As a rental property owner, there are situations where you may have no choice but to ask a tenant to vacate due to building deterioration, rent arrears, or similar issues. However, an eviction request is a serious matter that directly affects the tenant's daily life, so careful handling is required from both emotional and legal perspectives.This article organizes and explains the justifiable grounds on which eviction may be permitted, how to draft an eviction notice, how to conduct negotiations, and the general range of relocation compensation.
At INA&Associates株式会社, we place the highest value on relationships that both tenants and landlords can accept over the long term. Eviction negotiations are precisely where that relationship is tested. That is why it is not enough to simply follow a formal notice template; sincere communication is the foundation. This article is general information, and we recommend consulting a lawyer for any actual negotiation.
Two Situations in Which Eviction Arises
1. Eviction for the Landlord's Reasons
This is the case where a tenant is asked to move out for reasons on the landlord's side, such as building deterioration, rebuilding, owner occupancy, or an intention to sell.Under the Act on Land and Building Leases, a landlord needs "justifiable grounds" to terminate or refuse renewal, and cannot compel a tenant to leave based on preference alone.In this case, payment of relocation compensation is common.
2. Eviction Due to the Tenant's Breach of Contract
This applies where there has been a serious breach of contract by the tenant, such as prolonged rent arrears, keeping pets without permission in a no-pets property, operating an unregistered short-term rental, or using the property in violation of the agreed purpose. In this case, termination by the landlord is more likely to be allowed, and as a rule relocation compensation is not required.
Justifiable Grounds That Can Support an Eviction Request
Article 28 of the Act on Land and Building Leases provides that, when assessing a notice of termination or refusal to renew, the existence of justifiable grounds is determined by considering the following circumstances as a whole.
Need to Use the Building
The need of both the landlord and the tenant to use the building in question is the central axis of the analysis. The stronger the landlord's need for owner occupancy or self-use, the more likely an eviction request is to be accepted. Conversely, if the tenant has a strong need to continue living there, such as advanced age, illness, or an established living base, the hurdle for eviction becomes higher.
Course of the Lease and Prior Background
Factors such as the lease term, the history of renewals, the rent payment record, and the circumstances at the time the lease was executed are also considered. If a rebuilding plan had been explained before move-in, the landlord's position is more likely to be accepted.
Current Condition of the Building
If the physical condition of the building, such as inadequate seismic performance or a risk of collapse due to deterioration, makes eviction necessary, that circumstance may be recognized as justifiable grounds.
Supplementation Through Relocation Compensation
Even where justifiable grounds are recognized only in part,there are many cases in which an appropriate offer of relocation compensation is found to supplement those justifiable grounds.Relocation compensation serves as an important balancing mechanism in eviction negotiations.
Role and Required Contents of an Eviction Notice
What Is an Eviction Notice?
An eviction notice is a formal document by which a landlord asks a tenant to vacate. The law does not strictly require the request to be in writing, but keeping a written record is strongly recommended to prevent later disputes.By sending it via certified mail with proof of content and delivery, you can preserve evidence of the sending date and the contents.
Main Items to Include
- Notice date
- Tenant's name and address
- Landlord's or management company's name and address
- Property address, property name, and room number
- Lease execution date and lease term
- Reason for requesting vacancy
- Desired move-out date
- Details of relocation compensation, moving costs, and other proposed terms
- Contact information and deadline
Eviction Notice Template
Sample for a Landlord-Initiated Request (Building Deterioration)
Notice Reiwa ○ Year ○ Month ○ Day 〒○○○-○○○○ ○○ Prefecture ○○ City ○○ Town ○-○-○ To ○○ ○○ 〒○○○-○○○○ ○○ Prefecture ○○ City ○○ Town ○-○-○ Notifying Party: ○○ ○○ Dear Sir or Madam, the notifying party hereby gives notice to you as follows. The notifying party and you entered into a lease agreement for the building described below on Reiwa ○ Year ○ Month ○ Day, and the notifying party has delivered this property to you. Property name: ○○ Location: ○○ Prefecture ○○ City ○○ Town ○-○-○ Rent: ○○ yen per month Lease term: from Reiwa ○ Year ○ Month ○ Day to Reiwa ○ Year ○ Month ○ Day However, more than ○○ years have passed since this property was built, and its deterioration has progressed. As a result of the seismic assessment, it has been found not to meet current standards, and there is a risk of serious danger to the life and physical safety of occupants. Accordingly, we must decline renewal of this lease and respectfully request that you vacate and surrender the property by Reiwa ○ Year ○ Month ○ Day. Upon surrender, we would like to discuss payment of ○○○ ten-thousand yen as relocation compensation, as well as reimbursement of actual moving expenses. We will arrange a separate meeting to discuss the details. If you have any questions, please contact us at the number below. Contact: ○○○-○○○○-○○○○ Sincerely
Sample for Tenant Breach of Contract (Rent Arrears)
Demand for Cure and Notice of Lease Termination Reiwa ○ Year ○ Month ○ Day (Address and sender omitted) The notifying party and you entered into a lease agreement for this property on Reiwa ○ Year ○ Month ○ Day, but from the rent due for Reiwa ○ Year ○ Month onward, you have failed to pay total rent of ○○○○ yen. Please pay the full amount of unpaid rent within ○ days after receipt of this notice. If payment is not made within the above period, this document shall serve as notice that we will terminate this lease agreement.
