Idea of Lease Agreement in Japan
When you finally deal leasing conditions with tenants, there will be Contract document for leasing agreement to be signed by both lessor and lessee. Here is an idea of how the leasing contract as reference.
Contract provisions
Article 1. (Conclusion of the Contract)
The Lessor and the Lessee have concluded the housing contract (hereinafter referred to as the “Contract”) for the premises specified in (1) above (hereinafter referred to as the “Property”) to be used for a business specified in (2) above.
The Lessor and the Lessee have concluded the housing contract (hereinafter referred to as the “Contract”) for the premises specified in (1) above (hereinafter referred to as the “Property”) to be used for a business specified in (2) above.
Article 2. (Term of the Contract)
1. The term of the Contract is specified in (3) above.
2. The Lessor and the lessee may renew the Contract after the mutual consultation as specified in (7) above.
1. The term of the Contract is specified in (3) above.
2. The Lessor and the lessee may renew the Contract after the mutual consultation as specified in (7) above.
Article 3. (Rents)
1. The Lessee shall pay rent to the Lessor as specified in (3) above.
2. The Lessor and the Lessee may revise the rent after the mutual consultation, if any of the following events occurs.
a) If any increased or decreased tax or public charge on the land or building makes the rent inappropriate;
b) If any increased or decreased land or building price, or any other fluctuated economic circumstance makes the rent inappropriate; or
c) If there are changes of rents for similar buildings in the vicinity, making the rent inappropriate.
3. The rent for a period less than one (1) month shall be calculated on the prorated daily basis with one (1) month considered to be thirty (30) days.
1. The Lessee shall pay rent to the Lessor as specified in (3) above.
2. The Lessor and the Lessee may revise the rent after the mutual consultation, if any of the following events occurs.
a) If any increased or decreased tax or public charge on the land or building makes the rent inappropriate;
b) If any increased or decreased land or building price, or any other fluctuated economic circumstance makes the rent inappropriate; or
c) If there are changes of rents for similar buildings in the vicinity, making the rent inappropriate.
3. The rent for a period less than one (1) month shall be calculated on the prorated daily basis with one (1) month considered to be thirty (30) days.
Article 4. (Common Area Charges)
1. The Lessee shall pay the common area charges specified in (3) above which are applied for the electricity and gas expenses, the water and sewage expenses, the cleaning expenses and the like required for the maintenance of the common areas such as staircases and hallways (hereinafter referred to as the “Maintenance Expenses”).
2. The Lessor and the Lessee may revise the common area charge after the mutual consultation if any increase or decrease in the Maintenance Expenses makes the common area charge inappropriate.
3. The Maintenance Expenses for a period less than one (1) month shall be calculated on the prorated daily basis with one (1) month considered to be thirty (30) days.
1. The Lessee shall pay the common area charges specified in (3) above which are applied for the electricity and gas expenses, the water and sewage expenses, the cleaning expenses and the like required for the maintenance of the common areas such as staircases and hallways (hereinafter referred to as the “Maintenance Expenses”).
2. The Lessor and the Lessee may revise the common area charge after the mutual consultation if any increase or decrease in the Maintenance Expenses makes the common area charge inappropriate.
3. The Maintenance Expenses for a period less than one (1) month shall be calculated on the prorated daily basis with one (1) month considered to be thirty (30) days.
Article 5. (Allocation of Burdens)
1. The Lessor shall bear the taxes and public charges imposed on the Property.
2. The Lessee shall bear the charges for electricity, gas, water, telephone, etc.
1. The Lessor shall bear the taxes and public charges imposed on the Property.
2. The Lessee shall bear the charges for electricity, gas, water, telephone, etc.
Article 6. (Security Deposits)
1. The Lessee shall deposit with the Lessor the amount specified in (4) as security for any obligation arising from the Contract.
2. The Lessee shall not offset its Rent or any other obligation by the security deposit until the evacuation of the Property.
3. The Lessor shall return the balance of security deposit to the Lessee without delay when the evacuation of the Property has been completed and all the obligations of the Lessee have been paid in full.
4. In the above case, the Lessor shall specify a breakdown of the amount of liabilities deducted from the deposit.
1. The Lessee shall deposit with the Lessor the amount specified in (4) as security for any obligation arising from the Contract.
2. The Lessee shall not offset its Rent or any other obligation by the security deposit until the evacuation of the Property.
