You can still do DIY in a Rental. What is the Key to Actually Doing DIY?
DIY stands for "Do It Yourself," which means to make your own furniture and decorations. DIY is popular among women as well as men because it allows you to change a room into a space of your choice on a low budget, but many people may have the image that DIY is difficult to do in a rental house. However, with a little ingenuity, it is possible to do DIY in a rental property. In this article, we will introduce in detail the points to keep in mind when doing a do-it-yourself project in a rental house, and actual DIY examples, with explanations.
You can DIY in a rental house.
It is possible to enjoy DIY in a rental home with some creativity. For example, if the furniture is already in use, it belongs to you, so you can do whatever you want with it without damaging the room. Just remaking the furniture you have on hand can change the atmosphere of the room, and one of the appealing aspects of DIY is that you can change it to make it more user-friendly for you.
If you want to change the wallpaper, there are easy to use wall stickers that you can put up and peel off, easy to try out such as masking tape, or even peel-off wallpaper that can be used on the entire wall. There are also wallpaper sheets that can be painted over. These products can be restored to their original state without damaging the wallpaper when they are removed, so they can be used in a rental house without any worries.
In addition, if you have an inset floor mat, it has an absorbent backing and can change the look of your floor simply by placing it without the use of glue. Cushioned floor mats are convenient for protecting the floor at the same time. They come in a variety of patterns and materials and can be changed to suit your taste and mood.
In addition, there are also tile sheets that can be used around the water, glass film for windows, and many other products on the market depending on the purpose and location.
What to Look for When Doing a DIY Project in a Rental House
There are a few things to keep in mind when it comes to actually doing a DIY project. The first thing you want to pay attention to in order to do a DIY project in a rental house is that the work should be done to the extent that it can be restored to its original condition. Restoration means that the property must be returned to its original condition when you move out. If you damage a wall or floor in the process of DIY, you may have to pay for the repair, so please be careful.
It is also important to abide by the management rules of the apartment or condominium and carry out the work.
Be sure to check with your landlord before doing any DIY work, including the matter of restoration of the original condition. During DIY construction, you may end up causing problems for neighbors with noise and other disturbances. If you are in a housing complex, one way to avoid this problem is to use a material cutting service at a home improvement center or a workshop for buyers. You can also rent tools and equipment here, and you can work without worrying about dust and noise. If you work at home, make sure you do it at a sensible time.
So what are some of the actual DIY's you can do in your rental home? Here are a few examples to get you started.
If you want to make a big change in the atmosphere of a room, you can redecorate the walls. If you don't use strong adhesives, you can redecorate your walls without damaging them. As we touched on a little earlier, decorating your walls with peel-off wall stickers or masking tape is an easy way to redecorate. There are many different types of stickers available for use on a point instead of the whole wall, so you can make a big difference in the impression you make.
If you want to redecorate an entire wall, use peel-off wallpaper. It can change the entire wall, which can significantly change the atmosphere of the room. If you want to apply paint directly, you can achieve this by using peel-off wallpaper sheets for paint. Other popular options are to put up styrofoam walling like bricks or to install thin boards as temporary walls to create your own arrangement.
Floor and Balcony
One of the most popular floor redecorating solutions is a built-in floor mat. There are many different types of floor mats available, including flooring mats and carpet mats, which you can easily redecorate simply by placing them on the floor. Many of them have a non-slip surface on the back of the floor mat, which prevents them from sliding around in your daily life and is easy to remove. Some of those floor mats are washable, so they are clean and easy to use. Another type of floor mat is the sheet type, which can be cut into any size and placed on the floor without any gaps.
There are also balcony floor coverings that can be placed on balconies for easy redecoration. There are many different types of floor coverings available, with natural wood and artificial grass being the most popular. There are also fences that you can simply assemble, and some of them can be used to decorate with pots for gardening and other purposes.
The kitchen area is a popular DIY project, especially when it comes to efficiency and functionality. When doing a DIY project, be sure to plan ahead to improve the usability of your kitchen. You can also use propped-up shelves or propping rods to provide more storage or a workbench. Water-resistant, peel-off stickers and wallpaper are great for redecorating kitchen walls and shelves. Not only do they change the look and feel of your kitchen, but they also prevent grease splatters and stains from sticking to your walls.
