Managing a Japanese Rental Property From Abroad

This article is part of the Zagdim wiki series on buying property in Japan. It sets out how an owner who lives outside Japan can arrange tenants, repairs, tax and communication with agents in Japan once the property is rented out. It is written for readers living anywhere outside Japan who already rent out, or plan to rent out, a property in Japan.

Managing a Japanese rental from overseas depends on dividing the work in Japan in advance. Matters concerning the home itself go to a rental management company. Matters concerning the common areas of a condominium go through the management association. Tax documents go to a tax agent, and the return is prepared by a licensed tax accountant or by you. These roles belong to different systems, and each has limits on what it can do. The sections below follow the direction each matter comes from: who to go to for each, what the management contract should let the management company do first, what reports you should receive, and how rental income tax is handled from withholding to filing.

Where Do Owners Renting From Overseas Most Often Get Stuck?

Once you rent out a property in Japan, matters reach you from four directions: a tenant reports a repair or problem, the management association sends a meeting notice, the tax office sends documents and filing deadlines, and the municipality sends a fixed asset tax bill. In each direction, the person you deal with in Japan is different.

The more common mistake is assuming one person can handle everything. A management company can collect rent and arrange repairs for you, but it cannot file your tax return. If a dispute arises because a tenant does not respond to a lawful request, it also cannot negotiate for you any longer. A condominium’s domestic manager (国内管理人) deals with the management association’s affairs. That is different from the tax agent (納税管理人) used for tax purposes.

What Should You Arrange to Manage From Abroad?

• Tenants and repairs: hand these to a rental management company (賃貸住宅管理業者), and write into the management entrustment contract (管理受託契約) what it may do first and what it must ask you about first.
• The limits of the management company: under the model designed by the Ministry of Land, Infrastructure, Transport and Tourism (国土交通省, MLIT), in an emergency the company can act first and tell you afterward. Amounts it advances for each item up to the agreed ceiling do not need your prior approval. Renewing a lease on your behalf, agreeing with the tenant on who bears repair costs, and agreeing on restoration to original condition at move-out require your consent first.
• Reports: if the management company is registered as the law requires, it must deliver a written report and explain it to you within one year of the contract date and at intervals of one year or less, and after the contract ends. Contracts signed on or before June 15, 2021 have transitional rules.
• Tax: if you are a non-resident, the party who pays you rent in Japan must in principle withhold 20.42% when paying. An individual who rents the home as their own residence does not withhold. If you live abroad for the whole year and your Japan-source income exceeds your total income deductions, you generally must also file a final return (確定申告) through a national tax agent (納税管理人).
• Common areas of a condominium: repairs, meetings and votes go through the management association. Where needed, appoint a domestic manager to receive notices and vote for you.

Who Handles Each Matter in Japan?

The table below sorts matters by the direction they arise from, showing who handles them in Japan and what you need to arrange in advance.

These roles belong to different systems, such as condominium management, tax and registration, and completing one does not mean the others are done. For the legal basis of each role and whether it is mandatory, see “What Foreign Owners Need to Arrange After Buying Japanese Property: the Management Association, Rental Management and Repair Costs.” Which agents you need and who should serve depends on whether your home is a condominium, what the bylaws say, and whether your Japanese income needs to be reported. If you are not sure which situation you are in, get advice that fits your case.

What Other Procedures Apply on the Condominium and Registry Side?

• Reporting to the management association: under the model, when details such as your address or phone number change, you must report in writing without delay. If you do not report and this hinders management, the board chair can search for your whereabouts and charge you the cost.
• Domestic manager (国内管理人): from April 1, 2026, an owner with no domicile or residence in Japan can appoint a person living in Japan to receive meeting notices, vote on their behalf, and pay amounts owed to the management association. Under the model, once a domestic manager is reported, general meeting notices are sent to that person.
• Paying the management fee: the model collects management fees and similar charges by transfer from the owner’s bank account. Which payment methods work for an owner abroad must be confirmed with the management association or the condominium management company it hired.
• Domestic contact person on the registry (国内連絡先となる者): if you have one, an application for registration must include documents proving the domestic contact details, the contact person’s consent, and their seal registration certificate (or an electronic signature and electronic certificate). If you have none, you can declare that there is none. When you apply to change your registered address to an overseas address, you must also provide these if domestic contact details have not been registered yet.
• Change of address: the registry office’s “smart change registration” (スマート変更登記), which updates addresses on its own initiative using the Basic Resident Register network, does not cover owners living overseas, even if they have filed search information (検索用情報). After moving abroad, you must apply for the change of registration yourself within 2 years of the change date. Failing to do so without good reason can bring a non-criminal fine (過料) of up to 50,000 yen.

