If you own a condominium unit in Japan, your monthly expenses are as follows.
Building management fee
Building management fees for condominiums cover the cost of maintaining common facilities and common areas. These include cleaning and lighting of elevators, hallways, and common areas, garbage collection, routine maintenance of exterior walls and roofs, and salaries for caretakers.
It is paid by all owners of the condominium and are calculated based on the number of units in the condominium and the size of the units owned.
Repair Fund
The repair fund is a fund set aside for future large-scale repairs and facility renewal. Since condominium buildings and common facilities deteriorate and age over time, periodic repairs and renewals are necessary. The repair reserve fund is an amount paid by condominium residents in addition to the monthly building management fee to accumulate funds for such repairs and renewals.
When major repairs or facility upgrades become necessary, the reserve fund is used to reduce the additional burden on residents.
It is also paid by all owners of the condominium and are calculated based on the number of units in the condominium and the size of the units owned.
Unit management fee
If you do not live in Japan, you will need someone or a company to manage your unit when you rent out your property or use it as a second home. The unit management fee is a necessary expense in outsourcing that management. The unit management fee is approximately 5% of the rent, but this is determined upon consultation between the owner and the management company or manager.
Other fees
The above three are the basic monthly costs, but some apartments may have other additional costs.
Land rent: If the land is leasehold, this is the cost of the land. It is paid by all condominium owners since the land is leased, and the amount of this cost will vary depending on the number of condominium units and the size of the owned units.
Utilities and Internet: Normally, each resident contracts and pays for utilities and internet individually. However, some condominiums sometimes have whole building contracts. In such cases, all owners are responsible for the cost.
Roof balcony fee/private garden fee: If your unit has a larger balcony or garden than others, you may have to pay these fees. In Japan, balconies and gardens are basically common areas. Even if the balcony or garden is accessible only to unit users, it is still common area and must be paid for by the subject owner.
Car parking lot fee, bicycle parking lot fee, motorcycle parking fee: This cost is based on the number of uses. Sometimes there is no charge or it is included with the unit.
Outside Owner Fee: This fee is charged when the owner does not live in the unit themselves.
You may be charged additional monthly fees not listed here, but the fees listed here are the monthly costs of owning a condominium unit in Japan.
If you have any questions or/and if you would like to have more details, feel free to contact us by contact form.
