Rent Adjustment

Article 32 of Japan’s Act on Land and Building Leases lets either party to a lease demand a higher or lower rent for the future. This applies when the rent has become unreasonable because of changes in taxes, in land or building prices or other economic conditions, or compared with rents of similar buildings nearby.

It applies “regardless of the terms of the contract.” Only an agreement not to raise the rent for a fixed period limits it.

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