Rental properties for DIY
With more and more people doing DIY, a new type of rental property called a do-it-yourself lease has begun to emerge. These properties are based on the premise that the tenant is free to do their own DIY, and in exchange for the tenant paying for the work, the rent is cheaper than usual, among other advantages. Whether the work is done by a contractor or by the tenant themselves, you can rent the property without any problems. This is a great option for those who want to do some serious DIY work without having to worry about damaging the walls and floors.
Choose a property that matches your level of DIY.
It is possible to do some DIY in a rental property with some creativity, but it has to be done within a set scope. If you want to make a big change in the image of a room or if you want to try a real DIY project, you have the option of choosing a DIY-ready property. To get the home of your dreams, you can choose a property that suits your level of motivation and DIY skills.
With more of these properties on the market, there are more options for investment properties from the investor's side. For example, it is possible to keep costs down on the side of investors by renting out properties on a do-it-yourself basis with minimal infrastructure such as water, electricity, gas, and leaks necessary for life, and other repairs and replacements.
It is no longer necessary to rent out the property in a clean condition, and at rents slightly lower than the market rate, you can invest in real estate with a large investment cost down.
This type of investment should be quoted separately from the investment to be made to rent out as a regular rental and as a minimum investment for a do-it-yourself property. If you are interested in this type of investment, please contact us for more information.
Continuing with yesterday's article, we're going to explain some of the points you should be aware of when visiting a property. If you are looking for a rental property, or if you are an investor and are in a position to recruit a tenant, you may also find this useful.
[Case of Building] What to check when you preview the property
Are there any equipment shortages?
The first thing to do is to check for intercoms, lights, stove, etc. If possible, test run the unit if it can be checked to see if it works. Also, carefully check the function of the water system, such as checking the water pressure in the faucet and shower. There are some types, which are often found in older apartments, where the water temperature is so cumbersome that you have to fine-tune the amount of hot and cold water every time you use the shower. It would be a shame if the water pressure in the shower is also weak. Check it out so you don't regret it later. If you are a woman, carefully check the security of the building. While the type of key (a dimple key is best) is important, it is also important to check whether or not there are places that can be used as an entry route. For example, make sure that the fence on the first floor is high enough and that there are no unauthorized access routes to the building from the back, etc. Please check the security from both a facility and environmental perspective.
Is it sound insulation?
It is also important to check the sound insulation quality of the room to see how much noise you can hear from up, down, left and right. Tapping on the walls is also useful. Please check to see if it sounds like it's stuck inside.
It's also best if you can check not only the walls, but also the floor, and preferably the ceiling as well, to see how well they are soundproofed. Be careful if you knock on the walls and find that they are hollow or only separated by plasterboard. In some cases, the sound from the next room can be heard exactly as it is.
If you have plans with you, please check the building structure as well. Reinforced concrete buildings (RC and SRC) are often excellent for sound insulation, so if you are concerned about sound, please consider it. If you are not sure, please ask the real estate agent.
Is the room tilted?
The tilt of the room can affect your health, such as headaches and dizziness. It's important to check the tilt of the room, which is difficult to see from the outside. Rolling a marble on the desk is old now, and recently there is an application that can check it on a smartphone. In fact, if it's wooden and old, some rooms may be leaning.
Even though the rent is cheap, the property itself is still pretty rickety, so make sure you check it out.
Is the delivery route wide?
You also need to consider bringing in beds, sofas and large appliances. Measure the space at the entrance, as well as the entrance, elevator and stairs if possible. It is a special case, but when you want to move a large item like a piano into a room on the second floor or higher, there are cases where it must be brought in from the balcony because it cannot be disassembled or assembled. The price will vary depending on the type of hauling, but it can range from 10,000 yen to several hundred thousand yen. Be careful not to become an unexpected expense in moving.
Check for mold.
Check your clogs and bathrooms, which are prone to moisture, as these are the points where mold can occur. It is easy to forget about the Japanese style closet and the back of the closet, so make sure to check these areas. The moment you open a storage door, be careful if you smell moldy. Your clothes, bags, and shoes may have been damaged by mold.
The ventilation fan, which also serves to release moisture, is a good place to check. If you think the ventilation fan is noisy, it may have been installed long past its useful life. Consult the real estate agent to see if they will replace the fan.
Do you notice any dirt or scratches?
