Navigating property ownership in a foreign country can be a challenge, especially when managing a property remotely. Having a reliable and transparent property management partner is crucial to protecting your asset and maximizing your returns.
Since the Japanese real estate landscape has unique practices, understanding the available support systems is key to a successful investment. Axios Management specializes in bridging this gap, ensuring a smooth experience from the moment of purchase through to ongoing management. Their goal is to maintain the property’s quality, maximize your return, and keep an eye on its future sale potential.
Support for Remote Owners
For owners living overseas, Axios Management offers a suite of services designed to provide peace of mind and proactive care.
- Routine Checks: Periodic apartment checks ensure everything is in order, including checking for water leaks, airing out the space, and handling practical tasks like checking the mailbox.
- Emergency Protocols: In the event of an emergency, such as a power failure or leak, the team is equipped with protocols to handle the situation immediately.
- Seamless Communication: They utilize cloud-based software like DocuSign and Salesforce for transparent record-keeping, while using tools like WhatsApp for quick, direct communication.
Axios Management takes a proactive approach to property care, handling a range of regular tasks and financial obligations to protect your asset.
How Axios Handles Maintenance and Finances
Axios Management takes a proactive approach to property care, handling a range of regular tasks and financial obligations to protect your asset.
This includes regular maintenance such as paying utilities, taxes, cleaning fees, and building management fees. For long-term planning, they review Homeowners Association (HOA) meeting documents for condominiums to stay ahead of potential issues. For entire buildings, they create a capital expenditure (capex) schedule to plan for future renovations and preventive repairs.
Financial transparency is a priority. For rental properties, expenses are typically deducted directly from the rental income. For second homes, owners are usually asked to deposit funds to cover a year’s worth of expenses. The company uses advanced real estate management software to ensure all expenses and disbursements are transparently tracked.
Handling of Tenant Turnover and Taxes
Handling tenant turnover can be one of the most stressful parts of ownership, but Axios Management takes on the entire responsibility. From rent analysis and advertising to inspecting the room after a lease ends and settling deposit refunds, they manage every aspect of the process.
Taxes and regulatory compliance are another area where their services are invaluable for non-Japanese residents:
- Tax Agent Services: For non-resident owners, Axios can act as a tax agent, receiving all tax-related documents and bills on your behalf.
- Withholding Tax Solution: A notable regulation in Japan is the 20.42% withholding tax imposed when a corporate tenant leases a property from a non-resident. To simplify this, Axios Management offers a master lease arrangement where they sublet the apartment and pay the withholding tax themselves.
- Tax Structure Advice: They also provide advice on optimal tax structures. For example, if annual income exceeds 15 million yen, it may be beneficial to set up a Japanese company to purchase the property, as the corporate tax rate is lower.
Axios Management’s core concept is to take care of everything for the property owner, maximizing the return on your investment so you can focus on your main business.
Conclusion
Axios Management’s core concept is to take care of everything for the property owner, maximizing the return on your investment so you can focus on your main business.
Their expertise and local presence allow them to handle challenges specific to Japan, from carefully selecting contractors to voting on your behalf at annual HOA meetings. This kind of support highlights the value of having a local partner who acts in your best interest.
Ready to protect your investment? Contact Axios Management today to learn more about their seamless property management services.
Frequently Asked Questions
How will I stay informed about my property?
Axios Management keeps you in the loop with a monthly report and provides real-time updates on facility maintenance and repairs, including photos to help you review your property’s status.
What is a master lease arrangement?
A master lease is an arrangement where Axios Management sublets your apartment and pays the 20.42% withholding tax on your behalf. This simplifies the process for both you and a corporate tenant, removing a major administrative burden.
What are the typical management fees?
Management fees for rental properties are typically 5% of the collected rent. For a second home management service, there is a yearly charge of 40,000 yen plus tax. Additional fees may apply for specialized services like acting as a tax agent.
Tsuyoshi Hikichi
Managing Director of Axios Management and IREA, with over 22 years of experience advising international investors on acquiring, managing, and optimizing real estate assets in Japan.
