Zagdim Reader Desk · Japan rental management

Rental management in JapanLeases, income and expenses, and repairs

Whether your rental property in Japan is vacant and waiting for a tenant, already with a management company, or leased to a sublease operator, the contract you need to look at first is different. The Zagdim Reader Desk first establishes how the property is held and where it is, then shortlists suitable Japanese professionals.

Interior of a Japanese apartment
Who it is forOwners of rental property in Japan, including owners overseas
Handled byRental housing management companies, takkenshi, certified tax accountants and lawyers
LanguagesEnglish or Japanese; other languages on request
Reader Desk feeFree of charge

Information checked: 29 October 2026

01 · ABOUT

Before you hand over a rental property in Japan, know which contract you are signing

Rental housing management (賃貸住宅管理) takes two forms. Under ordinary entrusted management, the company handles rent, maintenance and communication under a management agreement. Under a sublease (サブリース), the company first leases the property from you as owner, then sublets it to the occupier. The terms for adjusting the rent and for ending the arrangement differ between the two.

Before you engage a company, the contract should state clearly the account into which rent is collected, how expenses are approved, the authority to order repairs and how often reports are made. A management company keeping your income and expenses in order does not mean a certified tax accountant has filed your return.

  • The company’s standingManagement companies above a threshold number of entrusted units must be registered. Check this first.
  • Money kept apartRent collected on your behalf must be kept separate from the company’s own assets.
  • Reports you can checkReview receipts, expenses and management records regularly.

Where it is handled

Tax officeNational Tax Agency

Handles the relevant national tax filings, tax agent notifications and related tax matters.

Logos belong to the respective bodies and are shown only to identify where a matter is handled. Zagdim is not affiliated with them.

Ministry of Finance building, home of the National Tax Agency, Kasumigaseki, Tokyo
Ministry of Finance building, home of the National Tax Agency, Kasumigaseki, Tokyo
A banner announcing the filing deadline hung at a tax office during the tax return season
A banner announcing the filing deadline hung at a tax office during the tax return season

What is the property’s situation now?

Start with the closest situation:

Let, with a management company

  • What to look at firstThe entrusted tasks, the fee and the authority over repairs in the management agreement.
  • What the budget consists ofManagement fee and repairs at cost; a brokerage fee applies separately when a tenant is sought.

Next steps

  1. Gather the current tenancy agreement, the management agreement and your income and expense records to date

Subleased, and you want it back

  • What to look at firstThe original sublease agreement, any rent adjustment notices and what was agreed on who bears repairs.
  • What to knowUnder a sublease the rent may be reduced or the operator may terminate, and you as owner may also bear part of the repairs. Recovering the property requires a review of the contract and the Act on Land and Building Leases (借地借家法) first; you cannot rely on the expiry date alone.
  • Who handles itA lawyer (弁護士, bengoshi) reviews the termination terms and any dispute. If the property moves to ordinary management after recovery, a management company then takes it on.
  • What the budget consists ofLawyer’s fees for legal services; disputes are itemised separately.

Next steps

  1. Confirm the expiry date and the notice clauses of the sublease agreement
  2. Set out the itemised costs the operator is asking you to bear

Vacant, preparing to let

  • What to look at firstWhether you want ordinary management or a sublease. Rental income, repairs and termination terms differ between the two contracts.
  • Who handles itA licensed broker finds the tenant. Before the tenancy is concluded, a takkenshi (real estate transaction specialist) explains the important matters. After that, the management company handles day-to-day matters under the management agreement.
  • What the budget consists ofThe brokerage fee for letting and the day-to-day management fee are quoted separately. Repairs before move-in are charged separately, within the approved scope.

Next steps

  1. Confirm where the property is and its current condition
  2. Decide how you are willing to approve repairs

Overseas, checking the accounts

  • What to look at firstWho pays the rent, and where it is paid. A person paying rent on Japanese property to a non-resident must in principle withhold tax at 20.42%. There is an exception where an individual rents the property as a home for themselves or their relatives; it does not apply where a company rents the property to house its employees.
  • When the tax is paidFor payments made in Japan, by the 10th of the following month. For overseas payments that meet the conditions, by the end of the following month.
  • Who handles itWhere you need to file a return, receive documents or claim a refund, you appoint a tax agent (nozei kanrinin), who may be an individual or a company. Tax representation is taken on by a certified tax accountant (税理士, zeirishi); being a tax agent is not the same as holding that qualification.
  • What the budget consists ofThe certified tax accountant’s fee for filing is charged separately; withholding is tax, not a service fee. From 1 October 2026, agency, brokerage and similar services for the letting of real estate in Japan commissioned by a non-resident no longer qualify for export exemption (transitional measures apply to contracts signed on or before 31 March 2026). Ask the provider to state whether the quote includes consumption tax.