Stains on the wallpaper and scratches on the flooring are things you want to check in advance. It may be difficult to look at them in detail when you preview the room, but it is a good idea to check them before you sign the lease. If there are areas of concern, take pictures of them and discuss them with the management company in advance. It is important to take the necessary precautions to avoid having your security deposit returned when you move out.
How's the cell phone signal?
It can be easily affected by the structure of the property and its location in relation to the surrounding buildings. You should check the signal reception everywhere you go. In general, it is easier to get reception in wooden buildings and harder to get reception in reinforced concrete buildings. If you have trouble getting a signal, major cell phone carriers can lend you a home antenna, so please consult with them.
Is the number and location of outlets appropriate?
This is especially important if you have a home with many appliances. In addition to the electrical outlets, make sure you have details on your drawings of where the TV antenna wires and the phone wires are located. Imagine your life and think about where you want the electrical outlets to be located, whether they are around the sink or where you want to place the TV, and so on.
Do you sense any trouble with the residents?
The person viewing the property is, as it were, a first-time visitor to the property. Because it is your first visit, it is very important to follow up on any missing information. At times like these, the bulletin boards set up at the entrance and in each area are helpful.
You can imagine what kind of problems are likely to occur based on the content of the warning signs about garbage disposal and noise. General notices are fine, but if they are specific, such as "Neighbors complain about noise after 10:00 p.m.," "Do not leave your personal belongings, such as bicycles, in the common corridor," or "Please obey the garbage disposal rules," you need to be careful.
[Case of Surrounding Environment] What to check when you preview the property
It is not only the building that determines the quality of the property. How well-developed and equipped the surrounding environment is also an important criterion. Take a little time to walk around and look around.
Are convenience stores and supermarkets nearby?
Make sure to check the location of convenience stores and supermarkets, which are essential to your daily life. Also, don't forget to check the opening hours. Although the day of the preview may be difficult, it is a good idea to check the store's product line and price quotes if possible.
Is the security level high?
It is important to get a feel for the atmosphere of the place by going to the site to see if it is safe. It's easy to stare at the drawings while traveling to the property, but check to see if there are streetlights and if there are many people on the street. Once again, it is useful to visit at night and actually walk your route home. During the day, the street may have a great view, but at night the streetlights may be dark and scary.
Are there any noise sources nearby?
It is important to know if there are any facilities nearby that generate loud noise, such as pachinko parlors, or if there is too much traffic on the main road. Heavy traffic on a main road is directly related to noise. Depending on the time of day, the road may be quiet, so you should also be aware of what the road will be used for. Otherwise, if there is a hospital or fire station nearby, you will need to consider the access of emergency vehicles.
How convenient is the transportation system?
Walking time to the nearest station is important, but some properties may require you to ride a bicycle or take a bus. If it's a bus, you should also check the destination and number of bus stops, and if it's a bicycle, you should also check the location, cost and current availability of bicycle parking near the station. The "walking time" shown on the drawing is based on one minute per 80 meters and does not take into account stopping at traffic lights. When looking at several housings, there are many cases where a real estate company will show you around by car, etc., but if possible, please try to confirm the time required from the station by your own feet.
We've given you some key points to consider here, focusing on the date of your preview, but there are actually many things you can check in advance. With a rental information site, you can look up a map of the area, search for the location of supermarkets and hospitals, and check the facilities and traffic on the bus routes as well as the crime rate. Since you are looking for a new house, it is ideal to be able to have fun while looking for a place to live. Prepare well in advance and find the room that's perfect for you!
Be sure to check the surrounding area! Checkpoints for real estate tours
When renting a property, one thing you can't avoid is a preview of the property. Before you sign the lease, you will need to visit the actual property to check it out. However, since you will be viewing the property for the first time in a short period of time, you want to make sure you get the most out of it. In order to get a clear picture of your new life ahead, it is important to know what to check out about the property and the surrounding environment.
What is a preview to begin with?
A preview of the room (preview) means "to see the inside of the room". When you see a room you are interested in on a rental information website or at a real estate agency, you do not immediately sign a lease contract. It means the entire process of actually visiting the room and checking it out in detail. Although there are some properties which cannot be viewed, there are many cases where the real estate agency will provide you with an opportunity to view the room in some way or another, and it is unlikely that you will be able to view the room and sign the lease without being able to do so. In other words, you could say that a preview is an essential event for a rental contract.
● If the tenant is still occupying the property and cannot be viewed.