These are only general templates.We strongly recommend that any actual notice be reviewed by a qualified professional such as a lawyer.
Flow of Eviction Negotiations
Step 1: Advance Preparation and Policy Decision
Organize the reason for the eviction and decide in advance the desired timing, the upper limit of relocation compensation, and any alternative proposals. Also gather supporting materials such as seismic assessment results and rebuilding plans.
Step 2: Send the Notice (Notice of Termination or Refusal to Renew)
For a fixed-term lease, notice of refusal to renew must be given between one year and six months before the lease expires. For an indefinite-term lease, six months must pass after the notice of termination.
Step 3: Direct Discussion
After sending the notice, meet directly with the tenant and carefully align on the desired move-out timing, conditions, and prospects for relocation.To avoid emotional conflict, it is often preferable to have a lawyer or an experienced management company present.
Step 4: Prepare a Settlement Agreement
If an agreement is reached, prepare a relocation agreement stating the move-out date, the amount and timing of relocation compensation, and how restoration obligations will be handled.
Step 5: If Negotiations Break Down
If negotiations break down, one option is to proceed to mediation or litigation (an action for surrender of the building). Compulsory execution based on a judgment takes time and money and can further damage the relationship with the tenant, so as a practical matter it is best to aim for a consensual resolution whenever possible.
General Range of Relocation Compensation
There is no statutory formula for calculating relocation compensation, and the amount varies widely depending on the individual circumstances. In practice, it is often calculated by combining the following elements.
- Actual moving expenses
- Security deposit, key money, and brokerage fee for a new residence
- Compensation for any rent difference (for several months)
- Consolation or adjustment payment
- Business loss compensation (for commercial use)
In residential leases, a common benchmark is six months to one year's rent, although the amount can vary significantly depending on the case. In commercial leases, the amount tends to be higher because business loss compensation is added.
INA&Associates: Our Perspective
Eviction negotiations are not something that can be completed simply by proceeding in a formal manner. For tenants, they are a serious matter that forces a rebuilding of the foundation of daily life, and for landlords, they are a moment that tests the balance between asset utilization and social responsibility. We consistently value an approach that prioritizes reaching agreement through sincere communication over short-term efficiency.
Our commitment to pursuing the well-being of everyone involved does not change even in a difficult situation like eviction. Even if the burden feels heavy in the short term, we believe that consistently acting in good faith leads to long-term trust and reputation.
Summary
- Eviction falls into two categories: landlord-initiated reasons and tenant breach of contract
- In landlord-initiated cases, the outcome is judged based on justifiable grounds under the Act on Land and Building Leases together with relocation compensation
- An eviction notice should include all required items and preferably be sent by content-certified mail
- Negotiations should be based on sincere dialogue and documented in a written agreement
- A rough benchmark for relocation compensation is six months to one year's rent, but the amount varies greatly by case
Frequently Asked Questions (FAQ)
Q1. If I send an eviction notice, will the tenant definitely have to move out?
Sending a notice alone does not allow you to force an eviction. You need justifiable grounds and either the tenant's agreement or a court judgment.
Q2. If there has been one month of rent arrears, can I demand eviction?
With only about one month of arrears, courts usually do not find a breakdown of trust. As a general guide, three or more months of arrears is one benchmark.
Q3. How much relocation compensation should I offer?
Because the range varies widely depending on the circumstances, we strongly recommend consulting a lawyer or an experienced brokerage or management company. A common benchmark is six months to one year's rent.
Q4. What should I do if eviction negotiations become protracted?
If negotiations stall, options include petitioning for mediation in summary court and, ultimately, filing an action for surrender of the building. Both take time and cost money, so in practice it is sensible to aim for a negotiated resolution.
