Management

Management Contract -Management Contract

Management Contract（管理受託）means that property owners hire a professional management company or manager to handle the property instead of doing it themselves. This lets experts take care of things like maintaining the property, managing rentals, and dealing with tenants. It usually includes tasks such as regular property checks, repairs, collecting rent, and responding to tenant questions. Property owners pay a fee to the management company and it helps keep things running smoothly.

Building Management -Building Management

Building Management（ビルマネジメント/BM）refers to the specialized service of managing and operating buildings or commercial facilities. This includes maintaining the building, inspecting and repairing equipment, cleaning, managing security, and handling tenant issues. BM plays an important role in preserving the value of the property and ensuring efficient operation. It also involves managing lease agreements, collecting rent, and suggesting improvements to the facility. Through BM, the safety and comfort of the building are enhanced, leading to long-term stable operations.

Property Management -Property Management

Property Management （プロパティマネジメント/PM） involves the comprehensive management of real estate rentals, aiming to maximize property revenue while ensuring reliable service for tenants. Effective management and operations are geared towards enhancing the asset value of the real estate. PM encompasses a diverse range of responsibilities, including tenant recruitment, rent management, lease execution, problem resolution, financial management, and project management. It involves strategic planning for leasing and marketing, maintaining a balance between tenant satisfaction and property profitability.

Master Lease -Master Lease

Master Lease（マスターリース）refers to a rental arrangement where a party leases an entire property and then subleases it to other individuals or businesses. For example, a property management company might lease an entire building from the owner and then rent out individual floors or units to different tenants. This arrangement allows the property owner to receive a stable rental income, while the management company handles all tenant agreements and property management. It aims to provide efficient management and steady income.

Repair Reserve Fund Fees -Repair Reserve Fund Fees

Repair Reserve Fund Fees（修繕積立金） is a long-term reserve set aside to cover the costs of maintaining and repairing buildings, like apartments or condominiums. It ensures there are funds available when large-scale repairs or maintenance due to aging are needed. Each owner contributes a fixed monthly amount to this fund, and the amount can vary depending on the property and management association. This fund is essential for maintaining the long-term value and safety of the building.

Gross Yield ＆ Net Yield -Gross Yield ＆ Net Yield

Gross Yield（表面利回り/グロス）measures the rental income of a property as a percentage of its price over a year, giving an idea of the investment return. Net Yield（実質利回り/ネット・NOI）, on the other hand, accounts for additional costs like purchase expenses and annual maintenance fees, providing a more accurate assessment of the investment’s profitability.

Sublease -Sublease

Sublease（サブリース）is a kind of rental management method where a property owner leases their property to a subleasing company, which then rents it out to tenants. With this arrangement, the subleasing company usually offers rent and payment default guarantees, allowing the property owner to avoid the hassle of managing the property and still earn a relatively stable income.