When moving out, your security deposit may not be returned, or you may even receive an additional charge. These disputes occur frequently every year. This article explains what a security deposit is, how costs are divided between tenant and landlord, and practical ways to recover as much of it as possible.
What is a security deposit? How is it different from key money?
A security deposit is money paid to the landlord at move-in and used to cover restoration costs after move-out. If there is no damage caused by the tenant’s intentional acts or negligence, it should be returned in full. It is important to clearly understand that “the tenant has the right to claim the return of the security deposit.” Key money, by contrast, is a payment made to the landlord as a gesture of thanks and is not refundable. Restoration does not mean “returning the property to the exact condition it was in before renting,” but rather “repairing damage caused by the tenant’s intentional acts or negligence.”
How do tenant and landlord responsibilities differ?
Walls and floors
- Tenant responsibility：Tobacco stains and odors, holes larger than pinholes (such as nails or screws), graffiti, corrosion caused by water leakage from the tenant’s own air conditioner
- Landlord responsibility：Blackening behind a TV or refrigerator, sun fading caused by posters and similar items, screw holes from installing an air conditioner, wallpaper discoloration caused by sunlight, small pinholes
Fixtures and fittings (sliding doors, pillars, etc.)
- Tenant responsibility：Scratches or odors caused by pets, graffiti
- Landlord responsibility：Broken glass caused by earthquakes or other natural disasters, replacement of screen doors for the next tenant (when there is no actual damage)
Water-related areas
- Tenant responsibility：Damage to a water heater caused by dry firing, grease buildup caused by a lack of cleaning beyond normal use
- Landlord responsibility：Replacement of aging equipment (when it is not broken), black marks on walls left by a refrigerator
Four practical ways to recover as much of your security deposit as possible
1. Negotiate with the landlord using legal precedents
When you negotiate while citing past court precedents based on the Consumer Contract Act and the Land and Building Lease Act, the landlord may agree to return amounts that should not be charged to the tenant. A calm discussion supported by evidence and legal grounds is more effective than an emotional argument.
2. Attend the move-out restoration estimate inspection
It is important to attend the estimate inspection at move-out and raise objections on the spot to any items that were not caused by your own fault. It is also advisable to request a written rough estimate.
3. Get a quote from a renovation company yourself
Contractors arranged by the landlord often provide higher estimates. By obtaining a quote in advance from a different renovation company, you can assess whether the costs are reasonable.
4. Consult the 国民生活センター or a real estate consultation desk
If you believe the charge is unfair, consult a public agency. The 国民生活センター and real estate consultation desks in each prefecture provide advice from a neutral standpoint. Also note that the statute of limitations for claiming the return of a security deposit is five years after move-out.
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Frequently Asked Questions (FAQ)
Q. How long after move-out should the security deposit be returned?
A. Before the 2020 Civil Code revision, the common practice was about one month, but legally the deposit must be returned without delay. If it has not been returned more than two to four weeks after move-out, you should contact the landlord or management company.
Q. Is the tenant responsible for house-cleaning costs?
A. If the lease clearly states that “move-out cleaning costs are the tenant’s responsibility,” then the tenant must pay them. However, there are also many court decisions holding that the landlord must bear those costs when the condition does not exceed ordinary wear from normal use during occupancy.
Q. What changes at move-out for a property with no security deposit?
A. Because there is no security deposit, restoration costs are billed separately at move-out. The same rules on cost allocation generally apply as with properties that do require a deposit, so it is important to record existing scratches and stains with photos before moving in.
Q. Can I still recover a security deposit that I previously gave up on?
A. If it has been less than five years since move-out, the claim for return of the security deposit is generally not yet time-barred, so you may still seek recovery through legal procedures. For small claims of 600,000 yen or less, you can also file the case yourself.
