Rental contracts may include conditions called ``short-term termination penalties''.
This is a penalty charge if you move out within a certain period of time. The lower the initial cost of a property, the more conditions may be included.
Common conditions
Most common terms are 1 month's rent if you cancel within 1 year, and 1 or 2 months' rent if you cancel within 2 years.
However, the contents vary depending on the property. Check the terms and conditions written in the contract and important matters manual.
Why is there a penalty?
In order to recruit tenants, the landlord may bear expenses such as advertising costs, restoration costs, and free rent.
If you move out within a short period of time, it will be difficult to recover the costs, so a short-term cancellation penalty may be imposed.
Especially check free rental properties.
For properties with free rent, you may be required to return the free rent amount upon short-term cancellation.
For example, if you receive one month's worth of free rent and move out after six months, you will be billed for that free rent.
The more advantageous the conditions seem, the more important it is to check the conditions at the time of moving out.
Be careful if you are planning to move
If you are likely to be transferred, if you are likely to change residences due to cohabitation or marriage, or if you are planning to study abroad or go to higher education, be sure to check whether there are any short-term cancellation penalties.
This isn't likely to be a problem if you plan to live there for a long time, but it can be a big burden if your schedule is difficult to read.
summary
Short-term cancellation penalties are costs incurred if you move out within a certain period of time.
Don't make a decision based solely on the low initial cost, but also check the costs that may be incurred when you move out. The terms of the contract are important not only when you move in, but also when you move out.