- You can preview similar rooms (vacancies in the same building).
● If the building is not yet complete (e.g., a new building)
- Agent can show you the showroom and head to the site to show you the property under construction.
So what are the key points to look for when previewing a property? Let's take a look at each of these points to get a more efficient preview of the property.
[Case of Building] What to check when you preview the property
Check the property from various angles, including living, delivery, and facility functioning. Check every aspect of the property to avoid regrets later. It depends on how many properties you see that day, but you'll probably have a few dozen minutes to view them. Let's take a look at the checkpoints you want to keep in mind when you have a limited amount of time for a preview.
Is there enough sunshine?
You can get an idea of the approximate direction of a room in terms of sunlight from a drawing, but it's hard to tell how much sunlight is coming in or how bright it is. Sunlight is an important factor that affects not only the brightness of the room but also the place to hang your laundry. Check the position of the building and the adjacent buildings to confirm the sunshine. There may be times when you expect sunshine because the drawing faces south, but the building is right in front of you and the sun doesn't get in. Note that in some cases, properties with a young age are so airtight that it's actually not a problem even if the living room doesn't get any sun. With an airtight property, you won't find it too cold to live in a north-facing room in the winter. In some cases, it is actually more important to be airtight to keep the heat from escaping, so ask about airtightness if the sun exposure is not good.
Is the floor plan and space large enough for furniture?
When you preview a room, it feels larger than it really is because it doesn't have a set of household items. For example, if you measure the size of the bed in advance and simulate the room, you can reduce the discrepancy between the space you feel when you preview the room and the actual living space. To determine if the size of the room is appropriate, imagine what it would look like with large furniture such as a sofa, TV stand, bookshelf, desk, and bed in place.
You don't mind the smell?
Although we tend to rely only on sight (such as the floor plan) and hearing (such as noise) in preview, don't forget to use your full sense of smell. In addition to the smell of sewage and septic tanks and other water sources, the smell of tobacco from previous residents can sometimes be bothersome. In many cases, the real estate company will get away with it by saying that the odor has not been eliminated because it was not yet cleaned, or that the odor can be removed in time, but there are some odors that cannot be removed by room cleaning. Be sure to confirm this beforehand. Other places you should be wary of are restaurants. For example, if there is a restaurant that smells of spices in the neighborhood, the smell may be present all year round. If there are restaurants in the property, take a look at the property during their opening hours.
Check for rattles around windows and doors.
Make sure that the windows, doors and other fittings are properly moved and checked. If they are not moving properly, make sure that you can have them repaired before you move in. Buildings near the railroad tracks may have double sashes. This will reduce the noise level in many cases. On the other hand, if your apartment is not equipped with double sashes, you may have a sound problem. It is a good idea to ask if you can have them replaced.
This is going to be a bit long, so we'll continue tomorrow. In our case, we do building management for rental properties, but we do get tours of the actual properties through different agents. If you are interested in any of the rental properties listed on our website, please contact us for more information.
What is the risk of lessee and market?
We explained that the rent income from real estate involves four risks: vacancy, early cancellation, rent decline, and delinquency. This time, we will explain what kind of risks are involved in terms of the lessee's attributes, type, and market.
Relationship between lessee attributes and risk
The tenant attributes of real estate for rent can be broadly classified into three categories: “residential”, “office”, and “store”. In real estate investment, the magnitude of risk varies depending on the lessee's attributes. We will explain the risks associated with attributes from the perspective of stable income.
The above is a general comparison that does not take individual circumstances into consideration. Stores and offices are subject to the risks of withdrawal and relocation, depending on location conditions and economic conditions. In addition, if there are vacancies, we must search for a store or company that meets the conditions, taking into consideration the location and other factors. Therefore, it can generally take some time to secure a new tenant. Naturally, residences are affected by location and economy, and there is a risk of vacancy, but since it is essential as a home of life, new lessee can be found unless rent conditions such as rent are set unreasonably. The cycle of finding new tenant is generally shorter than in offices and stores. From this point of view, by the stability of rent income, it can be said that the risk of residential is lower than stores and offices.
Relationship between type of lessee and risk
As mentioned above, the risk of income differs depending on the lessee's attributes, but in addition, the risk level also changes depending on the “business type”, “scale” and “quality” of the lessee in each attribute.
