How to Choose a Rental Property Management Company — Weigh "Switch or Stay" by Cost-Effectiveness

Do any of these worries or concerns about rental property management sound familiar?

  • ・You're dissatisfied with your current management company—slow to respond, no proposals, and it's hard to tell what they actually do for you.
  • ・You're renting out a property to someone for the first time, and you're unsure whether to hire a management company or handle it yourself.
  • ・You've taken over a property through inheritance or the like, and you want to decide how to manage it from here.
  • ・You're advertising at the current rent, but you feel you could actually rent it out for more.
  • ・You live far away and can't find the time to manage the property yourself.
  • ・You found out only later that management fees apply, and you want to check whether they're worth the cost.

On this page, we lay out the key viewpoints worth reviewing when you decide whether to "keep things as they are / switch management companies / manage the property yourself (self-management)" for your rental property, and on that basis we honestly share what we at SIMCITY can genuinely help you with and the things we'd like to check together with you when you consult us. (The scope of management and its cost vary by contract. You are also completely free to manage the property yourself or to use another company, and we will never push our management on you.)

What we do first when you come to us

Management begins with correctly grasping the current situation. First, we check the following together with you.

  • Checking the registration details: we confirm the current status of ownership, any collateral, and so on.
  • Reviewing the existing contracts: we look over the lease agreements with your tenants and the terms of the management contract with your current management company (the notice period for cancellation, the costs, and so on).
  • Inspecting the property in person: we make a point of going to see the site. The condition of the building and the occupancy situation can't be understood from documents alone.
  • Listening to your wishes and frustrations: we start by taking the time to hear what's troubling you and what you'd like to do.

The core of SIMCITY's thinking——whether to switch or not, weighed neutrally on "cost-effectiveness"

Whether or not you should switch management companies, we start from your intentions as the owner—that is, from cost-effectiveness. Do you want to save on management fees and put in the effort yourself, or would you rather pay and leave it to someone (especially handling trouble with tenants)? The right answer differs from person to person.

On top of that, we bring a perspective that is uniquely ours. Because we started out in rental brokerage and then built a management division, we put real effort into "tenant placement"—finding tenants. It isn't "take the property on and that's it"; when a vacancy comes up, we go out and secure the next tenant——which is exactly why we believe that management which fails to place tenants and offers no proposals is worth switching. Conversely, if your current management keeps the units occupied and you have no particular complaints, there's no need to force a change. We see ourselves not as a company that exists to recommend switching, but as one that honestly sorts out the pros and cons for you as the owner (results vary by property, timing, market conditions, and so on).

For example, there was a case where a unit had sat vacant for about four months; after we reviewed the advertised terms and refined the marketing, the tenant moved in soon after we began advertising it (in about one week). This is a single example from one managed property, and it is not a promise of a standard result. The time to occupancy varies greatly depending on the property's location and condition, the timing, market conditions, the rent setting, and so on. There are many reasons a vacancy drags on, and it is not an indication of whether the previous management company was good or bad.

"Keep things as they are / switch companies / manage it yourself"——our honest line-drawing

Even for the same property, people hesitate between "keeping the current management, switching companies, or managing it yourself (self-management)." We line these up on the same axes——cost, the scope of what's covered, the risk of vacancy, and who it suits——and sort them out together with you.

Axis to considerKeep as is (status quo)Switch companiesManage it yourself (self-management)
CostYour current management fee, unchangedA guide of 3–5% per month (varies by property and contract)No management fee (the effort is yours)
Scope of serviceWhatever your current company coversConsistent coverage, from tenant placement through to handling troubleEverything is on you—tenant relations, rent collection, and renewals
Vacancy riskCan tend to drift toward a price that's easy to fillStrengthen tenant placement to fill it / also review the rentDepends on your own ability to attract tenants
Who it suitsSatisfied with current management / planning to sell soon / currently under a subleaseTenants aren't being placed / no proposals / slow to respond / opaque managementThe property is nearby and you can put in the effort

Which one suits you changes with the cost and effort you'll put in, and with "how much you want to avoid vacancy." If we think switching is better, we'll tell you why; if we think not switching is better, we'll tell you that honestly too. There's nothing to lose in simply hearing another company's view once (consultations are free).