3. The Lessor shall return the balance of security deposit to the Lessee without delay when the evacuation of the Property has been completed and all the obligations of the Lessee have been paid in full.
4. In the above case, the Lessor shall specify a breakdown of the amount of liabilities deducted from the deposit.
Article 6. (Security Deposits) *A certain amount shall be deducted from the deposit.
1. The Lessee shall deposit with the Lessor the amount specified in (4) as security for any obligation arising from the Contract.
2. The Lessee shall not offset its Rent or any other obligation by the security deposit until the evacuation of the Property.
3. Upon the cancellation or the termination of the Contract, when the Lessee has completely evacuated the Property and all the obligations of the Lessee have been paid in full and when the Lessor has accepted this, the Lessor shall return the security deposit without delay after deducting the amount equivalent to ( ) months rent (the rent at the time of the termination of the Contract) as depreciation.
4. The Lessor shall return the balance of security deposit to the Lessee without delay when the evacuation of the Property has been completed and all the obligations of the Lessee have been paid in full.
5. In the above case, the Lessor shall specify a breakdown of the amount of liabilities deducted from the deposit.
1. The Lessee shall deposit with the Lessor the amount specified in (4) as security for any obligation arising from the Contract.
2. The Lessee shall not offset its Rent or any other obligation by the security deposit until the evacuation of the Property.
3. Upon the cancellation or the termination of the Contract, when the Lessee has completely evacuated the Property and all the obligations of the Lessee have been paid in full and when the Lessor has accepted this, the Lessor shall return the security deposit without delay after deducting the amount equivalent to ( ) months rent (the rent at the time of the termination of the Contract) as depreciation.
4. The Lessor shall return the balance of security deposit to the Lessee without delay when the evacuation of the Property has been completed and all the obligations of the Lessee have been paid in full.
5. In the above case, the Lessor shall specify a breakdown of the amount of liabilities deducted from the deposit.
Article 7. (Prohibited and Limited Activities)
1. The Lessee shall not assign or mortgage its lease of the Property in all or in part without the written consent of the Lessor.
2. The Lessee shall not add onto, alter, move, remodel, or redecorate the Property, or install any work on its premises without the written consent of the Lessor.
3. The Lessee shall not change the detail of business specified in (2) above without the written consent of the Lesser.
4. In the case of the preceding paragraph 2, the Lessee shall pay the amount equivalent to ( ) months rent for the Lessor’s approval.
5. The Lessee shall not sublease its lease of the Property in all or in part.
6. The Lessee shall not assign to a third party or mortgage the claim for security deposit refund.
7. The Lessee shall not engage in any of the acts listed below in using the Property.
a) To manufacture or keep any firearm, sword or the like, or any dangerous objects with explosive or flammable property;
b) To carry in and install a heavy weighted safe, shelves or any other heavy objects or the like; and
c) To make a public nuisance such as noise and other sounds.
8. The Lessee shall not engage in any of the acts listed below in using the Property and any common space without the written consent of the Lessor.
a) To install any objects in any common use space such as staircase or hallway;
b) To put up any advertisement such as signboards, posters or the like in the common use space such as staircase or hallway.
1. The Lessee shall not assign or mortgage its lease of the Property in all or in part without the written consent of the Lessor.
2. The Lessee shall not add onto, alter, move, remodel, or redecorate the Property, or install any work on its premises without the written consent of the Lessor.
3. The Lessee shall not change the detail of business specified in (2) above without the written consent of the Lesser.
4. In the case of the preceding paragraph 2, the Lessee shall pay the amount equivalent to ( ) months rent for the Lessor’s approval.
5. The Lessee shall not sublease its lease of the Property in all or in part.
6. The Lessee shall not assign to a third party or mortgage the claim for security deposit refund.
7. The Lessee shall not engage in any of the acts listed below in using the Property.
a) To manufacture or keep any firearm, sword or the like, or any dangerous objects with explosive or flammable property;
b) To carry in and install a heavy weighted safe, shelves or any other heavy objects or the like; and
c) To make a public nuisance such as noise and other sounds.
8. The Lessee shall not engage in any of the acts listed below in using the Property and any common space without the written consent of the Lessor.
a) To install any objects in any common use space such as staircase or hallway;
b) To put up any advertisement such as signboards, posters or the like in the common use space such as staircase or hallway.