Again, this is just a general idea, and of course it depends on the individual case. As for offices, it is important to consider how the company is generating stable income and the occupation where stable income can be obtained. In terms of stores, restaurants are generally said to be at higher risk from the perspective of fire risk. In this way, the risk varies depending on the attributes and quality of the lessee. In other words, cultivate a sense of risk by imagining the possibility of obtaining stable income and the different probabilities.
Supply and demand and risk of real estate for rent (Condominiums for sale also become competitors)
If the rent obtained from the investment target real estate is higher than the market price in the neighborhood, there is a high possibility that the rent will have to be reduced at the same level as the market price at the timing of contract renewal or replacement of the borrower. Therefore, even if the yield at the time of property purchase is high, the rent may be reduced in the future due to replacement of the lessee or negotiations for rent reduction, etc., and as a result, the yield may decrease.
Number of rental units and risk (the more rental units, the smaller the risk)
The degree of risk also changes depending on the number of real estate units you invest. If the number of rented units is large, the ratio of one rent to the total rent is small, so even if one vacant unit is vacant, the impact on rent income will be small. Conversely, if the number of rented units is small, the ratio of one rent to the total rent will be large, so if vacant, the impact on rent income will be large. In other words, the impact of vacancy per unit increases as the number of rental units decreases, and the impact decreases as the number of units increases. As shown in the table below, even if the investment amount and the yield are both the same, the income and yield when there are vacant rooms will differ due to the difference in the number of rental units.
We explained the risk related to income in two times, the last time and this time, but it does not mean that the risk is bad because it is high or low. If the risk is high, you can buy cheaply and get a high yield accordingly. In addition, if the risk is low, the yield will inevitably be low, so you may not be able to expect high profits, but stable operation may be possible. First of all, it is important to understand the risks and develop a sense and image that you can make an investment commensurate with the risks.
When investing in real estate, it is important to understand the intuition of the land, the unique circumstances of the real estate, demand, and major trends. However, starting with a small investment and gradually increasing it, you will be able to accumulate know-how and select the appropriate property from various investment targets. We also accept questions related to investment, so please feel free to contact us.
What is the risk of rent income?
Real estate investment is often very large compared to stock investment. If you succeed, you will get a stable profit, but if you fail, you will regularly lose. Therefore, if you do not fully understand the characteristics and risks of real estate, you cannot make a successful investment. So what are the specific risks involved in real estate investment? This time we will discuss the risks associated with income from real estate.
Vacancy risk (vacancy is negative, not zero income)
The main source of income from real estate investment is the monthly rent income earned by lessee (residents, tenants) by renting real estate. Therefore, if lessee moves out for some reason, owner will not be able to earn rent income until owner finds a new lessee. Moreover, as a property of real estate, management costs, property taxes, city planning taxes, and other expenses are incurred regardless of whether there is a lessee or not. Therefore, if rent income does not come in due to vacancy, the balance will be not zero, but negative. For example, if six months of the year are vacant and you cannot get rent, the rent income will of course be halved, but expenses will be incurred throughout the year, so the actual income and yield will be less than half.
Early termination system advantageous to Lessee
When entering into a lease agreement between the lessor and the lessee, the contract period is usually set for 2 to 3 years. However, even during the term of the contract, it is possible to cancel the contract in advance, excluding special contract types, by prior notice from the lessee (6 months to 1 month). In other words, for the lessor, the contract period specified in the lease contract is only expected to earn rent income, and even during the contract period, there is always the risk of being canceled early (vacant).
When land prices, commodity prices, and rents were rising, it was called the “lender market” and it was relatively easy to secure a new tenants even when there were vacancies. Also, at that time, land prices and rents were on the rise, so in some cases owners were able to rent under conditions that were more favorable than previous rents. In addition, key money and other lump-sum payments can also be received, so the early cancellation by the lessee was not a major issue. However, with the increase in the supply of rental properties, the number of vacancies has increased, and the polarization of land prices and rents is now remarkable, and it is called the “borrower market”, it's becoming a serious problem for the lessor whether or not a new lessee can be secured promptly after the tenant moves out, and whether the lessee can pay at the previous rent level. In the current “borrower market”, stable income cannot be obtained unless the next step is taken promptly when it becomes clear that the lessee has terminated early or has terminated.
