Column · Apartment-hunting tips · No.15

What is a fixed-term lease? How it differs from an ordinary lease

It ends at the agreed term with no renewal — so the rent can be below market. Here's how it works and what to watch.

You sometimes see “fixed-term lease” (teiki-shakuya) in listings. The key point: there is no renewal — it ends at the agreed term. In return, the rent is often cheaper than market.

What is a fixed-term lease?

When the agreed term (e.g., 2 years) ends, the contract ends without renewal. To stay on, you need a “re-contract” by mutual agreement with the landlord (not guaranteed). It must be made in writing, and before signing the landlord must hand over and explain a document stating it ends at term with no renewal — without that explanation, it does not take effect as a fixed-term lease.

Ordinary vs. fixed-term — at a glance
  • Renewal: ordinary = renewable in principle / fixed-term = no renewal (ends at term)
  • Staying on: ordinary = easy to continue / fixed-term = needs a re-contract agreement
  • Rent: fixed-term can be below market
  • Mid-term cancellation: ordinary = possible (with notice) / fixed-term = in principle not (exception below)
  • How it's signed: fixed-term requires a written contract + prior explanation

Pros

  • The rent can be cheaper — limited term often means a lower price.
  • You may meet great units: rebuilds, sales, or an owner's temporary move bring limited-term listings to market.
  • Ideal for short stays — job transfer, study, or temporary housing during renovation.

Watch out for

  • You must move out at term end if the landlord won't re-contract. Not suited to long-term living.
  • No easy mid-term cancellation in principle — but for residential units under 200 m², with unavoidable reasons (job transfer, medical care, caring for relatives), you can end it one month after giving notice.
  • For terms of 1 year or more, the landlord usually notifies of termination 1 year to 6 months before the end.
  • Re-contracting may cost money (re-contract fee, admin fee), handled differently from a renewal fee.

Who it suits

  • Those whose stay length is already fixed (transfer, study, temporary housing).
  • Those who want lower rent or a great unit despite some constraints.
  • If you want to settle for many years, focus on ordinary leases instead.

Summary

A fixed-term lease means “no renewal, ends at term.” You may gain on rent or conditions, but you cannot be sure to stay long. StandUp checks re-contract feasibility and costs and advises whether it fits your plans. English & Chinese supported.

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