Rent it out or sell it—do you have any of these concerns?

• • You cannot decide whether you should rent out or sell a house or apartment you no longer use.
• • A property left vacant due to inheritance or moving feels like a waste to let go of.
• • You have heard that “renting is a hassle” or “management seems difficult,” but you do not know what it is really like.
• • You have heard that “a sublease (master lease) means no hassle,” but when you consider the costs, terms, and even what happens when you sell, you are not sure it is truly worth it.
• • Even if you decide to rent it out, you are torn between managing it yourself or leaving it to a company.
• • Even if rent comes in, it is harder than expected to see how much you will actually keep (net).

And so on.

On this page, we will honestly lay out how to choose between “renting” and “selling,” and, if you decide to rent, how to manage the property—along with SIMCITY’s perspective.

What SIMCITY does first

When you contact us, we will first ask about the property’s situation (location, size, age, whether there is an outstanding home loan, etc.) and your preferences (you want ongoing income / you want a lump sum / you may use it again in the future, etc.).

Based on that, we will show you, with figures and an outlook, your net proceeds for each option—renting vs. selling (the amount you actually keep after subtracting costs from the money coming in)—as well as the effort and risks (please note that all amounts are estimates only and do not guarantee future rent or sale prices).

We will not rush you to a conclusion—we will work with you to find what fits you best.

First: “Rent” or “Sell”?

There are three main ways to make use of unused real estate: “rent it out,” “sell on the market (brokered sale),” and “sell directly to us (purchase)”. The best choice depends on your circumstances. Start by comparing the money you will receive, the timeline, and the effort side by side.

* Income and timelines vary depending on the property, your situation, and market conditions. While a direct purchase makes it easier to cash out quickly, the price generally tends to be lower than selling on the market (prices vary by property and terms and are not guaranteed). If you are not in a hurry, we may first recommend selling through brokerage.

SIMCITY’s guiding principle—if the property can be rented out, we will also consider “renting” positively

When you think of a real estate company, you may imagine they will say, “Let’s sell.” Because we are also strong in rental management, for properties that are likely to rent out, we want to proactively consider the option of “renting,” not only selling, together with you.When you sell, ownership ends there; when you rent, you can keep the property while earning income, and if circumstances change, you still have the option to sell later (however, if you rent under a standard lease agreement, you generally cannot have the tenant move out immediately solely for the landlord’s convenience. If you want to set a fixed period, there is the fixed-term lease option described later. Also, selling while a tenant is in place is, in principle, a sale with the tenant in place; to sell vacant or use it yourself, you need justifiable grounds—circumstances not accepted based only on the landlord’s convenience).

That said, this is only our view, and we are not saying everyone “should rent it out.”

For those who need a lump sum, do not want the burden of management, or have no plans to use the property in the future, we will honestly recommend “selling.”Which option suits you depends on your circumstances. Whatever you choose, we will compare the pros and cons honestly based on net proceeds (the money you actually keep), without promising future rent or prices, and decide together while showing figures and an outlook. In addition to sales (brokerage) and direct purchase, we also handle tenant recruitment and outsourced management when renting. Because we can support both renting and selling, we can make an honest recommendation without bias by comparing net proceeds side by side.

If you decide to “rent”—two ways to manage the property

Once you decide to rent it out, the next question is how to manage it.

There are two main options: “self-management” and “outsourced management”.

Your net proceeds, effort, and risks will change.

We will help you organize which option fits your situation by laying out the benefits and points to watch for side by side.We offer outsourced management, so we will propose an approach that matches your circumstances.

About sublease (master lease)—our candid view

We do not offer sublease services.

With that in mind, we will share our perspective candidly as information to support your decision as an owner.

Sublease has the advantage of “a certain level of rent income even during vacancies,” but in many contracts, the rent may be reviewed (reduced) during the term, so the initial amount may not continue indefinitely.

In addition, there are cases where the company may terminate the contract; where the owner needs justifiable grounds to terminate; where maintenance and repair costs are borne by the owner; or where a免責期間 is set at the start during which rent is not paid (based on the approach under the Act on Proper Management of Rental Housing).

