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This time, it was distributed on CONSPIRIT's official channel on YOUTUBE.

Episode 14: Improve your QOL through real estate management!I would like to send you the contents.

Well, this time's topic is "AD” That's it!

Rental management and leasing are inseparable topics.

Please take a look if you are an owner or are aiming to become an owner in the future.

 

Although it is basic, AD is

A word used in the rental management and rental agency industry.advertising fee'This refers to...'

 

AdvertisementIt's an abbreviation of.

 

In the first place, when you ask a real estate agency to recruit tenants and a contract is concluded,

A statutory "agency fee" will be charged as a success fee.

 

In principle, the only remuneration that a brokerage company receives is the brokerage fee.

Apart from thatAn "advertisement fee" is set as a promotional fee to attract tenants.there is.

This is "AD".

 

The basic "promotional expenses" for renting are

The general interpretation is that it is included in the brokerage fee.

In the "Remuneration Notification" established by the Ministry of Land, Infrastructure, Transport and Tourism,

In the case of leasing, the maximum amount of compensation you can receive is "up to the equivalent of one month's rent."

 

reference:https://www.mlit.go.jp/common/001213871.pdf

 

This "AD (advertising fee)" is,

The proviso in Article 9, paragraph ① of the "Remuneration Notification"

``However, this does not apply to the amount equivalent to the fee for advertising conducted at the request of the client.''

``AD'' is treated as applicable here.

 

To be honest, it's more like an "incentive" for rental agencies.

There are also cases where the food is digested in a certain way.

It can be used to cover one month of free rent,

Other measures to reduce initial costs for residents

It may also be allocated to the budget.

 

On the display,

"AD100" or "AD1" is equivalent to one month's rent,

"AD200" and "AD2" are equivalent to two months' rent,

represents.

Even if it is a conspirit property, it is a rural property...and a suburban property far from the city center.

Sometimes leasing is done in partnership with a local company,

In such a case,AD300" Sometimes the condition comes up.

(I think the going rate is around 100 or 200.)

 

This increases costs for the owner,

Of course, this is not a welcome story.

Nobody likes to spend money, right?

 

The only important thing is

In the current rental brokerage market,

This "AD (advertising fee)" is,

It's becoming commonplaceThat's the point.

 

In fact, nationwide, there are more properties and areas where you can get by without paying advertising fees.

It may be rare.

As it becomes common to wear

On the contrary, it becomes noticeable that it is not attached,

If there is an AD in the same area and similar type of recruitment,

There is also the aspect that we have no choice but to adjust the conditions accordingly.

 

Considering this situation,

In the current era, it is considered a "necessary expense" for renting,

How to control it strategically and effectively

It may be better to shift your thinking to this.

 

With this budget available to rental agencies,

This will also lead to more conditional negotiation options,

It is true that it will be easier to decide.

 

You can also think of it this way.

For example, if there is an area where it takes an average of 4 to 5 months to find a tenant,

By investing the equivalent of two months' rent (AD200),

If the room is decided within 2 months of being vacant,

It can also be interpreted as 4-5 months of lost profits being reduced by 2 months.

 

From the owner’s perspective,

“AD (advertising fees)” is still an expense, but

When recruiting, don't talk emotionally;

"logical/strategicWe recommend that you control it in a "position."

 

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