What do Japanese apartment owners need to know about long-term repair plans?
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What do Japanese apartment owners need to know about long-term repair plans?
The longevity of any apartment relies on proper maintenance, which is why Japanese properties have long-term repair plans.
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Credit: PLAZA HOMES licensed under .The Roppongi Hills Residence.
This article is intended as a preliminary guide only and refers to some but not all elements required to consider in detail prior to starting any property dealings or due diligence. Property dealings are often complex, especially in foreign countries and we highly recommend you seek independent professional advice... read more...
Apartment buildings don't last forever.
Sooner or later, they require renovations to maintain the safety, comfort and value of the properties within.
In Japan, this comes in the form of a long-term repair plan lasting between 20 and 30 years.
REthink Tokyo spoke with PLAZA HOMES about what owners should be aware of when it comes to preserving their apartments.
The estimate
The estimate of a long-term repair plan will determine the repair cycle of the building and the approximate costs for renovations for the building’s facilities and equipment. The management association usually consists of a third party management company or design company who will be in charge of making the plan.
Reserve fund for repairs
The expenses associated with large-scale repairs mean apartment owners are required to contribute to a reserve fund from the date of the building's completion, with the amount determined by the calculations of the long-term repair plan.
Source: PLAZA HOMES
Reviewing the plan
Even the most detailed plans can still fall victim to unforeseen circumstances. It is for this reason that PLAZA HOMES recommends reviewing a long-term repair plan every 3-5 years, while also recalculating the reserve fund to make sure there is a sufficient amount of resources to cover future renovations
"Extra renovations may be necessary depending on the building’s age, condition, deterioration, and unexpected costs caused by fluctuation in the cost of renovations due to Japan’s economy at the time," PLAZA HOMES said.
Resolution on a change of communal space
Under the Act on Building Unit Ownership, all large-scale renovations shall be classified as a "Change of communal space", and commence when the management association has reached a decision.
Large-scale renovations are categorised as Ordinary Resolutions and are generally conducted for communal spaces and exterior walls that have “not undergone remarkable changes in shape or use”.
An Ordinary Resolution has to be approved by the majority of apartment owners in a vote.
Renovations to communal spaces that have had a “remarkable change in its use or shape” are categorised as Special Resolutions and have to be approved by more than 3/4 of apartment owners in a vote.
Click here for more information about long-term repair plans.
Source: PLAZA HOMES
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This article and the above linked articles are not complete and are intended as preliminary guides only. These guides refer to some elements to consider prior to starting any property dealings or due diligence. Property dealings are often complex areas, especially in foreign countries and we highly recommend you seek independent professional advice... read more...
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