In fifteen years of self-managing 9 rental units, I’ve only had one move-out dispute serious enough to require a written explanation letter, and it happened because I misunderstood genkyo kaifuku gimu (the tenant’s restoration obligation) back when I was still new to this. I ended up paying about 45,000 yen out of my own pocket for wallpaper I didn’t actually need to replace, just to keep the peace. Once I actually learned the rules, that kind of mistake stopped happening.
If you’re a landlord in Japan, or a tenant trying to figure out what you’ll owe when you move out, genkyo kaifuku gimu is the single most misunderstood clause in a Japanese lease. Here’s what I’ve learned running it across nine properties.
What Genkyo Kaifuku Gimu Actually Means
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Genkyo kaifuku gimu literally translates to the obligation to restore original condition. For decades, landlords in Japan used this phrase to justify charging tenants for almost anything that looked worn at move-out, from yellowed wallpaper to faded flooring. That changed with the 2020 Civil Code revision, which wrote into law something courts had already been saying for years: tenants are only responsible for damage caused by their own negligence or misuse, not for ordinary aging or normal use of the space. A landlord cannot legally demand a room be returned looking brand new after someone has lived in it for 3, 5, or 8 years.
Normal Wear and Tear Versus Tenant-Caused Damage
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This distinction is where almost every dispute starts, so I keep a mental checklist when I inspect a unit after move-out.
- Sunlight-faded wallpaper or flooring u2014 normal wear, landlord’s cost
- Small nail holes from hanging a calendar or picture u2014 normal use, landlord’s cost
- Furniture indentations in carpet u2014 normal use, landlord’s cost
- Cigarette burns or tar staining on walls u2014 tenant’s responsibility
- Deep grease buildup in the kitchen from not cleaning the exhaust fan u2014 tenant’s responsibility
- Pet scratches on doors or flooring u2014 tenant’s responsibility if pets weren’t cleaned up after
- Mold caused by the tenant never opening a window for months u2014 tenant’s responsibility
The rule of thumb I use is simple: if the damage would have happened to any careful tenant just by living there, it’s on me. If it happened because someone was careless or didn’t do basic upkeep, it’s on them.
How the Depreciation Schedule Actually Works
Even when damage is genuinely the tenant’s fault, I can’t charge full replacement cost forever. The Ministry of Land, Infrastructure, Transport and Tourism guideline uses a straight-line depreciation model for finishes like wallpaper and flooring, typically over a 6-year useful life. That means the value of a wall’s wallpaper drops by roughly 16 percent each year, and by year 6 its residual value is essentially zero. So if a tenant burns a cigarette hole into wallpaper that was installed 5 years earlier, I can only bill them for a small fraction of the replacement cost, not the full 18,000 yen or so a fresh sheet would cost. This surprises a lot of landlords who assume damage equals full price.
A Real Move-Out Cost Breakdown From One of My Units
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Last year I had a tenant move out of a 1LDK after living there for 4 years. Here’s roughly how the final settlement broke down, which I think illustrates the split well:
- Professional cleaning fee, 35,000 yen u2014 charged under a specific-purpose clause we’d both signed at move-in, not genkyo kaifuku gimu itself
- Wallpaper patch for a cigarette burn near the kitchen, about 4,200 yen after depreciation was applied u2014 tenant’s cost
- General nail holes and light scuffing throughout u2014 zero charge, normal wear
- One tatami mat replacement for a large stain, 12,000 yen u2014 tenant’s cost
- Sun-faded curtains left behind u2014 zero charge, my cost to dispose of and replace
Out of a 220,000 yen deposit, the tenant only ended up owing about 16,000 yen beyond the agreed cleaning fee. That’s a far cry from what landlords used to charge before the law tightened up, and honestly, it’s fairer to everyone.
How I Avoid Disputes at Move-In and Move-Out
Since that one bad experience years ago, I’ve built a routine that keeps almost every move-out disagreement-free.
- Photograph every room at move-in, roughly 40 shots per unit covering walls, floors, fixtures, and any existing wear
- Attach a written condition report to the lease so there’s no argument later about what existed before the tenant moved in
- Walk the unit with the tenant at move-out whenever possible, within 2 weeks of key return
- Keep receipts for every repair I bill, since disputes almost always get resolved by whoever has documentation
- Explain the depreciation logic upfront if a tenant questions a charge, rather than just stating a number
Genkyo kaifuku gimu isn’t a tool for landlords to profit off every scuff mark, and once you understand where the line actually sits, it stops being adversarial. That’s the approach I use across all 9 of my properties, and it’s saved me far more in avoided disputes than it’s ever cost me in wallpaper.
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