For owners of investment properties in Osaka City, selecting a reliable property management company is essential for stable rental management. Each area of Osaka City has different rental needs and market characteristics, and management methods and services must be tailored accordingly. In this report, we first present rental market trends and property management needs in the major areas of Osaka City (Kita, Chuo, Nishi, and Naniwa wards). Next, we compare the service offerings of several property management companies, both large and community-based. Then, we will explain the features and strengths of INA&Associates' services (number of units managed, areas served, services for the ultra-wealthy, corporate philosophy, human resource development policy, etc.), and finally, we will discuss the advantages of a community-based real estate company. We hope this will help you choose the right rental management partner.
Even within Osaka City, each area has different property types, tenant demographics, and rent rates, and the management needs of owners vary accordingly. Below is a summary of the characteristics and trends of property management needs in the representative areas of Kita, Chuo, Nishi, and Naniwa wards.
Kita-ku, centered on Umeda, is the core area for business and commerce, and is a very convenient and bustling environment with extremely convenient transportation and a concentration of commercial facilities and restaurants. Rents are among the highest in Osaka City, with newly built to about 15 years old condominiums offering rents as high as around 70,000-130,000 yen per month for a 1K apartment. Property owners in this area often expect a high quality tenant base, such as corporate-employed singles and affluent families, and a high standard of property facilities and management services is required. Therefore, management companies are expected to provide meticulous maintenance to maintain premium property values and prompt response to tenant requests and problems. In addition, the Umeda area tends to have high rental demand and low vacancy risk, but there are many competing properties, so it is important to provide support to maintain a high occupancy rate by providing advice on appropriate rent setting and conducting high-quality tenant recruitment activities.
Chuo Ward is the entertainment and commercial center of Osaka with Namba and Shinsaibashi, and is a vibrant area with a very wide variety of restaurants and entertainment facilities and close to tourist attractions. Rents for apartments that are newly built to 15 years old are somewhat high , ranging from 60,000 to 120,000 yen per month for a 1K apartment, but there are many apartments with the latest facilities and interior design, and as the building ages, rents drop to 50,000 to 90,000 yen, making it more affordable. The area tends to attract a diverse range of tenants, including young singles and foreigners, and its proximity to the downtown area tends to create special management issues such asshort-term stay needs andnighttime troubleshooting. In order to maintain a high occupancy rate, owners expect the management company to handle frequent move-ins and move-outs on their behalf and to quickly recruit tenants when vacancies occur. Also, the management company with a thorough knowledge of the local situation will be required to deal with issues unique to the downtown area (e.g., noise control and security management).
Nishi Ward, which includes Honmachi, Awaza, and Horie, is characterized by a relatively calm environment with a mix of office and residential areas. Rent levels are not as high as in Kita-ku, but are reasonable, rangingfrom 60,000-110,000 yen per month for a 1K apartment to 50,000-80,000 yen for a 15-year-old or older building. The Horie area, which is popular for its fashion and cafes, is also popular with a wide range of tenants, from young singles to families. Owners in this area tend to desire long-term stable tenants, and management companies are expected to maintain the properties in good condition through regular building patrols, inspections of aging facilities, and proposals for repairs in order to increase tenant satisfaction. In addition, because Nishi Ward is relatively safe and has a good living environment, management companies are expected to conduct steady customer acquisition activities (e.g., offering company housing to major companies) by promoting the advantages of the area and carefully responding to tenants in order to gain their trust.
Naniwa-ku, including the Namba and Shinsekai (Emisu-machi) areas, is a popular area for those seeking an active lifestyle. With many sightseeing spots and inexpensive restaurants, the area has a unique liveliness within Osaka. The market rent is slightly lower than in Chuo Ward, with new to 15-year-old apartments costing around 60,000-100,000 yen per month for 1K and 50,000-80,000 yen for older properties, making it a very affordable area to live. Many of the properties in Naniwa-ku are leased to students, young workers, and foreign tourists, and the occupancy period tends to be relatively short and turnover is fast. Therefore, owners place a high priority on minimizing vacancy periods, and management companies are expected to have strong customer acquisition capabilities and quick leasing responses. In addition, since many of the properties are older, a management company is required to be able to offer appropriate remodeling proposals and advice on rent setting. Because Naniwa-ku is located close to the downtown area, there are times when management with strong on-site capabilities is required, such as promptly resolving tenant problems and responding to neighborhood issues. A management company with local ties and light footwork will be able to respond quickly to such unexpected situations and provide peace of mind to owners.
As described above, the characteristics of the rental market and theneeds of owners differ in each major area of Osaka City. It is important for owners to select a management company with appropriate responsiveness based on the trends in their own property area.
Next, we will compare the major rental management companies used by investment property owners in Osaka City in terms of management fees (commissions), occupancy rates (performance), and support systems. Here, we will look at the strengths and differences in service offerings of both major nationwide management companies and community-based management companies that operate mainly in Osaka.
The company provides a full range of services from planning and construction to management of rental housing.
The company comprehensively bears the risk of vacancies, rent delinquencies, and tenant issues through the use of a bulk sublease service.
The company provides a stable monthly income (guaranteed rent) to the owner, reducing the complexity of the rental management process.
The company maintains asset value through regular building inspections and maintenance management by professional staff.