Sublease also tends to be easier to arrange for units with lower vacancy risk, while, conversely, it is said that units with higher vacancy risk are less likely to find a sublease provider.

Newly built and relatively new units tend to be easier to rent out (though ease of renting varies by property, timing, and market conditions). In such cases, we believe it is worth carefully assessing whether lowering the rent you receive in exchange for the guarantee is truly worth the burden.

Also, with sublease, it is worth looking all the way to the “exit” (a future sale).

If you sell while a sublease contract remains in place, the valuation (sale price) based on income may decrease because the rent you receive has been reduced. In addition, sublease contracts are, in principle, carried over to the new owner even after the sale (transfer of the landlord’s position; Civil Code Article 605-2), and even if the buyer wants to manage the property themselves, it may not be easy to terminate the contract (e.g., justifiable grounds under the Act on Land and Building Leases). As a result, it is said that buyers who prefer self-management may be more likely to avoid such properties (outcomes vary depending on the property, contract, timing, market conditions, and buyer).

As one perspective when choosing a company, it helps to confirm not only whether they propose rent reviews (reductions), but also what they do to maintain or improve rent and how much effort they put into tenant recruitment.

Instead of sublease, we propose focusing on tenant recruitment (placing tenants) and outsourced management, putting effort into recruitment and management to keep vacancies as low as possible. With this approach, you do not receive rent during vacancies, but taking that into account, we will honestly work with you to find the approach that leaves you with the best net proceeds (actual income after deducting costs from rent) (results vary by property, timing, and market conditions).

A candid line in the sand—if selling is better, we will tell you to sell

While we want to proactively consider “renting,” there are also cases where we believe “renting is not a good fit.” For example:

• • If you need a lump sum and cannot afford to wait for rental income, we will recommend selling.
• • If you do not want the burden of management or handling issues, renting itself may become a strain.
• • If you and your family have no plans to use it in the future and only carrying costs remain, selling may also be the better fit.

In situations that may become a legal dispute—such as rent arrears, eviction, or negotiations over who bears costs—we can explain the general process and, if needed, introduce a partner attorney.

For tax matters such as filing a final tax return for rental income and depreciation, we can provide general guidance on the system, but you can also consult a tax accountant regarding eligibility and specific amounts.

What to know before renting (contracts and restoration to original condition)

There are two types of lease agreements: a “standard lease agreement (renewable)” with renewals, and a “fixed-term lease agreement” with a set term in advance.

With a standard lease, even when the term ends, it is legally difficult to end the contract solely for the landlord’s convenience; justifiable grounds are required (Act on Land and Building Leases, Article 28). If you have reasons to rent only for a limited period—such as planning to use it as your home in the future—a fixed-term lease agreement is an option. However, for fixed-term leases, you must provide written explanation before the contract that it is a non-renewable agreement; if you omit this, the provision may be deemed invalid. Also, for homes with a floor area under 200㎡, if the tenant has unavoidable circumstances (transfer, medical treatment, caregiving, etc.), early termination by the tenant may be permitted. We will propose the best option after hearing your circumstances.

There are also legal rules for restoration to original condition at move-out. Fading wallpaper from sunlight and natural wear of equipment—deterioration over time and wear from normal living (aging and ordinary wear and tear)—are in principle borne by the landlord (owner). Damage caused by the tenant’s carelessness or use beyond normal use is borne by the tenant (MLIT guidelines; Civil Code Article 621). The assumption that “the tenant pays all restoration costs” is a common cause of disputes.

About costs and timelines (we tell you honestly)

• • Costs when outsourcing management: With outsourced management, you pay part of the monthly rent as a management fee (the percentage varies by company and contract).
• • Brokerage fee when selling: The maximum is set under the Real Estate Brokerage Act (for sale prices over ¥4,000,000: “(sale price × 3% + ¥60,000) × 1.1”).
• • Often-overlooked costs: Repairs and restoration costs at move-in/move-out, carrying costs during vacancy periods, and repayments if a home loan remains. We will organize these in advance and show them to you.
• • Estimated timeline: Whether renting (from recruitment to contract) or selling (until a buyer is secured), timing varies depending on the property, season, and market conditions.

