Question from a reader:
I was told that my rent will increase by 7,000 yen upon renewing my lease. When I asked the management company for the reason, they said the owner wants to align with the rental market in the area. Is this a legitimate reason? Or is it just the owner’s convenience? I am grateful to be living in
a very nice property, but I am struggling with whether it is right to pay the increased rent. I found that legally, continuing to pay the same rent should not be a problem. The management company also seemed to have no enforcement power and was merely providing a notification. If anyone has more information, I would appreciate your help.

Considering the Legitimacy of Rent Increases upon Lease Renewal

For everyone living in rental properties, doesn’t the approach of lease renewal always make you a bit anxious? Especially the news that your rent might go up can weigh heavily on your mind. In this blog, I would like to delve into the specific case of “a 7,000 yen increase” from both a legal perspective and a psychological perspective.

Market Rates for Rental Properties and Reasons for Rent Increases

First, according to the explanation from the management company, the owner wants to “align with the rental market in the area.” This is generally a common reason. If the surrounding rental rates go up, it follows market principles that one’s own property should also adjust accordingly. However, can this really be considered a legitimate reason? Typically, a rent increase requires what is known as a “justifiable reason.” In other words, there needs to be a valid reason for raising the rent. While “wanting to align with the market” may seem reasonable at first glance, it is essential to consider the underlying circumstances. For example, if one’s property was relatively cheaper compared to neighboring properties, it is understandable that the owner would seek a rent increase. However, is it truly fair for the rent to be raised solely for the owner’s convenience?

From a Legal Perspective

Now, from a legal standpoint, changes to rent in a lease agreement are treated as “modifications to the contract.” If it is clearly stated in the lease agreement or if there is mutual consent, there should be no issues. However, typically, the “clause regarding changes to rent” included in lease agreements often sets a cap on increases. Whether the proposed rent change at the time of renewal is legitimate depends on the lease document. For instance, if there is a clause stating, “Rent will be reviewed based on surrounding market rates,” the owner’s claim may be more easily justified. On the other hand, if it is explicitly stated that “rent will not be reviewed at the time of renewal,” the owner’s claim becomes legally weaker. In other words, the contents of the lease document serve as a basis for legal judgment.

Approaching from a Psychological Perspective

Let’s also consider the psychological aspect. Rental properties often hold more significance than just being a place to live. Especially if you have lived there for a long time, that place becomes a “home” and emotional connections develop. Therefore, the issue of “rent going up” is not merely a numerical problem; it affects comfort and a sense of security. In fact, I once received a notice that the rent for my long-term apartment would increase. Initially, I thought, “Why? This is a special place!” However, upon reflection, I understood that the owner also had economic reasons. That said, changing one’s living situation can be psychologically stressful. This is something many people can relate to.

Countermeasures and Mindset Regarding Rent Increases

If you receive a notice of a rent increase during your lease renewal, it is crucial to first review your lease agreement carefully. Next, it is important to ask the management company or owner for specific reasons. Questions like “How has the surrounding market changed?” and “Is there specific data to support this?” would be effective. Additionally, if you feel that the increase is unreasonable, you should also consider the option of looking for other rental properties. Where you live directly impacts your quality of life, and such decisions should be made carefully. Furthermore, if the psychological burden is significant, consulting with friends or family can also be beneficial. Sharing your feelings can help alleviate stress. In fact, when I consulted a friend and they said, “That’s just how it is,” it helped me feel better.

Conclusion: Rent Increases and Lease Renewals

Ultimately, whether the rent increase at the time of lease renewal is justified depends on the contents of the lease and the owner’s circumstances. Regardless of the legal aspects, the psychological factors also play a significant role. Living in a rental property means more than just a contract; it shapes your living environment. If you feel that a rent increase will significantly impact your life, it is essential to calmly organize your information and take appropriate measures. Since rental agreements often involve long-term commitments, a solid understanding and preparation are necessary. I hope this blog helps you in making decisions regarding your lease renewal. While it may be a source of concern, ultimately, it is important to make the best choice for yourself.