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Renting Renewal Fees (更新料) in Japan

Renewal Fees (更新料) in Japan — Why They Exist, When You Must Pay Them, and How to Avoid Them

If you rent an apartment in Japan, you may eventually encounter a charge called 更新料 (kōshinryō), meaning “renewal fee.” This fee surprises many foreigners because it is rare outside Japan, and it is not well explained by most resources. So what is this fee, why does it exist, and do you really have to pay it?

What Renewal Fees (更新料) Are

更新料 is a payment tenants make to continue using the rental property after their initial contract period (usually two years).

Most commonly:

  • The renewal fee applies every 2 years
  • The fee amount is typically 1 month of rent
  • It is paid directly to the landlord or property owner
  • It is not refunded

It does not cover maintenance, repairs, insurance, or cleaning — it is simply a continuation fee to renew the contract.

Why Japan Has Renewal Fees (And Why They Surprise Foreigners)

In many countries, rental contracts are either month-to-month or renewed contractually without extra fees.

Japan’s renewal fee developed historically because:

  • Long-term leases were risky for landlords
  • There was no standardized rental protection before modern real estate law
  • The fee acted as a “continuation premium”

Today, renewal fees are not required by law, but they remain common out of market tradition and landlord preference.

Is Renewal Fee Legal?

Yes, renewal fees are legal in Japan, but only when:

  • They are clearly written in the rental contract
  • The amount is specified
  • You agree to it when signing

If the contract does not mention a renewal fee, the landlord cannot charge one later.

How Much Renewal Fee Costs (Typical Amounts)

Situation Typical Fee
Standard apartment 1 month of rent
Newer managed building 0.5–1 month
Corporate-leased Often zero

When You Must Pay Renewal Fee

Renewal fee is charged only when:

  • You reach the end of the current contract period
  • You choose to stay in the apartment
  • The contract clearly states the renewal fee amount

If you move out before renewal, you do not pay the fee.

When You Do NOT Have to Pay Renewal Fee

You do not owe renewal fee if:

  • The contract does not mention it
  • You move out before the renewal date
  • The landlord offers a “no renewal fee” promotion
  • You negotiate successfully (rare but possible)

Can You Negotiate Renewal Fee?

Negotiation is possible but must be approached indirectly and politely. Several realistic methods exist:

  • Offer a stable long-term stay — some landlords reduce the fee
  • Use timing — renew during slow rental periods
  • Consider moving — landlords sometimes drop the fee to retain tenants

Direct confrontation rarely works but quiet, professional requests handled through the agent can succeed.

How to Avoid Renewal Fees Completely

Renewal fee becomes irrelevant if you:

  • Leave before the renewal date
  • Move to a building with no renewal fees
  • Rent corporate-managed or newer properties

When comparing apartments, consider renewal cost over a four-year period to get a realistic cost picture.

Example Scenario (2-Year Renewal)

If rent is ¥85,000 per month and the renewal fee is 1 month:

  • You pay ¥85,000 at the end of Year 2
  • Total cost over 4 years includes 2 renewal fees = ¥170,000

This is equivalent to adding approximately ¥3,540 per month across the whole period.

Is Renewal Fee Reasonable?

It depends on the building and the area. If you stay long-term in a unit you like, the fee may still be cheaper than moving costs.

However, if the apartment is old, inconvenient, poorly maintained, or overpriced, renewal fee is a good moment to re-evaluate whether to stay.

Summary — What Tenants Should Remember

  • Renewal fee is a unique Japanese practice but not illegal
  • The amount must be written clearly in the contract
  • You can avoid it by moving before renewal
  • Negotiation rarely works but is not impossible
  • Evaluate renewal fees across multiple years, not just month-to-month

Related Guide

If you are planning to remain long-term in Japan and want to minimize unexpected housing costs, see our full explanation of:
How Key Money (礼金) Really Works and When You Can Avoid It

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