Is real estate management properly done?
When managing real estate, it is necessary to confirm that the rent has been properly paid. Many lessees pay rent by the deadline, but some of them leave it until reminder. Even in the real estate managed by our company, one or two properties are delinquent every month, and we notify the lessee at the beginning of the month.
Normally, when they receive the reminder, lessees will be paid the rent within a few days. However, there are cases where payment is not made until waiting for half a month, so the competence of the management company is questioned. If there is a guarantor company, we will remind them via the guarantor company. In some cases, it may be more effective for lessees to reminder through the property management company than to contact the landlord or management company.
As a method to prevent rent delinquency, if there is even one delinquency, it is necessary to check the payment frequently from the next time and create an environment where the reminder is notified without delay when the next delinquency occurs. If the rent still get delinquency often, or if we think lessee isn't capable for the payment, we'll ask their joint guarantor to ask the rent payment instead of lessee.
After three months of delinquency, we will proceed with the story of leaving. Under Japan's Leased Land and House Lease Law, it is not possible to cancel a lease contract by simply not paying the rent, but we can start the procedure. We will notify lessee by registered mail and explore the direction of exit from all angles.
Leasing is based on an agreement between the lessor and the lessee, and payment of rent is the fulfillment of the contract. The management company manages properly, receives rent, manages the building, and manages the tenants appropriately. Let's eliminate arrears in rent with proper management.
Arrows International Realty Corp.