Japan Rental Yield Costs: Fees, Repairs, Vacancy, FX

This article is part of the Zagdim wiki series on buying property in Japan. It goes through the costs that must be deducted from the advertised rental yield on a Japanese apartment, who collects each one, and how to estimate it. It is written for owners who already hold, or are considering buying, a Japanese apartment to rent out.

The yield in an advertisement is a year’s expected rent divided by the purchase price, with no costs deducted. To see what you can actually keep, deduct in order: the management fee and repair reserve fund, the annual property tax, rental management and tenant-finding fees, repair costs after a tenant leaves, the rent lost in vacant months, and finally look at the exchange rate.

Why Do Estimates Get Stuck at This Stage?

The first reason is that there is no ready benchmark to borrow. As of September 2026, official Japanese statistics do not publish rental yields for Tokyo, Osaka or Fukuoka, so you can only work from your own unit’s rent and costs.

The second reason is that the costs sit with different parties. The management fee and repair reserve fund go to the building’s management association, fixed asset tax is charged by the municipality, the rental management fee goes to the management company, and the tenant-finding commission goes to the agent. They are also paid on different schedules: some monthly, some yearly, and some only when a tenant changes.

The third reason is that the official figures you can find are national averages or reference values, not the actual amounts for your unit. For each item below, the official figure or rule comes first, followed by the document to check so you can replace the average with the real amount.

The Short Answer: Which Layers Come Off the Headline Yield?

Getting from the headline yield to what you can keep means deducting at least six layers:

1. The monthly management fee and repair reserve fund, payable whether or not the unit is rented.
2. Annual fixed asset tax and city planning tax.
3. The rental management company’s fee and, when a tenant changes, the letting agent’s commission.
4. Repair costs after a tenant leaves, for normal wear and aging.
5. Rent lost in vacant months: no rent comes in, but layers 1 and 2 are still due.
6. The difference caused by exchange rate movements when you convert yen into US dollars or your own currency.

Layers 1 and 2 are fixed costs, layers 3, 4 and 5 vary with how the unit is rented, and layer 6 depends on when you convert.

Management Fees and Repair Reserve Funds: Which Numbers to Look At?

National averages are only a starting point. According to the Ministry of Land, Infrastructure, Transport and Tourism (国土交通省, MLIT) FY2023 Condominium General Survey (マンション総合調査, conducted October 2023 to January 2024), the average monthly management fee (管理費, kanrihi) per unit is JPY 11,503 and the average repair reserve fund (修繕積立金, shuzen tsumitatekin, a long-term repair fund) is JPY 13,054. These figures exclude income transferred in from items such as parking fees. Including that income, the totals are JPY 17,103 for management fees and JPY 13,378 for the repair reserve fund. Total management fees tend to be lower in buildings with more units.

These are national averages from a questionnaire survey, individual buildings differ widely, and the survey date was late 2023, so later changes are not reflected. When estimating, use the amount the building’s management association (管理組合, kanri kumiai, the body made up of the unit owners) actually charges.

What each charge is used for. Under MLIT’s standard condominium management rules (マンション標準管理規約, revised October 17, 2025), unit owners pay the management fee and repair reserve fund to the management association in proportion to their share of the common areas. The management fee covers everyday management costs: the building manager’s personnel costs, public charges (公租公課) such as taxes, maintenance and operation of shared facilities, insurance premiums such as fire and earthquake insurance on common areas, cleaning, and outsourced services. The repair reserve fund is in principle used only for scheduled repairs, repairs after sudden accidents, and improvements or changes to common areas, and must be accounted for separately from the management fee. The model rules are not law, so the rules of the building you own remain the final reference.

These two charges are generally paid by the owner to the management association, and after the unit is rented out they generally remain the owner’s cost rather than passing to the tenant. Insurance on common areas is included in the management fee; insurance on the unit itself and on the contents is generally for the owner to arrange separately.

