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Solving Internet Issues in Rentals: A Guide for Property Owners

Explains how to solve Internet problems in rental properties, focusing on the VDSL system. A must-see coping guide for owners.

Last updated: About 5 min read

In modern rental management, one of the most important facilities that determines tenant satisfaction is the Internet connection. Especially in today's world of telework and online learning, a comfortable communication environment directly affects the competitiveness of a property. When searching for a new property, the quality of the Internet environment is one of the top items checked by prospective tenants, and this is an important factor in preventing vacancies.

However, once problems such as "slow Internet" or "no connection" occur, dealing with them tends to be complicated. When consulting with owners, we notice that there are a great many questions regarding such line problems. In particular, because it is unclear whether the existing equipment is malfunctioning or whether the tenant is personally requesting a faster connection, it is not uncommon for the response policy to be unclear and for problems to develop with the tenant.

In this article, we will explain in detail from the owner's point of view how to determine the cause of line problems and how to respond appropriately, with a particular focus on the VDSL system, which is frequently inquired about. By referring to this article, you will be able to respond more appropriately and smoothly to consultations from tenants.

Internet Trouble: The Difference in Decision Making

When receiving a consultation from a tenant regarding Internet access, the first thing the owner should check is whether the existing equipment is faulty or whether the tenant wishes to upgrade his or her personal specifications. This is the first step in clarifying what to do and where to place the burden of costs.

The basic principle of a lease contract is "as-is" rental. This means that the facilities that the property had at the time of the contract are to be used as they are. Therefore, if the existing Internet facilities are performing according to specifications (e.g., up to 100 Mbps with VDSL system), the landlord's obligations are fulfilled. The desire for a faster connection is considered a personal need (add-on) of the tenant, and the cost of such a request is, in principle, to be borne by the tenant.

Without understanding this principle, many landlords assume that everything is the landlord's responsibility in response to complaints of "slow" and bear the cost of unnecessary installation. Conversely, there are cases where equipment is actually malfunctioning, but the tenant mistakenly believes that it is their wish and puts off dealing with the problem until later. Accurate judgment is the key to preventing problems later on.

What is the VDSL system?

It is important to understand the VDSL (Veryhigh-speedDigitalSubscriberLine) system, which is used in many apartment complexes, by connecting a high-speed optical line to the common area of the building and using existing telephone lines from there to each unit. The reason why this method is used is that it is a simple and cost-effective way to reduce the number of lines required to connect to the building.

The reason for using this method is economic efficiency. In the case of housing complexes, wiring optical fiber to the entire building requires installation work to each unit, which is quite costly. On the other hand, with the VDSL method, the initial investment can be reduced because telephone lines already in the building can be used.

Features VDSL System Optical wiring method
Line to common area Optical fiber Optical fiber
Wiring to each unit Telephone line Optical fiber
Maximum transmission speed (theoretical value) Approx. 100Mbps Approx. 1 Gbps to 10 Gbps
Advantages Relatively easy installation, low cost High and stable communication speed
Disadvantages Speed is limited and easily affected by noise Requires wiring work to each unit, high cost

While the optical wiring method uses optical fiber to each unit, the VDSL method uses an analog telephone line as the final section, which limits the communication speed. This maximum speed of 100 Mbps is an important criterion for determining trouble.

Another issue with using telephone lines is that they are susceptible to noise. Unlike optical fiber, telephone lines are susceptible to electromagnetic radiation, which can degrade communication quality, especially in environments where many other electrical devices are in use. This is one of the reasons why actual communication speeds may vary from dwelling to dwelling, even with the same VDSL system.

Specific Steps to Determine if "Faulty" or "Wishful Thinking

In order to accurately assess the situation, it is recommended that the following steps be taken to proceed with the verification process. This step-by-step approach will enable an objective and impartial judgment.

1. Hearing with the resident

First, we will ask the resident specifically what kind of situation he/she is having trouble with. The shortcut to finding the cause is to confirm the symptoms in detail, such as, "Is there no connection at all?

The important thing here is to understand "when" and "how" the problem occurs. For example, if the problem is "slow only at night," it is most likely caused by the network load of the entire housing complex, which is thought to be due to network congestion rather than individual equipment failure. On the other hand, if "no connection at all from morning to night," a physical problem with the equipment is suspected.

2. Request measurement of communication speed

Ask the resident himself/herself to measure the actual communication speed on an Internet speed measurement site (e.g. Fast.com). By measuring multiple times at different times of the day, more accurate data can be obtained. If the results are significantly lower (e.g., 1 Mbps) than the VDSL system specifications (maximum 100 Mbps), equipment failure is suspected.

The following is a general guideline for speed measurement results: If the VDSL system delivers speeds of 50 Mbps or higher, there is no problem with general Internet use (e-mail, Web browsing, watching videos, etc.). If the speed is between 10 and 50 Mbps, there may be a slight delay when using multiple devices at the same time, but this is basically within the normal range. On the other hand, if the speed is below 10 Mbps, there is a high possibility of problems with video viewing and file downloads, and equipment malfunction should be suspected.

