The reasons why tenants in Japan are considered strong are many and varied, but the main factors are legal protection and cultural background. The strength enjoyed by Japanese renters is rooted in providing a secure foundation for individuals and families.
1 Legal protection
In the Japanese rental market, the rights of tenants are well protected by law. For example, the Rental Agreement Law and the Land and House Lease Law define the rights of tenants and require appropriate treatment. These laws prevent tenants from being treated unfairly or dismissed and ensure a stable living environment. Furthermore, even in the event of late rent payments, tenants cannot be asked to leave immediately, and a notice period to tenants is set by law.
In the Japanese rental market, the rights of tenants are well protected by law. For example, the Lease Agreement and the Act on Land and Building Leases define the rights of tenants and require appropriate treatment. These laws prevent tenants from being treated unfairly or dismissed and ensure a stable living environment. Furthermore, even in the event of late rent payments, tenants cannot be asked to leave immediately, and a notice period to tenants is set by law.
The act on Land and Building Leases is the law that applies to those who lease land for the purpose of owning a building or renting a building. It regulates the rights related to the lease, contract renewal, termination, and duration of the lease. The Act on Land and Building Leases is a special law that takes precedence over the Civil Code.
The Civil Code allows the lessor (lender) to freely determine the content of the lease contract, which gives the lessor (lessee) a greater advantage than the lessee (borrower). If the lessee is unable to renew the lease on the land where the building remains or is suddenly evicted, the lessee’s life is threatened and the lessee suffers a great disadvantage. Therefore, the Act on Land and Building Leases was established to protect tenants who are legally vulnerable.
2 Cultural background and social values
Japanese culture places great emphasis on respecting the tenant and their rights. The relationship of house tenancy is based on mutual trust and consideration. Because of this cultural background, communication between tenants and owners usually takes place to maximize mutual benefit. Owners are also expected to be flexible and responsive to the needs of their tenants and to maintain the rental property to the satisfaction of the tenants.
3 How owners can avoid problems with renters and operate successfully
The first step is to find an excellent management company. In Japan, there are companies like ours that can provide English-language services or manage properties in the owner’s native language.
There are several techniques to avoid problems and manage them successfully. Using a rental guarantee company has become almost mandatory in recent years. In the past, this consisted of designating a tenant as a co-signer, but it is safer for the owner to use a rental guarantee company. Another technique is to make the lease contract a fixed-term lease. In a regular lease, the contract is often renewed regardless of the owner’s intention, but in a fixed-term lease, the term of the contract can be firmly defined, and the contract can be terminated or re-signed at the owner’s discretion.
Make sure to target the type of renters you want to rent the property to, and discuss how you will market the property with the management company.
If you have any questions or/and if you would like to have more details, feel free to contact us by contact form.
