Legal Sudden rent hikes spark lawsuits in Tokyo

Cases such as the one below are increasing in Tokyo:

A Tokyo couple in Shinjuku faced a dispute with their landlord after being asked in June 2024 to accept a ¥40,000 rent increase upon lease renewal. The couple's landlord claimed the rent hike is "being driven by the weak yen, soaring electricity prices prompted by Russia's invasion of Ukraine and inflation due to labour expenses." The email adds that the property was "rented out too cheaply" because of an inexperienced staff member. They initially agreed to a phased rise, but the landlord later demanded further increases, used threatening language, and filed a lawsuit in January 2025. The conflict escalated when parking fees were raised, and funds were transferred from their bank account without their consent. Later, access to the parking was cut off after the couple objected.

The tenants countersued, arguing illegal treatment. In November, the Tokyo District Court upheld the previously agreed rent of ¥188,000. It ruled in the couple's favour on the parking issue, ordering the landlord to repay improperly charged fees and cover legal costs. The court also found that claiming the rent had been "too cheap" did not justify a sudden increase.

"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.

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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.


Original Kyodo article on Yahoo News: