Apartment buildings require maintenance and repairs to ensure a safe and comfortable environment for residents. To cover these costs, apartment owners pay a monthly fee that is saved up in the building’s repair fund. According to the Ministry of Land, Infrastructure, Transport and Tourism, the average monthly repair fee should be approximately 200 Yen per square meter (based on the interior floor area of an apartment). For a typical family sized apartment of 70 sqm, this would amount to around 14,000 Yen a month.

The amount to be collected as repair fees is decided by the building’s owners association (although they are initially decided by the developer). Ideally the fees should be set at a level that ensures enough money is accumulated for the scheduled repairs.

For example, if exterior repainting needs to be done every 12 years and water pipes replaced every 30 years, enough money needs to be put aside each month for these essential repairs.

Unfortunately there are a number of cases where the amount in the reserve fund is insufficient. This can happen when the repairs required have exceeded initial estimates, or when costs have risen to unexpected levels (which is currently evident with a steep rise in material and labour costs). Developers may also be to blame by intentionally setting repair fees at low levels in order to attract buyers.

To make up for insufficient funds, additional fees can be collected from apartment owners in two ways:

[1] A one-off payment.
[2] An increase in the monthly fees.

If the scheduled repairs are drawing near, many owners association tend to choose the one-off payment option. If the payment is considerably high, it may be possible for the association to borrow the funds to cover the repairs. The loan is then repaid through a temporary hike in monthly repair fees.

The decision is ultimately up to the owners association. If the vote to increase fees is successful at a general meeting, those who were opposed must also abide by the new rules. All owners are treated equally and no consideration is given to those who just bought into the building or those who have owned their apartment for several decades.

Building repairs chart

What happens if a building is not properly maintained?

If an apartment building is not carefully maintained and cared for over the years, it can easily fall into disrepair. Not only does the quality of life for residents diminish, but conditions can deteriorate rapidly if ignored for a long period of time.

It is important to think outside of your apartment. While you can replace the water piping and electrical wiring in your apartment, the piping to your apartment is the responsibility of all apartment owners. If the rest of the residents are negligent, this has a negative affect on the value of your property.

The 42-year old Nakagin Capsule Tower building in Ginza is a more well-known and perhaps obvious example of what happens when a building is not maintained. In 2010 the hot water supply had to be turned off due to aging pipes which needed to be replaced. As a result, the few remaining residents of the building must either install a small water heater in their 10 sqm apartment, or use the single communal shower placed outside  in the building’s service entrance alongside the street. Redevelopment plans were raised but discussions came to a standstill due to the high cost that each apartment owner would need to pay for a new apartment (estimated to be around 11 million Yen each) and the difficulty in contacting a large number of absentee owners.

Nakagin Capsule
Nakagin Capsule Tower and the outdoor shower room.

Source: The Nikkei Shimbun, November 5, 2014.

Loading