Do you know ‘Otori-bukken’ ?
Truth be told,
We have to admit there are a number of
shady and dishonest real estate agents in Japan.
As a foreign investor considering investment opportunities
in the Japanese real estate market,
it’s crucial to be aware of the tactics some unscrupulous agents
employ to lure potential clients.
(UR X IKEYA collaboration : IKEYA kitchen)
(UR X MUJI collaboration apartment in Kobe, Hyogo)
History and corporate structure of UR
It is worth knowing the background and character to deal with UR as they have started the operation as the government agency for housing.
Let me start with explaining the corporate structure and history of UR.
Their official name is ‘Urban Renaissance Agency’ (都市再生機構）and they are ’incorporated administrative agency’. （独立行政法人）
Officially speaking, they are not a part of the government organizations any more but still under the jurisdiction of
the Minister of Land, Infrastructure, Transport and Tourism (MLIT, 国土交通省）
All senior executives are amakudari from either cabinet office or MLIT.
Its capital is 107 billion yen and its number of employee is 3200.
Here is the brief history of UR.
Between 1975 and 1981
The organization provided housing and land through large-scale
development of new residential areas around major cities, which
were suffering from housing shortages due to high population and
industry concentration.
Representative projects include Chiba New
Town (Chiba Prefecture), Atsugi New Town (Kanagawa Prefecture)
and Izumi New Town (Osaka Prefecture).
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Obviously, getting tenants is a prerequisite for making money from your rental property. However, getting just any tenant does not guarantee your investment.
If you get bad tenants, you run the risk of your rent not being paid on time while repayment for loan and maintenance costs being accumulated.
Additionally, depending on how bad your tenants are, your rental property might get more damaged that normal use.
If you have a really bad tenant, you might even have to deal with an eviction.
Today I will discuss the risk of rent being unpaid and how to eschew the risk.
If you own investment real estate, there are expenses you have to pay monthly.
・Payment of administrative expenses · repair and maintenance.
・Monthly repayment for loan
If there is rent income properly every month
you can pay the above cost from the rent, but once the rent is unpaid your income statement will become negative.
How to deal with unpaid rent ?