Hi folks, we just bought a new apartment in Osaka city. It's mainly for rental income for now. Maybe 6 or 10 years down the road when we retire, there is a small chance we may want to use it as a holiday home.
We've spoken to Tokyu Housing Leasing. They have a Guaranteed (Normal Lease) and a Non Guaranteed Rental (Normal Lease/ Fixed Term Lease) scheme.
According to the THL agent, most landlords (like 95%) opt for the Normal Lease agreement whereby the tenant essentially can stay for as long as they want to at the same price
This is opposed to the Fixed Term Lease, whereby the tenancy is for a fixed term of anywhere from a year or a few years.
Since we are foreigners, we are definitely open to renting this apartment to anyone ( locals or foreigners).
We also just like to have a reasonable rental yield over the next decade in order to help pay off part of the mortgage.
Questions on our minds now are:
1. Which leasing agreement would you choose ?
2. For the Normal Lease, for those of you with more experience in Japan itself, how long do tenants tend to stay for assuming it's a brand new city apartment that will attract professionals?
3. Any other leasing agencies, apart from THL?
Thanks in advance for your combined wisdom! 🙂
by sginvestor