Risk associated with falling rent
If the rent obtained from the real estate to be invested is higher than the market price in the neighborhood, there is a high possibility that you will be forced to reduce the rent at the same level as the neighboring market at the time of contract renewal or when the lessee is replaced. Therefore, even if the yield at the time of purchasing a property is high, the rent may be reduced in the future due to the replacement of the lessee, negotiations for reducing the rent, etc., and as a result, the yield may decrease.
Risk of rent arrearage (rent arrearage are harder to handle than vacancies)
Even if the lessee has already been secured and there is no concern about vacancy for a while, but there is a risk of the rent will not be paid as planned due to the economical situation of the borrower and individual circumstances, etc. If the rent is overdue, a reminder to the lessee and a reminder to the guarantor will be required. In addition, if you request a real estate agent or lawyer to do business for moving out due to demand for rent, collection, or nonpayment of rent, there will be a charge. Thus, in addition to the effort and expense involved in paying rent in arrears, you may suffer even more damage than if the property were vacant, since you will not be able to secure a new tenant and generate income in the meantime. Even if the eviction is established, it is not known whether the rent for non-payment can be recovered or not.
Therefore, if you are investing in real estate, you will need to conduct a thorough investigation into the creditworthiness of guarantor as well as the creditworthiness of the lessee. It is desirable to investigate the lessee's past arrears history when buying the real estate that is already in lease.
Investing involves risk, and there is no investment product without risk. In real estate investment, a thorough understanding of the characteristics of these risks will determine the success or failure of your investment. In addition, the various risks associated with rental income discussed in this article can be mitigated to some extent through your own efforts, ingenuity and judgment. We will discuss ways to mitigate these risks in the next section.
Regular Rental Agreement and Lease Agreement (Fixed Term Building Lease Agreement)
Suppose you made a purchase of a vacant house by investing in real estate. The real estate needs to be newly rented. Generally, a management company is selected to assess rent, determine conditions, and start a new rental application. The first thing we would like owner to consider in the rental application is to decide how you plan to use the real estate in the future. There are two types of lease contracts. For example, if you do not plan to live in the future and intend to continue lending, you will have a regular rental agreement (ordinary lease contract). Or, if you intend to return and live someday, if you want to make sure that the renter moves out, a lease agreement（fixed term building lease agreement） that ensures the end of the contract is an option.
Today, we will explain about Regular Rental Agreement and Lease Agreement (Fixed Term Building Lease Agreement).
Differences from types of lease agreements
How do you want to rent your real estate? Even with the contract method, each has its advantages and disadvantages. It is important to make a decision after considering the characteristics and circumstances of each property. When deciding the contract period, you need to understand the “Regular Rental Agreement” and the Lease Agreement (Fixed Term Building Lease Agreement). There are differences between the two not only in the contract period but also in cancellation, and each has its own characteristics.
Cancellation from the Owner
Possibility of Early Termination from the Lessee
*Fair Reason is limited to situations where there is an unavoidable social common sense, such as when a building has been obsolete and has to be rebuilt.
*You cannot change the contract type during the lease term.
The above is the difference between Regular Rental Agreement and Lease Agreement (Fixed Term Building Lease Agreement). If you want to use your own building in the future when renting, it is effective to select Lease Agreement (Fixed Term Building Lease Agreement). However, looking at the percentage of contracts, Regular Rental Agreement occupies 97.5% and Lease Agreement (Fixed Term Building Lease Agreement) is only 2.3%. Lease Agreement (Fixed Term Building Lease Agreement) is an unfamiliar contract type and there is a possibility that you may be refused to use it.
If you choose Lease Agreement (Fixed Term Building Lease Agreement), you can guarantee the initial contract for 2 years, the renewal contract for 2 times, and the total lease period of 6 years. It is also an effective way for the tenant to apply for the contract under conditions that make it easy to sign the contract.
If you are considering a real estate investment, please feel free to contact us for rent recruitment and management methods.
Terms and interpretations commonly used in the real estate industry
Usually used in the real estate industry, it is used as a matter of course or it is a business practice, and we will explain in a Q & A format such as words and ideas that are not familiar to the general public.
Q - What is the standard for walking time from stations?
A - Every 80 meters of road distance is converted to approximately 1 minute, and fractions less than 1 minute are rounded up to 1 minute and displayed.
Q - How should the unit of width be viewed?
A - 1 tsubo = 2 tatami mats (Jo) ≒ 3.3 square meters.
