What is a name change for a rental property? Four cases where you will need to renew the contract and the risks of neglecting to do so are explained

What is a name change in a rental contract?

A name change in a rental contract means changing the name of the owner (contract holder) listed on the rental contract.

A rental agreement is a contract between a landlord (lessor) and a renter (tenant).

This contract is the most binding document in the contract and contains details about the rental conditions.

The contents will vary depending on the real estate company, landlord, and property, and changing the name of the contract holder listed here is called a "name change."

However, when changing the name on a rental contract, there are cases where it is not enough to simply change your name.

In this case, keep in mind that the new account holder will undergo screening and will have to re-sign or enter into a new contract.

We will discuss cases where renewal or a new contract is required later, so first we will explain the cases where a name change alone can be sufficient.

Two cases where renting can be handled simply by changing the name

Cases in which a rental contract can be resolved by simply changing the name are when the contract holder is the same person and only the name has changed.

This could be in the following cases:

• If your name has changed due to marriage, etc.
• If the name of the contracting company changes

If your name has changed due to marriage, etc.

If either the husband or wife's surname changes due to marriage or other reasons, the name on the rental contract must be changed.

In this case, the contract holder remains the same and only the name of the contract holder changes, so the matter can be handled by changing the name.

For example, a wife may change her surname and continue to live in a rental property that is in her name.

Please note that failure to change the name may result in problems, so be careful.

If the name of the contracting company changes

If the name of the contracting corporation changes, the name change must also be made.

For example, when renting a property as a company office, it is not uncommon for the name of the owner to be the corporate name.

Therefore, when you change the name of your company, you will need to change the name.

If you neglect to follow these procedures, your rent deductions and other procedures may not proceed smoothly, so be careful.

Neglecting to change the name on the property entails risks. Even if the contract holder is the same, if your name has changed, you should promptly notify the management company or landlord.

Next, we will look at cases where the name change described above is not possible.

Four cases where a rental contract is renewed or a new contract is made instead of a change of ownership

If the name cannot be changed in the rental contract, you will need to renew or sign a new contract.

Cases involving renewal or new contracts can be divided into the following four categories:

• couple
• family
• friend
• company

Change of name on rental property | Married couple

In a marital relationship, renewal or a new contract is necessary when the name changes due to death or divorce.

For example, if a wife continues to live in a house after the husband, who is the title holder, dies or is divorced and can no longer live in it, the title must be changed to the wife.

In this case, the wife will have to undergo a new screening, so the contract will be terminated and then a new contract will be signed.

However, depending on the wife's income situation, the screening may be rejected. Also, please note that even if the screening is passed, initial costs such as a deposit and key money will be incurred.

Depending on the management company or landlord, there are cases where they will agree to the name change with only an administrative fee, so be sure to check with them first.

Change of name on rental property | Family

When there is a change of family member, it is often the case that a new or renewed contract is made.

The main cases are:

• When you want to change the name of your child from parent to child when your child gets a job
• When siblings want to move in together

Some examples include:

In either case, if you are a working adult earning an income, your ability to repay will differ, so you will need to examine whether you will be able to pay the rent without any arrears.

From the landlord's perspective, even if the person is a parent, child, or sibling, they will be renting to a different person. For this reason, it is common for the landlord to cancel the contract and then re-contract or enter into a new contract.

However, whether you need to cancel the lease or just change the name will depend on the management company and landlord.

First, tell them that you want to change the name and find out how to proceed.

Change of name on rental property | Friend

In the case of friends, the following cases are possible and renewal or a new contract will be required.

• Taking over a room from a friend or acquaintance
• The room share contract holder moves out

If you take over a room from an acquaintance or friend, you will need to re-contract/sign a new contract.

Your acquaintances and friends are strangers to the landlord, so they will need to cancel the contract and conduct a new screening.

The same applies if the contract holder moves out of a room share agreement.

Choose a new owner from among the people who will continue to live in the property, and renew or sign a new contract. A new screening will be required.