Article 8. (Obligation of the Lessee to Manage)
1. The Lessee shall occupy and use the Property with the standard of care appropriate to a bona fide administrator (Zenryo naru Kanri-sya).
2. The Lessee shall maintain security of the Property by preventing fire.
3. The Lessee shall observe the Management Rules, the Detailed Regulations for Usage and any other items necessary for the management of the Property informed by the Lessor.
4. Concurrently with the execution of the Contract, the Lessor shall lend the keys to the Property to the Lessee. The Lessee shall keep and use the keys with due care and attention. In case that the keys should be lost or damaged, the Lessee shall immediately notify the Lessor and receive the exchange; provided that the Lessee shall bear the expenses for such exchange.
5. The Lessee shall not make any additional key, replace any key, or exchange any key without the consent of the Lessor.
1. The Lessee shall occupy and use the Property with the standard of care appropriate to a bona fide administrator (Zenryo naru Kanri-sya).
2. The Lessee shall maintain security of the Property by preventing fire.
3. The Lessee shall observe the Management Rules, the Detailed Regulations for Usage and any other items necessary for the management of the Property informed by the Lessor.
4. Concurrently with the execution of the Contract, the Lessor shall lend the keys to the Property to the Lessee. The Lessee shall keep and use the keys with due care and attention. In case that the keys should be lost or damaged, the Lessee shall immediately notify the Lessor and receive the exchange; provided that the Lessee shall bear the expenses for such exchange.
5. The Lessee shall not make any additional key, replace any key, or exchange any key without the consent of the Lessor.
Article 9. (Repairs during the Term of the Contract)
1. The Lessor shall make repairs necessary for the Lessee to use the Property, except for the repairs listed in the paragraph 3. below. In such case, the Lessee shall bear the expenses for any repairs required due to willful act or negligence of the Lessee.
2. If the Lessor makes repairs according to the preceding paragraph, the Lessor shall inform the Lessee of such. In this case, the Lessee shall not reject the repairs without cause.
3. The Lessee shall make the repairs listed below.
a) To repair any damage or breakage of light bulbs, fluorescent lights or fuses;
b) To make other repairs with minor cost.
4. If any part of the Property is damaged and the Lessee becomes aware of it, the Lessee shall promptly give a notice to the Lessor. If any delay in giving a notice causes any damage to the Lessor, the Lessee shall compensate for the damage.
1. The Lessor shall make repairs necessary for the Lessee to use the Property, except for the repairs listed in the paragraph 3. below. In such case, the Lessee shall bear the expenses for any repairs required due to willful act or negligence of the Lessee.
2. If the Lessor makes repairs according to the preceding paragraph, the Lessor shall inform the Lessee of such. In this case, the Lessee shall not reject the repairs without cause.
3. The Lessee shall make the repairs listed below.
a) To repair any damage or breakage of light bulbs, fluorescent lights or fuses;
b) To make other repairs with minor cost.
4. If any part of the Property is damaged and the Lessee becomes aware of it, the Lessee shall promptly give a notice to the Lessor. If any delay in giving a notice causes any damage to the Lessor, the Lessee shall compensate for the damage.
Article 10. (Cancellation of the Contract)
1. If the Lessee comes under any condition listed below and, despite the Lessor’s due notice, does not perform their obligations, the Lessor may cancel the Contract.
a) To neglect to pay the Rent or the Maintenance Expenses for two(2) months or more;
b) To neglect to pay any expenses required for any repairs due to willful act or negligence.
2. If any of the events listed below occurs to the Lessee and the Lessor recognizes the continuation of the Contract to be difficult due to the violation of any relevant obligation, the Lessor may cancel the Contract.
a) To use the Property for purposes other than the business specified in (2) above;
b) To violate any of the provisions in the Article 7 or Article 8 hereof;
c) The application form for the lease to be proved to have contained any material untruth in its description;
d) To violate any other provision in the Contract;
e) Suspension of banking transactions;
f) Commencement of bankrupt proceedings;
g) Commencement of civil rehabilitation proceedings;
h) Commencement of corporate reorganization proceedings; and
i) Commencement of special liquidation proceedings.
1. If the Lessee comes under any condition listed below and, despite the Lessor’s due notice, does not perform their obligations, the Lessor may cancel the Contract.
a) To neglect to pay the Rent or the Maintenance Expenses for two(2) months or more;
b) To neglect to pay any expenses required for any repairs due to willful act or negligence.
