We believe that real estate investment is not ‘over once you buy,’ but rather the start is after you buy.
After purchasing a property, you leave it entirely to the management company.
Since the rent comes in every month, there are no particular problems.
Even if the balance is slightly negative, you think, ‘That’s just how real estate investment is.’
If you are in such a situation, it might be a good idea to check the balance and management status of your property once.
Even if it looks like it is operating without problems on the surface, there may actually be many points left that can be improved.
This time, I would like to think about ‘management left entirely to others’ in real estate investment.
‘Rent is coming in’ and ‘managing successfully’ are not the same thing
There is a tenant, and rent is transferred every month.
Of course, this is very important in rental management.
However, that alone is not enough to judge the operating status of a property.
For example
・Is the current rent in line with the surrounding market? ・Are the management costs appropriate? ・Are you not paying more than necessary for repairs? ・Are appropriate proposals being made at the time of renewal or move-out? ・Are future repairs being considered? ・How much money is actually left in your hands every month and every year?
Only by looking at these parts can you see the true operating status of the property.
Having rent come in and maximizing the profitability of a property are not necessarily the same thing.
Do you think, ‘It’s in the red every month, but it’s real estate investment, so it can’t be helped’?
When purchasing investment real estate,
‘You can become a real estate owner for 10,000 yen a month!’
‘It is something to build assets while repaying the loan’
You may receive explanations like these.
It is true that in real estate investment, there are various expenses such as loan repayments, management fees, and repair reserve funds.
Therefore, you cannot judge everything based solely on the monthly balance.
On the other hand,
we also do not recommend assuming from the start that “it is inevitable to be in the red.”
Why is it in the red?
Are there any parts that can be improved?
Is the current rent appropriate?
Is there any room to review management costs?
Are there any ways to improve the balance when vacancies or move-outs occur?
If you check them one by one, there are always points that can be improved.
Leaving it to a management company is not the problem itself.
What I do not want you to misunderstand here is
that this is not about “leaving it to a management company is bad.”
that is.
Rather, for those who are doing real estate investment while having a full-time job, it is very rational to leave tenant support, rent management, and repair arrangements to a management company.
The problem is
that “leaving it to them” and “not checking anything” end up being the same state.
While leaving the practical work to the management company,
“What is the current state of my property?”
“What kind of issues are there?”
Creating a situation where the owner themselves can understand “what can be improved.”
We believe that is important.
Do you receive “proposals” from your management company?
When people think of the work of a management company,
they often imagine tasks such as:
Collecting rent.
Responding to inquiries from tenants.
Performing restoration work when a tenant moves out.
Advertising when a unit becomes vacant.
Of course, these are all important tasks.
However, we believe that is not the only role of a management company.
For example, when a vacancy occurs,
it is necessary to think about “why it is not being filled”
rather than just posting it on a listing site.
Is it the rent?
Is it the leasing conditions?
Is it the facilities?
Is it the photos?
We believe that is important.
We believe that is important.
Is it a difference from competing properties?
The measures to be taken change depending on the cause.
In the same way
“This equipment should be replaced”
It is not just about that conversation
Why replace it?
How much will it cost?
What kind of effect can be expected by replacing it?
Is it necessary to do it now?
Isn’t it the role of a management company that supports the owner’s real estate management to present such judgment materials?
Please check your monthly income and expenditure once
There is something I would like everyone who is investing in real estate to do at least once.
That is
to check how much money is actually coming in and going out from your property annually.
Not just rental income
Management fees
Repair reserve funds
Management fees paid to the management company
Repair costs
Restoration costs
Various fees
Loan repayments
Fixed asset taxes, etc.
I will list everything as much as possible.
Then
It costs more than I thought
What am I paying this fee for?
This might be something I can review
You may start to see parts that make you think things like this.
First, grasp the current situation.
Improving the balance of payments starts there.
The goal is not to change the management company
Even if you feel doubtful about the current management, it does not necessarily mean you need to change the management company immediately.
To your current management company
How does the current rent compare to the surrounding market?
Are there any areas where the property’s balance of payments could be improved over the past year?
What kind of recruitment strategy are you considering if the next tenant moves out?
I think it is fine to just ask these questions.
If they think about the property together with you and provide concrete proposals, wouldn’t they be a reassuring partner for the owner?
On the other hand
You don’t really understand the situation.
You don’t get clear answers when you ask questions.
There have been no suggestions for improvement for a long time.
If these conditions persist, it might be time to reconsider how your property is being managed.
Real estate investment starts after you buy
Before purchasing a property
Which area is good?
Which property is good?
What is the interest rate?
What is the yield?
I think many people spend a lot of time considering these things.
However, after purchasing the property, they leave everything to the management company.
We believe that is a bit of a waste.
Real estate investment does not end the moment you purchase a property.
How will you operate it after the purchase?
Reduce vacancies.
Set appropriate rent.
Perform necessary repairs at the right time.
Review unnecessary costs.
Ensure tenants live there comfortably for a long time.
And, maintain asset value while considering future sale.
Through these efforts, real estate management will change.
At reSOLve Co., Ltd.’s “Smart Management,” we value not just acting as a proxy for management tasks, but also thinking about improvement measures together with the owner while looking at the income and expenditure and situation of each property.
“The rent is coming in, but is it really okay to leave it as it is?”
If you have ever felt that way, please take a moment to check the management status and income/expenditure of your property.
There might be hints hidden there for improving your real estate management.
Why not review the income and expenditure of your property?
At reSOLve Co., Ltd., we support owners in improving their income and expenditure, focusing on investment studio apartments in Fukuoka.
“Is the current management fee appropriate?”
“Is there room to review the rent?”
“Is it okay to stay with the current management company?”
If you have such questions, please feel free to consult with us.
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Making rental management simpler.
Making rental management easier to understand.
reSOLve Co., Ltd.
Rental Management Department
