Key Elements to Review in Your Property Management Agreement

For owners of rental properties, the property management agreement with the management company is an important document. Properly understanding the contents of the contract and making sure there are no unfavorable terms can prevent problems later on. In particular, the Rental Housing Management Business Law (official name: "Law Concerning the Proper Management of Rental Housing"), which will come into effect in 2021, will stipulate the items to be included in the management contract by law, and the contract must be prepared based on the latest requirements. This article explains the important points to be checked in the management contract in response to common questions from ordinary owners.

1. mandatory clauses in the contract stipulated by the Rental Housing Management Business Law (latest as of 2025)

Under the Rental Housing Management Business Law, when a management company enters into a management contract with an owner, it is obligated to provide an explanation of important matters and deliver a written contract in advance. The contract document must include all of the mandatory items stipulated by law. This is reflected in the Standard Contract Form of the Ministry of Land, Infrastructure, Transport and Tourism, which aims to ensure transparency and fairness in the content of the contract. Owners should make sure that the following items are properly included in the contract (the latest requirement as of 2025).

• Management company information: The trade name, name (company name), and representative of the management company (rental housing management company) with which the contract is concluded, as well as the date and number of registration in accordance with the law. *Firms managing 200 or more units must be registered with the Minister of Land, Infrastructure, Transport and Tourism, and the registration number must be clearly indicated in the contract document. Owners should check the registration number and, if necessary, use the MLIT's registered builder search to check if the builder is trustworthy.

• Indication of the property (property to be managed): This information identifies the property, including the name, location, and size of the rental housing to be managed. It is clearly indicated at the beginning of the contract as "XXX (property name) XXX location: address...".

• Details of management services: Specific services to be performed by the management company. For example, "collecting rent and other payments on behalf of the tenant," "contract renewal and cancellation procedures," "handling complaints," and "maintenance and management of building facilities (periodic patrols, cleaning, inspections). Be sure to clarify what and to what extent you are entrusting these tasks, and confirm who will perform the tasks that are not included in the contract. In particular, it is important to confirm whether or not the management company will handle rent arrears. If the scope of work is unclear in the contract, there is a risk that the owner and the management company will differ in their understanding of who is responsible for collecting rent arrears. To prevent problems, the scope of work should be understood in detail.

• How the management tasks are to be performed: How the above tasks are to be performed and how often they are to be performed. For example, specific agreements such as "regular patrols once a month" and "24-hour availability in case of emergency" will be written. The hours of operation, means of communication, reporting methods, etc. will also be clearly stated, so confirm that they are consistent with your wishes.

• Items related to re-consignment: If the management company re-consigns (outsources) part of the management work to other companies, this is stated and the details of such re-consignment. Although this is prohibited in normal management, it will be clearly stated in the contract when an outside contractor is used for special tasks. As an owner, you should be aware of the scope of re-consignment and the relationship of responsibility.

• Liability and Disclaimer: This is the scope of the management company's liability and, if there is a provision that exempts the management company from liability in certain cases, the details of that provision. For example, a clause such as "the management company shall not be liable for damages caused by force majeure such as natural disasters. Read the disclaimer carefully to make sure it is not too broad or too unfavorable to the owner.

• Reporting to the owner: The frequency and content of the management company's periodic reports to the owner. The Rental Housing Management Business Law requires the management company to report at least once a year on the management status and other matters. The contract will stipulate that the company will "submit a report XX times a year" or "submit a periodic report in XX month of each year" etc. The contents of the report will include rent collection and status. The content of the report includes the status of rent collection, building maintenance and management, and the response to complaints from tenants. The owner has the right to receive these reports, so it is important to check that they are being properly implemented even after the contract has expired.

• Contract Term: This is the effective period of the management contract and the starting and expiration dates. Generally, the contract is set for two or three years, and in many cases there is a provision for automatic renewal. Although it is possible to terminate the contract before the expiration of the contract period, some contracts may have restrictions such as "notice of termination within the contract period must be given at least ◯month prior to renewal," or may stipulate that a penalty fee (damage fee) will be charged. The contract term, renewal, and cancellation terms are important matters, so be sure to confirm that they are clearly defined in the contract.