When we'll tell you "it's better not to switch right now"

Even when you consult us, there are times we'll tell you "it's better not to switch right now." For example——

  • When a sublease (master-lease) contract is attached: as noted below, depending on the terms of the contract it can be difficult to change the management framework (we do not offer sublease).
  • When your contract with the current company is long-term and hard to cancel midway: the cancellation terms depend on the contract. We check the contract first.
  • When you have no particular complaints about your current management and are satisfied with it.
  • When you're thinking of selling before long: rather than changing management, it may be better to move ahead with preparing for the sale.
  • When you feel "I'm paying management fees but they don't seem to do anything," yet it turns out to be within the usual scope: we check the details together and sort out whether it's worth the cost.

Also, inheritance is one major moment to review your management. When the title or your plans change, it's reassuring to sort out how the property is managed at the same time.

Things to watch out for when switching management companies

When switching (changing) management companies, there are generally procedures and points to note like the following. We sort out how to proceed, guide you through it, and help reduce the burden on you as the owner.

  • The notice period for cancellation: giving notice of cancellation to your current management company may require the notice period set in the contract (such as several months in advance). We check the contract first.
  • Notifying the tenants: since the rent payment destination and contact details change, tenants need to be informed. The switch notice can be confusing at first, so we convey it carefully.
  • Handing over the security deposits and documents: the security deposits held by your current management company, along with the contracts, keys, and so on, need to be handed over. A security deposit is money held on behalf of the tenant, and the tenant's rights don't change when the management company changes.
  • The handover can take time: with some companies, handing over the documents can take a while. We organize the necessary documents and correspondence and guide you through them.

That said, we do not act on your behalf to conduct the cancellation itself or any negotiation over money with your current management company (representation in legal affairs is the domain of attorneys). As needed, we introduce a partner attorney or judicial scrivener (any engagement is a contract between you and them, and we take no referral fee).

We do not offer sublease (an arrangement in which a real estate company master-leases the units and subleases them to tenants). On that basis, we share our honest view as material for your decision. Sublease is a mechanism to guard against the worry of vacancy, but under many contracts the rent may be revised (reduced) partway through, and costs for upkeep and repairs may fall to you as the owner. For a property that already has a sublease contract attached, depending on the terms of that contract it can later be difficult to change the management (subleasing) framework. Which approach suits you varies by property, contract, timing, and market conditions.

The three differences among the "brokerage agreements" when you ask someone to advertise a unit or sell a property

When you ask a real estate company to advertise for tenants or to sell a property, there are three types of contract: general (non-exclusive), exclusive, and sole-exclusive brokerage (under the Building Lots and Buildings Transaction Business Act). The main differences come down to two points: "how many companies you can ask" and "whether you can contract directly with a party you found yourself."

  • General (non-exclusive) brokerage: you can ask several companies at the same time. You can also contract directly with a party you found yourself.
  • Exclusive brokerage: you can ask only one company, but you can still contract directly with a party you found yourself.
  • Sole-exclusive brokerage: you can ask only one company, and even a party you found yourself is transacted through that company.

Note that the finer rules——the deadline for registering with REINS (the designated property-listing network through which real estate companies share property information), the frequency of reporting to the client, and the cap on the contract term (three months)——are things set by law for brokerage agreements in a sale (selling). For renting——finding a place and how you ask a company to advertise——the basic idea (how many companies you can ask, and whether you can contract directly with a party you found yourself) is the same (for rentals, these three are not categories defined by law but practical terms used in the field).

Which one suits you changes with your circumstances—how much of a hurry you're in, whether you'll also search yourself, and so on. It's not that "going exclusive always means it'll be decided faster." We listen to your circumstances and choose together with you.

Cost and timeline

The management fee for rental management (management outsourcing) is a guide of roughly 3–5% per month (varies by property and contract). It changes with how much we take on (the scope of management), so we decide on a plan you're comfortable with, together.

The time it takes to switch management depends on your contract with the current company. If it's "one month's notice of cancellation," it's about a month; if "two months," about two months. Once we can see the contract, the outlook becomes clear right away. We charge you no out-of-pocket costs for the switch itself.

Consultations and estimates are free (*for distant locations that take more than two hours one way, we may, after discussing it with you in advance, ask for actual out-of-pocket costs such as transportation).

*The management fee "varies by property and contract." If specialized procedures such as tax or registration are needed, we introduce a tax accountant, judicial scrivener, or attorney (whether they apply and the amounts are explained by each specialist; we do not make individual determinations ourselves).

