Property Management Companies In Japan: A Quick Guide

Managing tenants, scheduling repairs, and completing administrative tasks can feel overwhelming, especially if you are managing your Japanese property from abroad.

You can lessen this burden by outsourcing what needs to be done to property management companies in Japan.

Let's take a quick look at what they can do for foreign property owners.

What is a property management company?

Property management companies operate and oversee properties such as houses and apartments, helping to minimize costs and risks for owners and investors.

While the owners can be property managers (賃貸管理士 chintai-kanri-shi), many foreign property owners hire Japanese property management companies to help them out.

Property management companies (賃貸管理業 chintai-kanri-gyō or 管理会社 kanri-gaisha) will often offer services such as screening tenants, managing lease agreements, customer service, and coordinating maintenance and repairs.

What can property management companies do?

Property management companies offer various services to help manage properties for the owner or those living there.

1. Be your communication bridge.

Japanese property management companies act as a communication bridge between property owners, tenants, contracts, and local authorities—particularly when a property owner manages more than one property.

Property management companies in Japan handle various tasks, such as owner-tenant liaison, tenant screening, and lease agreements, and help tenants deal with any problems that may arise.

Additionally, they will coordinate with contractors and service companies for required maintenance and repairs, such as landscaping, snow removal, and cleaning, to maintain the property's condition.

2. Offer customer service to tenants.

Many factors come into play when you're not on-site, have multiple tenants, need to facilitate repairs, or inspect issues. That's where property management companies can handle customer-related services for you.

Especially if you have English and Japanese-speaking customers, a property management company that offers bilingual customer service can handle your tenants' needs.

3. Handle tax payments.

Good property management companies can manage rent, but great ones will ensure you're tax compliant.

As an owner of property in Japan, you're subject to an annual fixed asset tax and city planning tax. These bills are sent to your property and must be paid within a specific amount of time.

Some property management companies, e.g., MailMate, will act as your tax representative so you can be away from your property without worrying about payments or late fees.

4. Facilitate inspections.

Safety inspections and obtaining fire and earthquake insurance are required for a minpaku license in Japan.

If you cannot speak Japanese, calling for an inspection or filing for insurance will be difficult. When staff comes in to inspect your property, you'll need to be present to understand any additional paperwork.

Property management companies and their staff can help make the servicing of your utilities and property maintenance much easier.

5. Tenant placement.

Many property management companies will help place tenants into your properties. By working with local real estate agents, your property will be in front of those looking to rent.

Once a tenant is found, property management companies will screen them to find the best fit for your property.

6. Rent management.

Another common service that property management companies will do is to collect rent from your tenants.

While the owner has the right to decide the rent, the management company will ensure the amount is paid.

Once the amount is collected, the property management company will send a bank transfer to your bank account.

What are the benefits of using a property management company in Japan?

Property management companies can help you and your property in 3 ways.

1. Save time.

Property management companies will handle the daily tasks that are associated with property ownership, such as:

• Scheduling repairs and installations

• Conducting inspections

• Dealing with tenant issues

Outsourcing these tasks to the management company allows you to focus on aspects of your life or business.

2. Peace of mind when abroad.

Property management companies will ensure everything continues to be smooth sailing when property owners are off-site or abroad.

The company will be the point of contact for property owners and tenants for emergencies and other property-related matters.

3. Handle your legal and administrative tasks.

Commercial property management companies are well-versed in Japanese laws and regulations related to property owner and tenant compliance.

As such, they can handle the necessary paperwork, lease agreements, and tenant screenings on the owner's behalf.

How much does a property management service cost?

In general, property management fees are 5% of the projected revenue of the property. For instance, if you own a rental property that generates income of 1,000,000 yen per month, then the management fee is likely to be 50,000 yen.

This 5% rate is a good starting point when comparing management companies' offerings, but it's good to note that this percentage guideline only applies to commercial properties and such fees are not regulated. What each property management company does and how much it charges will differ from company to company.

Some companies will offer a flat fee with additional a la carte services. Others will provide a subscription package that must be paid for a year in advance.

Top property management services in Japan 

In general, most property management services in Japan cater to Japanese property owners. Thus, all communications, unless stated otherwise on the company website, will be in Japanese.

We've collected a few property management services for foreign property owners who want a bilingual service to work with.

1. MailMate

If you’re new to managing properties or need additional bilingual support as a property owner, MailMate is an all-in-one property management service that is well-known among overseas real estate investors. 