How Does a Tenant’s Repair Request Reach Someone Who Can Act?

First work out what is broken. Equipment inside your own unit is repaired by you or by the rental management company you hire. Common areas such as exterior walls and roof waterproofing are handled by the management association. The repair reserve fund (修繕積立金) is money the association accumulates for repairs to the common areas, and renovation inside a unit is generally not covered by it.

The Standard Management Bylaws (マンション標準管理規約) and the Standard Management Entrustment Contract for rental housing (賃貸住宅標準管理受託契約書) mentioned in this section and the next are both models issued by MLIT. They are not law. What applies is your building’s bylaws and the contract you sign.

When Something Inside Your Unit Breaks

The owner is responsible for repairs needed for the home to be used, except where the tenant is at fault. If the tenant notifies you that a repair is needed and you do not repair within a reasonable period, or the situation is urgent, the tenant may repair it themselves and can immediately claim the necessary cost from you. The provision does not say how many days a “reasonable period” is. If part of the home cannot be used and it is not the tenant’s fault, rent is reduced in proportion to the part that cannot be used.

So the tenant’s notice has to reach the person who can decide, in time. Under the standard management entrustment contract, receiving notices a tenant sends you under the lease is part of the work the management company does as your agent. If you have not hired a management company, the tenant needs to know exactly whom to contact.

When Common Areas Break or Major Repairs Are Needed

Repairs to common areas are decided and arranged by the management association. Under the model, regular planned repairs and repairs after accidents are paid from the repair reserve fund. For the condominium management company (マンション管理業者) that the association hires, the client is the association, not an individual owner, so problems with common areas must be raised through the association.

For major works such as exterior wall and roof waterproofing, resolutions from April 1, 2026 are decided by a majority of the owners present and a majority of their voting rights. Voting in writing or through a proxy counts as attendance. The meeting notice goes to the mailing address you notified to the association. If you have not notified one, a notice sent to your unit is treated as delivered, and while the unit is rented out, the notice may end up at the unit where your tenant lives.

What Must the Tenant Follow?

A tenant has the same duties as the owner on how the building is used. Under the Standard Management Bylaws, an owner who rents out must state in the lease that the tenant will follow the bylaws and have the tenant give the association a written pledge to follow them (誓約書, seiyakusho) and a notice that the unit is rented. If a tenant breaks the bylaws, the owner must take the corrective action needed. If you hire a management company to find tenants, agree when you sign who prepares and who submits these documents.

What Are You Liable for if the Building Falls Into Disrepair?

Article 717 of the Civil Code provides that when a defect in the installation or maintenance of a structure on land (土地の工作物) damages another person, the occupant compensates. If the occupant took the care needed to prevent the damage, the owner compensates. A building is generally understood to be a structure on land. When a home is rented out, the occupant may be the tenant, and if the tenant took due care, liability may fall on the owner. The provision does not distinguish by where the owner lives.

What Can a Management Company Do Without Asking You First?

The answer is in the management entrustment contract you sign. The following is the design of the standard management entrustment contract:

• It can act first in an emergency: for work that must be handled urgently, such as after a disaster or accident, with no time to get your approval, the company can act first and notify you in writing of the content and cost as soon as possible. You bear the cost, except for accidents caused by the management company’s own responsibility.
• Small advances need no prior approval: you must repay costs the company has had to advance as soon as possible. Where each item is within the ceiling agreed by both parties and written in the contract’s cover sheet, your prior consent is not required. Anything above it needs prior agreement. The amount is set by the two parties.
• Deducting its fee from rent requires your prior consent: the company can deduct the month’s management fee from the rent only to the extent you agreed beforehand.
• Collecting rent and chasing arrears for you: collecting the deposit, rent, common service charges and similar amounts, chasing unpaid amounts, and receiving notices the tenant sends you under the lease are done by the company as your agent.
• These three need to ask you first: renewing the lease on your behalf, agreeing with the tenant on who bears repair costs, and agreeing on restoration to original condition at move-out all require prior agreement with you and your consent.
• After a dispute, it cannot negotiate for you: when a tenant does not respond to a lawful request and a dispute arises, these tasks would count as acts by a non-lawyer that Article 72 of the Attorney Act (弁護士法) prohibits, so the company cannot handle them. From then on you or a lawyer deals with it.