SIMCITY's strengths

  • Because our management division grew out of brokerage, we put real effort into tenant placement (finding tenants). Even when a vacancy comes up, we make a point of going out to secure the next tenant (results vary by property, timing, market conditions, and rent setting).
  • ・We strive to respond quickly to your inquiries (this may vary depending on the content).
  • We handle everything from a single unit to a whole building. Residences (residential buildings), of course, but also buildings with restaurants and other eateries, and office (tenant) buildings—we manage them all.
  • We have a track record of responding when trouble arises. For water leaks, interior work, fire-safety equipment, elevators, electrical facilities (including a cubicle—the power-receiving and transforming equipment that supplies electricity to a building), work at height, and more, we act as your point of contact, arranging and coordinating specialist contractors in each field for a smooth response (the construction work itself is carried out by qualified specialist contractors. This is not a promise to respond to every kind of trouble).
  • We have Registered Rental Housing Managers on staff (holders of the specialist rental-management qualification who have passed and registered for the examination registered with the Minister of Land, Infrastructure, Transport and Tourism).
  • ・For fields outside real estate such as inheritance, tax, and registration, we work with our retained attorney, retained tax accountant, and partner judicial scriveners, and introduce a specialist as needed (any engagement is a contract between you and that specialist). We take no referral fee for making an introduction.
  • We have a management track record across a wide range of areas, centered on Tokyo and the three neighboring prefectures (please consult us individually about whether we can take on a given case).
  • Consultations and estimates are free (*for distant locations that take more than two hours one way, we may, after discussing it with you in advance, ask for actual out-of-pocket costs such as transportation).

Frequently asked questions

Q. Can I switch management companies easily?

A. It depends on your contract with the current company. In many cases, giving notice of cancellation with the notice period set in the contract (such as several months in advance) is required. We first review the contract and explain the outlook for switching. Note that we do not act on your behalf to conduct the cancellation or negotiate over money (representation in legal affairs is the domain of attorneys).

Q. If I hire a management company, how much does it cost?

A. The management fee for rental management (management outsourcing) is a guide of roughly 3–5% per month (varies by property and contract). It changes with the scope of management, so we decide on a plan you're comfortable with, together.

Q. Is it better value to manage the property myself (self-management)?

A. It depends on the cost-effectiveness. There's no management fee, but you'll handle tenant relations, rent collection, renewal procedures, and trouble response yourself. We think it through together, balancing the effort and the cost. We will never push our management on you.

Q. Could I rent out my property for more than the current rent?

A. It depends on the property, the timing, and market conditions, but refining the advertised terms and how the property is presented can widen the pool of prospective tenants. We put real effort into tenant placement and think it through with you within a realistic range (this is not a guarantee that the rent will rise).

Q. Do you offer sublease (rent guarantee)?

A. We do not offer sublease. To be honest, with a sublease the rent may be revised partway through, or costs may fall to you as the owner, and—including the fact that it can be hard to change later depending on the terms—we believe it needs to be assessed carefully (whether it suits you varies by property, contract, and market conditions).

Why clients choose SIMCITY (just three things, to close)

  • Management that's strong on tenant placement. It isn't "take it on and that's it"; when a vacancy comes up we go out to secure the next tenant——so we manage with an eye on whether the units keep staying occupied (results vary by property, market conditions, and so on).
  • When it's better not to switch, we honestly say so. We are not a company that exists to recommend changing management. We sort things out neutrally, based on your cost-effectiveness as the owner.
  • From a single unit to a whole building, and through to handling trouble. We coordinate with contractors in each field and respond calmly when something happens.

Please feel free to reach out first

"Is my current management fine as it is?" "Would it be better to switch?"——the answer changes with each property and each owner. First, tell us about your property, your situation, and your frustrations. Whether it's better to switch or better not to, we'll tell you honestly. We do our best to reply to your inquiry as quickly as we can (timing may vary depending on the content).

Consultations and estimates are free (*for distant locations that take more than two hours one way, we may, after discussing it with you in advance, ask for actual out-of-pocket costs such as transportation).

▶ Book a free consultation here (out-of-pocket costs may apply for distant locations)


Last updated: August 19, 2026
Supervised by: Representative Director / Licensed Real Estate Broker, Hiroyuki Konuki (Real Estate Brokerage Business, Tokyo Governor License (2) No. 101645)

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