2018-08-14

Why does a Property Manager play an important role in Handling Japan Real Estate Investment?

  • Advice


If you are interested in investing in the Tokyo, Japan real estate is a good investment, but it is essential for a foreign real estate investor to know how they will manage their real estate affairs (i.e., residential property, commercial property, office property) as per Tokyo local government rules. Investing in Tokyo real estate is a sensible decision for foreign investors because it is less expensive comparing to other developed cities of the world. On the other hand, if you’re going to buy a real estate for the rental income purpose in Tokyo as a foreigner, you may want to consider the following questions:

  • Are you fluent in Japanese language?

  • Whether you have time and expertise to manage your property?

  • Are you comfortable to do basic handyman tasks?

  • Do you know reliable electrician and plumber who offer 24/7 service?

  • Are you available answering calls 24/7 to handle issues that inevitably arise? 


Hiring a property manager is a common way in Tokyo to look after tenant’s affairs.  According to Japan real estate laws, there is no legal binding to hire the property manager. Thus, it is investors’ decision whether they want to hire property management services to make their life easy by delegating tenants’ responsibilities. There are a lot of responsibilities that come along with property affairs (i.e., find new tenants, potential meetings with potential tenants, a collection of payment, transfer money to your account, responsible for the maintenance). As earlier mentioned, tasks alone can comprise more than a full-time job. 

A property manager provides third-party services to look after the owner’s real estate affairs. They are responsible for responsible for fixing damage due to normal wear and tear. Tokyo property management companies normally charge 5% on monthly rental income against their services. They are providing the following long-range services to the real estate owner

  1. Advertise Real Estate 

  2. Tenants screening

  3. Manage rent  

  4. Repair & Maintenance 

  5. Responsible for Tax Payment 

  6. Updated Knowledge Tokyo Tenants Laws 


Advertise Real Estate:

    Property Manager of Tokyo Real Estate is responsible for advertising the property via using the different channels such as local online websites, positive word of mouth, referrals, and prints the publication (I.e., Fliers and Brochure). It is property manager responsibility to fill the vacancy as soon as possible.   


Tenants Screening:

    Real Estate Property Manager is responsible for potential tenants screening and chose the best one based on the (rental history, income & personal verification, credit history, etc.). They’re also responsible for informing potential tenants who turned down. 


Manage Rental income:

   Real Estate Property Managers are responsible for the following income related with tenants:

  •    Handle the initial deposit ( in Tokyo people called as “Shikikin”)

  •    Manage monthly Rental Income 

  •    Manage books of accounts properly 

Repair & Maintenance 

Tokyo real estate owners want an immediate response from their property manager when tenants request for repair and maintenance. It is mandatory for Japan real estate owner to pay monthly building fees to cover the maintenance and management of the building. Real Estate repair and maintenance is considered very important in Japan because it is property owner responsibility to ensure a safe and comfortable place for tenants. Therefore, on behalf of the real estate owner, the property manager is responsible for property repair and maintenance. 


Responsible for Tax Payment:

Property Manager not only assists the owner on how to file the property taxes but also submit the taxes for the property. Those real estate investors, who want to purchase Japanese property for rental income, may submit the following tax returns:

  •    City Planning and Fixed Asset Tax

  •    Withholding Tax 

Updated Knowledge Tokyo Tenants Laws 

    A property management company or Individual is considered smart, if completely updated with following Tokyo Tenants laws:

  •     Eviction process of Tenants 

  •    Termination a Lease 

  •    Proper knowledge of Real Estate standard

  •    Proper knowledge of the local tenant's Taxes


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