• Amount, timing and method of payment: The amount of the so-called management fee (management commission) and the method and timing of payment from the owner to the management company. Usually, 0% of the monthly rent, etc. (e.g., 5-10%) is paid as a commission, which is deducted when the management company remits the rent to the owner after receiving it. The contract will specifically state, for example, "Management fee: ○% of monthly rent, etc. (○ yen including tax), to be transferred to the owner's account on the XXth day of each month. The basis for calculation also needs to be confirmed. For example, whether common service fees are included, whether fees are also charged for unpaid rent, and how fees are handled during periods of vacancy. As will be discussed later, there may be contracts in which fees are fixed based on the total estimated rent at the time of full occupancy, so be sure to confirm any points that are unclear before signing the contract.

• Items to be communicated to tenants: This is the method, if any, by which tenants (lessees) should be informed about the contents and implementation of the management services. For example, the management company should inform the tenants that they will be responsible for the management of the property, and that emergency contact information should be made known to the tenants. The contract will stipulate the "method of notification to tenants (posting or written notice)," etc.

• Expenses not included in the management fee: These are expenses, if any, that should be borne by the owner in addition to the management fee. For example, "advertising fees for tenant recruitment," "restoration costs when tenants move out," "actual costs of facility inspections," "costs of major repairs," etc. These are expenses that are not included in the regular monthly management fee. The extent to which these are included in the fee and the extent to which they are to be reimbursed by the owner can be confirmed in the contract. If the description is unclear, you may be charged a large amount of money later, which could lead to trouble. It is advisable to ask the management company about any unclear points and have them clearly stated in the contract if necessary.

• Matters concerning contract renewal and cancellation: This section describes whether or not the contract will be renewed, the procedure for renewal, and the conditions for mid-contract cancellation (termination). If renewal is automatic, confirm the cycle (e.g., automatic renewal every year) and whether there is a renewal fee. The cancellation conditions are also extremely important and will be discussed in detail in the next chapter, but the contract will state that the cancellation request must be made in writing at least X months in advance, and if there is a penalty fee, the amount of the penalty fee (e.g., X months' management fee). If these are not explicitly stated, it means that there are no special arrangements (= in accordance with statutory principles). Conversely, verbal explanations alone are not effective, so be sure to confirm them in writing.

These are the essential items that should be included in the contract. If these important items are missing or insufficiently described in the contract, not only is there a risk of violating the law, but it may also put the owner at a disadvantage. For example, if the registration number of the management company is not written, or if the terms and conditions for cancellation of the contract are not written, it is important to be careful. Before concluding a contract, please confirm the above details one by one and do not hesitate to ask questions if anything is unclear. A properly drafted contract and explanation of important matters will clarify the rights and obligations of both the owner and the management company, and will serve as the foundation for stable rental management based on a relationship of trust. 2.

2. points to note regarding contract termination conditions and compensation provisions (negotiation points)

When checking the management contract, pay particular attention to the "conditions for termination of the contract (termination clause)" and "management fee provisions. Since these directly affect the owner's income and expenses as well as risks, it is important to understand them well before signing the contract and negotiate as necessary. Below are specific points to check and countermeasures on the owner's side.

Points to check for termination conditions

A rental management contract is basically a power of attorney contract, and the legal principle is that the mandator (owner) can terminate the contract at any time. However, in practice, the contract cannot be smoothly terminated without following the procedures outlined in the contract. Check the termination clause in the contract and keep the following points in mind.

• Whether or not the contract can be terminated during the contract period (mid-term cancellation): Check whether the contract clearly states the conditions under which the owner can terminate the contract in the middle of the contract period. The contract may state that the contract can be terminated at any time if the owner gives notice of termination at least X months in advance, or that the contract cannot be terminated except at the time of renewal. In most cases, the contract stipulates that the contract can be terminated with "Fat month's notice. For example, the Ministry of Land, Infrastructure, Transport and Tourism's standard contract stipulates that "the contract can be terminated by giving at least three months' notice of termination in writing.

• Method and period of notice of termination: As mentioned above, the standard contract requires three months' notice, but some contracts require a longer notice period , such as six months' notice. Some contracts require a longer notice period, such as six months, depending on the contract. Some contracts also stipulate formalities such as "written notice (e.g., by content-certified mail). As an owner, you should consider whether this is a realistic period of time for you to give notice. Since an excessively long notice period is disadvantageous to the owner, it is acceptable to negotiate with the owner to see if it can be shortened. It is advisable to limit the notice to three months in advance, which is the general practice.