3. Contact the management company or telecommunications carrier

If you determine that there is a high possibility of a malfunction, contact the property's management company or the telecommunications carrier with which you have a contract and request an inspection of the facilities in the common areas. Possible causes include the lamp status of the modem or router, a broken wire, or a malfunction of the collective equipment in the common area.

During the equipment inspection of the common area, it is recommended to have the following points checked. First, we will proceed with the investigation in the following order: whether the optical line termination unit (ONU) is working properly, whether the connection from the ONU to the VDSL collective unit is normal, and whether the wiring to each dwelling unit is disconnected or has poor contact. If any of these problems are found, the unit will be subject to repair.

Concept of burden classification

Based on the results of the above investigation, we will organize the response policy and cost burdens. This organization is an important step in preventing problems with tenants.

Situation Cause Response policy Principle of cost sharing
Case 1: Failure Physical failure of VDSL equipment (aggregation equipment, wiring, etc.) Repair or replacement at the lessor's responsibility Landlord bears the cost
Case 2: Desired Existing facilities are in good working order, but a faster line is desired Have the tenant consider installing individual lines at his/her own discretion Resident bears the burden

If, as in Case 1, the equipment is clearly malfunctioning and does not maintain its current performance, it is within the scope of the landlord's repair obligations. It is necessary to promptly request a specialist contractor to restore the equipment. At this time, considering measures during the repair period (e.g., lending a mobile WiFi router) will increase tenant satisfaction.

On the other hand, as in Case 2, if the system is operating normally as a VDSL system, but the resident wishes to improve the speed for reasons such as "I want to play online games comfortably" or "I want to watch 4K videos without stress," this is a personal wish. In this case, it would be a smooth response to inform the tenant that "it is possible to install an individual fiber-optic line at the resident's expense.

However, you must remember to tell the tenant to obtain the landlord's permission in advance for any work such as drilling holes in the wall in that case. It is also important to clarify in advance whether or not you will be asked to restore the property to its original condition when you vacate. In most cases, you will be asked to remove the individual fiber-optic lines when you move out.

Conclusion: Smooth communication is the key

The issue of Internet lines in rental properties can be difficult to deal with because of the technical aspects and contractual interpretations involved. The essence, however, lies in clarifying "the extent of the lessor's obligation.

Understand the principle of "as-is" rental: The basic obligation of the lessor is to maintain the performance of the equipment at the time of the contract; if the VDSL system provides specifications of up to 100 Mbps, then the lessor is responsible for maintaining that performance.

Understand the characteristics of the VDSL method: The maximum speed limit of 100 Mbps is the basis for judgment. If the speed exceeds this number, it can be determined that it is a personal need of the tenant.

Isolate objectively whether it is a malfunction or a wish: It is essential to make a judgment based on data, such as measurement of communication speed. Making a judgment based on specific numerical values, rather than a sensory judgment, can prevent problems later on.

Clearly present the division of burdens: The principle is that repairs are to be borne by the landlord and spec upgrades are to be borne by the tenants. By carefully explaining this principle to tenants, it will be easier to gain their understanding and acceptance.

By keeping these points in mind and engaging in polite dialogue with tenants, it is possible to avoid unnecessary trouble and maintain a good relationship with them. We hope you will make use of the contents of this article to stabilize your rental management.

Frequently Asked Questions (FAQ)

Q1. Should I upgrade the entire building from the VDSL system to the optical wiring system?

A1. It is a very effective investment from the perspective of preventing vacancies and improving the asset value of the property. However, it requires wiring work to all units, which will cost a reasonable amount of money. In general, an investment of 1 to 3 million yen is often required. It is important to carefully consider the cost-effectiveness and make a decision based on a long-term business strategy. It is also a good idea to refer to the facility conditions of competing properties in the surrounding area. In particular, properties with high vacancy rates or where the target group is teleworkers are worth considering.

Q2. What should I pay attention to as a landlord when tenants individually install fiber optic lines?

A2. The main thing is whether or not construction work that involves physical changes to the building (drilling holes in walls, etc.) is allowed. We will ask the tenant to submit a plan of the construction work in advance, and determine whether or not to permit it within the scope that does not damage the structure or aesthetics of the building. It is also advisable to agree in writing in advance on the obligation to restore the property to its original condition when moving out to prevent problems later. Furthermore, if multiple tenants are to have individual fiber-optic lines installed, wiring in common areas may become complicated, so it is recommended that you consult with the management company before proceeding.

Q3: Is the same support applied to "free internet" properties?

A3: If "free internet" is provided as an added value to the property, the landlord is more responsible for the quality of service provided. If you receive many complaints of "slow" VDSL service, you should not only make repairs, but also actively consider changing to a faster plan or upgrading to an optical wiring system. This is because it will be interpreted as an obligation to maintain the advertised level of service. The claim of "free internet" is perceived by tenants as a guarantee of a certain level of quality, so it is important not to fall short of that expectation.


If you have any concerns about rental management or would like to discuss how to deal with them in more detail, please feel free to contact us at our INANetwork (Landlord Association ) If you join us at INANetwork, we will answer all your questions, provided that you follow the rules. Let's learn together and build the future of real estate management.

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