2. If any of the events listed below occurs to the Lessee and the Lessor recognizes the continuation of the Contract to be difficult due to the violation of any relevant obligation, the Lessor may cancel the Contract.
a) To use the Property for purposes other than the business specified in (2) above;
b) To violate any of the provisions in the Article 7 or Article 8 hereof;
c) The application form for the lease to be proved to have contained any material untruth in its description;
d) To violate any other provision in the Contract;
e) Suspension of banking transactions;
f) Commencement of bankrupt proceedings;
g) Commencement of civil rehabilitation proceedings;
h) Commencement of corporate reorganization proceedings; and
i) Commencement of special liquidation proceedings.
Article 11. (Termination by the Lessee)
1. The Lessee may terminate the Contract by making a notice to terminate the Contract to the Lessor not later than ( )months prior to such a termination.
2. Regardless of the preceding paragraph, the Lessee may, by paying to the Lessor the Rent for ( )months from the date on which such an offer is made, terminate the Contract at any time during the period of ( )months from the day of the notice.
1. The Lessee may terminate the Contract by making a notice to terminate the Contract to the Lessor not later than ( )months prior to such a termination.
2. Regardless of the preceding paragraph, the Lessee may, by paying to the Lessor the Rent for ( )months from the date on which such an offer is made, terminate the Contract at any time during the period of ( )months from the day of the notice.
Article 12. (Evacuation and Repairs at the time of Evacuation)
1. The Lessee shall evacuate the Property by the day when the Contract is terminated. The Lessee shall notify the date of the evacuation not later than ten (10) days prior to the evacuation.
2. The Lessee shall evacuate the Property immediately if the Contract is terminated in accordance with the provisions of the Article 10.
3. The Lessee shall return the keys (including all the reproduced keys, if any) to the Lessor at the time of the evacuation.
4. The Lessee shall, for evacuation, dispose of any and all remaining objects. If there are any objects left by the Lessee in the Property after termination of the Contract, the objects shall be deemed to be abandoned by the Lessee and may be disposed by the Lessor voluntarily. The Lessor may charge the cost required for such disposal to the Lessee.
5. At the time of the evacuation, the Lessee shall remove any equipment installed, remodeling or damage caused by the Lessee and restore the Property to its original condition.
6. If the Lessee delays in its evacuation of the Property, the Lessee shall pay to the Lessor the damages twice as much as the Rent, from the next day of the day on which the Contract is canceled or terminated to the day on which the evacuation has been completed.
1. The Lessee shall evacuate the Property by the day when the Contract is terminated. The Lessee shall notify the date of the evacuation not later than ten (10) days prior to the evacuation.
2. The Lessee shall evacuate the Property immediately if the Contract is terminated in accordance with the provisions of the Article 10.
3. The Lessee shall return the keys (including all the reproduced keys, if any) to the Lessor at the time of the evacuation.
4. The Lessee shall, for evacuation, dispose of any and all remaining objects. If there are any objects left by the Lessee in the Property after termination of the Contract, the objects shall be deemed to be abandoned by the Lessee and may be disposed by the Lessor voluntarily. The Lessor may charge the cost required for such disposal to the Lessee.
5. At the time of the evacuation, the Lessee shall remove any equipment installed, remodeling or damage caused by the Lessee and restore the Property to its original condition.
6. If the Lessee delays in its evacuation of the Property, the Lessee shall pay to the Lessor the damages twice as much as the Rent, from the next day of the day on which the Contract is canceled or terminated to the day on which the evacuation has been completed.
Article 13. (Entry)
1. The Lessor may enter the Property with the prior consent of the Lessee if it is specially required for the fire prevention, structural safety or any other management of the Property.
2. The Lessee, without cause, shall not reject such entry by the Lessor in accordance with the preceding paragraph.
3. When prospective lessees who either wish to rent or will buy the Property after termination of the Contract come to check the Property, both the Lessor and the prospective lessees may enter the Property with the prior consent of the Lessee.
4. The Lessor may enter the Property without any prior consent of the Lessee when it is required to prevent fire, when the Lessee is absent from the Property for a certain period without notifying the Lessor and this may give rise to a serious obstacle to the preservation of the Property and the building the Property exists in or when it is considered urgently necessary. In such a case, if the Lessor enters the Property without any prior consent of the Lessee, the Lessor shall inform the Lessee of such.
1. The Lessor may enter the Property with the prior consent of the Lessee if it is specially required for the fire prevention, structural safety or any other management of the Property.