Next steps

  1. Confirm whether the tenant is an individual or a company
  2. Gather the withholding records and the year’s income and expense records

Sources: Ministry of Land, Infrastructure, Transport and Tourism – explanatory pages on the business of rental housing management companies (賃貸住宅管理業者の業務) and on subleases (サブリース) / National Tax Agency – Tax Answer No. 2880 (withholding on rent paid to non-residents) and No. 1923 (tax agents). Checked 29 October 2026.

02 · SERVICE

What does the management company do?

Who charges what

What the Reader Desk does at no charge

Establishes your situation, sets it out in a written brief, introduces local professionals and follows up.

Professional fees

Quoted by the professional handling the matter once they understand your situation. If you engage them, you contract with and pay them directly.

How payments flow

Zagdim does not charge readers a matching fee and does not handle payments for professional services. Providers quote case by case, and you contract with and pay the provider directly.

  1. 01Management agreement review

    The entrusted tasks, the fee and the reporting arrangements are confirmed.

  2. 02Letting and rent collection

    A suitably qualified company finds tenants and collects rent as agreed.

  3. 03Maintenance and repairs

    Within the authority given, estimates are put forward, approval is obtained and records are kept.

  4. 04Year-end records

    Income, expense and withholding documents are compiled for you and your certified tax accountant to check.

03 · CASES

Which situations need extra care?

In every caseRepair costs, vacant periods and the ending of a tenancy are confirmed against the contract and the legal position in each case.

This service may not be the right one. If you only need a tax return or a tax agent, see “Non-resident tax filing and tax agents in Japan”. For condominium management fees and owners’ association matters, see “Condominium owners’ associations and management fees in Japan”. For water leaks or alteration works, see “Renovation and repairs in Japan”.

Apartment blocks and a pedestrian crossing on a residential street in Japan
A residential neighbourhood in Japan
Documents sorted with coloured clips beside a pair of glasses on a desk
Tenancy and management documents

04 · SERVICE PROCESS

From reviewing the contract to the start of management: who does what?

First establish the type of contract; the company then manages the property under it.

English or JapaneseOther languages on request
  1. Confirm the type of contract

    You provide the contract; it is identified as ordinary management or a sublease.

  2. Explanation and quote

    Before signing, the management company explains the terms and its fee.

  3. Signing and day-to-day management

    The company collects rent as agreed, and asks you first about repairs beyond its authority.

  4. Reports and annual check

    The company reports income and expenses; filing is a separate engagement with a certified tax accountant.

Not included

  • Spending on works you have not approved
  • Professional fees for tax filing
  • Representation in sublease termination disputes
  • Bearing lost rent or vacancy losses

What you need to prepare

  • Title and property details
  • Tenancy and management agreements
  • Rent and expense records
  • Emergency contact and how you approve spending

05 · TIME

Signing, reporting and withholding: when does each fall?

When management starts depends on how quickly the contract is confirmed and records are handed over. The points below are set by law.

  1. Before signing, where the management Act applies

    Explanation of important matters

  2. After signing, where the management Act applies

    Written management agreement

  3. At least once a year, where the management Act applies

    Management report

  4. By the 10th of the month after rent is paid in Japan

    Payment of withholding tax, where it applies

  5. By the end of the following month, for qualifying overseas payments

    Payment of withholding tax

06 · FEES

How are management fees, tax and professional fees divided?

Taxes and official fees

  • Withholding on rent paid to non-residents20.42%(Calculated on the amount of rent; there is an exception where an individual rents the property as a home for themselves or their relatives.)

Professional and service fees

  • Management feeQuoted once your situation is understood(The basis of charging and any minimum fee must be stated.)
  • Finding tenants and letting brokerageQuoted once your situation is understood(Separate from the day-to-day management fee.)
  • Repairs and emergenciesQuoted once your situation is understood(According to the approved scope of works.)
  • Zagdim Reader DeskFree of charge(Consultation, clarifying what you need and shortlisting professionals)

Each professional you engage quotes its own fee, and contracts and is paid separately: the management company quotes the management fee and the letting brokerage fee, the certified tax accountant quotes the filing fee, and a lawyer quotes for sublease or tenancy disputes.

