Property Management for Investment Properties in Japan: Using an Agency

Investing in real estate in Japan as a foreigner is becoming increasingly accessible and popular. Thanks to a stable market, high-quality construction, and growing interest in short- and long-term rentals, many international investors are purchasing apartments or homes with the aim of renting them out.

But what if you don't live in Japan? Do you need to be there to manage tenants, pay bills, and maintain the property? Fortunately, no. In Japan, you can outsource comprehensive property management to a specialized agency. This allows you to earn income from your investment without needing to be physically present in Japan.

What Does a Property Management Agency Do?

A property management agency takes over most of the owner's responsibilities. Their role is essential to ensure the smooth operation and efficiency of your investment. Typical services include:

Tenant Acquisition and Screening: The agency markets your property locally, organizes viewings, and carefully screens candidates. Once a tenant is selected, the agency prepares and signs the lease agreement and collects the required security deposit.
Lease Management and Tenant Relations: The agency serves as the primary point of contact for tenants. It handles inquiries, resolves any issues or breakdowns, negotiates lease renewals, and manages payment-related matters.
Rent Collection and Fund Transfers: Rent is paid directly into the agency’s account. After deducting their commission, the remaining amount is transferred to your designated bank account—usually on a monthly or quarterly basis—ensuring a consistent passive income stream.
Maintenance and Repairs Management: The agency coordinates all necessary maintenance and repairs, including inspections and equipment servicing. If the property has a garden, they handle its upkeep. In apartment complexes, they also maintain common areas and promptly address defect reports.
Accounting and Tax Documentation: Many agencies prepare annual income and expense statements related to the property, which can be submitted for tax purposes in your country of residence. This simplifies compliance with local and international tax regulations.
Short-Term Rental Management (Optional): Depending on local laws and the agency’s offerings, some companies also manage short-term tourist rentals (e.g., via Airbnb). This includes guest communication, check-in/check-out, booking management, and cleaning between stays. Note that fees are generally higher due to the increased workload, and local regulations may restrict availability.

How Much Does Property Management Cost?

The cost depends on the rental type and scope of services. Standard rates include:

3%–10% of gross monthly rent – for long-term rentals. This typically includes full-service management with minimal owner involvement.
8%–20% or more – for short-term tourist rentals due to higher operational demands.

Advantages of Working with a Management Agency

Entrusting your property to professionals offers many benefits, especially for non-resident investors:

No need to be in Japan: Manage your investment from anywhere in the world.
No language or cultural barriers: Agencies communicate with tenants in Japanese, eliminating potential misunderstandings.
Steady passive income: Your property generates revenue without your day-to-day involvement.
Legal compliance: Agencies ensure all operations follow Japanese housing laws and standards.
Preservation of property value: Ongoing maintenance and quick repairs keep the property in top condition, maintaining its long-term value.

Can Foreigners Use These Services Easily?

Yes. Japan is open to foreign property ownership and investment. Most agencies do not require you to be a citizen or resident. As long as you legally own the property and sign a management agreement, you can use their services. Many firms—especially larger ones—offer English-language support and are experienced in working with international clients.

Conclusion – Is It Worth It?

If you've purchased an investment property in Japan but don't plan to live there, hiring a property management agency is the most convenient and secure solution. For a reasonable commission, you gain peace of mind, a reliable income stream, and the confidence that your property is in expert hands—even from across the globe.

Real estate agencies that partner with our service also offer property management, so you receive a complete service package from day one.