I've started to get interested in operating a share house, but I want to know if it's something an individual can do.
This article introduces information for those people, covering the first steps in share house operation.
I'll explain the differences from general rental properties and key management points.
【Conclusion of this article】 ・No qualifications are needed to operate a share house, and individuals can do it! ・Introducing the pros and cons of share house operation ・Introducing 3 key points for successful share house operation
Supervisor of this article: Kyoko Watanabe (Makigumi Inc.) Moved to Ishinomaki after the Great East Japan Earthquake. Established Makigumi in 2015. Purchased vacant houses with low asset value and started a landlord business targeting creators. Currently exploring mechanisms for circulating local real estate through sharing and reuse.
Here, I will explain in detail two points about share house operation: "What exactly is a share house?" and "You can operate a share house without qualifications."
A share house is a rental property where several people are intended to live in one residence.
Lower rent
These are the appeals of a share house.
As lifestyles become more diverse, share houses have recently become widely recognized as one option.
Therefore, the number of people moving into share houses is increasing, especially among younger generations.
No qualifications or licenses are required to operate a share house.
If you own a property and have the legal knowledge and know-how necessary for rental management, you can start. If you have a vacant house you're not using, or if you're interested in operating a share house as a business, you can start moving forward right away.
Since no special qualifications or licenses are required, share house operation can be done by individuals.
Even when operating as an individual, it is possible to entrust management to a management company.
There are mainly two methods for operating a share house.
Self-management: You handle all operations and management yourself, and receive 100% of the rent income.
Entrusted management (sublease method): You pay a management fee to a management company to handle management, which reduces your workload compared to self-management and allows you to entrust highly specialized tasks.
Understand the characteristics of each and choose the operating method that suits your style.
Here, I will explain in detail the pros and cons of share house operation. Knowing the pros and cons will help you understand the differences from general rental properties and determine if share house operation is suitable for you.
Can utilize older properties
One of the appeals is that even older properties can be easily operated as share houses.
Furnished with appliances
etc.
Therefore, many people do not place much importance on the age of the building.
Recently, there has been an increase in share houses that have renovated old buildings to be stylish, and older properties can generally be purchased at a lower price.
In conclusion, a major advantage of share house operation is that the age of the building can potentially become an attraction.
Share houses can expect high profitability because one property is rented out to multiple people.
Since it's rented to multiple people, even if a vacancy occurs, there is rent income from other residents, which reduces the risk of vacancies. Also, share houses that are furnished with appliances are easy to move into, so even if a vacancy occurs, new residents are easy to find.
I have actually lived in two share houses, and new residents always moved in quickly even when vacancies occurred. Therefore, share house operation tends to expect high profitability.
Share houses have clear differences compared to general rental properties, so they can meet specific needs. Therefore, they can be differentiated as rental properties.
They often match the needs of younger generations who want to keep rent low. Share houses with concepts such as international exchange or living with pets can be further differentiated.
Thus, it is easy to create clear differentiation, which is an advantage for attracting residents who fit those needs.
Many management tasks
One of the disadvantages of share house operation is the large number of management tasks.
Cleaning common areas
There are many things to manage.
Also, having to make individual contracts with all residents is a hassle. Depending on the share house, some tasks can be left to the residents.
For example, taking out the trash, replenishing consumables, and cleaning common areas.
Even so, it's not possible to "completely leave it" like with general rental properties. The disadvantage of share house operation is that you cannot just "rent it out and forget about it."
Since unrelated people live together, interpersonal troubles are likely to occur.
If trouble arises, the owner may have to intervene. Also, due to interpersonal troubles
FIND YOUR STAY
Feel free to contact us for accommodation booking inquiries, residency consultations, viewing appointments, media coverage, etc.
Contact Us