Will the repair reserve fund rise? MLIT’s repair reserve fund guideline (revised June 2024) gives reference values per square meter of exclusive floor area per month (excluding mechanical parking):

• Under 20 floors, total floor area under 5,000 square meters: average JPY 335 (JPY 235 to 430)
• Under 20 floors, 5,000 to under 10,000 square meters: average JPY 252 (JPY 170 to 320)
• Under 20 floors, 10,000 to under 20,000 square meters: average JPY 271 (JPY 200 to 330)
• Under 20 floors, 20,000 square meters or more: average JPY 255 (JPY 190 to 325)
• 20 floors or more: average JPY 338 (JPY 240 to 410)

The figures in parentheses are the range that about two thirds of the cases fall into. Buildings with mechanical parking need an extra amount added. To compare, divide your unit’s monthly repair reserve fund by its exclusive floor area and compare the result with the reference value for the same size band. If it is clearly low and the building uses a step-up reserve method (段階増額積立方式, dankai zogaku tsumitate hoshiki), it may rise later and reduce your net rental income. These are reference values, not legal standards.

Also check for arrears. The same survey found that in 30.1% of condominiums, some residents were three or more months behind on management fees or repair reserve fund payments. When buying a used unit, this can affect you. The Act on Building Unit Ownership (建物の区分所有等に関する法律) provides that claims arising from the rules or from resolutions of the owners’ meeting can be enforced against a new owner who buys the unit, and MLIT’s standard management rules state that management fees and similar charges are claims of this kind, though the actual rules of the building govern. So where the previous owner left arrears, the management association may generally be able to claim them from the new owner. Before signing, check whether the unit has any arrears.

How Do You Estimate Annual Fixed Asset Tax?

Who pays. Fixed asset tax (固定資産税, kotei shisan zei) is paid by the owner recorded on the register as of January 1 each year. The standard rate is 1.4%, and municipalities can set a different rate by ordinance. Land and buildings in urbanization promotion areas are in principle also charged city planning tax (都市計画税, toshi keikaku zei), at a rate that may not exceed 0.3%; Tokyo’s 23 wards charge 0.3%.

Residential land gets a reduction. The land under a rented apartment building also counts as residential land. For the part up to 200 square meters per unit, the taxable base for fixed asset tax is one sixth of the assessed value, and for city planning tax one third. For apartments, the number of units is counted per independent section. However, the actual taxable base is also affected by other adjustment measures, so you cannot just multiply the assessed value by these fractions to get the tax. Estimate from the actual tax bill for your unit.

When you live overseas and have no address in the municipality where the property is located, fixed asset tax requires you to choose a separate tax representative (納税管理人, nozei kanrinin) and notify the municipality. The requirement can be waived where it is recognized that collection would not be affected. This is a different procedure from the national tax representative; for details, see the article “Do Foreign Owners Pay Tax on Renting Out Japanese Property?” in this series.

Are There Limits on Management and Tenant-Finding Fees?

There is no legal cap on rental management fees. As of September 2026, the management fee is whatever you agree with the management company. The law regulates procedure instead. Under the Act on Proper Management of Leased Residential Properties (賃貸住宅の管理業務等の適正化に関する法律), a rental housing manager handling 200 or more units must register with the Minister of Land, Infrastructure, Transport and Tourism and renew every five years. Before signing a management contract, a registered manager must explain in writing the fee amount, payment timing and method, and any costs you must bear in addition to the fee. Rent, deposits and similar money the manager receives must be kept separate from its own assets, and the manager must report on management at regular intervals.

Before entrusting a unit, check whether the company is registered and obtain the pre-contract written explanation, then include the fee and other charges in your estimate. If you switch to short-term home-sharing (minpaku) and you are not present during guests’ stays, you must in principle appoint a registered home-sharing manager, which is another management cost; the rules are covered in the series article “Are Short-Term Rentals and Minpaku Legal in Japan?”

Tenant-finding commissions are capped. Under MLIT’s fee notice, the total commission an agent collects from landlord and tenant for arranging a lease may not exceed 1.1 times one month’s rent including tax. For residential leases, the commission collected from either one party may not exceed 0.55 month’s rent unless that party consented when the agent accepted the assignment. Within the cap, the two sides can negotiate how to split it, or one side can bear all of it.