**Example: Mr. Zhou, who lives in Hong Kong and rents out a Tokyo condo**

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Mr. Zhou has a registered rental management company manage his Tokyo condominium. Late one night, a tenant tells the company that the bathroom is leaking. If this counts as a case of disaster or accident that must be handled urgently, with no time to get his approval, then under the model design the company can arrange the repair first and then notify him in writing of the content and cost. He bears the cost, except where the management company is responsible.

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When the repair cost has to be discussed with the tenant, the company must first get his consent. If the tenant fails to respond to a lawful request and it turns into a dispute, the company can no longer negotiate for him. What he needs to do: before signing, check the advance-payment ceiling on the contract’s cover sheet, and agree on how he will be told after an emergency repair.

Before hiring, confirm two further points. A company that only collects rent and does not inspect or arrange repairs is not engaged in rental housing management business. A company that manages fewer than 200 units and is not registered is also not subject to the entrusted-management obligations of the Act on Proper Management of Rental Housing (賃貸住宅の管理業務等の適正化に関する法律), so protections such as the reports below can only be had by writing them into the contract. While a home is vacant after a tenant leaves and is being marketed, MLIT’s interpretive document treats it as still being rental housing. When a registered company manages it, that period is also covered by the law.

For management fee levels and how to choose a management company, see “How Do Japanese Property Management Companies Charge? Rental Management, Vacancy Management and Repair Arrangements.”

What Reports Should the Management Company Give You?

If the management company is a registered business, the law requires it to prepare a management work report (管理業務報告書), hand it to you and explain it, within one year of the contract date and at intervals of one year or less, and after the contract ends. Contracts signed on or before June 15, 2021 have transitional rules. The report must state the period it covers, how management work was carried out, and how tenant complaints arose and were handled.

The method of explanation is flexible. MLIT’s interpretive document asks the company to agree with you on how to explain, to have an environment that allows two-way communication, and to confirm that you understand the content. With your consent, it can be provided electronically. The same document also suggests that more frequent reporting is advisable depending on the matter reported.

The legal minimum frequency is once a year, and monthly income and expense statements follow what the contract agrees. The important-matters explanation document handed over before the contract lists items to be reported to the client, and the document handed over after signing sets out how management work is carried out, the fee and the contract period. It is the basis for checking reports later and is worth keeping.

Reports are also material for your tax return. Total income from real estate is not only rent. It also includes renewal fees (更新料), the part of a deposit that does not have to be returned, and utilities and cleaning charges collected as common service charges and the like. It is worth agreeing with the management company in advance whether the report lists these items separately.

How Does Tax on Rent Work From Withholding to Filing?

It can be split into four steps: withholding at payment, the annual return, listing expenses, and local tax and remittance. A different person handles each step.

Step 1: The Party Paying the Rent Withholds First

If you are a non-resident (an individual with no domicile in Japan and no residence of a continuous year or more), the person paying you rent in Japan must in principle withhold 20.42% at payment (withholding, 源泉徴収). Rent paid by an individual who rents the home for themselves or relatives to live in is not withheld. When a company rents, withholding applies whatever the purpose. A tax treaty may also affect the rate. For income from January 1, 2027, the tax items change to income tax, special defense income tax and special reconstruction income tax, which still add up to 20.42%, so it is not a tax increase.

When a management company collects the rent, the National Tax Agency explains in its Q&A on payment statements (不動産の使用料等の支払調書) that, where a company tenant pays rent into the account of a management company that only collects rent, the owner is the one actually receiving the rent and the management company is only a collector. However, that Q&A deals with payment statements, and the owner in the example is not described as a non-resident. When a management company collects the rent, who actually withholds, and how the lease and management contract provide for it, should be confirmed with the management company and a tax professional.

