Costs
Management Fee and Repair Reserve: Monthly Costs of a Tokyo Condo
How the two monthly fees differ, the national guideline for repair reserves, staged increases and one-off levies, and why unpaid fees can pass to the buyer.
When you own a Japanese condominium you pay two monthly fees on top of any loan: the management fee and the repair reserve. Both protect the building's value, and the cheapest is not always the best. Here is what to check before buying.
Key takeaways
- The management fee pays for day-to-day running; the repair reserve funds future major repairs
- A repair reserve that is too low usually means increases or one-off levies later
- Unpaid fees left by the previous owner can be claimed from the buyer
- The building management report and long-term repair plan show the balance and plans
Two different fees
The management fee covers cleaning of common areas, the management company, common-area electricity, and lift and equipment inspections.
The repair reserve is saved for major repairs, usually every 12 to 15 years: exterior walls, roof waterproofing, water and drain pipes. It belongs to the owners association, so it is not refunded when you sell.
How much is typical
The Ministry of Land, Infrastructure, Transport and Tourism publishes a guideline on repair reserves, with reference amounts by building size and height. For small and mid-sized condominiums the average is around ¥300 per m² of floor area per month.
For a 50 m² unit that suggests a repair reserve of about ¥15,000 a month. A figure far below that often assumes increases later.
Increases and one-off levies
Many buildings start with a low reserve and raise it in steps every few years. Plan your budget assuming the reserve will rise as the building ages.
If the fund falls short, owners may be asked for a one-off levy, sometimes several hundred thousand yen, when major repairs are due. Comparing the long-term repair plan with the current balance shows whether there is a gap.
Unpaid fees pass to the buyer
Under the Act on Building Unit Ownership, the association can claim unpaid management fees and repair reserve from whoever buys the unit. Before the contract, confirm the seller has no arrears, or that any arrears will be settled at closing.
If many owners in the building are in arrears, look carefully at how the association is run.
Documents to check
The management company's building management report (重要事項調査報告書) and the association's long-term repair plan should show:
- Monthly management fee and repair reserve, and planned increases
- Repair reserve balance and any association loans
- Arrears for the building and for the unit
- When major repairs were last done and are next planned
- Bylaw restrictions on pets, short-term rentals and renovation
FAQ
Can the fees be included in a mortgage?
No. You pay them every month on top of the loan. Our loan simulator shows the combined monthly total when the listing states the fees.
Is a low repair reserve a good deal?
Not necessarily. It can mean larger increases or one-off levies later. Check the repair plan and the balance.
Who pays if I rent the unit out?
The owner pays. Deduct the fees from the rent when you work out the net yield.
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