Extra advertising fees must meet conditions. An agent may not collect any additional fee beyond the cap, with one exception: the cost of advertising done at the principal’s request. MLIT’s interpretive document also states that an agent may not charge separately for showings, application processing, or advertising not done at the principal’s request. When you receive a bill for “advertising fees,” first confirm which advertisement you commissioned.

Who Pays for Repairs After a Tenant Leaves?

The landlord bears normal wear. Under Article 621 of the Civil Code, a departing tenant must restore damage they caused, but not wear from ordinary use or deterioration over time; the tenant is also not responsible for damage not attributable to them.

MLIT’s guideline on restoration to original condition (原状回復をめぐるトラブルとガイドライン, genjo kaifuku, re-revised August 2011) separates wear caused by the tenant’s intent, negligence or use beyond the ordinary from deterioration over time and normal wear. The tenant repairs the former. The latter, such as replacing equipment or renovating to attract the next tenant, is the landlord’s cost. The guideline is not binding, and the outcome depends on the contract and how the unit was used. A contract can include special terms, but these must stay within the limits of the Civil Code and the Consumer Contract Act, and you should not assume renovation costs can all be passed to the tenant.

Deposits are settled and returned. After collecting a deposit (敷金, shikikin), the landlord must, once the lease ends and the unit is handed back, deduct what the tenant owes the landlord and return the balance (Civil Code Article 622-2).

For estimating purposes, part of the cost of renovation between two tenants falls on the landlord, and it falls in a vacant period when there is no rent.

How Should Vacancy Be Counted?

Official statistics do not publish a rental vacancy rate. As of October 1, 2023, there were 4,435,800 vacant homes nationwide kept empty for rent (出租用空屋). Based on official housing counts, that is roughly 18.6% of the nation’s rental housing. This is only a rough indicator; how to read it is explained in the main article of the series.

Statistics cannot tell you how long your unit will stand empty. The National Consumer Affairs Center of Japan (国民生活センター) cautions that rent may not be received as planned because of vacancy or unpaid rent. When estimating, subtract the months the unit might be vacant from the 12 months of the year. Those months bring no rent, but the management fee, repair reserve fund and fixed asset tax are still due, and renovation after a tenant leaves and the tenant-finding commission also fall in that period.

If a Master Lease Promises Guaranteed Rent, Can You Ignore Vacancy?

No, vacancy risk should not be treated as gone. A master lease (サブリース, sublease) is an arrangement where a company leases the unit from you and sublets it to tenants. Japanese government bodies, including the Consumer Affairs Agency, caution that even if the contract states guaranteed rent (家賃保証, yachin hosho), the rent the company pays you can still be subject to a reduction request under Article 32 of the Land Lease and Building Lease Act (借地借家法) during the contract term or at renewal, and you do not have to accept a reduction request as it stands. If the contract allows the company to terminate, it may also be terminated during the term. Restoration costs and major repairs are in principle borne by the owner.

The law requires advance explanation. The Act on Proper Management of Leased Residential Properties calls a master lease a “specified lease contract” (特定賃貸借契約). Master lease companies and those who solicit on their behalf may not, in advertising, make statements about the rent paid to owners, maintenance methods, termination terms and the like that clearly differ from the facts or exaggerate the benefits. In soliciting, they may not knowingly withhold important matters or state them falsely. Before signing, they must explain the contract in writing, including the rent paid to the owner, payment conditions and changes, sharing of maintenance costs, penalties, renewal and termination, and an outline of related laws such as the Land Lease and Building Lease Act. After signing, they must deliver the written contract. A company that does not explain the possibility of a reduction under Article 32 is in breach of the master lease rules.

The real estate industry’s advertising code also requires that when an advertisement shows rent guaranteed by a seller or others, it must state who bears the cost and the content and period of the guarantee. The National Consumer Affairs Center adds that the building and equipment of an investment apartment age, its price may fall, and burdens such as fixed asset tax and repairs remain with the owner.

