, and whether they function properly
- Kitchen: the condition of the water heater, range hood/exhaust fan, and faucet
- Toilet: water flow, any signs of leaking, and damage to fixtures
- Bathroom: hot water, exhaust fan, shower, and drain condition
- Living areas: scratches or holes in the floor, ceiling, and walls; any mold; and whether the lighting and air conditioner work
Always Attend the Move-Out Walkthrough
Skipping the walkthrough leaves the door open to being charged for damage you never actually caused. Bring your move-in photos and use them, on the spot, to establish that a mark was already there. Cleaning the unit before the walkthrough also tends to leave a better impression, which can hold down unnecessary cleaning charges. Don’t let anything raised in the walkthrough stay purely verbal — get it in writing or by email so there is a record.
Confirm Special Clauses (Tokuyaku Jikō) in Advance
Special clauses (特約事項, tokuyaku jikō) that shift the cost of re-covering tatami, re-papering fusuma, or house cleaning onto the tenant are common in Japanese leases. Such clauses are generally valid on their own, provided the terms are clear and the tenant agreed to them. Even in pet-friendly units, damage caused by a pet is typically still the tenant’s responsibility, and tar staining from smoking is often treated as negligence too. Review the content and the reasonableness of any special clause’s amount at signing, and ask questions if anything is unclear — for a landlord marketing a unit to overseas tenants, drafting these clauses in plain language up front heads off a large share of later disputes.
Preventing disputes after move-out ultimately comes down to both landlord and tenant taking thorough pre-move-in inspections seriously — a careful check at the entrance shrinks conflict at the exit. For an owner managing a Japanese property from overseas, insisting on a documented pre-move-in inspection isn’t optional diligence; it’s the cheapest dispute insurance available.
From Move-Out to Deposit Refund: The Typical Timeline
Shikikin refunds generally follow the sequence below. Knowing the steps in advance means you can respond calmly, rather than anxiously, if a refund runs late.
- Notice of termination (most leases require notice at least one month before move-out)
- Coordinating the move-out date and the move itself
- An in-person walkthrough of the unit at move-out
- An estimate of restoration costs and presentation of the settlement statement
- Settlement deducted from the shikikin, and refund of the remaining balance
Refund timing is usually specified in the lease itself, and roughly one month after move-out is the common benchmark. If you are not satisfied with the settlement, request an itemized breakdown in writing and check exactly what each line item charges for — a habit that applies equally whether you are a tenant protecting a deposit or an owner reviewing a property manager’s settlement report.
What to Do If You Disagree With the Settlement Amount
If you have doubts about the settlement figure you have been given, working through the steps below calmly and in order gets to a resolution faster than an emotional confrontation.
- First, request an itemized breakdown of the settlement from the property manager or landlord, and discuss it directly
- Check the cost allocation against the MLIT restoration guidelines
- If unresolved, consult the National Consumer Affairs Center of Japan (国民生活センター) or a local Consumer Affairs Center (消費生活センター)
- If the dispute still cannot be settled, consider Japan’s small-claims court procedure (少額訴訟, shōgaku soshō)
Shōgaku soshō is a simplified small-claims process for monetary claims of ¥600,000 or less (approx. $3,870), typically resolved in a single court date, and shikikin refund disputes are one of its textbook use cases. In every case, your lease, photographs, itemized settlement statement, and a written record of communications are the foundation of any negotiation. Having that evidence assembled ahead of time is the best preparation there is — often the difference, for a foreign investor unfamiliar with Japanese small-claims procedure, between a dispute resolved in one hearing and one that drags on.
The INA&Associates Perspective
As a property management firm, we see shikikin settlement not as a moment to recover cost, but as a moment where landlord and tenant either build trust or lose it. One of our core values is being honest even about the parts of a situation that don’t favor us — which is why we explain, with reference to the MLIT guidelines, both what a tenant should fairly be charged for and what they shouldn’t, rather than simply maximizing the bill.
Inflating a settlement figure in the short term erodes trust with residents and comes back to an owner in the form of higher vacancy. Fair, transparent settlement is what actually produces satisfaction and long-term peace of mind for everyone involved. Even in a transaction as small as a security deposit, the trust and honesty we value most in our real-estate business shows through — a small signal for overseas owners of how a manager will handle far larger decisions. Our guide to Japan’s rent-reduction guidelines is a useful companion piece on the practical side of managing a Japanese lease.
Summary
Shikikin is neither “money you’re guaranteed back in full” nor “money the landlord simply takes” — it is a deposit held against an expected settlement at move-out. The key to avoiding disputes lies in documenting the unit’s condition before move-in, reviewing the lease and any special clauses carefully, attending the move-out walkthrough in person, and understanding the cost-allocation framework in the MLIT restoration guidelines. Know the system, and a tenant can protect against unfair charges while a landlord avoids needless conflict. For anyone renting, managing, or investing in Japanese residential property, treating shikikin settlement as a routine, well-documented process — not a point of friction — is what lets both sides move on to their next step in good faith.
Frequently Asked Questions
When is shikikin refunded?
It depends on what the lease specifies, but roughly one month after move-out is the common benchmark. The remaining balance is refunded once the restoration-cost settlement is finalized. If a refund is taking noticeably longer than expected, ask the property manager or landlord directly about the timing and status of the settlement.
Are there downsides to a zero-zero (no-deposit) property?
Because no shikikin is held as a buffer, restoration costs at move-out must be paid in full, out of pocket, with no deposit cushioning the bill — that lack of a cushion is the real downside. It’s worth using the unit carefully throughout the tenancy and budgeting for the possibility that move-out costs turn out higher than expected.
What should I do if I feel the refund amount is unfairly low?
Start by requesting a written, itemized breakdown of the settlement, check the cost allocation against the MLIT guidelines, and raise the discrepancy with the property manager or landlord. If that doesn’t resolve it, consulting the National Consumer Affairs Center of Japan or a local Consumer Affairs Center, or pursuing Japan’s small-claims court procedure, are both effective next steps.
What is the difference between normal wear and damage from negligence?
Repair costs for ordinary aging or wear from normal use are, in principle, the landlord’s responsibility. Damage caused by a tenant’s intent, negligence, or carelessness is the tenant’s responsibility. Under the MLIT guidelines, the determining question is always whether the damage falls inside or outside the bounds of ordinary use.
