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Replacing Common Area Lighting in Rental Properties: Costs, LED Benefits, and Key Considerations

A guide for rental property owners on how to replace common area lighting fixtures, typical costs, the advantages of switching to LED, and important caveats.

Last updated: About 4 min read

Lighting installed in the common areas of apartments and condominiums is managed by the landlord, and replacement becomes necessary as it deteriorates over time. In some cases, only the bulb needs to be replaced, while in others, the entire lighting fixture may need to be replaced or LED conversion work may be required.

This article explains everything from how common area lighting systems work to replacement cost estimates, the pros and cons of LED conversion, and key points to keep in mind when replacing lighting.

How does automatic control of common area lighting work?

In most rental properties, common area lighting is automatically controlled, so landlords do not need to operate it manually. There are three main types of automatic control systems.

Solar Timer

Sunrise and sunset times for each region are pre-programmed, and the lighting is turned on and off accordingly. It can adapt to seasonal changes and can also be used in combination with an automatic photosensor switch to handle cloudy days.

Timer Switch

This system turns lighting on and off at set times. A common approach is to combine it with an automatic photosensor switch so that the light turns on automatically when it gets dark and turns off at a set time.

Automatic Photosensor Switch (EE Switch / Photo Switch)

A sensor detects the ambient brightness and switches the light on or off accordingly. Since it turns on even during the day when it is dim due to rain or snow, it allows flexible control based on weather conditions. Note that installing it on the west side may delay the turn-on timing due to the effect of the afternoon sun.

Is an electrician's license required to replace lighting fixtures?

If a ceiling hook is already installed, lighting fixtures can be replaced without a license. However, a licensed electrician is required for types that connect directly to the power line.

The following qualifications are relevant to electrical work. A Class 2 Electrician handles work on general electrical installations, while a Class 1 Electrician can also handle self-owned electrical installations such as commercial facilities and factories. A Certified Electrical Work Technician handles equipment work under 500 kW, and a Special Electrical Work Qualification Holder is involved in specialized tasks such as neon sign work and emergency backup generator work.

Unlicensed work is dangerous

Performing wiring work without a license carries the risk of fire from short circuits and electric shock. While bulb replacement alone does not require professional assistance, consider hiring a contractor when working in high-ceiling locations due to the risk of falls.

How much does it cost to replace common area lighting?

Bypass work for LED conversion costs approximately 3,000 to 5,000 yen per location, while replacing the entire lighting fixture typically costs around 20,000 to 30,000 yen.

Cost breakdown

Installation costs consist of three components: equipment costs (typically 30–40% off the manufacturer's suggested retail price for standard products), labor costs (calculated by number of workers × hours), and miscellaneous expenses (travel, disposal, administrative fees, etc.). The miscellaneous expenses component tends to vary between quotes, so if the estimate seems unreasonable, consider getting multiple quotes.

What color should common area lighting be?

The color of lighting greatly affects the atmosphere of a space. Choosing the right color can also improve tenant satisfaction.

Types and effects of lighting colors

There are five types of lighting colors: daylight white, neutral white, white, warm white, and warm (incandescent) light. Orange-toned warm light is suitable for relaxing spaces, while cool bluish-white daylight is appropriate for places where focused work is performed.

How to choose the right color for common areas

For welcoming areas such as entrances, orange-toned lighting with a relaxing effect is recommended. On the other hand, bluish-white lighting is suitable for areas where clear visibility is needed, such as auto-lock panels, parcel delivery boxes, and bicycle parking areas.

Security and aesthetic effects of lighting

Common area lighting also plays an important role in security. A well-lit entrance serves as a deterrent against burglary. There are also cases where thoughtfully designed lighting has enhanced the property's exterior appeal and contributed to improved occupancy rates.

What should be kept in mind when replacing lighting?

Replacing lighting incorrectly can lead to accidents or malfunctions. Pay attention to the following two points.

Risks of installing new lamps in old fixtures

The recommended replacement interval for fluorescent light fixtures is 8 to 10 years. If lamp replacements are becoming more frequent or discoloration is visible around the socket, consider replacing the fixture itself for safety reasons.

Bypass work is required for LED conversion

When switching from fluorescent lights to LEDs, bypass work is required to disconnect the ballast and rewire for LED use. Using LEDs without bypass work can cause unnecessary power consumption and ballast deterioration, so always hire a licensed electrician for this work.

How can common area electricity costs be reduced?

The most effective approach is to review lighting costs, which account for the majority of common area electricity expenses. Consider the following methods.

Convert lighting to LED

LED lighting consumes approximately one-third the power of fluorescent lights and one-eighth the power of incandescent bulbs. Their lifespan is also approximately four times that of fluorescent lights and forty times that of incandescent bulbs, leading to significant cost savings. As government energy-saving policies have led to the discontinuation of fluorescent lamp production, switching sooner rather than later is advisable.

Reduce lighting hours

By introducing motion sensors, illuminance sensors, and timers, lighting can be turned on only when needed, reducing unnecessary power consumption.

Review your electricity provider and plan

Take advantage of the full liberalization of the electricity retail market that began in April 2016 and consider switching to a more affordable plan. However, since new retail entrants carry a risk of bankruptcy, it is important to compare multiple providers and make a careful decision.