24-hour emergency response support.
・Collaboration with major brokerage firms enables us to attract a high number of customers and reduce vacancy risk.
Guaranteed rent is generally about 90% of the market rent.
The management business is centered on high-quality properties built by the company.
The company is involved in the operation and management of properties from the planning stage, thereby maximizing long-term earnings.
The company also offers subleasing services to ensure stable revenues.
We also provide after-sales services such as maintenance and future-oriented remodeling.
We also provide asset management consulting services such as asset succession and inheritance tax planning.
We maintain high occupancy rates for high quality properties, and have a strong tenant recruiting system through our own channels.
Generally, the management fee is around 5% of the rent.
Provides flexible and detailed management services tailored to local characteristics.
・ Increasing number of companies are using proprietary IT and AI technologies to improve efficiency and achieve high occupancy rates.
Providing high quality services at low management fee rates.
Expertise in vacancy management for older and aged properties.
Some companies have introduced original plans with low or no monthly management fees.
Some companies have their own plans with low or no monthly management fees.
・Maintain high tenant recruiting ability by utilizing local networks.
Based on the above comparison, major management companies offer a full range of services, such as "risk hedging through subleasing," "24-hour response desk," and "regular patrols by abundant staff," backed by their abundant financial and organizational strength, and generally have high occupancy rates. On the other hand, we can see that local companies also maintain high occupancy rates (95-98% or higher) while offering low-cost commission plans andflexible proposals from the owner's viewpoint. As an owner, it is important to choose a company that offers services suited to your management policies and property characteristics.
INA&Associates is a nationwide real estate tech management company based in Osaka City, Japan, which has been gaining attention in recent years.
One of INA&Associates' greatest strengths is its expertise in services for the ultra-high-net-worth class. The company has a proven track record in brokering income-producing real estate for high-net-worth clients, and has applied the know-how and network it has developed in this area to rental management as well. For example, we have optimized our knowledge of "real estate strategies based on long-term perspectives" and "detailed responses that take privacy into consideration," which we acquired while meeting the asset management needs of ultra-wealthy clients, to provide services for general owners as well. We have established a system that can provide consistent support from property proposals to management and exit strategies (sale), and aim to be a reliable partner for a wide range of clients, from novice owners to wealthy owners.
Another of INA&Associates' strengths is the use of technology. We have introduced an in-house developed rental management system that allows us to complete contract and renewal procedures, rent payment management, and income/expense reporting online. This enables a small number of staff to efficiently manage a large number of properties, resulting in a management plan with an unparalleled low cost (1,000 yen/month/unit) in the industry. We have also set up a 24-hour call center to receive inquiries and emergency calls from tenants at any time. Owners and tenants can rest assured that even if there is a water leakage problem during the night, the call center will first respond to the problem, and if necessary, a professional staff member will quickly arrive on the scene. This hybrid management model that combines IT and human services enables INA&Associates to achieve both low cost and high service quality.
Finally, we discuss the advantages of choosing a community-based property management company. As mentioned above, while large management companies excel in brand and overall strength, community-based companies have unique strengths that are rooted in their local communities. Specific advantages include
Local market savvy: Local management companies have a better understanding of the characteristics of the area they are in charge of, the competition, and the clientele of the tenants than the major companies. For example, it is easy to receive proposals for effective vacancy improvement measures based on successful examples of similar properties in the neighborhood, and owners can obtain specific advice on how to improve occupancy rates. As a result, it tends to be easier to secure quality tenants to live in the property for a long time and maintain a high and stable occupancy rate. In fact, some community-based companies have achieved occupancy rates in excess of 95-98%, demonstrating that high occupancy can be achieved through careful local marketing and ingenuity.
Promptness and quality of tenant response: In many cases, community-based companies are able to act on their own initiative without having to go through the approval process at the head office or branch offices, which has the advantage of quick initial response to tenant complaints and facility problems. Since the person in charge often works within close proximity to the property, quick response and action can be expected in the event of emergency problems. Another advantage is that we are able to provide detailed tenant screening and services, such as personally interviewing prospective tenants at the time of moving in to ascertain their personalities. This kind of generous response creates a sense of trust among tenants, which in turn leads to increased tenant satisfaction and long-term occupancy.
Close proximity to owners and flexible response: Community-based companies tend to have fewer staff transfers, and the same staff often follows a property for a long period of time, making it easier to build an ongoing relationship of trust with the owner. Owners are more likely to discuss their problems and wishes directly with management and staff, and in many cases, they are able to respond to detailed customization requests. For example, they are able to flexibly take measures such as arranging renovation work or adjusting the timing of rent revisions, while taking the owner's wishes into consideration, thus giving the owner peace of mind that their property is being carefully managed. The community-based approach can supplement the uniformity of responses that major companies tend to provide with the small-scale flexibility that is only possible with a community-based company.
As described above, community-based property management companies have the great advantage of " locally-based information" and "mobility and friendly response. Of course, the service quality of all local companies is not uniform, and each company has its own areas of expertise and competence. Therefore, it is important for owners to fully understand the advantages and disadvantages of each potential management company before choosing the right partner for their property. Whether you choose a major or a local company, the key to stable rental management is to confirm in advance the details of the services offered, the track record, and the support system, and to sign a contract with a reliable management company.