Soliloquy of the President [rental management] vol.35

Elementary and intermediate level of land usage “the real story of that
nobody else tells” 15 points.
This time is the number 15 of a 15 month series. A talk that is painful for theear divided by beginners course for people (tax savings of 100 million Yen, thenumber of rented units is around 100 and the total asets after 10 years is 500million) and intermediate people (tax savings 500 million, the number ofrented units is 300, 20 years of experience and 2 billion yen assets).
The ⑮ point of beginners are, ① “Discard the 3 selfishness” ② “Know thebasics of management” ③ “ Suspect the common sense” ④ “Compare beforedecide” ⑤ “make successful 1 thing” ⑥ “ the right floor plan” ⑦ “Know tocalculate tax saving” ⑧ “Lover the rent” ⑨ “Objective is the win concept”⑩ ”Why have vacancies” ⑪ ”Start to win” ⑫“Wich one is correct”⑬ ”Estimate the rent” ⑭ ”loosing rent” ⑮ I’ll talk about repairs andrenovation.
The reaon why beginner landowners don’t use mone on repairs andrenovations. I don’t understand it completely. Those who refuse to improve
his property never will get rich .
The reson No. ① is he has no sense to get the tenants happy comfortable life
the business will not succeed… it is very unreasonable. ② Some landowners
say that there is not enough money to make repairs and renovations. Those
are who can not “calculate”. That is not good. If you entrust me then I makeannual tax table so “don’t need tax accountant for 50 years”.
The spared money on tax can be used for renovations. One can not have aproper “rent management” if he can not make that kind of calculations, pays
taxes and don’t have money for renovation. Why I use several tens of million
Yens for renovation? If don’t make renovation then must pay several million
Yen for taxes. I manage my business so that I use the money for theserenovation that I spare on tax, I use the money on my own property. Please
use this as reference.

Well the ⑮ points of “intermediate” course. ① “Don’t trust the accountant”②“Know the construction and building expenses” ③ ” Master thedepreciation completely” ④ “ Free the debt. As soon as possible” ⑤ “Stoplearning 1 thing” ⑥ “Changing or fixed interest rates” ⑦”Overseas realestate investments” ⑧”Separate vacancy management through the year”⑨ ”Vacancy is absolutely bad” ⑩ ”Compare the competitors” ⑪ ”Elderly
people housing service” ⑫”Buy land” ⑬”Found management” ⑭”Rentalwinning” will be continued ⑮”Family business” will be continued.
The biggest problem of intermediate owners is “business inheritance”. Will
your sons continue to manage those mansions that you are managing? Hereis the crossroads of your life. Make the mansion management a “familybusiness of generations” or to end it as a “one generation”. It is a difficultquestion. That was a big problem for me too, but now, decided to make it afamily business. Well, when you will decide you will see clearly the things
that you need to do. ① I will increase the number of units during thefollowing 10 years (I have now 532 units that after 10 years will be 800 units)
and will leave it for the next generation (will retire at the age of 75) ②
However, I’ll make all the lands and buildings owned by a company, the nextgeneration could manage it as a “Corporation”. ③ And because thisbusiness can be done as “part time” or “side business” the next generation
can concentrate on his/her core business that he/she likes.
④Equal inheritance of the brothers is a “bad law” also even in the Civil Code.
Definitely I’ll not do it. Without to dispersed the house assets one president
will take over. A salary can be distributed for the other brothers. The
persistence of the family business is the secret that the next generation canget along, I don’t want that brothers quarrel. Will it go well?