When renting a property in Japan, prospective tenants often focus primarily on the monthly rent. However, once the lease is signed and residency begins, many come to realize that additional monthly expenses—namely common area maintenance fees and management fees—are also required. While these charges must be paid alongside rent, their contents are not always well understood at the time of contract.

These fees vary significantly in name, amount, and application depending on the property, making them a critical but often underestimated factor in lease agreements. In some cases, properties that appear competitively priced in terms of base rent may prove more expensive overall once these fees are included.

This article offers a clear explanation of what these fees are, how they are typically used, and what tenants should confirm before entering into a lease.

What Are Common Area Maintenance Fees and Management Fees?

Common area maintenance fees and management fees are charges intended to cover the shared costs associated with the upkeep and operation of a property—costs that are deemed appropriate to distribute among all residents. While the terminology may vary by property, in practice these fees are often used interchangeably.

When labeled as “common area maintenance fees,” the charges typically relate to the upkeep of shared spaces within the building, such as hallways, entrances, elevators, waste disposal areas, lighting, and security systems. In contrast, “management fees” may encompass not only the maintenance of these shared facilities but also the operational costs of property management companies, routine inspections, and fees for contracted cleaning services.

In reality, there is no strict legal distinction between the two terms, and their usage depends largely on the preferences of the landlord or real estate agency. As such, what may be referred to as a “common area maintenance fee” in one property could be listed as a “management fee” in another.

How Are These Fees Used?

Common area maintenance and management fees are primarily allocated to maintaining a comfortable and well-functioning living environment throughout the property. Typical uses include the regular cleaning of shared spaces, replacement of lighting fixtures, entrance mat maintenance, upkeep of waste disposal areas, elevator inspections, and the operation of security camera systems.

In properties equipped with amenities such as auto-lock entry systems or parcel delivery lockers, the maintenance and inspection costs for these features may also be covered by these fees. Depending on the property, services such as landscaping, snow removal, and pest control may likewise be included.

Furthermore, in buildings where management personnel are stationed on-site or where staff conduct routine inspections, the associated labor costs are often reflected in the management fee. In essence, these fees serve as a shared investment by residents in the quality, safety, and upkeep of the property’s common areas.

Rent vs. Management Fees: Understanding Total Monthly Costs

While common area maintenance and management fees are typically charged separately from monthly rent, some properties present them as “included in rent,” offering an all-inclusive figure. This discrepancy can lead to significant differences between the advertised rent and the actual monthly payment, making it risky to assess a property’s cost based solely on the listed rent.

For instance, a property with ¥70,000 in rent and ¥10,000 in common fees results in a true monthly outlay of ¥80,000. Conversely, a unit listed at ¥75,000 with all fees included may ultimately be more economical. Therefore, it is essential to compare properties based on the total monthly cost, inclusive of all associated fees, rather than base rent alone.

Moreover, there is no standardized formula for determining these fees; they are set at the discretion of the landlord or management company. The amount can vary depending on the building’s facilities, age, and management structure, with typical ranges from ¥3,000 to ¥15,000 per month. In high-end residences or luxury tower properties, these fees may exceed ¥20,000 monthly.

Payment Methods and Important Considerations

Common area maintenance and management fees are generally due on the same fixed date each month, just like the rent. Payment is typically made via the same method as rent—bank transfer, direct debit, or credit card.

However, in some properties, failure to pay these fees may be considered a breach of contract and, in the worst case, could result in termination of the lease. A common misunderstanding is that paying the rent alone is sufficient; neglecting to pay the common fees can result in penalties or being marked as delinquent. Therefore, it is essential to manage bank statements and billing details with care.

Additionally, these fees may increase upon lease renewal. For example, if new building amenities are added or if a change in property management results in higher operational costs, the management fee alone may rise even if the rent remains unchanged. In such cases, tenants should carefully review any renewal notices or revised lease agreements to understand the updated terms.

Key Points to Confirm Before Signing the Lease

While viewing a property, the specifics of common area maintenance and management fees are not always immediately apparent. However, such details are typically outlined in the lease agreement and the Explanation of Important Matters. Prior to signing, prospective tenants should pay close attention to the following points.

First, verify the monthly amount and a clear breakdown of the fees. Ensure that charges are itemized and not simply grouped under vague labels such as “miscellaneous fees.” Transparency is key in evaluating the true cost of residency.

Second, check whether the fees are subject to change during the lease term. If the contract includes wording such as “management fees may be adjusted based on operational needs,” tenants should be aware that future increases are possible.

Lastly, clarify payment deadlines and methods. Outstanding balances at the time of move-out may require settlement, so having a firm understanding of the payment schedule and process will help avoid unnecessary complications.

Evaluating the Balance Between Fees and Services

A higher common area maintenance or management fee does not necessarily mean the property is overpriced. In fact, well-managed properties often offer clean and comfortable shared spaces, reliable security systems, and responsive property management—all of which can significantly enhance the quality of daily living.

Conversely, some properties may charge such fees while failing to deliver adequate upkeep. To assess whether the fees are justified, it is advisable to observe the condition of common areas: Are they regularly cleaned? Are lighting fixtures promptly replaced? Is the bulletin board updated regularly? These details can reveal much about the quality of management.

Since rent and associated costs are a long-term commitment, understanding and accepting all recurring expenses—including those beyond rent—is fundamental to securing a satisfying and well-maintained living environment.