“Tokyo Reader” on odd rental contracts for apartments: “lease” vs. “loan for use”? Plus Kyoutaku escrow for disputes
Tokyo Reader: I am currently in a dialogue with company HT. Over the winter, HT looks to have lowered rents on the 1K apartments. What used to be advertised as 150,000 yen a month is now 135,000 yen. (I say “used to be advertised” because there is some evidence that different parties are paying different rents, having nothing to do with a discount system.)
Since I had been paying the higher rent, I proposed paying the new advertised price. According to the Land & House Lease Law (“LHLL”), Article 32, a tenant can propose a rent reduction when there is evidence that rents in a given neighborhood have declined. The landlord may disagree and then a mandatory arbitration panel is supposed to decide the matter.
Company HT insists that my 1K is somehow special that it requires the higher price (150,000 yen). Funny is that when I moved into the building, there was no such tiered pricing. Further, Company HT claims that my lease is not covered by the Land & House Lease Law, but rather is a “Loan for use” under Civil Code, Article 593…
Michael Fox: Can anything be done if your rent is increased unfairly? Or what if people moving into your building are paying less? Good news, there is a designated process for alleviating overcharges…
If negotiation fails, the next step is to deposit the money into escrow (kyoutaku 供託)with the local government. The papers for such procedure can be obtained from the Legal Affairs Department (Houmukyoku法務局) of your city/town office.