How to evict the tenant from your building?

The tenant has not paid the rent of my building for several months. I want to cancel the lease agreement and demand surrender. Could you tell me an outline of the procedure?

Check the flow chart and explanation below.

If the tenant does not pay the rent of the building for several months, the lender may cancel the lease agreement and evict the tenant. First, the lender should send written notice and demand payment of the rent and manifest intention of cancellation. Secondary, the lender may proceed to legal procedures demanding surrender of the building. Flow chart below is an outline of the procedure.

Demanding payment of the unpaid rent
The lessor should demand payment of the unpaid rent specifying a reasonable period of time by contents-certified mail with delivery certification before cancelling the lease agreement.
Manifesting intention to cancel the lease contract
If the tenant does not pay the unpaid rent regardless of the lessor’s written demand during the reasonable period specified by the lessor, the lessor may cancel the lease agreement by manifesting its intention of cancellation.
Petition for an order of provisional disposition prohibiting the transfer of possession *optional
Before filing a lawsuit against the tenant for eviction, the lessor may submit a petition for an order of provisional disposition prohibiting the transfer of possession against the tenant to a district court.
Filing a lawsuit against the tenant for eviction and payment of unpaid rent
In order to force the tenant to surrender the building, the lessor should gain judgement of eviction.
Settlement / Judgement
The lessor and the tenant may conclude the case by settlement. When a settlement is reached between the parties during the lawsuit, a record of the settlement will have the same effect as a judgement. If a settlement is not reached, the court will render a judgement.
Compulsory execution of the judgement
A court execution officer will go to the building and make a demand for surrender. If the tenant does not surrender the building by the time limit which is basically one month, the court execution officer will carry out compulsory execution by removing everything out of the building and changing the key.
Refund of the security deposited in a regional legal affairs bureau *optional
If the lessor submitted a petition for an order of provisional disposition prohibiting the transfer of possession, the security deposited in a regional legal affairs bureau will be refunded.

Cancellation of the lease agreement

Demanding payment of the unpaid rent

  • The lessor should demand payment of the unpaid rent before cancelling the lease agreement.
  • Sometimes the leas contract contains a clause prescribing that the lessor may cancel the contract without any notice. Even if such clause exists, lessor’s demand for the unpaid rent is needed by case law.
  • The lessor’s notice to the tenant should be sent by contents-certified mail with delivery certification so that the lessor can prove the fact of demanding the unpaid rent.
  • In the notice by the lessor, a reasonable period of time should be specified. It is common to set the period 5 days or more.
  • Even if the notice does not contain the period or the period set in the notice is not reasonable, the court may judge that the intention of cancellation of the lease agreement becomes valid when reasonable period has passed after the notice reached to the tenant; however, it will make the procedures smooth to write reasonable period clearly in the notice.

Manifesting intention to cancel the lease contract

  • If the tenant does not pay the unpaid rent regardless of the lessor’s written demand during the reasonable period specified by the lessor, the lessor may cancel the lease agreement by manifesting its intention of cancellation.
  • Lessor’s demand for payment of the unpaid rent and the manifestation of its intention to cancel the contract can be made in the same notice. Therefore, it would be reasonable to put both of them in one notice if the lessor wants to cancel the contract as soon as possible.
  • Notice of cancellation of the contract should be sent by contents-certified mail with delivery certification.

Legal procedure of eviction

Petition for an order of provisional disposition prohibiting the transfer of possession *optional

  • Before filing a lawsuit against the tenant for eviction, the lessor may submit a petition for an order of provisional disposition prohibiting the transfer of possession against the tenant to a district court.
  • By carrying out an order of provisional disposition prohibiting the transfer of possession of the building, the owner can file an application with the court for a compulsory execution of surrender even if the tenant transfer the possession of the building to a third party. Without this procedure, a lawsuit may become meaningless and the lessor may need another lawsuit against new occupant of the building if the lessee transfers the possession.
  • The order would be carried out by court execution officer by unlocking the key, entering the building, checking documents and certifying the occupants and posting a notice by the court on the wall inside the building.
  • Execution of the order sometimes lets the tenant surrender the building without waiting the judgement of the lawsuit; it may be a secondary positive effect of the procedure.
  • In order to gain the order, the lessor should deposit security in a regional legal affairs bureau. The amount of the security will be decided by the judge; it will be around three months’ rent for residence and around five months’ rent for a store. The security will be refunded after all the procedure is ended.
  • The time needed for the procedure is approximately one months.

Filing a lawsuit against the tenant for eviction and payment of unpaid rent

  • In order to force the tenant to surrender the building, the lessor should gain judgement of eviction.
  • Although some lease agreement contains clause providing that the lessor may change the key or enter the building and dispose household goods without the lessee’s consent, such actions are deemed to be an illegal self-enforcement and may become criminal acts; the lessor cannot execute such clause.

Settlement / Judgement

  • The lessor and the tenant may conclude the case by settlement. When a settlement is reached between the parties during the lawsuit, a record of the settlement will have the same effect as a judgement.
  • If a settlement is not reached, the court will render a judgement.
  • The time needed to reach a judgement from filing the case is approximately from 3 months to one year. It depends on whether there is enough evidence and whether the tenant make reasonable assertions against the lessor’s claim.

Compulsory execution of the judgement

  • After gaining a judgement ordering the tenant to surrender the building, the lessor should file a petition for execution of the judgement to a district court.
  • A court execution officer will go to the building and make a demand for surrender by entering the building and issuing document. The time limit for surrender will be specified in the document. The time limit is basically one month.
  • If the tenant does not surrender the building by the time limit, the court execution officer will carry out compulsory execution by removing everything out of the building and changing the key.

Refund of the security deposited in a regional legal affairs bureau *optional

  • If the lessor submitted a petition for an order of provisional disposition prohibiting the transfer of possession, the security deposited in a regional legal affairs bureau will be refunded.