Japan’s major cities have recently seen a sharp increase in rent-related disputes. For example, Osaka received only 74 consultations regarding rent hikes in fiscal 2024, but that figure jumped to 240 in fiscal 2025. Of the fiscal 2025 cases, 89 involved proposed rent increases of ¥10,000 or more. In some extreme cases, tenants were even being asked to pay more than double their current monthly rent.
Other areas are seeing similar trends. Kobe City received 23 rent increase consultations in fiscal 2025, while Tokyo recorded 1,086, approximately 2.1 times the previous year’s 517. In Tokyo, there were even cases in which tenants were told their rent could rise to two or three times the previous amount.
The situation has become serious enough that the Tokyo Metropolitan Government established a specialized rent increase consultation service in October 2025. The service provides guidance based on the Act on Land and Building Leases, and some tenants may also be referred for free consultations with lawyers.
If you have been following our newsletter, you already know that rents have been rising sharply, especially in rapidly growing metropolitan areas such as Osaka. As rental markets tighten, it is not unusual for landlords in Japan to request higher rent, although increases are generally more incremental. With inflation hitting property owners hard, however, some landlords appear to be pursuing much larger increases.
Fortunately for tenants, landlords in Japan do not have the power to unilaterally impose a new rent. In principle, the landlord and tenant must reach an agreement regarding the increase. Importantly, refusing a proposed rent increase is not, by itself, sufficient grounds for eviction. Eviction in Japan is famously difficult and can be more costly than allowing even a somewhat problematic tenant to remain in the property.
That said, outside of the more extreme rent hikes discussed above, many tenants do accept proposed increases. There are several reasons for this. The simplest is that some may not realize they have the option to refuse. Even when tenants are aware of their rights, rejecting an increase can suddenly place a great deal of work on their shoulders. Communicating with the property management company or owner and negotiating a compromise can become a major source of time and stress.
Landlords also have certain rights. The Act on Land and Building Leases allows either party to request a rent adjustment when the current amount has become unreasonable. This may apply, for example, when surrounding market rents have changed substantially and the tenant is paying far less than others in comparable properties nearby. However, a landlord’s request does not automatically establish the new rent.
If negotiations are unsuccessful, the landlord may apply to the court for mediation. If the dispute proceeds further and the court ultimately recognizes a higher rent, the tenant may have to pay the accumulated difference, potentially with interest. When combined with the time and stress involved in a prolonged dispute, it is understandable why many tenants ultimately accept increases of a few thousand yen.
In some cases, after a tenant rejects an increase, the landlord may refuse to accept payment of the original rent. In that situation, the tenant may be able to deposit the rent with the Legal Affairs Bureau. This can provide evidence that the tenant is continuing to meet their payment obligations, helping prevent the landlord from claiming nonpayment as grounds for terminating the lease.
Costs have admittedly been rising for landlords as well. Building repair expenses, for example, have been consistently increasing. Rising land values can also lead to higher fixed asset taxes. Some large property management companies have even begun pursuing rent increases across hundreds of thousands of units, although they generally do so in stages and may first make improvements to the property to provide additional value. For example, a company might install parcel delivery boxes before notifying tenants of a ¥3,000 monthly rent increase.
If you are considering investing in a rental property in Japan, this is important information to understand. Nothing discussed here necessarily points to a fundamental shift in how rental investments work or what owners should expect from them. However, it is important to understand both your rights as a landlord and your tenant’s rights before becoming involved in a rental dispute. This information is equally, if not even more, important for tenants themselves.
Regardless of which side of the rental relationship you are on, Dovetail offers specialized real estate assistance, particularly for foreign nationals interested in buying property in Japan. If you have any questions, we would love to hear from you.
Source: https://news.yahoo.co.jp/articles/a072d6087e80576622d5ddeeaaf8aab2e9bc39a0?page=3