Tied down to company apartment, is paying 260 000yen for breaking the lease and early contract termination even legal?

My current job is making me miserable. So, so miserable.

I’m new to Japan and I only started a few months ago and I was the typical newbie gaijin with rose-colored glasses who was just excited to get to live in Japan for 1 year, so I agreed with everything my company suggested – including living in a company apartment (which I have since realized was a bad, bad idea. Always find your own!!) Now I want to quit this job really, really badly but I’ll have to pay the security deposit (3 months rent which is approx. 60 000yen per month so 180 000yen in total – it’s a Leopalace) and other expenses (no specified amount, very vague in contract so I have no idea what the exact amount of these “related expenses” is) for breaking the lease because I’m the first employee to live in the apartment. That’s a lot of money.

I will give a 1 month notice before leaving and I don’t mind not getting my final paycheck due to the deductions. As long as I get to get out of here.

My main and only concern is that the deductions will be so high that my last paycheck won’t be enough to cover the costs and I’ll have to pay many more thousands of yen extra from my own pocket.

Has anyone else had to pay their company for breaking a lease/contract termination early? Is a company asking you to pay that much even legal? (approx. 260 000yen in total costs)

How much did you pay? Should I be worried?

5 comments
  1. Who is telling you about this fee? Your company or LeoPalace? According to [this](https://en.leopalace21.com/guide/lease.html) page, the penalty of breaking the contract would only be one month’s rent. Although I don’t know the details of your contract, it seems like they are trying to hoodwink them. If you don’t have a copy of the contract, ask to see it!

    Also, were these fees detailed in your work contract upfront?

  2. Check your contract. You usually receive them the same time as you receive your key. One thing that was good with Leopalace was that you can move out anytime without penalty as long as you inform them 1 month in advance.

    Is the building owned by Leopalace or is it only managed by them? This info is also important.

  3. How is moving out of your apartment going to stop making you miserable (as opposed to quitting your company)?

  4. I live in my company’s provided apartment which is a Leopalace as well and I didn’t pay anything last time I moved from a leopalace into another leopalace due to a changing workplace. Sounds pretty sus.

  5. Don’t quote me on this, I’m not a lawyer, but I believe charging you for leaving a company is illegal, including for company apartments. I don’t believe they can actually tie the apartment to the employment contract either, so you should be able to just quit and say you’re happy to keep living there rather than paying fees to leave early. They could try and kick you out, but you still shouldn’t have to pay for that.

    But yeah, look for someone more qualified to advise you though.

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