NEWS

In the Japanese rental real estate market, it is important that tenants accurately communicate the presence of roommates when signing a contract. Concealing the existence of a roommate when signing a contract is a lease breaking the contract and can lead to serious risks. Below is a detailed explanation of why and the specific risks involved.


Importance of having roommates


1. **Compliance with the terms of the lease**: The lease agreement requires that accurate information be provided regarding the contractor and any roommates. Failure to inform the tenant of the presence of a roommate is a violation of the terms of the lease.

2. **Trust of Management Company or Landlord**: The owner or management company of a rental property requires accurate information about the tenant. Concealing the presence of a roommate is a failure of trust.

3. **CLEAR LEGAL RESPONSIBILITY**: If there is a roommate, you need to clarify your legal responsibilities and rights with respect to that person. Providing information about the roommate will help you properly organize the legal relationship. This is an issue that can affect liability and insurance policies, for example, if the roommate causes an accident or fire in the rental property.


Risks of breaking the contract

1.**Possible termination**: If a breakdown of the contract is discovered, the landlord or management company has the right to terminate the contract. Concealing the presence of a roommate increases the risk of contract termination.

2.**Potential for penalties and compensation**: Penalties and compensation may be imposed for breaking the contract. Additional costs and legal issues may arise if failure to disclose the presence of a roommate is found to be a breach of contract.

3. **Loss of Trust**: A breakdown of a contract can affect future rental transactions and trust. Building trust is critical to a long-term relationship. In the case of a fixed-term lease, this may be a reason for not agreeing to re-sign the lease, or in the case of a regular lease, it may be a reason for refusing to renew the lease.

For these reasons, it is essential in the Japanese rental real estate market to accurately inform tenants of the existence of roommates at the time of contract. It is important for tenants to be honest and transparent in order to avoid breaking the contract and to ensure a smooth moving-in process.


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