• Whether or not there is a penalty or early termination fee: Pay attention to whether or not there is a clause in the contract that states, "In the event of early termination of the contract, a penalty of X months' management fee will be paid. Although the advantage of a management contract is that it is essentially free to terminate without any specific restrictions, some contracts require payment of several months' worth of fees as compensation for immediate termination. For example, "Immediate cancellation is possible if three months' worth of management fees are paid in a lump sum. The MLIT standard contract also includes a clause stating that the contract can be terminated without waiting by paying three months' worth of management fees, in addition to "three months' notice. If there is a penalty clause in the contract, you have no choice but to comply with it once you have signed the contract, so be sure to understand the details beforehand, and if you are not satisfied with it, negotiate to have it removed or the conditions relaxed. It goes without saying that a contract that allows cancellation without penalty is more advantageous to the owner.

• Conditions for termination by the management company: The termination clause applies to both parties. Also check the conditions for terminating the contract from the management company's side. Normally, the risk of unilateral termination by the management company is low, except in specific cases such as default on the part of the owner (e.g., nonpayment of fees) or sale of the property, but if the contract states that the management company can terminate the contract with a Fat Month's notice, you will need to find a replacement management company within that period.

• Handling of sale of property: If the owner sells the property to a third party, what happens to the management contract is another point to check. Many contracts stipulate that the contract will be terminated when the owner changes (a new contract will be signed with the new owner). When considering the sale of the property, it is necessary to give notice of termination to the current management company in advance. Even if there are no special provisions in the contract, it is common practice to terminate the contract at the current owner's stage and have the new owner sign a new contract, since it is difficult to succeed to the contract as the sale of the property = transfer of the status of the mandate holder. If there are plans to sell the property, the cancellation conditions and timing should be coordinated with the management company.

💡Negotiation and handling advice: If the cancellation terms have clauses that are unfavorable to the owner (such as extremely long binding periods or high penalty fees), it is worth consulting with the management company before signing the contract and negotiating to see if the terms can be revised to standard terms. A good management company will be able to accommodate the owner's concerns and deal with them in good faith. If you wish to terminate the contract in the future, it is essential that you follow the procedures and deadlines stipulated in the contract. Since a verbal contact alone is not sufficient to terminate the contract, be sure to follow the contract's prescribed procedures, such as "written notice of termination. If the contract is terminated amicably, the transition to a new management company will proceed smoothly.

Points to check regarding management fees and costs

Next, let's look at management fees (commissions) and cost sharing. The level and calculation method of the management fee varies depending on the details of the contract, and is directly related to the owner's profit. Determine whether the fees are appropriate, and if there are any unclear cost items, confirm or negotiate them in advance.

• Rates and calculation standards for management fees: Management fees are generally defined as "○% of rent, etc." The market rate is 5% before or after 5% of rent income. The market rate is usually around 5% of rent income, but it may increase or decrease depending on the size of the property and the scope of services. Check not only the rate stated in the contract, but also the basis of calculation. For example, "Is it ___% of the total amount including common service charges?", "Is the unearned amount in the event of delinquency also subject to the fee?", "How is the fee handled when the room is vacant? In some contracts, a minimum guarantee amount is set by multiplying a certain percentage of the estimated rent for full occupancy. If you are moving from self-management, it is a good idea to simulate how much the expected monthly management fee will be. It is also effective to obtain quotes from multiple management companies and compare them.

• Scope of services included in the fee: Understand the services that are included in the management fee. Usually, rent collection, contract renewal procedures, complaint handling, building inspections, etc. are included in the basic services. However, it is important to note that the scope and level of services vary from company to company. For example, whether "nighttime emergency contact from tenants" is a standard or optional service, whether "arrears reminders" are included, and other details. Check the services section of the contract or the explanation of important matters, and if there are services that are not included but are necessary, discuss additional outsourcing or separate fees. Some management companies specialize in building management and do not recruit tenants, and vice versa, so they clearly present the scope of their business. It is important to determine before signing a contract whether a management company can cover all the necessary tasks.

• Costs related to tenant recruitment: Another point to check is the cost burden related to recruiting new tenants (leasing) when vacancies occur. In most cases, the management company itself or a real estate brokerage firm affiliated with the management company will be responsible for recruiting new tenants, and the owner will pay an advertising fee (AD) equivalent to about one month's rent. Check to see if there is a clause in the contract that states, for example, "Recruitment fee: 0 month's rent (to be paid when a new contract is signed). Whether the brokerage fee is taken from the tenant or borne by the owner, the percentage of the fee borne also varies from company to company. A management company with strong recruiting ability can expect to fill the room quickly, but advertising fees tend to be higher for this reason.