Step 2: The Annual Return, Through a National Tax Agent

Real estate income is a type of income that is taxed on a comprehensive basis and requires a final return, so having tax withheld does not mean your tax is settled. If you live abroad for the whole year and your Japan-source income exceeds your total income deductions, you in principle must file a final return (確定申告) between February 16 and March 15 of the following year through a national tax agent (納税管理人). Tax that was withheld can be refunded through the return.

A tax agent can be an individual or a corporation, provided they have a domicile or residence in Japan and can conveniently handle these matters. When you choose one, or before the date you leave Japan, you submit a notification of appointment of a tax agent to the head of the tax office, which can be done through e-Tax, or by delivering or mailing a paper form. After that, documents the tax office sends are sent to the tax agent, but the final return itself is filed with the head of the tax office for your place of tax payment.

Receiving tax documents as a tax agent is not tax representation by a licensed tax accountant. Preparing the return for you, filing it on your behalf, or giving advice on how to calculate the tax base is the work of a licensed tax accountant (税理士). A management company that is not a licensed tax accountant may not do these things as a business even if it charges no fee, and violators can be punished by up to 2 years of imprisonment or a fine of up to 1 million yen. The management company’s report can be used to prepare the return, and the filing itself is left to a licensed tax accountant or done by you.

Step 3: Which Costs Can Be Listed as Expenses?

Income equals total income such as rent minus necessary expenses. The main expenses listed by the National Tax Agency are fixed asset tax, casualty insurance premiums, depreciation and repair costs. Taxes such as real estate acquisition tax, registration and license tax and stamp duty, and interest on a loan taken to acquire the rental property, can also be included, but not the principal of the loan. Income tax, residence tax, fines and non-criminal fines are not themselves necessary expenses. Spending that increases the value of the asset or extends its useful life is in principle capital expenditure and must be depreciated.

The repair reserve fund is in principle listed as a necessary expense for the part used, in the year the repair is actually completed. When the bylaws conform to the model and four conditions are all met, it can be listed in the year of payment: a payment obligation exists, the money does not have to be returned, it is used only for future repairs, and it is reasonably calculated by share according to the long-term repair plan. The National Tax Agency’s explanation does not list the association’s management fee or the fee paid to a rental management company item by item, so confirm with a licensed tax accountant before filing.

Step 4: Local Tax and Remittance

Fixed asset tax (固定資産税) is paid by the person registered as owner on January 1 each year. The municipality sends a tax bill, usually payable in 4 installments, with the months set by local ordinance. If you have no domicile in that municipality, you must choose a tax agent from the area set by ordinance and notify the head of the municipality. For someone outside the designated area, you must apply to the head of the municipality and obtain approval. If the head of the municipality finds that collection will not be affected, no agent is needed. The tax agents for national tax and fixed asset tax are set by different laws and notified to different authorities, and the general understanding is that they must be arranged separately.

Individual residence tax applies to people who have a domicile in Japan on January 1 each year. As of September 2026, an owner who already lives abroad on January 1 and has no domicile in Japan generally is not charged the income-based portion of residence tax on rental income. For people who move out mid-year or return to live in Japan, and for whether the per-capita portion is charged where someone owns a home in Japan without a domicile, confirm with the municipality where the property is located. For sending rent overseas, the after-the-fact reporting threshold under the Foreign Exchange and Foreign Trade Act (外為法) is a receipt or payment of more than 30 million yen in equivalent value per transaction. The reporting duty falls on residents, and non-residents are exempt.

**Example: Ms. Zhang, who lives in Taichung and rents an Osaka condo to an individual as a home**

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Ms. Zhang lives in Taiwan all year. Her Osaka condo is rented to an individual who lives in it, and a management company collects the rent. Rent paid by an individual renting as their own home is not withheld, so this rent does not have 20.42% deducted first.

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When her Japan-source income exceeds her total income deductions, she generally must file a final return between February 16 and March 15 of the following year through a national tax agent. Fixed asset tax, casualty insurance, depreciation and repair costs can be listed as expenses, and the condominium’s repair reserve fund can be listed in the year of payment only if all four conditions are met. What she needs to do: appoint a national tax agent, and give the management company’s annual report and the income and expense records to a licensed tax accountant, or file the return herself.