Whether a master lease is suitable depends on the rent-change and termination terms in the contract and on the circumstances of the unit itself.

Converting Rent to US Dollars or Your Own Currency: How Much Can It Differ?

Rent is collected in yen. According to monthly averages of the US dollar against the yen published by the Bank of Japan, the dollar value of the same JPY 100,000 monthly rent changes with the timing. A larger number means a weaker yen:

*Calculated from Bank of Japan monthly averages; not an officially published conversion.

Comparing January 2020 with August 2026, the US dollar value falls by about 31% (calculated). This is an illustration in US dollars over a past period, not a forecast, and exchange rates can also move the other way. Actual conversions use bank rates and carry fees, neither of which is included in the Bank of Japan’s statistics.

Must remitting rent be reported to Japan? Under the Foreign Exchange and Foreign Trade Act (外国為替及び外国貿易法), a resident must in principle report after the fact a single remittance between Japan and overseas that exceeds the equivalent of JPY 30 million. Amounts at or below that do not need to be reported, and non-residents are exempt from the reporting obligation. An owner living overseas who sends rent to their country of residence is generally not the person who must report. The definition of a resident under the Foreign Exchange Act differs from the Income Tax Act’s, and the two should not be mixed up.

Can These Costs Be Deducted When Filing Tax?

Some can. In Japan, real estate income is total revenue such as rent minus necessary expenses. The main expenses listed by the National Tax Agency include fixed asset tax on the rental property, casualty insurance premiums, depreciation and repair costs. A repair reserve fund is in principle expensed in the year the repairs are actually completed, and can be expensed in the year it is paid when the conditions listed by the National Tax Agency are met. The National Tax Agency does not list management fees or rental management fees item by item, so confirm with a tax accountant (税理士). A deduction lowers taxable income; it does not refund the cost to you.

**Example: Walking through one apartment with national averages (illustration only)**

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Assume monthly rent of JPY 100,000 (the same amount used in the exchange rate illustration above, not a market rate for any area), with management fee and repair reserve fund at the national averages (excluding transferred income). Tax, rental management fees and other costs are excluded, and no yield percentage is calculated.

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• Headline: a year’s rent is JPY 1,200,000. – Management fee JPY 11,503 plus repair reserve fund JPY 13,054 is JPY 24,557 a month, or JPY 294,684 a year. After deducting it, about JPY 905,000 remains (calculated). – Fixed asset tax, city planning tax and rental management fees: these depend on your unit’s tax amount and management contract, so no figure can be entered here. – When tenants change: the tenant-finding commission is at most JPY 110,000 in total from both sides (tax included). If the unit is vacant for one month, JPY 100,000 of rent is lost while the JPY 24,557 is still paid. Renovation for normal wear is the landlord’s cost. – Converting to US dollars: JPY 100,000 was about USD 914 in January 2020 and about USD 630 in August 2026 (calculated).

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What you need to do is replace each average with the real figures for your unit: the actual management fee and repair reserve fund, the fixed asset tax amount, and the fee the management company has explained in writing. Then decide how many months of vacancy to allow for.

Claims to Watch For

• A yield of “X%” without saying whether it is gross or net. MLIT’s master lease guideline lists a yield shown without saying whether it is gross or net as an example of exaggerated advertising. Confirm which costs were deducted.
• “The management fee and repair reserve fund are cheap.” Convert them per square meter of floor area, compare with the guideline’s reference values, and confirm the reserve method and plans for future increases.
• “Guaranteed rent, so no need to worry about vacancy.” Master lease rent can still be subject to a reduction request, and the company can also terminate.
• “The tenant pays for all renovation when leaving.” Repairs for normal wear and deterioration over time are in principle the landlord’s cost.
• “The management fee is a legal X%.” There is no legal cap or legal percentage for rental management fees; they are set by contract.
• “Advertising fee charged separately” without saying which advertisement. Extra advertising fees are limited to advertising you commissioned.

How to Decide What to Do Next

You can keep estimating when you have obtained the unit’s management fee, repair reserve fund amount and reserve method, confirmed there are no arrears, know the actual fixed asset tax amount, and the management company has explained its fee in writing. You can then fill in the six cost layers one by one and run a few scenarios with different vacancy months and exchange rates.