If the name on the property remains the same but the roommate changes, please contact the management company or landlord. The names of the roommates must be clearly stated in the rental agreement.

Change of name of rental property | Company

In the case of a company, renewal or a new contract will be required in the following cases.

• I want to change my name from a company to an individual
• I want to receive rent assistance from my company.

One reason you may want to change the name from a corporation to an individual is if the property rented by your company goes bankrupt, or if you want to continue living in it after changing jobs or retiring.

In this case, the contract holder itself does not change, but the corporate contract is often terminated and then a new contract is signed.

Also, if you are receiving rent subsidy from a company, the person receiving the subsidy and the contract holder must be the same person.

For example, if a wife wants to receive rent assistance from her husband's company for a rental property in her name, the property must be changed to her husband's name.

Even if the contract holder is different, even if they are in the same household, they will need to renew or sign a new contract.

Procedures for changing the name of a rental property and required documents

So far, we have explained cases involving changing the name of a rental property, renewing a contract, or entering into a new contract.

So how can you go through these procedures smoothly? Next, we will explain the procedures and necessary documents.

The procedure and required documents for changing the name on a rental contract will vary depending on the following cases:

• Name change only
• Renewal and new contracts

Let's look at each case.

Name change only

The procedure for a name change only is as follows:

1. Contact the management company and schedule a visit
2. Prepare the necessary documents and go to the management company
3. Fill out amendments to the contract and memorandum at the management company

The above is the main procedure for changing the name of a rental property.

The general required documents are as follows:

• Identification documents (driver's license, resident's card, etc.)
• Proof of income (salary statement, tax withholding slip, tax return, etc.)
• Certificate of enrollment

The necessary documents are as listed above, but they may differ depending on the management company or landlord, so be sure to check and prepare them in advance.

Renewal and new contracts

Renewing or signing a new lease means terminating your current lease and going through an examination before renewing or signing a new lease.

The procedure for renewing or signing a new contract is as follows:

1. Contact the management company and schedule a visit
2. Prepare the necessary documents for contract termination or renewal and go to the management company
3. Cancel the current contract with the management company and apply for a new contract.
4. The landlord, rent guarantee company, and management company will review the property.
5. If you pass the screening, you will receive an explanation of important matters and then sign a contract.
6. Pay rent etc.

In step ③, you can cancel and apply at the same time when you visit the store.

If you apply first, it may be considered a double contract and you may not pass the guarantor company's screening.

The general required documents are as follows:

• Photo ID (such as a driver's license or passport)
• Resident card
• Seal and seal certificate
• Proof of income
• Guarantor's residence card

The documents required when renewing or signing a new contract will vary depending on the management company or landlord, so be sure to check in advance.

Costs for changing the name of a rental property

Next, we will look at the costs involved in changing the name on a rental contract.

The cost of changing the name on a rental contract can range from around 10,000 yen to one month's rent , and varies greatly depending on the management company and landlord.

When changing the name, contracts and other documents will have to be rewritten from scratch, and administrative fees will generally be incurred.

These amounts are usually stated in the contract or important information document, so it's a good idea to check them.

If for any reason you are unable to find the contract or important information document, please contact the management company or landlord directly.

However, unlike brokerage fees, there is no upper limit set by business law for the cost of changing the name.

For this reason, there are some management companies and landlords that offer it for free, so it may be worth checking with them.

Are there any costs involved when renewing or signing a new rental contract?

I found out that the only cost incurred when changing the name on a rental property is the handling fee.

So, what kind of costs will be incurred when renewing or signing a new contract? Let's take a look.

Costs incurred when renewing or signing a new rental contract include the deposit, key money, and brokerage fees, but these vary depending on the management company or landlord.

I will explain each one.

Deposit and key money

There are two possible cases regarding the deposit:

• Slide as is
• Deposit again

If you slide the deposit, the deposit of the current tenant will not be returned and will be used as the deposit for the next tenant. In other words, the deposit will be carried over.

