Skip to content
Real Estate Intelligence
ManagementINA NETWORK

Should Rental Management Be Delegated Rather Than Self-Managed? How to Choose the Right Management Company

Comprehensive analysis of self-management versus delegated management for rental properties. Includes how to choose the right management company and avoid common pitfalls.

Last updated: About 3 min read

Self-Management vs. Delegated Management: The Core Decision

One of the most fundamental decisions for Japanese rental property owners is whether to manage their properties themselves or delegate management to a professional company. INA&Associates helps property owners make this decision based on their specific circumstances.

The Case for Self-Management

Self-management (自主管理) can be appropriate when:

  • The owner lives near the property and can respond quickly to tenant needs
  • The property portfolio is small (1-2 units) and manageable
  • The owner has time and skills to handle tenant screening, maintenance coordination, and administrative tasks
  • Cost minimization is the primary goal and management fees represent a significant percentage of rental income

The Case for Delegated Management

Professional management (管理委託) becomes increasingly attractive when:

  • The owner has multiple properties or properties in different locations
  • The owner has a full-time job or other business commitments
  • The property requires specialized expertise for tenant screening or maintenance
  • The owner prefers passive income without operational involvement

Understanding Management Fee Structures

Management companies typically charge 3-10% of monthly rent. In exchange, they handle:

  • Tenant inquiry response and screening
  • Contract preparation and execution
  • Rent collection and remittance
  • Maintenance coordination and emergency response
  • Move-out inspection and restoration cost negotiation

How to Choose the Right Management Company

Evaluate Track Record and Local Knowledge

A management company with deep local market knowledge can achieve better occupancy rates and higher rents than one without local presence. Ask for occupancy rate statistics for properties they manage in the same area.

Review Reporting and Communication

Regular, clear reporting on property status, financial performance, and tenant issues is essential. Ensure the company provides monthly reports and has responsive communication channels.

Assess Maintenance Network

A strong maintenance contractor network means faster response to repair requests and competitive pricing. Ask about their emergency maintenance protocols.

Understand Contract Terms

Review the management agreement carefully, particularly: contract duration and termination terms, what services are included vs. extra charges, and how disputes between the owner and manager are resolved.

Red Flags to Avoid

  • Management companies that also act as leasing agents may have conflicts of interest
  • Unusually low fees may indicate reduced service quality or hidden charges
  • Difficulty in obtaining clear financial statements is a serious warning sign
  • Some companies keep the stated management fee low while quietly taking a referral kickback of 20-45% on repair work — a repair that genuinely costs ¥1,000,000 can end up billed to the owner as ¥1.2-1.45 million, with the "savings" on the management fee effectively recovered through the repair invoice. Ask for an itemized breakdown before signing if the referral fee is not clearly disclosed or is said to be "included in the contractor's price"
  • At large management companies it is not unusual for a single staff member to be responsible for more than 500 properties, which can push individual properties down the priority list and let small issues grow into larger ones

INA&Associates Approach

INA&Associates provides transparent, results-oriented property management services with clear reporting, competitive fees, and a strong local network. Our approach focuses on maximizing long-term asset value while minimizing owner burden.

Three Simple Monthly Plans

INA&Associates offers three plan tiers at ¥0, ¥1,000, and ¥1,500 per month. The main plan, at ¥1,000 per month, matches or exceeds the service level of major management companies at one of the lowest prices in the industry. Part of how this low price is achieved is the remittance structure: many management companies receive rent from the guarantor company first and then transfer it to the owner, an intermediate step that adds staffing and system costs. INA&Associates instead has the guarantor company remit rent directly to the owner's account, cutting out that intermediate handling and lowering the management fee.

150 Properties per Staff Member

Each INA&Associates staff member is responsible for around 150 properties, compared with the 500 properties per staff member that is common at larger management companies — less than a third of the caseload. Staff also average more than five years of property-management experience, so each property is handled by an experienced professional with the capacity to give it proper attention.

Professional Photography and a Dedicated Leasing Strategy

Filling a vacancy quickly and at a good rent depends on the quality of the leasing activity. INA&Associates has properties photographed by a professional photographer and produces original marketing floor plans, and also lists properties on smart-home platforms to maximize exposure to prospective tenants. This strategy aims to achieve both a fast lease-up and a strong rent, maximizing the owner's return.

24-Hour Call Center and 100% Paperless Management

Tenant inquiries and emergencies are handled by a 24-hour call center. Calls are transcribed and shared with the owner, so owners never need to take late-night calls directly. Management operations are also run 100% paperless, so owners can access the information they need at any time without the hassle of exchanging physical documents.

Transparent Construction Referral Fees

INA&Associates' construction referral fee is set out clearly: 10% of the repair cost for work of ¥500,000 or less, 5% for work between ¥500,000 and ¥1,000,000, and 3% for work over ¥1,000,000. This gives owners a predictable cost structure, and transparency around repair costs is an important factor in managing a rental property over the long term.

Six Years, Zero Management Cancellations

In the six years since the service launched, the number of owners who have cancelled management has remained at zero. That track record reflects an accumulation of quality and trust, not simply a low price. A cost structure that does not depend on outside systems supports keeping prices low, and careful hiring — selecting one candidate out of roughly 60 applicants through remote recruiting outside major cities — is also an important foundation for service quality.

Frequently Asked Questions

Q. Can I ask INA&Associates to manage a single detached house?

Yes. INA&Associates actively accepts management of a single detached house, even though local real estate agents increasingly decline this kind of work due to staff shortages.

Q. What is included in the ¥1,000 monthly plan?

The main ¥1,000 monthly plan includes tenant response (including the 24-hour call center), payment confirmation, and document management, with construction referrals available for a separate fee. It matches or exceeds the standard service offered by management companies at one of the lowest prices in the industry.

Q. Can I rent out a property I plan to live in myself later?

Using a fixed-term lease (teiki shakuchi) lets you have the property reliably returned to you when the lease term ends. Unlike a standard lease, a fixed-term lease ends without renewal when the term expires, so you can rent the property out while still planning to move back in the future.

Q. I currently use another management company — can I switch to INA&Associates?

Yes, switching from your current management company to INA&Associates is possible. After reviewing the terms of your current contract, INA&Associates will propose the best approach and timing for the switch, and is happy to discuss the change even while you are still only considering it.

Conclusion

The decision between self-management and delegation depends on individual circumstances. However, for most property owners with multiple units or limited time, professional management delivers better returns when accounting for the time value of owner involvement. Choose a management company that aligns with your investment goals and provides transparent, accountable service.

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

Author

President & CEO — INA&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