07 · EXPERTS & PROFESSIONALS

Where the property is, who helps?

Depending on the case, different Japanese professionals are involved.

Rental housing management company (賃貸住宅管理業者)

Engaged to manage tenancies, collect rent, arrange repairs and settle accounts at move-out.

Real estate transaction specialist

宅地建物取引士 · takkenshi

Gives the explanation of important matters required by law for a tenancy transaction.

Certified tax accountant

税理士 · zeirishi

Handles tax on rental income and the related filings.

Lawyer

弁護士 · bengoshi

Reviews sublease terminations and tenancy disputes.

MATCHING

How Zagdim shortlists the right professionals

What you need
Zagdim Reader Desk
  • Clarifying the need
  • Matching providers
  • Follow-up at key points
The right professional

Zagdim Reader Desk

Sets out a written brief · introduces by property location · follows up

No charge to readers

Professionals in Japan

Professional advice and handling

Quote · contract · payment · receipt

Can a professional be arranged where the property is?

  1. You tell the Reader DeskWhere the property is and its situation
  2. The Reader Desk checksWhether a management company or professional is available locally. Professionals work in English or Japanese; other languages on request
  3. The Reader Desk repliesWe say which kind of professional will take it on. If no suitable provider is available for now, we say so plainly

08 · CONSULTATION

What happens next?

Zagdim Reader DeskFirst understand the situation, then shortlist the right professionals

Four steps after you get in touch

  1. Contact the Reader DeskDescribe the property and its situation by WhatsApp or email.
  2. A written briefThe Reader Desk sets out the contracts and what needs handling; you confirm it.
  3. Introduction to a local professionalMade according to where the property is. Before the introduction, the written quote, out-of-pocket costs and conditions for extra charges are confirmed with the provider.
  4. Quote and engagementThe professional quotes; you decide whether to engage, and contract and pay directly.

Have these points ready before you get in touch, so it is clear at once which contract to look at first.

  • Where the property is and what type it is
  • The tenancy, management or sublease agreements you hold, and their expiry dates
  • Whether you live in Japan or overseas, and whether you already have a tax agent or a certified tax accountant

The Zagdim Reader Desk handles contact and follow-up.

Send us your details

The more you tell us, the better the Zagdim Reader Desk understands your situation before we speak.

09 · FAQ

Rental management in Japan: common questions

Are rental management and a sublease the same thing?

No. Under ordinary management the company manages the property on your behalf. Under a sublease the company first leases the property and then sublets it, and the terms for adjusting the rent and for termination differ from ordinary management.

Do all management companies have to be registered?

No. Registration is required once entrusted residential management that includes maintenance reaches 200 units. Companies below the threshold may register voluntarily, and a company that only collects payments is not a management business under this Act.

Can you take the property back when the sublease expires?

Not necessarily. The sublease agreement and the Act on Land and Building Leases must be reviewed; expiry of the contract alone does not settle whether the property can be recovered.

The sublease operator is asking you to pay for repairs. Is that reasonable?

It depends on the sublease agreement. During a sublease the rent may be reduced, the operator may terminate, and the owner may bear part of the repairs. The extent of that burden follows the contract, and a lawyer reviews it where there is a dispute.

Does the management fee cover tax on the rent?

No. Management fees and withholding on rent are calculated separately, and the payer’s withholding obligation must be confirmed separately.

Establish the property’s situation and the type of contract first, then confirm the scope of management.

Book a free 20-minute call

The relevant filings are received and examined by the tax office, and official fees follow the current notices of the Japanese authorities. Quotes, contracts, payments and receipts for professional services are handled by the professional concerned; neither the Zagdim Reader Desk nor the professionals guarantee that any application or review will succeed. This page is general information and is not legal or tax advice. Information checked to 29 October 2026.

Photographs of institutions (Wikimedia Commons): Ministry of Finance building, home of the National Tax Agency, Kasumigaseki, Tokyo, っ (CC BY-SA 3.0); a banner announcing the filing deadline hung at a tax office during the tax return season, Mti (CC BY-SA 3.0)