You should stop and check first if: the repair reserve fund, converted per square meter, is clearly below the reference value and the building uses a step-up method; the previous owner has arrears; a master lease contract does not clearly set out rent changes and termination terms; or an advertising fee cannot be tied to a specific commission.

If you have not yet settled how yield is defined, where tenants come from, whether minpaku is possible, or how rent is taxed in Japan, go back to the main article for the full picture: “Before Looking at Japan Rental Yields, Understand Tenant Sources, Vacancy Rates, Management Costs and City Differences.”

FAQ: Japan Rental Apartment Costs

Once a Japanese property is rented out, does the tenant pay the management fee and repair reserve fund?

Generally no. Under MLIT’s standard management rules, these two charges are paid by the unit owner to the management association in proportion to the owner’s share of the common areas. After renting out they generally remain the owner’s cost, and are still due in vacant months. The rules of the specific building govern.

If I buy a used apartment, will the previous owner’s unpaid management fees become my problem?

Possibly. The Act on Building Unit Ownership provides that claims arising from the rules or from resolutions of the owners’ meeting can be enforced against the new owner, and the MLIT model rules state that management fees and similar charges are claims of this kind; the building’s own rules govern. Before signing, check whether the unit has any arrears.

Must I report to Japan when I send Japanese rent back to my home country?

Under the Foreign Exchange Act, non-residents are exempt from reporting payments and similar transactions. A resident must report after the fact only when a single remittance between Japan and overseas exceeds the equivalent of JPY 30 million. The Foreign Exchange Act’s definition of a resident differs from the Income Tax Act’s, and must be decided on the individual facts.

Glossary

• Gross yield (表面利回り, hyomen rimawari): a year’s rent divided by the purchase price, with no costs deducted.
• Management fee (管理費, kanrihi): the fee unit owners pay to the management association for the building’s everyday management.
• Repair reserve fund (修繕積立金, shuzen tsumitatekin): a long-term fund a condominium accumulates for future major repairs.
• Management association (管理組合, kanri kumiai): the body formed by all unit owners of a condominium to manage it.
• Step-up reserve method (段階増額積立方式, dankai zogaku tsumitate hoshiki): a method where the repair reserve fund starts low and is raised in stages.
• Fixed asset tax (固定資産税, kotei shisan zei): a local tax charged to the owner registered as of January 1 each year.
• City planning tax (都市計画税, toshi keikaku zei): a local tax in principle charged on land and buildings in urbanization promotion areas.
• Rental housing manager (賃貸住宅管理業者, chintai jutaku kanri gyosha): a company that manages rental housing for owners; registration is required for 200 or more units.
• Master lease (サブリース, sabu riisu): an arrangement where a company leases from the owner and sublets to tenants; the law calls it a specified lease contract (特定賃貸借契約).
• Restoration to original condition (原状回復, genjo kaifuku): a departing tenant repairing damage they caused, excluding normal wear and deterioration over time.
• Deposit (敷金, shikikin): money the landlord collects at the start of a lease and returns at the end after deducting what the tenant owes.
• Tax representative (納税管理人, nozei kanrinin): a person who handles filing and tax payment for a taxpayer not living locally.