2. The Lessee, without cause, shall not reject such entry by the Lessor in accordance with the preceding paragraph.
3. When prospective lessees who either wish to rent or will buy the Property after termination of the Contract come to check the Property, both the Lessor and the prospective lessees may enter the Property with the prior consent of the Lessee.
4. The Lessor may enter the Property without any prior consent of the Lessee when it is required to prevent fire, when the Lessee is absent from the Property for a certain period without notifying the Lessor and this may give rise to a serious obstacle to the preservation of the Property and the building the Property exists in or when it is considered urgently necessary. In such a case, if the Lessor enters the Property without any prior consent of the Lessee, the Lessor shall inform the Lessee of such.
Article 14. (Obligation of the Lessor to Inform)
1. If any of the events listed below occurs, the Lessor shall promptly inform the Lessee of such in writing.
a) In case of any change in methods of payment;
b) In case of any change of the management company specified in (6) above.
1. If any of the events listed below occurs, the Lessor shall promptly inform the Lessee of such in writing.
a) In case of any change in methods of payment;
b) In case of any change of the management company specified in (6) above.
Article 15. (Obligation of the Lessee to Inform)
1. If any of the events listed below occurs, the Lessee or the guarantor shall promptly inform the Lessor of such in writing.
a) In case of any change of its name at the time of the conclusion of the Contract, merger or significant change in its business purpose. However, when such act is considered the assignment of tenancy, the Lessee shall comply with the Article 7-1.
b) In case the Lessee suspends business for a long period;
c) In case of any change of the address, name, emergency contact or others of any of the joint and several guarantors; and
d) In case of the death or dissolution of any of the joint and several guarantors.
1. If any of the events listed below occurs, the Lessee or the guarantor shall promptly inform the Lessor of such in writing.
a) In case of any change of its name at the time of the conclusion of the Contract, merger or significant change in its business purpose. However, when such act is considered the assignment of tenancy, the Lessee shall comply with the Article 7-1.
b) In case the Lessee suspends business for a long period;
c) In case of any change of the address, name, emergency contact or others of any of the joint and several guarantors; and
d) In case of the death or dissolution of any of the joint and several guarantors.
Article 16. (Default Interest)
1. If the Lessee delays its payment of any monetary obligation arising from the Contract, the Lessee shall pay default interest at a rate of % per annual (365 days).
1. If the Lessee delays its payment of any monetary obligation arising from the Contract, the Lessee shall pay default interest at a rate of % per annual (365 days).
Article 17. (Joint and Several Guarantors)
1. Any joint and several guarantor shall bear any and all obligations of the Lessee arising from the Contract jointly and severally with the Lessee.
1. Any joint and several guarantor shall bear any and all obligations of the Lessee arising from the Contract jointly and severally with the Lessee.
Article 18. (Exemption)
1. Neither the Lessor nor the Lessee shall be held liable to each other for any damage to the Lessor and the Lessee due to earthquake, fire, wind or flood, theft, blackout or the like and any other accident force majeure, or due to any trouble not attributable either to the Lessor or to the Lessee, such as electric, gas, water supply and drainage.
1. Neither the Lessor nor the Lessee shall be held liable to each other for any damage to the Lessor and the Lessee due to earthquake, fire, wind or flood, theft, blackout or the like and any other accident force majeure, or due to any trouble not attributable either to the Lessor or to the Lessee, such as electric, gas, water supply and drainage.
Article 19. (Consultation)
1. Any item not provided for in the Contract or any item which causes any doubt in terms of the interpretation of any provision of the Contract shall be settled by the parties hereto after due consultation in good faith, in accordance with the Civil Code, any other statutes and the common practice.
1. Any item not provided for in the Contract or any item which causes any doubt in terms of the interpretation of any provision of the Contract shall be settled by the parties hereto after due consultation in good faith, in accordance with the Civil Code, any other statutes and the common practice.
Article 20. (Competent Court)
1. Should any dispute arise in connection with the Contract, it shall be resolved with the court that has jurisdiction over the location of the Property.
1. Should any dispute arise in connection with the Contract, it shall be resolved with the court that has jurisdiction over the location of the Property.
Article 21. (Renewal and Special Stipulation)
1. The renewal and special stipulation shall apply as specified in (8) above.
1. The renewal and special stipulation shall apply as specified in (8) above.