Dear rental owner, have you ever experienced any of the following? A tenant called us late at night with concerns that a stranger was loitering on the premises," "We received a report of a person acting suspiciously in the parking lot, but we did not know how to respond," "A mailbox in a managed property was vandalized, and the tenant asked us to take countermeasures.
For owners of self-managed apartments and condominiums, intrusion of suspicious persons into the premises is one of the most difficult problems to deal with. According to statistics from the National Police Agency, most crimes that occur in rental housing are caused by break-ins and thefts, and many cases develop into serious situations.
In this article, we will discuss the challenges faced by self-managed owners and the benefits of security measures that can be obtained by outsourcing to a management company, focusing on a case that INA & Associates received in which a suspicious person entered the premises of a condominium or apartment. We will present key points for achieving secure rental management while fulfilling your responsibility to protect the safety of your tenants.
Case study of Mr. Sato (company employee in his 50s), who independently manages an apartment building (12 rooms in total) in Tokyo
One summer night at 11:30 p.m., Mr. Sato's cell phone rang. It was an emergency call from a female resident, who said, "There is a strange man in the parking lot and he is peeping into the windows of each room. Although she wanted to go to the location immediately, it is a 40-minute drive from her home to the property.
Mr. Sato recommended calling the police and rushed to the property himself, but when he arrived, there was no suspicious person in sight, and several tenants had already gone outside in anxiety. The police also attended the scene, but were unable to identify the suspect due to a lack of evidence and eyewitness information.
After that night, we received a number of requests from the tenants for security measures to be taken at night and for security cameras to be installed. We urgently ordered quotes for security cameras, but had trouble determining the appropriate location and number of cameras to install. In the end, due to the delay in response, two tenants moved out within three months, citing "security concerns.
Case study of Mr. Tanaka (60s, self-employed), owner of one used condominium building (20 units) in Kanagawa Prefecture
At the condominium managed by Mr. Tanaka, a suspicious person appeared and visited each room, claiming to be from the management company. In fact, Mr. Tanaka was self-managing by himself and did not have a management company. The suspicious person was discovered when a tenant contacted Mr. Tanaka to confirm the situation, but several tenants had already been let into their rooms for "facility inspections.
Fortunately, no criminal damage was caused, but the tenants made a string of harsh remarks, asking why the company had failed to prevent the intrusion of suspicious persons and why the rooms were not locked with automatic locks. Mr. Tanaka hastily distributed a written warning to all tenants and shared information on suspicious persons, but "distrust of the management system" caused relations with several tenants to deteriorate, resulting in some cases in tenants being evicted.
In the process of dealing with the situation, Mr. Tanaka felt anxious about whether he was fulfilling his duty of care for safety as an owner, especially in a property with many single women, and the mental burden became greater.
Case of Mr. Yamamoto (55s, company executive), owner of two 15-year-old apartments (16 rooms in total) in Osaka Prefecture
During the period when scaffolding was being erected for large-scale repair work, a burglar used the scaffolding to gain entry into Mr. Yamamoto's apartments. Because security cameras were temporarily removed during the construction period, the perpetrator could not be identified.
The tenants who suffered damage strongly protested that the security measures taken during construction were insufficient, and further demanded a rent reduction for "violation of the obligation to provide a safe living environment.
This case highlighted the lack of measures to deal with the temporary security decline during construction and the difficulty of managing risks in case of contingencies.
The following risks and limitations exist in self-management when dealing with security issues such as intrusion by suspicious persons.
Owners of rental properties have a "duty of care for safety" and are responsible for providing a safe environment for their tenants. However, there are many situations where it is difficult to determine the extent to which the owner is responsible for responding to a break-in by a suspicious person.
For example, if the owner is judged to have "failed to take appropriate measures despite knowing information about a suspicious person," the owner may be held legally liable in some cases. In addition, if the owner responds inappropriately to a suspected suspicious person (e.g., to an innocent person due to misidentification), this may lead to other problems.
It is extremely difficult for self-managed owners to properly make such legal decisions.
Many times, break-ins occur at unexpected times, such as late at night or early in the morning. In the case of self-management, the owner must receive and respond to all such emergency calls himself.
| Time zone | Response by self-management | Response by outsourced management company |
|---|---|---|
| Daytime (weekdays) | Owner needs to respond even when he/she is at work | Management company staff responds immediately |
| Nighttime and late at night | Owner himself/herself checks the site or cooperates with the police | 24-hour security system or affiliated security company responds |
| Vacations and long vacations | Emergency response required even during vacations | The management company will be on duty on holidays. |
The mental burden of this "never-knowing-when emergency response" is immeasurable, and is a factor that significantly reduces the owner's own quality of life.
Effective security measures require specialized knowledge of criminal psychology and the latest security technology. However, it is not easy for many self-managed owners to acquire such specialized knowledge and keep up-to-date with the latest information.
For example, it is difficult for anyone other than an expert to determine where, what kind of equipment, and how many cameras are best suited for a single installation. It is also not easy to make the best choice for auto-locking systems and alarm systems, taking cost-effectiveness into consideration.
When sharing information about suspicious persons with residents, it is also important to determine how much information to share and when to share it. While it is important to avoid overly alarming information, it is also important to provide the necessary information in an appropriate manner, otherwise crime prevention effects cannot be expected.
