Paku Midin: SUDDEN RENT HIKE TRIGGERS LAWSUITS IN TOKYO

SUDDEN RENT HIKE TRIGGERS LAWSUITS IN TOKYO - TOKYO JAPAN

@Jr_Paku Midin Channel

TOKYO

In June 2024, a couple living in a rental apartment in Tokyo's Shinjuku Ward received an email from their landlord requesting a rent hike of 40,000 yen after their lease renewal -- a shock that made them consider moving.

For four years, the husband, in his 50s, and wife, in her 30s, had been renting the 1DK (one room plus kitchen) unit of about 40 square meters. It is in a reinforced concrete building over 20 years old.

Just a one-minute walk from the station, the apartment features floor heating and a bathroom dehumidifier, while the basement houses a mechanical multi-level parking garage and storage lockers. The monthly rent, including management fees and parking, was 163,000 yen.

Although the landlord's email was prefaced by an apology, it sparked a legal dispute. While the Japanese economy had been battling deflation for years, rent prices have surged recently, with some rising more than 10 percent in parts of Tokyo.

According to Lifull Co, which operates a housing information site, the average listed rent for rental properties in Tokyo's 23 wards has reached record highs: about 120,000 yen for single-person units and 250,000 yen for family units.

The couple's landlord claimed the rent hike is "being driven by the weak yen, soaring electricity prompted by Russia's invasion of Ukraine and inflation due to labor expenses." The email adds that the property was "rented out too cheaply" because of an inexperienced staff member.

When the couple balked, the parties agreed to a phased rent hike: 188,000 yen starting the following month for two years, then to 208,000 yen at the next renewal.

However, in December 2024, the landlord again demanded a rent increase, claiming the couple was profiting from an unreasonably low rent. The email the couple received contained harsh language, condemning them and threatening a lawsuit to retroactively claim the increased rent.

On Jan 29, 2025, the landlord filed a lawsuit demanding the rent hike. It argued that "the current rent is provisional, and the lease agreement states that litigation may occur. Please reconsider whether this is an issue worth your time and money."

The couple, already bewildered by the landlord's sudden hardline stance, was dealt another blow in February when the landlord notified them via email of a 5,500-yen monthly increase in parking fees. In April, 11,000 yen for two months' parking was withdrawn from their account without their consent.

Consulting a lawyer, they refused the parking fee increase and demanded the money be returned. In response, the landlord cut off access to the parking spot.

The couple countersued, claiming the landlord's act constituted an illegal eviction, and sought 700,000 yen in attorney fees and compensation for emotional distress.

A trial for both lawsuits was concluded in one hearing. In November, the Tokyo District Court confirmed that the rent was 188,000 yen as agreed by both parties and ordered the landlord to pay the tenant's attorney fees and excess parking fees totaling 131,000 yen that had been deducted without their consent.

The judge ruled that merely "renting it out too cheaply" does not automatically justify an immediate rent hike.

"I feel immense relief. I was constantly terrified, wondering what the landlord would say next after all those repeated demands," the wife said at a press conference following the verdict.

Her husband became ill from the mental strain, she said, adding that their daily lives were severely disrupted. Although the couple won, they decided to move out.

After that, neither party appealed, and the court decision became final. The landlord had no comment about the result.

"Amid rising land prices, cases demanding steep rent hikes are increasing, and we are frequently seeing landlords using parking lot rent hikes or contract termination as bargaining chips," said the couple's lawyer, Naoto Akiyama, who also holds a real estate appraiser license.

The Law on Leasing Land and Buildings protects tenants, who are in a weaker position, by prohibiting landlords from unilaterally terminating leases unless there are valid reasons such as rent delinquency.

"There was some ambiguity regarding parking lot rent, which is excluded from the scope of the Law on Leasing Land and Buildings," said Kentaro Kaneshige of Meikai University's Department of Real Estate.

"The significant ruling here is that when the lease agreements for the building and parking lot are deemed integrated, certain restrictions apply to termination or rent increases."

Under the law, landlords can negotiate with tenants if the rent is lower than the local market price, he noted. Tenants can request an explanation of how a specific rent was determined, or seek a third-party appraisal of what constitutes fair rent for a property.

Kaneshige also recognized the plight of landlords. "While forceful action is out of the question, landlords are also struggling with rising costs. The likely best solution is to keep talking until both parties are satisfied and find a compromise."

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