Switch to a main circuit breaker contract

A main circuit breaker contract, where the basic charge is determined based on actual power usage, delivers significant savings for condominiums with many powered facilities. Note that this is limited to low-voltage condominiums and requires the installation of an electronic breaker (approximately 300,000 to 500,000 yen).

What are the benefits of converting common areas to LED?

LED conversion is an important investment that goes beyond reducing electricity costs and also contributes to improving property value.

Reduced electricity costs

Power consumption is approximately half that of fluorescent lights and one-tenth that of incandescent bulbs, and the initial cost of LED conversion can be recouped within a few years.

Less frequent replacements

LED lighting has a lifespan of approximately 40,000 hours, far outlasting incandescent bulbs (approximately 1,000–2,000 hours) and fluorescent lights (approximately 6,000–12,000 hours).

Fewer insects attracted to the light

LED lighting significantly reduces ultraviolet emissions, making it less attractive to insects and reducing the effort required to clean around light fixtures.

Enhanced property appeal

LEDs have more than five times the luminous efficiency of incandescent bulbs, and keeping common areas well-lit improves the overall impression of the property. The savings on electricity costs can also be redirected to other facility improvements.

What are the drawbacks and precautions of converting common areas to LED?

While LED conversion offers many benefits, there are also several important points to be aware of.

High upfront costs

Since replacing the entire lighting fixture is recommended, costs can exceed 500,000 yen for just the entrance and hallways in large-scale condominiums. However, the initial investment can be recouped within a few years, and maintenance will be largely unnecessary for approximately 10 years, making it a worthwhile long-term investment.

Easy to forget replacement timing

Before converting to LED, check the daily lighting hours for each fixture and note the estimated replacement timing for each location.

Be considerate of light pollution to neighbors

Outdoor LED lighting that is too bright may disturb the sleep of neighboring residents. Consider introducing light-pollution-conscious LED lighting.

Use battery-built-in type for emergency lighting

Under the Building Standards Act, emergency lighting must be battery-equipped so that it remains lit even when power is cut during a disaster. Note that replacement costs tend to be higher due to the relatively elevated installation positions.

Frequently Asked Questions

Is it the landlord's obligation to replace common area lighting?

Yes, since common area lighting is included in building management, the landlord or property management company is responsible for maintaining and replacing it. Tenants are generally not permitted to independently replace common area lighting.

How long does it take to recoup the initial cost of LED conversion?

While it varies depending on the size of the property and lighting hours, it is generally said to take approximately 3 to 5 years to recoup the initial investment. Since LED lighting has a lifespan of approximately 10 years (about 9 years when lit 12 hours per day), the savings continue long after the initial cost is recovered.

Is construction work required when switching from fluorescent lights to LED?

Bypass work to disconnect the ballast of the fluorescent fixture is required. Using LEDs without bypass work can cause unnecessary power consumption and malfunctions, so always hire a licensed electrician for this work.

Are tenants responsible for common area electricity costs?

Common area electricity costs are generally charged to tenants as part of the management fee or common service fee. Reducing electricity costs through LED conversion can also help keep management fees down, which is a benefit for tenants as well.

Daisuke Inazawa, President & CEO of INA&Associates Inc.

Author

President & CEOINA&Associates Inc.

President & CEO of INA&Associates Inc. Leads real estate brokerage, rental leasing, and property management across Greater Tokyo and the Kansai region. Specialises in income-property investment strategy and advisory for ultra-high-net-worth individuals.

Daisuke Inazawa is the President and CEO of INA&Associates Inc., a Japanese real estate firm headquartered in Osaka with a Tokyo branch. He leads the company's three core businesses — real estate sales brokerage, rental leasing, and property management — across the Greater Tokyo Area and the Kansai region.

His areas of expertise include investment strategy for income-generating real estate, profitability optimisation of rental operations, real estate advisory for ultra-high-net-worth individuals (UHNWIs) and institutional investors, and cross-border real estate investment. He provides data-driven, long-horizon advisory to investors in Japan and overseas.

Under the management philosophy "a company's most important asset is its people," he positions INA&Associates as a "people-investment company" and is committed to sustainable corporate-value creation through talent development. He also writes and speaks publicly on leadership and organisational culture in times of change.

He has passed eleven Japanese professional qualification examinations: Licensed Real Estate Broker (Takken), Certified Real Estate Consulting Master, Licensed Condominium Manager, Licensed Building Management Supervisor, Certified Rental Housing Management Professional, Gyōseishoshi Lawyer (administrative scrivener), Certified Personal Information Protection Officer, Class-A Fire Prevention Manager, Certified Auctioned Real Estate Specialist, Certified Condominium Maintenance Engineer, and Licensed Moneylending Operations Supervisor.

  • Licensed Real Estate Broker (Takken)
  • Certified Real Estate Consulting Master
  • Licensed Condominium Manager
  • Licensed Building Management Supervisor
  • Certified Rental Housing Management Professional
  • Gyōseishoshi Lawyer (Administrative Scrivener)
  • Certified Personal Information Protection Officer
  • Class-A Fire Prevention Manager
  • Certified Auctioned Real Estate Specialist
  • Certified Condominium Maintenance Engineer
  • Licensed Moneylending Operations Supervisor