Standard vs Fixed-Term Leases in Japan: What Every Landlord Must Know

Published2026.11.028 min read

When you let a property in Japan, the lease is either a standard lease (futsu shakuya) or a fixed-term lease (teiki shakuya). The choice decides whether you get the property back when the term ends. Many owners assume “a 2-year lease means I get it back in 2 years” — under a standard lease, you usually do not. Here are the differences every landlord should know, based on the Act on Land and Building Leases.

Key points

Standard leaseRenews by default at the end of the term; the landlord needs “just cause” to end it
Fixed-term leaseEnds definitively at expiry with no renewal; continuing requires a new agreement
RequirementsWritten contract (electronic OK) plus a separate written explanation before signing — without it, it becomes a standard lease
When to use itLetting your home while posted abroad, planning to sell or rebuild, or wanting to review each term

Comparison at a glance

Item	Standard lease	Fixed-term lease
Form	Valid even orally (written in practice)	Written contract required (electronic OK)
Before signing	Explanation of important matters only	A separate document explaining there is no renewal
Term	Under 1 year = no fixed term	Under 1 year allowed; no upper limit
At expiry	Renews (statutory renewal without notice)	Ends (new agreement to continue)
Landlord ends it	Just cause + notice 1 year to 6 months before expiry	Termination notice 1 year to 6 months before expiry (terms of 1 year+)
Tenant ends early	As agreed (e.g. 1 month’s notice)	Homes under 200㎡: 1 month for unavoidable reasons; otherwise per contract
Rent changes	Either party may request; “no reduction” clauses invalid	Rent revision clauses prevail
Renewal fee	Possible if agreed	None (re-contract fee as agreed)

Act on Land and Building Leases Arts. 26–29, 32, 38 ※1

Standard lease: you usually do not get it back

If the landlord does not give notice of non-renewal in the period from 1 year to 6 months before expiry, the lease is deemed renewed on the same terms (with no fixed term thereafter). And refusing renewal or terminating requires just cause, judged on: ※1

how much landlord and tenant each need the property
the history of the lease (for example, rent payment)
the use and condition of the building
any offer of money (relocation compensation) in exchange for vacating

“I want to live there myself” or “I want to sell at a good price” is rarely enough on its own, and relocation compensation is often needed. Clauses less favourable to the tenant than these rules are void (Art. 30).

Fixed-term lease: it ends on schedule

Write it down: a written contract stating there is no renewal (notarisation not required; electronic OK)
Explain separately before signing: give the tenant a document, separate from the contract, explaining that the lease ends at expiry without renewal (electronic with consent)
No explanation = standard lease: without it, the no-renewal clause is void

Japan’s Supreme Court has ruled that the explanation document must be separate and independent from the contract (13 September 2012). For terms of 1 year or more, send a termination notice in the period from 1 year to 6 months before expiry; if late, the lease can be ended 6 months after the notice. For homes under 200㎡, a tenant who cannot continue living there because of a job transfer, medical treatment or caring for relatives may end the lease with 1 month’s notice. ※1 ※2

Which should you choose?

Situation	Choose	Why
Letting your home while posted abroad	Fixed-term	Match the term to your return
Planning to sell, rebuild or use it yourself	Fixed-term	No need for just cause or compensation talks
Wanting long, stable tenancies	Standard	Tenants feel secure; easier to let
Wanting market rent	Standard	Fixed-term leases sometimes need lower rent

FAQ

Can I convert an existing standard lease to fixed-term?

Not on your own. You need the tenant’s agreement and a new written contract with the advance explanation. Depending on when and how the original lease was made, there may be restrictions, so check individually.

Under a standard lease, can I evict a tenant who does not pay?

Yes. If the tenant breaches the contract (for example, rent arrears) and trust has broken down, you can terminate. Just cause is needed only when you end the lease for your own reasons.

What if I forget the termination notice?

For terms of 1 year or more, you can still end the lease 6 months after you send the notice. Send it as soon as you notice. ※1

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