Disputes where the security deposit is not returned at move-out occur frequently in the rental industry. If a claim is ignored, "small claims court" (Shogaku Sosho), which can be used for monetary claims of 600,000 yen or less, is an effective option. This article explains the mechanics of small claims court, its advantages and disadvantages, required documents, and costs from a property management perspective.
What Is Small Claims Court? Use Cases in Real Estate
Small claims court is a litigation system that allows simple procedures for monetary claims of 600,000 yen or less. Compared to ordinary court proceedings, it involves simpler procedures and lower costs, and can be used without specialized legal knowledge.
Use cases in real estate:
- Claims by management companies or landlords against tenants for unpaid rent
- Claims by tenants against landlords or management companies for return of security deposit
It is particularly effective when written requests are being ignored or when you are not satisfied with the security deposit settlement.
Advantages and Disadvantages of Small Claims Court
Advantages
- Simple procedures: Templates for petitions are available at court windows or websites; can proceed without an attorney
- Low cost: Court costs are approximately 5,000–10,000 yen. If you win, the other party can be required to bear the costs
- Quick resolution: Approximately two months from filing to judgment; hearings are in principle held once and judgment is rendered on the same day
Disadvantages
- Risk of transfer to ordinary proceedings: If the other party requests ordinary proceedings, the advantages of small claims court cannot be utilized
- Limit of 10 uses per year: The same plaintiff can use the procedure up to 10 times per year
- Court appearances required: Multiple court visits may be required for the procedure
Documents Required for Small Claims Court in Security Deposit Return Cases
| Document | Source and Key Points |
|---|---|
| Petition | Use template available at court window or website |
| Rental agreement | Important matters explanation or renewal agreement also acceptable |
| Security deposit settlement statement | May also be called a restoration detail sheet or estimate |
| Certified mail + delivery confirmation record | Effective for proving the background of the claim and legal basis |
| Move-in and move-out photos | Submit if available; helpful for proving condition at move-in |
Breakdown of Small Claims Court Costs
- Stamp duty: 1,000 yen for claims up to 100,000 yen; 2,000 yen for up to 200,000 yen
- Postal stamps: Approximately 4,000 yen as a guideline (varies by court)
- Enforcement costs (attachment): Required if the other party does not pay even after you win. Stamp duty 4,000 yen + postal stamps 3,000–4,000 yen
For security deposit return cases, total costs often come to less than 10,000 yen, making it a highly cost-effective option.
Related Reading
- Restoration Costs for Security System Installation in Rentals: Rules Property Owners Need to Know
- Complete Guide to Key Trouble in Rental Properties: Cost Responsibility and Response Methods
- What Is the Leasing Operation That Determines Success in Rental Management?
Frequently Asked Questions (FAQ)
- Q. Can small claims court be pursued without an attorney?
- A. Yes. Since the procedures are simple, you can proceed without an attorney. Court staff can also provide detailed explanations at the counter.
- Q. What happens if the other party requests ordinary proceedings?
- A. The case transfers from small claims court to ordinary proceedings. Resolution in one hearing will no longer be possible, at which point consulting an attorney becomes an option.
- Q. What should I do if I win but the other party still does not pay?
- A. You can file for enforcement proceedings (attachment). Separate stamp duty and postal charges will apply.
- Q. What should I do before filing a small claims court case?
- A. The first step is to send a certified letter demanding return of the security deposit and await the other party's response. If ignored, proceeding to small claims court is the general next step.
