"Shikibiki" is a rental custom unique to western Japan and is a term that many people in eastern Japan may not be familiar with. Under this system, a fixed amount is deducted from the security deposit before the balance is refunded, and the rules differ from those for a standard deposit. This article explains what shikibiki means, typical amounts, and how to avoid it.
What Is Shikibiki?
Shikibiki is a rental custom unique to western Japan in which a fixed amount is deducted from the security deposit at move-out and only the remaining balance is refunded. The security deposit is money paid by the tenant to the landlord and is commonly equal to two months' rent.
For example, if the rent is 70,000 yen, the security deposit is equal to 3 months' rent, and shikibiki is 1 month's rent, the refund at move-out would be 210,000 yen - 70,000 yen = 140,000 yen.
What Is the Difference Between Shikibiki and a Deposit?
With a standard deposit, which is common in eastern Japan, the remaining balance is refunded after repair costs are deducted, whereas with shikibiki, a fixed amount is deducted regardless of whether any repairs are needed. In the Tokyo metropolitan area, the typical deposit is 1 to 2 months' rent.
What Is the Typical Amount of Shikibiki?
According to SUUMO survey data, the average security deposit is about 1.8 months' rent, while shikibiki averages about 1.6 months' rent. However, some properties with higher shikibiki may not charge a renewal fee, or they may offer lower rent, so it is important to compare the total cost.
How Can You Avoid Paying Shikibiki?
- Choose a zero-zero property: a property with no security deposit and no shikibiki. However, be careful about penalty fees or higher rent settings
- Check the lease agreement: confirm whether "shikibiki" is stated in the special terms
Is Shikibiki Illegal?
Shikibiki is generally considered legally valid, but it may conflict with Article 10 of Japan's Consumer Contract Act. It may therefore be deemed invalid if it is found to "violate the principle of good faith and unilaterally harm the consumer's interests".
Frequently Asked Questions (FAQ)
Q. Can shikibiki be reduced through negotiation?
Negotiation is possible before the lease agreement is signed. However, it depends on the decision of the landlord or real estate company.
Q. Should properties with shikibiki be avoided?
Not necessarily. In some cases, there may be benefits such as no renewal fee or lower rent in exchange for shikibiki. A comprehensive cost comparison remains important.
Q. What should landlords keep in mind when setting a shikibiki clause?
If the shikibiki amount is set too high, prospective tenants may avoid the property, and there is also a risk that it could develop into litigation. Set an appropriate amount in line with market levels and state it clearly in the lease agreement.