It's a good idea to keep this in mind because you often make calculations such as square meters × 0.3025 = ○ tsubo.
Q - What is the meaning of the symbols displayed on the floor plan?
A - The meanings of the typical symbols displayed in the floor plan are as follows.
L → Living
D → Dining
K → Kitchen
S → Service room
PS → Pipe space (drain and drinking pipes)
UB → Unit Bus (Japanese English, meaning of modular bath)
MB → Meter box (gas, water or electricity meters are installed)
Q - The floor plan often says "S" Service room. What kind of room is it?
A - Service room as "Nando" means a room with 3 tatami mats or less, or a room without windows. This is in accordance with the Building Standards Acts, which does not recognize a windowless room as a living room. There are some rooms that are treated as service rooms because there are no windows even if they are more than 8 tatami mats.
Q - It is often called the unit price per tsubo, but how do you put it out?
A - The result of dividing the sales price by the number of Tsubo (area) of the property.
If the trading price is 25 million yen and the area is 50 square meters, it will be as follows.
25,000,000 yen ÷ 50 square meters = 500,000 yen (per square meter)
500,000 yen x 3.3 square meters = 1,650,000 yen (per tsubo) ⇒ unit price per tsubo
Q - I want to buy only the land and build the building in the future, but can't it be the land with construction conditions?
A - When a homebuilder sells land, it is called land with construction conditions. This is a land sales form, subject to a contract for building construction within a certain period (3 months). The contract type is a sales contract for land and a construction contract for buildings. If the building contract is not concluded within 3 months after the land purchase contract, the land purchase contract will be blank and all the money paid will be refunded. Therefore, in the case of land with construction conditions, it is not possible to purchase only the land. However, please be aware that some advertisements may look like advertisements for newly built homes, such as posting a large example of a building plan (floor plan).
Q - Is there a consumption tax on the purchase of real estate?
A - When buying a used home, it can be divided into a case where the seller is a corporation and a case where the seller is a general individual. If the seller is a corporation, the house will be a commodity and will be subject to consumption tax. However, in most cases, the tax is included, so the tax will be included. If the seller is a general individual, it will not be taxed as it is not a product referred to in the consumption tax law.
In addition, the purchase and sale of land is not a target of consumption in the first place, and the transfer is considered to be a simple transfer of capital. Whether the seller is a corporation or an individual, the tax is exempt under the consumption tax law.
Have you asked for negotiations when applying for rent?
When we manage the building, we may be asked to negotiate the conditions when receiving an application for moving in. Today, we will explain what kind of negotiations are going on, what parts of negotiations are passing, and what parts are difficult to accept.
Acceptance of negotiations depends on agreement between both Lessor and Lessee.
First of all, the lease contract is concluded with the agreement of both the lessor and the lessee. It is not possible to conclude a contract based on only one request. Therefore, the fact that the negotiations on the conditions settle down is also a condition for the agreement of both lessor and lessee. In addition, the conclusion of the conditions is greatly related to supply and demand. For example, if many people want to rent the room, the demand will increase, and the lessor side can conclude the contract on favorable terms. On the other hand, when there are many suppliers on the off-season, it becomes possible for the lessee to freely choose the property, and it is possible to conclude a lease contract with more favorable terms for the lessee.
What conditions are subject to negotiation?
As mentioned above, the contract conditions fluctuate depending on supply and demand. For example, if the building is new and many people want to rent it, the rent will be high, and there are many cases where the condition of Key Money, which is a Japanese custom, is added. Or if there are no key money in the off season throughout the year, for example, if you sign a contract in the middle of the month, you will get free rent for fractional days less than 1 month.
Whether the negotiation is successful or not, the following conditions are subject to negotiation.
- key money
- Contract date (the standard payment date for rent, which usually occurs within one month from the application, is moved slightly backward)
- Rent date (Contracts are signed on a regular schedule and the rent date is moved slightly behind)
- Renewal fee
However, the conditions below are unlikely or impossible to negotiate.
- Maintenance fee
-Guarantee company fee
-Contract renewal fee
For example, a maintenance fee is an expense required to maintain and manage the entire building, and is also required to operate the building. It is also necessary to take out fire insurance, as it will compensate for damage caused by a fire or accidental fire from your neighbors. It may be possible to remove the use of a guarantor company, but it is a necessary procedure for the lessor to receive the rent under the current Lease and Lease Law, such as adding a security deposit and requiring a guarantor.