About the Information

• The information was checked on September 30, 2026, against Japanese laws and official documents from the Ministry of Land, Infrastructure, Transport and Tourism, the Statistics Bureau of the Ministry of Internal Affairs and Communications, the Consumer Affairs Agency, the National Consumer Affairs Center, the National Tax Agency, the Ministry of Finance and the Bank of Japan. Market figures use only official statistics and official surveys; market rates for rental management fees, advertising fees, insurance premiums and master lease rent reductions were not used.
• The following conclusions are drawn from official documents, which do not state them in the same words: “There is no legal cap on rental management fees,” based on the fact that the Act on Proper Management of Leased Residential Properties and its enforcement rules require only a written explanation of fees and set no cap; “Official statistics do not publish rental yields for Tokyo, Osaka or Fukuoka,” based on the fact that the real estate price index, the published land prices and the Housing and Land Survey consulted contain no yield statistics; “Management fees and repair reserve funds generally remain the owner’s cost after renting out” and “insurance on the unit itself is generally arranged by the owner,” based on the standard management rules; “Where the previous owner left arrears, the management association may generally claim them from the new owner,” based on Articles 7 and 8 of the Act on Building Unit Ownership and Article 26 of the model rules, with individual building rules not checked; “An owner living overseas who remits rent is generally not the person who must report,” based on the non-resident exemption explained by the Ministry of Finance and the Bank of Japan.
• The following figures are calculated from official figures and are not officially published values: the share of rental vacant homes in rental housing (about 18.6%), the totals and deductions in the example box, and the US dollar amounts and the roughly 31% fall in the table. The illustration uses US dollars only; it does not convert to Hong Kong dollars or New Taiwan dollars.
• The national averages for management fees and repair reserve funds come from the FY2023 survey (conducted every five years); later changes could not be verified. The repair reserve fund guideline follows the June 2024 revision. The National Tax Agency does not list item by item whether management fees and rental management fees can be expensed, so confirm with a tax accountant; the year in which a repair reserve fund is expensed follows the National Tax Agency’s Q&A cases.

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

Sources

• 国土交通省－令和５年度マンション総合調査結果〔概要編〕
• 国土交通省－報道発表資料（令和５年度マンション総合調査結果）
• 国土交通省－マンションの修繕積立金に関するガイドライン（令和６年６月改定）
• 国土交通省－マンション標準管理規約
• 国土交通省－令和７年改正マンション標準管理規約（単棟型）及び同コメント
• e-Gov法令検索－建物の区分所有等に関する法律
• e-Gov法令検索－地方税法
• 総務省－地方税制度：固定資産税
• 東京都主税局－固定資産税・都市計画税（土地・家屋）
• e-Gov法令検索－賃貸住宅の管理業務等の適正化に関する法律
• e-Gov法令検索－賃貸住宅の管理業務等の適正化に関する法律施行規則
• e-Gov法令検索－住宅宿泊事業法
• 国土交通省－宅地建物取引業者が宅地又は建物の売買等に関して受けることができる報酬の額
• 国土交通省－宅地建物取引業法の解釈・運用の考え方（令和８年４月１日施行版）
• e-Gov法令検索－民法
• 国土交通省－原状回復をめぐるトラブルとガイドライン（再改訂版）
• 総務省統計局－令和5年住宅・土地統計調査 住宅及び世帯に関する基本集計（確報集計）結果の概要
• 総務省統計局（e-Stat）－令和5年住宅・土地統計調査 表1-1-1 居住世帯の有無別住宅数
• 総務省統計局（e-Stat）－令和5年住宅・土地統計調査 表3-1-1
• 国民生活センター－20歳代に増える投資用マンションの強引な勧誘に注意！
• 消費者庁－サブリース契約に関するトラブルにご注意ください!
• 消費者庁・金融庁・国土交通省－賃貸住宅経営（サブリース方式）の契約を検討する方へ
• e-Gov法令検索－借地借家法
• 国土交通省－サブリース事業に係る適正な業務のためのガイドライン
• 不動産公正取引協議会連合会－不動産の表示に関する公正競争規約・同施行規則（規約集）
• 国土交通省－不動産価格指数
• 国土交通省－令和8年地価公示の概要
• 日本銀行－時系列統計データ検索サイト 東京市場 ドル・円 スポット 17時時点／月中平均
• 財務省－よくあるご質問「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－支払又は支払の受領に関する報告書 FAQ
• 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）

Important Notice

This article is a general information summary. It is not individual legal, tax, financial or investment advice, and it does not forecast any property’s rent, costs or yield. The information was checked on September 30, 2026. Rules, surveys and exchange rates may change, so rely on the current notices of the Japanese authorities and on the building rules and contracts for your own unit, and consult a qualified tax accountant (税理士), lawyer or other professional where needed.