• Fees at the time of contract renewal: Make sure to check the distribution of renewal administration fees and renewal fees when tenants renew their lease contracts. Although the handling of renewal procedures is usually included in the basic services, in some cases, if there is a renewal fee (a renewal contract fee collected from the tenant), the handling of such fees is agreed upon in advance. In some contracts, the management company is compensated for a portion of the renewal fee, so it is important to check for clauses such as "X% of the renewal fee for X months shall be the management company's handling fee.

• Costs that may be charged separately: Work that is not included in the management fee will be charged separately. Typical examples are arrangements for restoration work when tenants move out andmanagement of remodeling work. If the management company is entrusted with restoration or remodeling work when a tenant moves out, the owner bears the cost of such work. The question is whether the costs are reasonable. In some cases, the owner may be surprised to find that repairs are proposed that are more expensive than necessary. As a countermeasure, it is advisable to include in the contract, or even verbally agree, that "repairs over a certain amount of money will be approved by the owner in advance" at the contract stage. It is also advisable to confirm an estimate of the repair cost in advance to get a sense of the market, and in some cases, leave room for the owner to place orders with the contractor himself/herself. A reliable management company will not force you to do unnecessary work, but will consult with the owner before proceeding.

• Vacancymanagement fee: When a property becomes vacant, not only does the rental income cease, but depending on the contract, a vacancy management fee may be charged. For example, a clause such as, "For each vacant unit, the owner will pay a monthly patrol management fee of XX yen. Vacancies are a blow to the owner, but at the very least, the owner needs to patrol and manage the property during the vacancy period. Check the contract to see how these costs are handled. The MLIT standard contract does not specifically stipulate a fee for vacancy, but some management companies may have their own regulations. If there is a clause stating that the management fee will be charged even during the vacancy period, you can discuss with the management company about the burden of the fee. In some cases, the management company may propose a mitigating measure, such as "no charge for up to Fat months of vacancy, and ¥0.00 for longer periods. In any case, if you understand the details at the time of contract, you can avoid being surprised by unexpected expenses.

Negotiation and handling advice: A typical example of a management fee where there is room for negotiation on the owner's side is the fee rate (%). If multiple properties are consigned together or if there is a long-term relationship of trust, the owner may be willing to accept a slight reduction in the fee. However, excessive requests for reductions in management fees may lead to a decline in the quality of service, so negotiations should be kept within an appropriate level. In addition, it is an ironclad rule to ask for clarification in writing when you are uncertain about a cost item. For example, "Is this cost included in the management fee? Is this an additional charge? If the management company is trustworthy, you can rest assured that the owner will be able to understand your concerns. If the management company is trustworthy, they will make efforts to adjust the terms of the contract in accordance with the owner's requests to prevent misunderstandings and problems at a later date.

3. introduction of electronic contracts: procedures, advantages, and practical considerations

In recent years, the digitization of contract documents (paperless contracts) has been rapidly progressing in the real estate field. The Ministry of Land, Infrastructure, Transport and Tourism's legal revision lifted the ban on electronic delivery of important item descriptions and contracts under the Building Lots and Buildings Transaction Business Law in May 2022, and electronic contracts are now available for lease and management contracts as well. Here, we explain the basic procedures andbenefits of introducing electronic contracts for management contracts, as well as the precautions that owners should be aware of.

Basic Procedures for Electronic Contracts (for Management Contracts)

In the past, it was common to prepare two copies of a contract on paper, stamp it with a seal, and send it by mail. In the case of a lease management contract, the typical flow is as follows

1. Prepare contract documents and obtain agreement: The management company uploads the management contract (and important information sheet) to the e-contract system. The company confirms with the owner in advance whether he/she is willing to sign the contract electronically, and obtains his/her consent (approval) for electronic delivery. Please note that if the owner does not give his/her consent, the contract will be delivered in paper form.

2. Explanation of Important Matters (IT explanation): Explanation of important matters prior to signing a contract can also be conducted online. Using video conferencing tools, etc., the management company explains the contents of the Important Matters Explanation to the owner (the Ministry of Land, Infrastructure, Transport and Tourism has also approved the use of IT explanation). (The Ministry of Land, Infrastructure, Transport and Tourism has approved the use of IT instruction.) Although the explainer does not need to be a licensed real estate agent, it is preferable to have a person in charge with expertise in the subject matter. An environment that allows for question and answer sessions equivalent to face-to-face meetings should be provided even when the explanation is conducted online.

