When equipment such as an air conditioner or water heater breaks down, who bears the repair cost and whether it affects the rent are natural concerns for an owner. Here's an overview of the basic thinking, based on the rules under the Civil Code.
- Under the Civil Code, a landlord is obligated to carry out the repairs necessary to let the tenant use and benefit from the rented property.
- The 2020 Civil Code amendment provides that when part of a rented property becomes unusable through no fault of the tenant, the rent is reduced automatically, in proportion to the extent that's unusable.
- Under certain conditions — such as when the landlord knows repairs are needed but doesn't make them within a reasonable time — a tenant may be allowed to carry out the repair themselves.
- As a rule, breakdowns from normal wear and aging are the landlord's cost, while damage from the tenant's intentional act or negligence is the tenant's cost.
- Knowing the service life of your equipment and replacing it on a planned schedule helps prevent trouble.
Landlords Have a Duty to Repair
Under the Civil Code, a landlord is obligated to carry out the repairs necessary to let the tenant use and benefit from the rented property. When equipment essential to daily life — a water heater or air conditioner, say — breaks down because of normal wear and aging, the repair is basically the landlord's cost to bear. Even where the lease has a special clause (tokuyaku) along the lines of "minor repairs are the tenant's responsibility," a large-scale repair such as replacing the equipment itself is generally still treated as the landlord's cost.
What Happens to the Rent When Equipment Becomes Unusable (the 2020 Civil Code Amendment)
The 2020 Civil Code amendment provides that when part of a rented property becomes unusable — through loss or some other cause — and this is not the tenant's fault, the rent is reduced automatically, in proportion to the part that's become unusable. Previously, the tenant had to make a request for a reduction; under the amended rule, the reduction happens automatically without waiting for a request. The size of the reduction is judged case by case, based on how much the broken equipment affects daily life, so there's no single uniform standard.
When a Tenant May Repair Something Themselves in an Emergency
When a landlord knows a repair is needed but doesn't carry it out within a reasonable time, or when there are urgent circumstances, the tenant is allowed to carry out the repair themselves. In that case, the tenant may be able to claim the repair cost they paid from the landlord, so it's advisable to have an emergency contact and a repair-contractor arrangement set up in advance.
Response Differs Between Normal Wear and Tenant Negligence
If a malfunction is due to normal wear and aging, the landlord's cost is the rule, but a breakdown caused by how the tenant used the equipment — damage from misuse, for instance — can become the tenant's cost. Because it can be hard to pin down the actual cause in practice, it's a good idea to keep a record of the circumstances and, where needed, get the repair contractor's assessment.
Everyday Precautions to Prevent Trouble
To prevent equipment trouble before it happens, it helps to know the service life of your major equipment and replace it on a planned schedule, anticipating the period when breakdowns tend to increase (for a sense of replacement timing, see Vol.09, which covers repair planning). It also helps to let tenants know in advance who to contact and how the process works when something breaks down, so the initial response goes smoothly. If you've outsourced management to a management company, it's reassuring to also confirm the contract terms for the emergency contact point and the after-hours and weekend contact arrangement.
Frequently Asked Questions
If an air conditioner breaks, do I always have to reduce the rent?
It depends on the extent and degree of what's become unusable. If equipment with a big impact on daily life is out of use for a long period, it may be subject to a reduction. The judgment needs to be made case by case.
If the tenant calls a contractor on their own and gets something repaired, do I have to cover the cost?
If the landlord knew a repair was needed but didn't respond within a reasonable time, or if there were urgent circumstances, you may need to honor the tenant's claim for the repair cost they paid.
How should I judge whether something is due to normal wear and aging?
It's judged comprehensively from the equipment's years in use and the nature of the malfunction, though pinning down the cause can be difficult in some cases. We recommend checking the repair contractor's assessment and, if you're unsure, consulting a professional as well.
Summary
A landlord has a duty to repair the rented property, and under the 2020 Civil Code amendment, rent is reduced automatically whenever equipment becomes unusable through no fault of the tenant. Having an emergency response arrangement in place and replacing equipment on a planned schedule matter for preventing trouble. Where a case-by-case judgment is difficult, consult a professional.