In this case, it will be returned to the next tenant when you move out.

The deposit is given to the next tenant, so this is more common among family members such as parents and children or siblings rather than acquaintances or friends.

If a new deposit is to be deposited with the landlord, the current tenant's deposit will be returned and the next tenant will deposit a new deposit.

Also, since re-contracting or signing a new contract is a different contract that requires a new screening, you should be aware that a key money will generally be charged.

Brokerage fee

A brokerage fee is a fee paid to the real estate company that introduced you to the rental property as compensation for completing the transaction.

Therefore, unless you make a direct contract with the landlord, in most cases a management company will be involved, so be aware that an agency fee will be charged.

However, if you apply for a contract directly with the management company, there are often no agency fees required.

The brokerage fee will be stated in the contract and the important information document. The maximum amount of the brokerage fee is 0.5 months' rent.

When you renew or sign a new contract, the contract is reset at that point, so new initial costs are usually incurred.

However, responses vary depending on the management company or landlord, so it is best to consult with them first.

Time required for changing rental ownership

Now you know the procedure, necessary documents, and costs for changing the name on a rental contract.

Next, we will explain how long it will take to change the name.

The time it takes to change the name on a rental contract is approximately 1 to 2 months from application , but the time it takes to change the name varies depending on the case.

If all necessary documents are prepared without any problems, it may take about one month, but if there are any problems with the submitted documents or if it takes time for the landlord or rent guarantee company to review the document, it may take about two months.

Changing the name on a rental contract is costly and time-consuming, and requires various procedures.

Even if everything goes smoothly, it will take about a month from application to completion, so we recommend acting early.

If you are in a hurry, check with the management company in advance to see how long it will take to complete the procedure. Then, ask them if it is possible to complete the procedure by the desired deadline.

Lending your name to someone else on a rental property is illegal!

Changing the name on a rental contract requires a lot of effort. Therefore, some people may think that there is no need to change the name if they can avoid being found out.

However, this is a serious illegal act known as "lending one's name" and involves risks.

First, let us explain the reasons why the illegal act of name lending occurs.

Reasons why name lending occurs

When signing a rental contract, the act of lending your name to someone else is called "lending your name."

Legally, lending your name to a property owner is considered subleasing (subletting) the property without permission from the management company or landlord, and you may be ordered to terminate the contract or vacate the premises.

So why does the illegal act of name lending occur?

The following cases are possible:

• There is a possibility that you will fail the rental screening, or you have failed
• After the cohabitation ends, the person who is not the owner of the property continues to live there

In such cases, it seems that people often go to the screening process using the name of a family member, acquaintance, or partner.

However, this is a serious illegal act. If it is discovered, the person who lent their name will be held responsible, so you should think carefully before lending your name to someone, even if it is a family member.

Now let's look at the risks involved when lending your name.

Three risks involved in renting a property

Lending your name entails the following risks:

• Collection when rent is overdue
• Compensation when equipment is destroyed
• Costs of moving out and restoring the property to its original state when you move out

All of these things will be owed to the person who is the contract holder on paper, and financial troubles will be unavoidable.

Also, depending on your lifestyle, you may be subject to noise pollution.

Lending your name is an act of deceiving your landlord.

From the landlord's perspective, they have entered into a contract with the person whose name is on paper, so if any problems occur in the room, it is as if the person whose name is on paper is responsible.

Therefore, keep in mind that if your landlord finds out that you have lent your name to the property, you may be charged a penalty or even be ordered to move out.

[Finally] When changing the name of the rental property, consult with the management company

In this article, we explain how to change the name on a rental contract.

Name changes can be divided into cases where you simply change your name and cases where you renew or sign a new contract.

If you are not sure which case applies to you, consult with the management company or landlord immediately.

If you don't know who the management company or landlord is, please check your rental agreement. The contact information for the management company or landlord will be listed there.

In addition, management companies may allow you to apply for a name change online as well as over the phone.

To ensure a smooth process, please contact us first to check what documents you need.