3. Contract execution by electronic signature: The management company signs the contract electronically and shares the contract with the owner online. The owner checks the contents of the contract and, if all is in order, electronically signs the contract. The electronic signature is a procedure in which the contractor signs and seals the contract in place of a signature and seal on the electronic data, thereby proving the agreement of the parties while preventing tampering by a third party. Specifically, the contract can be signed by clicking the "Signature Button" on the contract system and going through the authentication process, or by using a registered electronic certificate. Once both parties have completed the signature process, the contract is concluded.

4. Storage and sharing of contract data: After the contract is signed, the original contract data is stored on the electronic contract system. The owner and management company can also download and store the data respectively. Unlike paper contracts, they are easy to duplicate and have a low risk of loss, so they can be viewed whenever necessary. In addition, past contracts can be searched on the electronic contract service, contributing to more efficient contract management.

The above is the rough flow of introducing electronic contracts. In summary, the process is as follows: obtaining prior consent → online explanation → electronic signature → data storage. The conventionally required processes of paper printing, stamping, and mailing can be omitted, resulting in significant time savings and simplification.

Advantages of Electronic Contracts

The introduction of electronic contracts offers various advantages to both owners and management companies. Here are some of the main advantages

• Faster and Simplified Procedures: Because the contracting process is completed online, time is saved from having to go to the trouble of mailing or stamping the contract in person. Even owners who live far away can conclude contracts from their homes, and the system is flexible enough to be handled even outside the management company's business hours. Scheduling is easier and lead time to contract is reduced.

• Cost savings: Printing, stamp tax, and mailing costs associated with paper contracts are eliminated. In particular, revenue stamp tax is a taxable item in paper contracts, but electronic contracts are not taxable documents, so there is no stamp fee. For example, the 200 yen or 400 yen stamp originally affixed to a management consignment contract (taxable document) is exempt from taxation if the contract is digitized. In addition, the cost of mailing the contract and transportation costs for the owner to visit the store can also be saved. This may seem like a small amount, but it is a great advantage to eliminate all contract-related costs.

• Paperless management efficiency: Since contract documents are stored electronically, physical file management is no longer necessary. Fewer contract folders clutter up the bookshelves, and the convenience of being able to search and view them on a PC or smartphone when needed. There is no risk of paper loss or damage, and if backed up, contract information is protected even in the event of a disaster. For owners of multiple properties, centralized management of contract documents will be easier.

• Completion of procedures in person (improved convenience): With electronic contracts, there is no need to visit the management company to affix a seal, and contracts can be signed from a remote location. Even busy owners or those living in rural areas can sign the contract and receive a detailed explanation from the comfort of their home. From the viewpoint of infection control in recent years, being able to sign a contract without meeting with a person is also a reassuring factor. Another advantage is that contracts can be concluded quickly even when time is short, such as when a management contract is signed immediately after the purchase of a property.

• Real-time confirmation and history management of contract contents: The electronic contract system records the access history of the contract and the date and time of signature completion. The status of signatures by both parties can be tracked in real time, so there is no need to worry about "I sent the document, but I don't know when the other party signed it". If revisions are made, they can be replaced and re-signed online, allowing the latest version of the contract to be shared at all times. Errors and omissions that are discovered after the contract has been signed can be promptly corrected by electronically signing an amendment agreement.

As described above, electronic contracts have the dual benefits of saving time, money, and effort, andimproving convenience and security. In particular, the number of properties and the number of contract renewals tends to increase in rental management, and the electronic contracting system will greatly reduce the workload.

Points to keep in mind when introducing electronic contracts

Although electronic contracts are convenient, there are some points that owners should be aware of when introducing and using electronic contracts. The following are the main points to keep in mind.

• Prior consent is required: Under the law, the other party's consent is a prerequisite for electronic delivery of documents. If the management company proposes an electronic contract, the owner must first indicate his/her consent. It is also possible for the owner to not give consent and prefer to sign the contract on paper. In this case, the owner will not be disadvantaged, so if you have any concerns about the electronic contract, please do not hesitate to tell us. However, once the contract is made on paper, it is inevitable that it will take time for mailing, etc. Therefore, please make a decision based on the advantages and disadvantages.

• Understanding the legal validity of electronic signatures: In a paper contract, the person's intent was proven by his/her personal seal and signature, but in an electronic contract, the electronic signature has equal validity. In Japan, according to the Electronic Signature Law, an electronic document with an electronic signature created by the principal is recognized as an original. In practice, major electronic contract services (e.g., CloudSign, DocuSign, etc.) are equipped with mechanisms that satisfy the legal requirements, and the contract can be used as strong evidence in court. Nevertheless, for owners who are new to electronic contracting, "Is it really safe?" If this is the case, the management company can provide electronic contracting services to the owner. In this case, it is recommended to ask the management company to explain the electronic contract service or to check the reliability (authentication system and security) on the service provider's website.