Which Claims Should Make You Stop and Check?

• “The management company will file your tax return.” A management company that is not a licensed tax accountant may not prepare your return or file it for you, even without a fee.
• “20.42% has already been withheld from the rent, so no need to file.” Real estate income is taxed on a comprehensive basis. When income exceeds your total income deductions, you generally must still file, and withheld tax can be claimed back.
• “Having a domestic manager is enough.” A domestic manager handles condominium matters. Tax requires a separate tax agent, and the registry has its own domestic contact person.
• “If the tenant doesn’t pay, we’ll handle it all the way through.” Once a dispute arises because a tenant fails to respond to a lawful request, the management company cannot negotiate for you.
• “A monthly report is required by law.” The legal minimum is once a year, and monthly statements depend on the contract.
• “We’re small, so we don’t need to register, and the protection is the same.” A business with fewer than 200 units that is not registered is not bound by the entrusted-management obligations of the Act on Proper Management of Rental Housing, so protections have to be written into the contract.

How Should You Decide What to Do Next?

Before renting out, or before changing management companies, make sure you can answer these questions:

1. Is the management company a registered business? Does it inspect and arrange repairs, or does it only collect rent?
2. What is the advance-payment ceiling on the contract’s cover sheet? How will you be told after an emergency repair?
3. Who receives tenant repair requests, management association notices and tax office documents?
4. Is the tenant a company, or an individual renting as their own home? Who collects the rent and who withholds?
5. Who are the national tax agent and the fixed asset tax agent? Will the return go to a licensed tax accountant, or will you file it yourself?

Stop in these situations: a management company that is not a licensed tax accountant says it can file your return for you; dealings with a tenant have already turned into a dispute and the management company still says it can handle them; or you cannot find the advance-payment ceiling or the reporting method in the contract.

For the rules on tenant renewal, repossession and move-out, see “How Does Japan’s Tenant Protection System Affect Owners? Leases, Renewals and Move-Out Arrangements.” For the management association, the repair reserve fund and the whole holding period, go back to “What Foreign Owners Need to Arrange After Buying Japanese Property: the Management Association, Rental Management and Repair Costs.”

FAQ on Managing a Japanese Rental Property From Abroad

If I live abroad, can the management company repair my Japanese property after a tenant’s report without asking me first?

It depends on the contract. Under the model designed by MLIT, it can act first in emergencies such as disasters or accidents and then notify you in writing, and advances within the agreed ceiling for each item do not need your prior approval either. Agreeing with the tenant on who bears repair costs requires your consent first.

If I live abroad and 20.42% is withheld from my rent, do I still need to file in Japan?

Possibly. Withholding does not mean your tax is settled. If you live abroad for the whole year and your Japan-source income exceeds your total income deductions, you in principle must file between February 16 and March 15 of the following year through a tax agent, and withheld tax can be claimed back.

Can a management company act as my tax agent and also file my return?

A tax agent can be an individual or a corporation, as long as they have a domicile or residence in Japan and can conveniently handle the matter. Receiving tax documents is not tax representation. Preparing the return and filing it for you is the work of a licensed tax accountant, and a management company that is not one may not do it, even without a fee.

Glossary

• Rental management company (賃貸住宅管理業者): a business hired by the owner to inspect, clean and arrange repairs, and which may also manage rent and deposits.
• Management entrustment contract (管理受託契約): the contract between owner and rental management company that sets out what the company may do.
• Standard management entrustment contract (賃貸住宅標準管理受託契約書): a model contract made by MLIT. It is not law.
• Management work report (管理業務報告書): a written report that a registered company gives the owner at least once a year.
• Domestic manager (国内管理人): an agent in Japan that an owner of a condominium unit who does not live in Japan can appoint to handle condominium management matters.
• Tax agent (納税管理人): a person who receives documents and handles filing and payment for a taxpayer who does not live locally. National tax and fixed asset tax are handled separately.
• Domestic contact person (国内連絡先となる者): the contact in Japan that an overseas resident provides when registering ownership. If there is none, you can declare that there is none.
• Withholding (源泉徴収): the payer deducts tax at the time of payment and pays it over on the recipient’s behalf.
• Payment statement (不動産の使用料等の支払調書): a statutory document that a company paying rent submits to the tax office, recording who the rent was paid to.
• Licensed tax accountant (税理士): a Japanese tax professional who can prepare returns and handle filing on a taxpayer’s behalf.