About the effectiveness of negotiation
For example, let's say you verbally ask an agent to negotiate terms with the landlord, and sign a lease contract if the terms are met. If so, will the verbal convention become a contract item? Is it just a promise, do I have to keep it before I sign?
Under Japanese civil law, a contract is considered to be formed by the agreement between the applicant and the approver. Therefore, as a general rule, a verbal agreement will also be sufficient and effective to complete the agreement. This is called a consent contract, and sales contracts and lease contracts correspond to this. However, there are some contracts that can only be concluded in writing, which is called a formal contract. In the case above, you negotiated the conditions on the premise of agreement, so if the owner accepts the content and if the agreement of the conditions is obtained, it becomes an oral agreement and the contract is actually valid.
The negotiation is win-win for both parties
Living in different cultures, customs, and languages often lead to different communication and ways of thinking. It is possible to comply with the law, but it is the best negotiation to collect the requests of both parties before each other, and each of them will be able to conclude the contract comfortably. There are many opportunities to expand from one relationship. Let's proceed so that each one can live a happy and pleasant environment.
Today, we will explain the newly started 360° Tour of real estate sales and rental properties. Please check here first.
Renovated Machiya building in 1902, for Sale near Nijo Castle
We took a picture for the first time today. As we introduced the other day, we bought a 360° camera, so we have tried taking photographs of the sale property and the rental property. If you are considering using a 360° camera for your own service, please refer to it.
As a practical matter, we took a picture first. The shooting is divided into two types, a photo shooting for a 360° Tour and a spot photo in the Tour. For 360° cameras, setting the lens height slightly below the line of sight made it feel more like walking in the room. Also, the 360° camera works in conjunction with Mobile and presses the shutter button. Therefore, we installed a camera at each position and took care so that luggage and the photographer would not be reflected in the lens. Also, the brightness can be adjusted, so we took a trial shot first, decided which brightness to use, and then took a picture at each location. The photos of the spots were taken on mobile, so if you bring a mobile and a 360° camera, you can take a tour photo like this one.
This time, we are creating a Tour using Ricoh's service. We started from a free account, confirmed the contents, and changed to a paid service. Creating a Tour is easy. Create a Tour for each property and upload the photos we have taken. All we have to do was to register the floor plan as well and placed each photo at the shooting location on the floor plan. Also, spot photos will be registered in 360° photos. Here too, we only had to register the photo at the spot position. After that, we created a tour as if you were inside the room by simply connecting the points at each shooting location.
Studio Apartment for Rent, near Demachiyanagi sta., in Sakyo Ward
Since this is the first time to create a Tour, we will continue to improve it each time to improve it. Please contact us if you are interested in how to register or set up, or the property. From tomorrow, we will continue to shoot other properties as needed.
When considering the purchase of real estate, is it possible to make a judgment without looking inside the property? If the property is for investment and you know the expected yield, purchase price, age of the property, number of minutes walk from the nearest station, and local environment, you may not need a preview. However, if the real estate to be purchased is your own second house and you spend off in Kyoto, is it possible to make a decision without seeing it with your own eyes?
If real estate is ready-made goods such as cars, it may not be so difficult to make a decision if you know how it is based on the number of years that have passed. However, there is no one real estate in the world, the specifications of the building are various, is difficult to figure it out that the environment of the area, the atmosphere that the building emits, the slight slope, etc., unless you actually walk around and visit the property.
With that in mind, when buying a real estate, if the purpose of the real estate purchase is to come to Kyoto, enjoy a leisurely vacation, enjoy a different culture, and spend a new discovery, we would like you to see the real estate with your eyes and make a decision. For that reason, we were skeptical about remote guidance.
However, if the real estate you select is for investment purposes or if it helps narrow down the properties before coming to Kyoto, it is also good to remotely look inside the property or provide photos based on the floor plan with a 360° camera. Thinking about this, we decided to purchase new equipment and add new pages to existing sites for more details with 360° view properties, start taking new photos from this week.
Also, if you would like to get a remote preview, we can guide you on WhatsApp, Skype, Messenger, Hangout, WeChat and Line.
Since there are restrictions on the times and days of the week that we can inform you, if you would like to visit remotely, please contact us in advance and we will adjust the schedule. If you have a property that you would like to visit, please contact us.
Arrows International Realty Corp.