Steps of requesting rent increase in Japan
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How can I request rent increase to the tenant? Could you tell me an outline of the procedure?
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Check the flow chart below. For more information, see the column “How can I request rent increase to the tenant?”.
If the rent becomes unreasonably low, lender may request increase in the amount of the rent to the tenant. First, the lender should send written notice and negotiate with the tenant. If they cannot reach agreement by negotiation, the lender may take legal action. Flow chart below is an outline of the procedure.
- Send a written notice requesting rent increase to the tenant
- In the notice, the amount of the increased rent and the timing of change should be contained.
The notice should be sent by special postal delivery called content-certified mail with delivery certificate so that Japan Post will prove the content and the delivery date of the notice.
- Negotiate with the tenant on rent increase
- → Agree by document if the lender and the tenant could reach a settlement.
If an agreement could not be reached…
- File a petition for conciliation with a summary court
- → A judge and two conciliation commissioners mediate between the lender and the tenant.
When an agreement is reached between the parties during conciliation, a record of the conciliation will have the same effect as a judicial settlement.
If an agreement could not be reached…
- File a lawsuit to a district court
- The lender should submit written opinion by real estate appraiser as an evidence of its claim.
The district court will order other real estate appraiser registered to the court to make another written opinion.
- Settlement / Judgement
- → Appeal to a high court against the judgement of a district court.