About the Information

The information in this article was checked as of September 30, 2026. It is based on Japanese laws and official materials from MLIT, the Ministry of Justice, the National Tax Agency, the Ministry of Internal Affairs and Communications, the Ministry of Finance, the Bank of Japan, and the Edogawa and Chuo wards of Tokyo. No separate web research was done.

The following points are not explained in the official documents, and this article makes no judgment on them: who is responsible for withholding when a management company collects rent for an owner who is a non-resident (the National Tax Agency’s Q&A on payment statements deals with payment statements, and the example does not say the owner is a non-resident); and whether the association’s management fee and the rental management fee can be listed as necessary expenses. The statement that an owner living overseas “generally is not charged the income-based portion of residence tax on rent” is inferred from the Ministry of Internal Affairs and Communications’ explanation, Articles 294 and 318 of the Local Tax Act, and the explanation of Edogawa ward in Tokyo, and no official source uses a rental property as the example. Whether a rented home counts as a “house and its site” (家屋敷) for the per-capita portion is not explained in the documents checked. “A building is a structure on land” and “the national tax and fixed asset tax agents must be arranged separately” are general understandings that official provisions do not state word for word, and no case law was checked. “A home being marketed between tenants is still rental housing” comes from MLIT’s interpretive document, which is an administrative interpretation, not a statutory provision. How tax treaties affect the rate, and whether you must also report Japanese rent in your country of residence, are not covered, and the current requirements of the relevant local authorities apply.

The Standard Management Bylaws and the Standard Management Entrustment Contract are both MLIT models, and the interpretive document on the Act on Proper Management of Rental Housing is an administrative interpretation. None of them is law. What applies is the bylaws of your building and the contract you sign.

Still changing: according to material MLIT presented to the Consumer Commission of the Cabinet Office on June 16, 2026, the direction summarized by the expert panel in February 2026 includes drawing up “standard management work guidelines” that separate basic work from optional work. As of September 2026, the guidelines have not been published and the law has not been amended. The change in withholding tax items applies to income from January 1, 2027, and the combined rate does not change.

Have a question about this guide? Leave a comment below, or ask Zagdim directly.

Sources

• e-Gov法令検索－建物の区分所有等に関する法律
• 法務省民事局－区分所有法・被災区分所有法の改正について
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• e-Gov法令検索－マンションの管理の適正化の推進に関する法律
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• e-Gov法令検索－民法
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• 国土交通省－賃貸住宅の管理業務等の適正化に関する法律の解釈・運用の考え方
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• 国税庁－リーフレット「非居住者等から不動産を借りた場合の源泉徴収」
• 国税庁－防衛特別所得税及び復興特別所得税の源泉徴収のあらまし（令和９年１月以後の源泉徴収）
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• 国税庁－タックスアンサー No.1370 不動産収入を受け取ったとき（不動産所得）
• 国税庁－令和７年分 収支内訳書（不動産所得用）の書き方
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• e-Gov法令検索－国税通則法
• 国税庁－タックスアンサー No.1923 海外勤務と納税管理人の選任又は解任
• 国税庁－所得税・消費税の納税管理人の選任届出又は解任届出手続
• e-Gov法令検索－地方税法
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• 法務省－令和6年4月1日以降にする所有権に関する登記の申請について
• 法務省－住所等変更登記の義務化について
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• 財務省－日本と海外との間の送金を行う際に必要な手続
• 日本銀行国際局－外為法の報告書についてよく寄せられる質問と回答

Important Notice

This article is a general summary of information and does not constitute individual legal, tax or real estate advice. The information was checked as of September 30, 2026. Rules may be updated, so rely on current announcements from Japanese authorities, your building’s bylaws and the contract you sign, and consult a qualified lawyer, licensed tax accountant or judicial scrivener where needed.