Here's a brief overview of what property owners get when choosing MailMate.

a. Bilingual support

Most, if not all, property management companies in Japan only speak Japanese. MailMate is different.

Their bilingual staff will be the communication bridge between you, your property, and the tenants. So, if the property needs maintenance or you need any other assistance, MailMate is on standby.

b. Centralized mail management

With MailMate, property owners can access and take action on mail from multiple properties and view them all in one dashboard, eliminating the need to go to each location and physically collect their mail.

When you receive mail, MailMate scans and translates it, making it easier to manage bills, invoices, and notices for your properties.

No more searching through paper files when you can search for important documents for any of your properties in your MailMate dashboard.

c. Automate repetitive tasks

With MailMate, create an automated workflow for specific purposes.

For example, automatically sort and categorize all mail based on whether it is tenant support, invoices, or notices.

Plus, you can decide to automatically have mail opened, forwarded, and more.

d. Bill pay and tax representative service

MailMate's fluently bilingual tax representative service helps property owners stay updated on their real estate tax bills by liaising between clients and the local government.

Additionally, if you use MailMate's tax representative service for property owners, MailMate will file the tax representative form with the relevant tax office on your behalf.

e. Maintenance, insurance, and more!

If you need help scheduling maintenance, getting Internet setup, or getting a property insurance quote, MailMate can help.

We provide home owner's insurance contract support, helping you secure your property with fire and earthquake insurance.

2. Daito Kentaku Partners

Daito Kentaku Partners is part of the Daito Trust Group, a popular house builder in Japan and a nationally recognized leader among real estate companies.

They specialize in rental property management and offer a range of services to ensure the stability and reliability of your property.

One of their main features is ensuring that the rent collection or the percentage of tenants who are behind on their rental payments is less than 0.1% to ensure you will have a stable passive income.

Daito Kentaku provides English support, although this is only for foreign tenants who want help dealing with contracts, rent matters, garbage, and facilities.

To get a price quote, you will need to set up a consultation in Japanese. (Note: You can use MailMate as your bilingual liaison to help you get the information you need.)

Website: https://www.kentaku-partners.co.jp/management/

3. Daiwa House

Also known as 大和ハウス工業, Daiwa House is one of Japan's top property management companies for renting your properties out.

They're most well-known for being a trusted partner between property owners and investors across Japan.

One key feature is that they will take care of the repairs when a tenant moves out for a fixed monthly fee. This approach will ensure that your properties are maintained and ready for new occupants.

To get a quote for your property, book a consultation call or use their contact form (Japanese).

If you have strong Japanese skills, then working with Daiwa for your real estate investment should be no problem. However, if you would like bilingual assistance, then we suggest using MailMate as an intermediary to help you communicate with Daiwa.

Website: https://www.daiwahouse.co.jp/stock/kanri/chintai.html

4. Tokyu Housing Lease

Tokyu Housing Lease, or 東急住宅リース, is part of Tokyu Fudosan Holdings, which is a major Japan real estate management that will manage and operate any rental housing for you.

They will ensure smooth operation and maintenance of your properties with their 24-hour contact system. Residents can send and receive assistance during the weekends and holidays.

Tokyo Housing Lease states on their website that they can communicate in English and Chinese regarding real estate asset management.

Website: https://www.tokyu-housing-lease.co.jp/en/

Frequently asked questions

Who is the biggest property management company in Japan?

Among property management companies in Japan, those considered major players include the Daito Kentaku Group, Sekisui House Group, and Daiwa Living. For foreign property owners, MailMate is the most well-known option.

What percent do most property management companies take in Japan?

If you own a commercial property, the property management fee is often based on 5% of the monthly revenue. While this is a general standard, many property management services come up with their own pricing structure tailored to the services they offer.

Can I manage a property in Japan remotely without a property management company?

This depends on the type of property you own. If you own a commercial property, such as a minpaku, and you do not plan to be present on the property, then you must hire a property management company to help with tenant relations. However, if your property is not commercial, then you don't necessarily need a property management company, but you are legally required to designate a tax representative and domestic contact person for your Japanese real estate.

In closing

Property ownership doesn't have to be complicated. Choosing the right property management company in Japan can ensure you achieve your property goals.

For property owners living abroad, consider simplifying your real estate investment with MailMate.

Founded in 2019, MailMate has streamlined property ownership for foreigners living abroad and is an increasingly popular option recommended by real estate investors and well-known industry figures.