#Japan #Tokyo #Housing Repair #Mutual Aid #Demolition Work

Update on the Housing Repair Mutual Aid System

The National Housing Repair Mutual Aid Association, located in Marunouchi, Tokyo, has received approval from the Minister of Land, Infrastructure, Transport and Tourism to officially include demolition work in its coverage starting from September 19, 2025. This amendment comes as a critical response to the aging housing stock across Japan, significantly impacting landlords and the management of rental properties.

Since the inception of the mutual aid system in June 2022, which has already served over 1,000 landlords nationwide, the aim has been to provide robust support for large-scale repair projects. Recognizing the increasing deterioration of rental properties, the recent modification aims to reinforce the management of rental housing and contribute toward solutions in addressing the acute issue of vacant homes. This helps ensure a smooth transfer of properties to future generations, enhancing the sustainability of the rental market.

Overview of the Amendment

Under the new guidelines, property owners can receive “demolition mutual aid funds” when it’s determined that repair work is no longer feasible and properties need to be demolished. The criteria for this assessment are as follows:

1. End of Useful Life: Properties that have exceeded their useful life and are significantly deteriorated.
2. Financial Burden: Ongoing maintenance costs that are burdensome for rental management, surpassing the costs of rebuilding.
3. Market Value: Properties whose performance no longer meets market needs resulting in diminished value.
4. Land Appropriation: Cases where properties are requisitioned for urban planning projects.
5. Legal or Association Reasons: Instances arising from mandates or reasons set forth by the cooperative.

The demolition mutual aid funds will be disbursed in accordance with the same criteria that govern repair aid funds. Additionally, the premiums will continue to be deductible as operational costs under current regulations. Importantly, new contracts applying this amendment will take effect from October 1, 2025; however, existing contracts will automatically incorporate these new provisions without further action required by the property owners.

Societal Implications

This reform is not just an administrative update; it serves a larger social purpose by facilitating sensible investment decisions regarding aging rental properties and addressing the growing vacant house crisis. The system assures property owners of support during inheritance and business transitions, effectively promoting sustainable rental management practices. By strengthening this framework, we can contribute to a healthier living environment and ensure peace of mind for future generations.

For more details on the Housing Repair Mutual Aid system, please visit our official website: National Housing Repair Mutual Aid Association.

Upcoming Seminars

The association is organizing a seminar specifically for landlords:

Rental Management Improvement Seminar in Tokyo Yaesu

• - Date: October 10, 2025 (Friday) from 1:30 PM to 4:00 PM
• - Location: Yaesu First Financial Building, 19th Floor (1-3-7 Yaesu, Chuo-ku, Tokyo), a 5-minute walk from Tokyo Station.
• - Capacity: First 120 applicants (spots available)
• - Cost: Free
• - Agenda:

- Overview of the mutual aid system by Akihiro Irikura, the Cooperative Association
- Tax considerations for landlords by Mitaura CPA from Tsujihongou Tax Accountant Corporation
- Exploring repairs and renovations by Kenosuke Manabe from Hope House System Inc.

Online Web Seminar for Owners (Regularly Held)

• - Schedule: Each session runs for approximately 45 minutes.

- October 23, 2025 (Thursday) at 11:00 AM
- November 18, 2025 (Tuesday) at 11:00 AM
- December 16, 2025 (Tuesday) at 11:00 AM

• - Topics Covered:

1. What is the Housing Repair Mutual Aid?
2. Full expense deductibility of premiums.
3. Summary of benefits and considerations.
4. Relationship to inheritance and business succession.

Inquiries

For more information, please contact:
National Housing Repair Mutual Aid Association
1-8-3 Marunouchi, Chiyoda-ku, Tokyo, Marunouchi Trust Tower Main 24th Floor
Phone: 03-6275-6707 (Weekdays 9 am to 5 pm)
Email: [email protected]