Vacating Before Reconstruction or Sale: Understanding Justifiable Reasons, Relocation Fees, and the Process

When considering rebuilding an old apartment or selling it after vacating, landlord requests for tenants to vacate are unavoidable. A landlord cannot unilaterally terminate a lease simply because “the building is old” or “because they decided to sell.”

This article organizes the legal premise of vacating based on Article 28 of the Land and Building Lease Law (借地借家法, chichi shakuyaku hō) regarding "justifiable reasons," the differences from fixed-term leases, how to think about relocation fees, how to negotiate, and precautions to avoid troubles. The legal provisions are confirmed via e-Gov Law Search, and relocation fees are explained as a concept built from components rather than fixed "market" amounts.

Key points of this article

• In ordinary lease contracts (普通借家契約), to refuse renewal the landlord must give notice between 1 year and 6 months before the contract expires, and if terminating, a 6-month period must elapse after notice before termination takes effect. Both require recognition of "justifiable reasons" (Land and Building Lease Law Articles 26–28, e-Gov, confirmed October 2026).
• Justifiable reasons are determined by comprehensively considering landlord's and tenant's needs for the building, previous contract history, usage status, current condition of the building, and offers such as relocation fees. Paying a relocation fee alone does not automatically form a justifiable reason.
• Relocation fees are calculated based on actual moving costs, initial costs of the new residence, differences in rent, and more. As a reference, median rents for 18–30㎡ units were Nakano 93,000 yen, Kamata 108,000 yen, Kitasenju 98,000 yen, and Akabane 89,000 yen (Urbalytics rental listing data, October 2025–October 2026, 209–558 properties per station).

Vacating Cannot Proceed Solely on Landlord's Convenience

In ordinary lease contracts (contracts automatically renewed upon expiration), landlords face restrictions on terminating contracts in order to protect tenants' homes.

• Contracts with a fixed term: If the landlord does not intend to renew, they must notify the tenant between 1 year and 6 months before the lease expires. Without such notice, the lease is deemed renewed under the previous conditions (Land and Building Lease Law Article 26, Paragraph 1).
• Contracts without a fixed term: If the landlord proposes termination, the contract ends six months after the proposal (Article 27, Paragraph 1).
• In either case, the landlord’s refusal to renew or request for termination must be based on recognized justifiable reasons (Article 28).

In other words, the contract can only terminate after observing notification periods and obtaining recognition of justifiable reasons. In practice, voluntary termination agreements (“mutual termination”) are often reached with tenants before entering legal disputes.

How Justifiable Reasons Are Judged (Land and Building Lease Law Article 28)

Article 28 lists factors to consider when determining the presence of justifiable reasons (e-Gov, confirmed October 2026):

1. Landlord’s and tenant’s (including sub-tenants) individual circumstances requiring use of the building
2. History of the rental contract (contract background, rent levels, rent arrears, etc.)
3. Building usage status
4. Current condition of the building (degree of aging, seismic resistance, repair costs, etc.)
5. Landlord’s offer of financial benefits to tenant as a condition or in exchange for vacating (the so-called relocation fee)

The primary focus is on item 1: whether both parties need the building; items 2–5 serve to supplement that judgment. For example, even if seismic issues and urgent rebuilding needs exist, justifiable reasons are harder to recognize if the tenant is elderly and faces difficulty finding a new residence or if a long-standing store operation is involved. In such cases, the offer of relocation fees is taken into account to compensate for the lacking circumstances.

Note that “because I want to sell” is often considered a weak landlord necessity on its own. If selling is the goal, consider also selling with tenants in place (owner change).

Differences from Fixed-Term Lease Contracts

Fixed-term lease contracts (定期建物賃貸借契約, teiki tatemono chintaishaku) have no renewal rights, and automatically end at contract expiration (Article 38). Unlike ordinary leases, justifiable reasons are not required for termination at the end of the term.

Item	Ordinary Lease	Fixed-Term Lease
Renewal	Generally renewed	Not renewed (re-contracting possible)
Landlord termination	Requires justifiable reasons (Article 28)	Ends at expiration, no justifiable reasons needed
Contract form	Can be verbal	Requires written form such as notarized documents (including electronic records)
Prior explanation	No regulation	Landlord must provide written explanation that contract ends without renewal at expiration; otherwise, non-renewal clause is invalid
Termination notice	For refusal to renew, 1 year to 6 months before expiration	If contract term is 1 year or more, termination notice 1 year to 6 months before expiration required

Source: Land and Building Lease Law Articles 26–28, 38 (e-Gov Law Search, confirmed October 2, 2026). Prepared by TLL.

For properties with foreseeable rebuilding or sale, employing fixed-term leases when recruiting new tenants simplifies future planning. However, because fixed-term leases are more restrictive for tenants, lowering rent may be necessary to secure tenants. Also, converting existing ordinary leases to fixed-term leases requires tenant consent and prescribed procedures. Conversion can be limited, especially for older residential leases.

Thinking About Relocation Fees (Calculating Rather than Relying on Market Rates)

Relocation fees have no statutory fixed amount and vary greatly depending on the property condition, tenant circumstances, and intensity of landlord necessity. Therefore, it is incorrect to say “relocation fee is X months’ rent.” Instead, consider the costs and disadvantages the tenant bears due to moving by stacking up the following:

• Actual moving expenses: Moving costs; deposits, key money, brokerage fees, and prepaid rent for new residence; fire insurance and key replacement expenses
• Rent differences: If moving to a similar unit with a higher rent, the difference for a certain period
• Business losses (for stores and offices): Suspension during relocation, interior and equipment alterations, and potential customer loss
• Other circumstances: Burden of leaving a long-time residence, effects on school or hospital attendance, etc.

When considering rent differences, refer to listed rents in the same area and similar size. The following table aggregates rents for 18–30㎡ units at four stations.

Station	Number of Listings	Lower 25%	Median	Upper 25%
Nakano	347	79,000 yen	93,000 yen	129,000 yen
Kamata	558	90,000 yen	108,000 yen	127,000 yen
Kitasenju	311	84,000 yen	98,000 yen	110,000 yen
Akabane	209	75,000 yen	89,000 yen	110,000 yen

Source: Urbalytics rental listing data. Properties listed between October 2, 2025 and October 2, 2026 within Tokyo near the listed stations, consisting of 18–30㎡ dwellings (including condominiums, wooden and light steel-frame apartments). Duplicate listings with identical property, size, and rent removed. These are listing rents, not contract rents. Data compiled on October 2, 2026.

For example, if a tenant living in an old 1K around Nakano station paying 65,000 yen/month moves to a similar-sized unit renting around the median 93,000 yen/month, the difference is 28,000 yen/month. How many months’ worth of difference, plus initial costs for the new residence (about three months’ rent for deposit, key money, brokerage fees) and moving costs, are to be borne depends on discussions related to tenant circumstances and landlord necessity. These numbers are examples illustrating the concept, not actual amounts.