1. Fee structure basics

Management fees typically cover rent collection and property operations. Market norms are 3 to 5 percent of rent. Because fees hit net yield directly, confirm alignment with scope and scale.

2. Clauses to review

Check scope of services, liability limits, and termination notice. Whether inspections and minor repairs are included or charged separately changes annual costs. Notice periods often sit at three months, and renewal flexibility matters.

3. Measuring cost versus results

Do not judge by rate alone. Compare vacancy duration and collection rate. Cutting vacancy by one month can outweigh a 1 percent higher fee. Always compare with numbers.

4. Practical negotiation

For multiple units or longer terms, propose tiered pricing or performance links. For example, a 0.5 percent reduction when occupancy exceeds 95 percent. Request quotes on identical terms to see true differences.

5. Case study

Two condos at JPY 100,000 monthly rent each. Fee reduced from 5 percent to 4 percent, lowering annual fees from JPY 240,000 to JPY 192,000. Better leasing cut vacancy by one month, improving cash flow by about JPY 150,000.

6. Takeaway

Focus on substance over rate. Scrutinize clauses and judge managers by vacancy reduction and collections. Periodic reviews sustain stable yields.