Renew and Stay, or Move Out?｜Key Points for Deciding

Rental contracts in Japan typically come up for renewal every two years. Whether to pay the renewal fee and stay, or to move at this point, is a decision that depends on your lifestyle and where you are in life. This article outlines the general considerations for weighing renewal against a move. There's no single right answer — what matters is making the decision that fits your own circumstances.

The general lease renewal process

For lease renewal, it's common to receive a notice from your property management company one to three months before your contract expires. A renewal fee and/or renewal administration fee often applies at this point, with the amount varying by contract. We cover the specific renewal process in more detail in a separate article, so please have a look there too. Once the notice arrives, it's a good idea to give yourself time to think it over calmly. Since there's often a deadline for replying, checking the details early will give you peace of mind.

Points worth reassessing at renewal time

Renewal time is a good opportunity to look back on how satisfied you've been with your home and any inconveniences you've noticed while living there. Things you may not have noticed when you first moved in — such as how easy the facilities are to use, the surrounding environment, or how much of a burden the rent feels — can become clearer over time. Start by taking stock of where things stand. It's also worth reflecting on any changes in how easy your commute or school run is, and in the surrounding living environment. If your family composition or work style has changed, it's worth reconsidering how many rooms or how much space you actually need.

Examples of reasons people consider moving

Common triggers for considering a move include a change of workplace due to a transfer or job change, a growing family outgrowing the current space, or a change of school. Reassessing your home to match changes in your life stage is a common way of thinking in Japan as well. Wanting to adjust the burden of rent in response to a change in income is also a frequent reason. Some people begin considering a move after starting to feel concerned about the surrounding environment or the age of the building's facilities.

Comparing the renewal fee against moving costs

If you renew and stay, you'll pay a renewal fee; if you move, you'll incur new initial costs such as a security deposit, key money, and moving expenses. Which option costs more depends on the property and the terms of your new place, so it's worth getting quotes for both before deciding. We go over typical amounts for security deposits, key money, and renewal fees in a separate article. It's also worth factoring in the time and effort involved in moving, not just the cost. Initial costs at a new property can also vary by season due to promotional campaigns.

Where to turn if you're unsure

If you're torn between renewing and moving, it helps to consult a real estate agency early and have them check the local rent market and whether any properties match your needs. It's important to start considering your options with enough time to spare, rather than rushing as the renewal deadline approaches. Getting a third-party perspective can also make the decision easier. Sharing your requirements with several real estate agencies and comparing their suggestions is another way to broaden your options.

FAQ

When does lease renewal typically happen?

It's common for a renewal notice to arrive from your property management company one to three months before your contract expires. Once it arrives, be sure to check the details early.

What are some common reasons for considering a move?

These include a change of workplace due to a transfer or job change, changes in family composition, and a space that's become too small. A change in income is another common reason.

What should I do if I can't decide between renewing and moving?

It helps to consult a real estate agency early and compare quotes for the renewal fee versus moving costs. Consulting several agencies will broaden your options.

Summary

Lease renewal time is a good opportunity to reconsider your living situation. Compare the renewal fee against the cost of moving, and make your decision with enough time to spare, in line with any changes in your life. If you're unsure, don't struggle with it alone — it's worth consulting a real estate agency. Having your own criteria for the decision matters, so that you won't have regrets whichever option you choose.