Rental Housing Management
- Total rental housing units managed by the Group*1
(as of March 31, 2015)
- Total units under management ranking*2
- *1 Total of three companies: Daiwa Living, Daiwa Living Management and Nihon Jyutaku Ryutu
- *2 Zenkoku Chintai Jyutaku Shimbun
The Group meets market needs in the rental housing management business through the concerted operations of specialist operating companies in areas such as subleasing, management and operation, real estate agency, and Internet service provision, offering total support in the rental housing field. Ahead of the complete deregulation of retail electricity sales in 2016, we established an electric power retailing enterprise in fiscal 2014. We plan to make optimum use of the economies of scale made possible by our more than 400,000 individual rental home units under management to offer tenants a full menu of electricity distribution options, including low-cost power.
Although demand in the rental housing market is in reaction to the rush demand ahead of the consumption tax rate hike in April 2014, construction of new properties continues, fueled by demand in response to the raising of the inheritance tax rate among other factors. We are thus faced with the problems of falling rents and a growing number of vacant home units. Amid this environment, we are working to raise the added value of rental housing properties under our management by making renovation proposals to property owners as well as proposals for the installation of additional, state-of-the-art equipment at properties whose vacancy rates are high. At the same time, in our real estate agency business we are employing an online advertising strategy to raise occupancy rates.
We have also commenced a new business line to cater to the rental housing needs of seniors, as demand in this area is expected to continue growing strongly. As a first step, Daiwa Living Management has taken the lead in developing a new business line in the field of rental assisted-living housing for senior citizens. We will continue to expand our range of services in response to changes in the market environment.