Word of the Day - January 12, 2019

Futsu Keiyaku – 普通契約 – Real Estate Japan’s Word of the Day



  • English definition: Regular lease. In Japan, the standard lease for a rental apartment has a two-year lease term. At the end of each lease term, the tenant has the right to renew a regular lease for another two-year term. However, there may be a lease renewal fee.
  • A regular lease can be terminated by the tenant before the lease-term expires with one month’s notice, but there may be a lease termination fee.
  • Regular leases cannot easily be terminated by the landlord.
  • In contrast, a Fixed-Term Lease (teiki-keiyaku, 定期契約) is a rental lease with a term that is determined by the lessor (landlord). The length of the lease is entirely at the discretion of the landlord and the lessee (tenant) does not have the right to renew the lease, unless explicitly stated in the lease.
  • For more information on the advantages and disadvantages of a Fixed-Term Lease from a landlord’s perspective, please see: Your rights as a property owner in Japan to terminate a lease with a tenant

Real Estate Japan‘s word-of-the-day for January 12, 2019

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