I've become interested in running a shared house, but I want to know if it's possible to do it on my own.
This article provides information for those who are interested in taking the first steps in running a shared house.
I'll explain the differences from typical rental properties, as well as key points for managing them.
[Conclusion of this article] - No qualifications are required to operate a share house; it can be done by an individual! - We introduce the advantages and disadvantages of operating a share house. - We introduce three key points for successful share house operation.
This article was supervised by Kyoko Watanabe (Makigumi Co., Ltd.). She moved to Ishinomaki after the Great East Japan Earthquake. In 2015, she established Makigumi. She buys up vacant houses with low asset value and started a landlord business targeting creators. She is currently exploring ways to circulate local real estate through sharing and reuse.
Here, we'll explain in detail two points regarding shared house management: "What exactly is a shared house?" and "Is it possible to operate a shared house without any qualifications?"
A share house is a type of rental housing where several people are expected to live together in one residence.
Rent can be kept down
That's the appeal of living in a shared house.
With lifestyles becoming increasingly diverse, shared housing has recently become widely recognized as one of the options available to people.
As a result, the number of people, especially among younger generations, moving into shared housing is increasing.
No qualifications or licenses are required to operate a shared house.
If you own property and have the necessary legal knowledge and know-how for rental property management, you can get started. If you have an unused vacant house or are interested in running a share house as a business, you can start right away.
Since no special qualifications or licenses are required, individuals can also operate a shared house.
Even if you operate it yourself, you can also entrust the management to a management company.
There are mainly two ways to operate a shared house.
Self-managed: You handle all aspects of operation and management yourself, and receive all of the rental income.
Outsourced management (sublease method): You pay a management fee to a management company and entrust them with management and other tasks. This reduces the effort required compared to self-management and allows you to entrust highly specialized tasks to them.
Understand the characteristics of each method and choose the one that suits your style.
This section provides a detailed explanation of the advantages and disadvantages of operating a shared house. Understanding these pros and cons will help you understand the differences between shared houses and typical rental properties, and determine if operating a shared house is right for you.
It is possible to utilize older properties.
One of the attractions of this type of property is that even older buildings can be easily operated as shared housing.
It comes fully furnished with furniture and appliances.
And so on.
Therefore, many people don't place much importance on the age of a building.
Recently, there has been an increase in shared houses that have been stylishly renovated from older buildings, and older properties can generally be purchased at a lower price.
In conclusion, one of the biggest advantages of operating a shared house is that the age of the building can potentially be an attractive feature.
Share houses offer the potential for high profitability because a single property is rented out to multiple people.
Since the property is rented out to multiple people, even if a room becomes vacant, the rental income from other tenants mitigates the risk of vacancies. Also, because the shared house is furnished with furniture and appliances, it is easier to find new tenants even if a room becomes vacant.
I've actually lived in two different shared houses, and whenever a vacancy arose, a new tenant would quickly move in. Therefore, operating a shared house tends to be a highly profitable business.
Share houses have clear differences compared to typical rental properties, allowing them to meet specific needs. Therefore, they can be differentiated as rental properties.
These types of shared houses often meet the needs of younger generations who want to keep their rent down. Shared houses with unique concepts, such as opportunities for international exchange or the ability to live with pets, can be further differentiated.
One of the advantages is that it's easy to clearly differentiate your property, making it easier to attract tenants who meet your specific needs.
There are many administrative tasks.
One of the downsides of running a shared house is the amount of administrative work involved.
Cleaning of shared spaces
There are many things that need to be managed, such as these.
Furthermore, having to sign individual contracts with every resident is a hassle. In some shared houses, residents are responsible for some of the tasks.
For example, this could include taking out the trash, replenishing supplies, and cleaning shared spaces.
However, unlike typical rental properties, you can't "completely leave it to others." The inability to "rent it out and forget about it" is a disadvantage of running a share house.
Since unrelated people live together, interpersonal problems are more likely to occur.
In the event of a problem, the owner may intervene. Also, in the case of interpersonal problems...
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