• Devices to be used and how to operate: A PC, smartphone, tablet, or other device with Internet access is required to perform electronic contracting. Although signing a contract electronically itself is a simple process that takes only a few clicks, you should have an environment that allows you to receive e-mails andaccess the contract site. If you are an elderly owner who is not good at using IT, it would be helpful to have a family member or person in charge assist you in advance. Also, make sure you have your cell phone handy in case there is a one-time password SMS receipt at the time of signing. As a basic precaution, be careful not to accidentally delete the contract e-mail (even if you do, you can request that it be resent).

• Electronic data retention obligations and security: Electronic contracts, like written documents, must be legally retained for a certain period of time. The management company will store the data in their system in accordance with the Electronic Bookkeeping Law, etc., but the owner himself/herself should download the contract data and store it safely. If the data is stored on a computer, take measures to prevent loss or leakage, such as making backups or storing the data in password-protected cloud storage. Also, make it a habit to check contract-related e-mails and URLs to make sure they are reliable and official. Nowadays, there are phishing scams, so if you receive an email that says "Please check your contract," it is safe to check the sender domain and the name of the person in charge, and contact the management company directly if you find anything suspicious.

• Psychological care compared to paper: Electronic contracts are convenient, but some people may feel that they do not get a real sense of the contract through the screen, or that they are worried about whether they have really signed the contract. To avoid lack of communication due to the lack of face-to-face contact, such as through online explanations of important matters, it is a good idea to supplement the contract with phone calls before and after the contract to confirm any unclear points. The management company should also follow up with you carefully. If you are not comfortable with an electronic contract, you should have the courage to switch to a paper contract (the owner has the legal right to refuse electronic delivery). The important thing is to accurately understand the contents of the contract and keep the fact that both parties agreed to it. Electronic contracts are very useful as a means of achieving this, but they should be used without undue effort.

Conclusion (Summary of Structure and Important Points)

The above has provided a broad explanation of important matters to be confirmed in a property management agreement, from essential clauses stipulated by law to practical points to be noted, as well as the use of electronic contracts.

• In terms of mandatory items in the contract, we confirmed that it is necessary to comprehensively check items such as information on the management company, identification of the property, contents and methods of management services, whether or not the property is subcontracted, responsibility categories, reporting obligations, contract period, amount of compensation and payment methods, items to be made known to tenants, expenses not included, renewal and cancellation conditions, and other items based on the Rental Housing Management Business Law. We confirmed this. The purpose of the law is to eliminate discrepancies between the owner and the management company and to establish a fair contractual relationship. If these items are clearly stated in the contract, it can be said to be a basic reassurance.

• Regarding the termination terms and remuneration provisions, we have organized the points that require special attention from the owner's perspective. In terms of termination terms, it is important to confirm the notice period for cancellation (standard is 3 months) and whether or not there is a penalty fee, and if necessary, to reduce the risk through negotiation. In terms of compensation, it is important to understand not only the management fee rate, but also the calculation criteria and the scope of services included, and the conditions for additional costs (advertising fees, repair costs, etc.) should also be agreed upon prior to signing the contract. Even if the wording of the contract is difficult to understand, it is important not to hesitate to ask for an explanation from the management company and sign the contract only after understanding and agreeing to it.

• Regarding the introduction of electronic contracts, we introduced the procedures and benefits, and explained points to keep in mind, such as obtaining approval and security. While the use of electronic contracts makes the conclusion of contracts quicker and more efficient, it is also necessary to take into consideration the differences from the conventional way of doing things. Now that the legal system is in place, electronic contracts can be used without anxiety. While enjoying the benefits as an owner, there should be no problem as long as you keep in mind the basic confirmation items (e.g., consent, data storage, etc.).

Finally, a rental property management contract is a contract that entrusts the owner with important asset management. If you look over the contract based on the points discussed in this article, it should be clear which items you should pay attention to. Any points that are unclear should be resolved before signing the contract, referring to the guidelines published by public organizations and the explanations provided by reliable experts. Fully understanding and agreeing to the contents of the contract is the first step toward outsourcing management services with peace of mind. Approach the management company in the spirit of an equal partnership, negotiating as necessary to ensure that the contract is fair and clear to both parties. This will lead to long-term stable rental management and a good relationship of trust.