In addition, if a victim is actually harmed by a suspicious person, very delicate handling is required, such as responding to the victim, sharing information with other tenants, and explaining measures to prevent recurrence. Such crisis management communication is difficult to properly conduct without experience and expertise.
Outsourcing to a management company offers the following specific advantages in dealing with security issues such as intrusion by suspicious persons.
One of the biggest advantages of outsourcing to a management company is the 24/7/365 response system. They are able to respond quickly, day or night, to suspicious person reports and emergency calls from tenants.
Many management companies have the following systems in place
For example, if information on a suspicious person is received late at night, the management company's call center will provide the primary response, and depending on the situation, staff from the affiliated security company will conduct on-site confirmation. If necessary, they will also notify the police on behalf of the owner, eliminating the need for the owner to rush to respond in the middle of the night.
The management company has staff with expertise in crime prevention and security, and will propose and implement optimal security measures that match the characteristics of the property and the surrounding environment.
Specifically, the following support can be expected:
In particular, professional judgment is required for the installation of security cameras, including the balance between privacy considerations and security effectiveness, as well as cost-effectiveness. Management companies can make appropriate proposals based on their track record in many properties.
The collection, analysis, and sharing of information on suspicious persons is the cornerstone of crime prevention measures. Management companies manage information in the following ways
Experienced management company staff will also be in charge of responding to tenants in the event that a suspicious person is actually sighted. By gathering necessary information and taking appropriate measures while preventing panic, tenants can feel more secure.
In the event of damage caused by a suspicious intruder, clear decisions must be made regarding the response and responsibility. In the case of outsourced management, the following risk management systems are in place
Of particular importance is the ability to prove that the owner has responded appropriately within the scope of the owner's "duty of care for safety. The management company keeps records of appropriate responses and has a system in place to respond appropriately in the event of legal problems.
Appropriate security measures are an important factor in increasing tenant satisfaction and improving the competitiveness of a property. What are the benefits of outsourcing to a management company?
In fact, data shows that properties with security equipment such as security cameras and auto locks can set rents 5-10% higher than properties with the same conditions.
If you place importance on responding to suspicious persons and security measures, it is important to select a management company with the following points in mind.
The key points to determine the security response capabilities of a management company are
Of particular importance is the response system for nighttime and holidays. Don't just say that the company is "available 24 hours a day," but confirm the specific personnel structure and how they will respond.
This is the point to determine whether the security equipment proposed by the management company is appropriate:
When obtaining quotes, compare not only prices, but also the quality and specificity of the proposals. It is important to choose a management company that can clearly explain "why the equipment is necessary" and "what kind of effect can be expected.
Security issues directly affect tenants' concerns. The key is to determine the company's ability to communicate with tenants:
Tenant satisfaction and word-of-mouth from actual managed properties are also helpful. A management company that is highly rated for its security response is likely to have built a relationship of trust with its tenants Property Management Suspicious Person Reporting Response.
Key points to consider when checking a management company's cost structure:
| Cost items | Points to check |
|---|---|
| Basic management fee | Are security measures included? |
| Emergency response fee | Is there an additional cost for after-hours support? |
| Equipment installation fee | Percentage of the cost of installing security equipment |
| Maintenance costs | Clarification of periodic inspections and maintenance costs |
What is important is the existence and scope of "additional costs. Even if the basic fee is low, if additional costs are incurred for each emergency response, the total cost should be compared with the total rental apartment security camera cost.
The security issue of a suspicious person entering the premises of a rental property is a major burden for self-managed owners, who must face a number of challenges, including the difficulty of providing 24-hour response, lack of expertise, and complexity of dealing with tenants.
Outsourcing to a management company is an effective option to resolve these challenges. A comprehensive security system can be established, including 24-hour response by staff with specialized knowledge and experience, proposal and installation of appropriate security equipment, communication with tenants, and risk management.
Although self-management may seem advantageous from a cost perspective alone, the responsibility to protect the safety of tenants and the increased property value that this brings make professional management by an outsourced management company well worth the investment.
In recent years, tenants have become increasingly aware of the importance of security, and having adequate safety measures in place is a major factor in attracting tenants and renewing leases. If you want to maintain and improve the stability of rental management and asset value from a long-term perspective, it is essential to establish a comprehensive management system that includes security measures.
A: Owners have a "duty of care for safety" and are responsible for providing a safe living environment for their tenants. While trespassing by itself does not immediately lead to legal liability, you may be held liable in the following cases
If the property is outsourced to a management company, the company will have a record of the proposal and implementation of appropriate security measures and the appropriate response to accidents, which may help to prove that the owner is fulfilling his/her duty of care for safety.
A: Installing security cameras certainly requires consideration for privacy. The following points can minimize privacy issues while maximizing security effectiveness:
Management companies have experience installing security cameras in many properties and can make appropriate proposals that balance privacy and crime prevention.
A: Regardless of the size of the property , security issues will arise. In particular, the following situations increase the importance of 24-hour security even for small properties
For smaller properties, there are 24-hour support services that can be introduced at low cost. Cost-effective security measures can be implemented through tie-ups with security companies and collective management of multiple properties.
A: Security risks are higher than usual during major repairs due to scaffolding. The following measures are effective
A: The cost of security measures varies depending on the size and location of the property, but general guidelines are as follows
When outsourcing to a management company, some security services are included in the basic management fee, so it is recommended to make a decision based on overall cost performance. In addition, since security measures lead to higher rents and lower vacancy rates, it is important to consider them from the perspective of return on investment.
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