• Frequently Asked Questions

Frequently Asked Questions

  1. Q1 We are considering taking out a loan from a financial institution. Does your company do any introductions to or affiliated loans with financial institutions?
    A We do not have any specific affiliated loan programs or the like at our company. However, we are certainly able to introduce you to financial institutions we conduct business with. We believe that the financial institutions our customers do business through are the easiest to work with, due to them thoroughly understanding the customer's attributes and the like. After executing the CA, we will provide the necessary documents (PL, etc.) and other required measures.
  2. Q2 Is it possible to preview properties through a computer or smartphone?
    A This is possible. Please let us know which property you are interested in. In addition to the property showing, we will also introduce you to the surrounding area and tourist spots near the facility.
  3. Q3 After purchasing the property, what expenses (if any) will be associated with the owner (per year)?
    A The owner (proprietor) is first obligated to pay taxes and other public dues including property tax and fire insurance. As well, depending on the property, the owner may be required by the Building Standard Law and the Fire Defense Law to pay inspection fees. We will inform you of the estimated costs for property tax and fire insurance for each property, as well as the inspection fees that will be contractually required.
  4. Q4 What is the warranty period for buildings, etc.?
    A The warranty is fundamentally inherited based on the contracted terms and conditions from when the building was contracted for construction as well as the contractor's warranty. Warranties for equipment and the like are also inherited, but only within the warranty period of the manufacturer.
  5. Q5 Will I be required to re-sign a fixed-term lease agreement? As well, am I able to terminate the contract mid-term?
    A In regards to the fixed-term lease contract, it can be terminated by the owner once the term has expired. This means that regardless if our company, who runs the operations, wishes to re-sign the contract, it can be legally terminated.
    However, mid-term contract terminations were never something we provided originally, so the owner will be required to continue with the terms (all 2-year contracts), from the point where you inherit the contract and until the designated expiration date.
    With that said, if you do wish to conduct operations independently and agree to individual terms with our company, we can discuss measures such as terminating the contract and handing it over to you.
  6. Q6 What were the expenses incurred during the time the property was managed by Real?
    A A rough estimate will be given for each property that will be based on actual performance and other factors.
  7. Q7 What percentage of patrons are comprised of foreign tourists? Which countries do they come from?
    A Prior to COVID-19 in 2019, more than 70% of our patrons were from international travelers. China, Korea, and Taiwan accounted for approximately 50% of our total patrons. Post COVID-19, the number of tourists from Europe and the U.S.A. has been increasing.
  8. Q8 Has any earthquake resistant reinforcement been done (for the Kyomachiya properties)?
    A Earthquake resistance inspections are done on most of our properties, and the necessary reinforcement measures are included during the time of construction.
  9. Q9 Is it possible to get a loan (for a Kyomachiya property)?
    A There are some cases where a Kyomachiya profile, etc. have been acquired, and instances where local financial institutions in Kyoto could provide low-interest loans. Some financial institutions are even actively working with us based on our track record of utilizing Kyomachiya.
  10. Q10 Are there any advantages to running a ryokan inn business (for a single facility project such as a Kyomachiya)?
    A In recent years, there has been an increase in families and groups of acquaintances renting a single Kyomachiya house. A part of this was caused by the influence of COVID-19, but these lodgings are also considered popular to both domestic and international tourists (according to questionnaires at these facilities). Tourists come to Kyoto so they can experience the ancient capital, where they are able to spend time in privacy, but also enjoy the old customs (e.g., wearing kimonos and yukatas).
  11. Q11 Is Real able to do management (for rental apartments or tenant buildings)?
    A Our company group has a rental management company that specializes in this field, so please contact us for further information.
  12. Q12 It is a popular accommodation type with a reasonable investment price.
    A We would like to know how long it takes to newly obtain an hotelier license and how much the application fee will be. Even if the application process goes smoothly, it will take about four months. The application fee varies depending on the size of the property, so please consult with an administrative scrivener to get a clear idea of the cost. In addition, depending on the property, it may be necessary to install additional equipment, such as fire prevention and security systems, or to carry out construction work to meet the application requirements.