Apartment management is profitable only when there are tenants.If you can't find the next tenant quickly when someone moves out, the rate of return will deteriorate.It is common to outsource the work to a real estate management company, but is that management company really good enough?
This time, I would like to explain that there is actually a difference in the display method of "occupancy rate" shown by real estate companies.
table of contents
There are three methods for calculating the occupancy rate
1. The point-in-time basis is “the number of vacant units / the total number of units”
This is the ratio of vacant units to the total number of units at the time of measurement.
2. Occupancy base is “(number of canceled units x average number of vacant days) ÷ (total number of units x XNUMX days)”
Percentage of days in a year when rent is not received due to vacancy.The occupancy rate increases due to fewer cancellations and shorter vacancy periods.
3. Rent base is "(assumed rental income - actual rent income received) ÷ assumed rental income"
The ratio of the difference between the assumed rental income and the actual rental income to the assumed rental income.
Different occupancy rate for each management company
The occupancy rate calculation method is as shown above, but at what timing is it measured in an apartment where the situation is constantly changing?
This is not legal and depends on the management company.Some management companies say that the room is vacant after the restoration to the original condition is completed after moving out and the recruitment starts. The current situation is that the period is different depending on the real estate company.Compared to the national average, the occupancy rate of self-managed properties is XX% higher!If you don't know what definition the organization that calculated the national average uses to measure it, it may not be very helpful.
If you don't know much about apartment management, it's good. There are cases where you leave it to a management company that only pretends to be better than other companies by pretending data, so the skill to determine whether it is really okay to entrust important assets to a management company. are necessary for apartment management.
Occupancy rate in Tokyo is not low
How do you feel when you hear that the occupancy rate is 98.47% (vacancy rate is 1.53%)?This is the occupancy rate of properties for singles in Tokyo announced in June 2020 as the “6th National Rental Housing Survey”.The vacancy rate is the lowest in Japan (Hiroshima Prefecture has the same vacancy rate of 8%). It is possible that the occupancy rate is relatively high.this is"Tokyo Basic Resident Register Demographic Shift Report 30If you compare the number of people moving into and out of Tokyo from ”, you can confirm that the number of people moving in exceeds the number of people moving out from 9 to 30.
However, due to the impact of the corona disaster, according to the "July population movement report" announced by the Ministry of Internal Affairs and Communications, it was also announced that the number of people moving out of the Tokyo area (Saitama, Chiba, Tokyo, Kanagawa) to other prefectures exceeded the number of people moving in by 7. Masu.Whether or not the composition of Tokyo's unipolar concentration over many years will collapse will be a must watch in the future.
Nationwide Rental Housing Survey Report
Exhibitor:NPO IREM JAPAN, Japan Rental Housing Management Association, LIFULL Co., Ltd.
Points to determine the good and bad of the management company
From the explanations so far, you can see that the occupancy rate of XX% compared to the national average of XX% is not a very important factor in choosing a management company.This is because it can be shown well depending on the survey method.The important thing in managing an apartment is to lower the vacancy rate.Properties that are close to campus, have many students, and can be fully occupied every year are attractive even if the average length of stay is short, and properties in quiet residential areas with many tenants who have lived there for more than XNUMX years have a low turnover rate. But it's also a charming property.
When choosing a property for the first time, it is important to choose an attractive property that is unlikely to have vacancies, and to provide operational support after purchasing the property instead of just selling it.
It is considered best not to be misled by the occupancy rate, to choose properties that are less likely to become vacant, and to choose a company that is strong not only in sales but also in management.
Summary
The important thing to manage fully booked is...
- Don't be fooled by the management company's occupancy rate.Originally, the occupancy rate in Tokyo is higher than in other areas.
- Choose a real estate company that can outsource the management after the sale
- Choose good properties that are less likely to become vacant
At Rich Road Co., Ltd., we will consistently support all aspects of investment real estate, from complete beginners to experienced people, from a wide range of real estate selection, loan consultations, post-purchase management, and renovations.