* Costs and timelines vary depending on the property, your situation, and market conditions. Decisions on tax amounts and tax treatment are provided by a tax accountant.

SIMCITY’s strengths

• • From “renting,” “selling (brokerage),” and “direct purchase by us,” through to management after renting, you can consult with us end-to-end in-house.In addition to sales (brokerage) and direct purchase, we also handle tenant recruitment and outsourced rental management.
• • We put strong effort into tenant recruitment.We carry out recruitment activities daily to help you secure a tenant as soon as possible (results vary by property, timing, and market conditions).
• • For restoration to original condition at move-out, we organize cost allocation in line with the rule that aging and ordinary wear and tear are, in principle, borne by the owner.We carefully confirm the tenant’s share and the owner’s share, and work to avoid unnecessary costs.
• • If selling is better, we will honestly tell you to “sell.”Because we handle both renting and selling, we can compare net proceeds and make an unbiased proposal.
• • For areas outside real estate—such as inheritance, taxes, and registration—we work with partner attorneys, tax accountants, and judicial scriveners and can introduce them as needed (we do not receive any referral fees).
• • We have a track record of supporting sales for a wide range of properties, not only in Tokyo and the surrounding three prefectures but also across Japan (please consult us individually regarding availability).
• • Consultations and valuations are free of charge (*if the location is far and requires more than 2 hours one way, we may ask you to cover actual expenses such as transportation, after prior consultation).

We also make every effort to reply to inquiries as quickly as possible.

Frequently asked questions

Q. Which is more profitable: renting or selling?

A. It depends on your circumstances, so it is difficult to say categorically. If you rent, rental income continues, but you will face vacancies, repairs, and management effort and costs. If you sell, you can obtain a lump sum and be free from management, but you will no longer receive rental income afterward. For properties that are likely to rent out, we want to proactively propose “renting” as an option, but for those who need a lump sum, we will honestly recommend selling.

Q. If I outsource management, how much will my net proceeds decrease?

A. With outsourced management, part of the monthly rent becomes a fee, so your net proceeds decrease by that amount, but your workload drops significantly (as a guideline, management fees are often around 3%–5% per month, depending on the property and contract). Net proceeds are also affected by vacancies, repairs, and restoration-to-original-condition costs. We aim to clarify the cost breakdown and propose ways to reduce waste.

Q. When a tenant moves out, do they pay all repair costs?

A. No. Fading wallpaper from sunlight and natural wear of equipment—deterioration over time and wear from normal living (aging and ordinary wear and tear)—are, in principle, borne by the landlord (owner). Damage caused by the tenant’s carelessness, etc., is borne by the tenant (MLIT guidelines; Civil Code Article 621).

Why SIMCITY is chosen (three points, again)

• • You can consult with us in one place, in-house—from “renting, selling, direct purchase, and outsourced management.”That is why, before letting go, you can choose the option that fits you best together with us, including the option to “rent.”
• • If selling is better, we will honestly tell you to “sell.”We will propose what fits your circumstances.
• • For inheritance, taxes, and registration, we work with partner specialists and do not receive any referral fees.You can consult with us about everything around the real estate as well.

Please feel free to contact us first

“In my case, is it better to rent or sell?”—the answer differs for each property. First, tell us your current situation. Whether renting is a better fit or selling is a better fit, we will tell you honestly.

Consultations and valuations are free of charge (*if the location is far and requires more than 2 hours one way, we may ask you to cover actual expenses such as transportation, after prior consultation).

▶ Click here for a free consultation (for distant locations, actual expenses may apply)

Last updated: 2026-08-13
Supervised by: Representative Director / Real Estate Transaction Agent, Hiroyuki Konuki (こぬき ひろゆき) (Real Estate Brokerage License: Tokyo Governor (2) No. 101645)