Understanding Rental Apartment Management: The Difference Between a Management Association and a Management Company

Management Associations and Management Companies Are Separate Organizations

When living in a rental apartment, you may hear the terms "management association" and "management company." Though these are completely different organizations, they are often confused, leading to uncertainty about which one to contact when a problem arises.

Let's start with the basics.

In short, a management association is a self-governing organization of apartment owners, while a management company is a professional firm hired by the management association.

What Is a Management Association?

Legal Basis and Members

In an apartment building (divided ownership building), each unit owner automatically becomes a member of the management association under the law (Building Owners' Association Act). The moment an owner purchases a unit, they become an association member.

In the case of rental properties, residents (tenants) are not unit owners, so they are generally not members of the management association. However, when an owner of an investment apartment rents out their unit, that owner is a management association member.

Main Roles of a Management Association

• •Decision-making regarding maintenance of common areas (corridors, elevators, rooftops, exterior walls, etc.)
• •Planning and implementing major renovations (major projects like exterior painting and roof waterproofing conducted every 12–15 years)
• •Establishing and amending building bylaws
• •Collection and management of maintenance fees and repair reserves
• •Selection, engagement, and termination of management companies

Rental Tenants Rarely Interact Directly with the Management Association

Rental residents generally have no direct contact with the management association. Maintenance fees and repair reserves are paid by owners to the management association, not by tenants (though tenants may indirectly bear this cost as part of their rent).

However, building bylaws established by the management association do apply to tenants. Rules such as "no pets," "no musical instruments," and "garbage disposal guidelines" are often based on these bylaws, so it is important to review them in your rental agreement.

What Is a Management Company?

A Professional Firm Contracted by the Management Association

A management company (apartment management company) carries out building operations on behalf of the management association under a management service contract. There are numerous management companies throughout Japan, and major ones include Daikyo Astage, Hasekō Community, and Sumitomo Realty & Development Building Services.

Main Operations of a Management Company

Daily Management Operations:

• •Cleaning and inspection of common areas
• •Maintenance and inspection of elevators and equipment
• •Response to suspicious persons and disruptive behavior
• •Collection of maintenance fees and repair reserves
• •Handling tenant inquiries and complaints

Administrative Operations:

• •Assistance with management association meetings and board meetings
• •Obtaining quotes and placing orders for renovation work
• •Income and expense management and reporting

When Should Tenants Contact the Management Company?

The most common situations in which rental residents contact the "management company" include:

• •An elevator is not working
• •A corridor light bulb is burned out
• •Water leakage or damage in common areas
• •The garbage collection area is scattered
• •Persistent noise from a neighboring unit

However, in rental properties, residents' initial point of contact is usually the "rental management company (or landlord)," not the "apartment management company." Issues are typically handled through the management company or landlord associated with your rental agreement.

Understanding the Two Meanings of "Management Company" in Rental Housing

When the term "management company" is used in the context of rental housing, it is important to distinguish between the following two:

① Rental Management Company (Property Management Firm)

A company that handles rental agreements with tenants, responds to day-to-day complaints, and collects rent on behalf of the landlord (owner).

• •Role: Tenant recruitment and screening, rent collection, arranging repairs, handling lease renewals and move-outs
• •When to contact: Rent payment, lease renewal, repair requests, complaints, etc.

② Apartment Management Company (Building Management Company)

A company contracted by the management association to maintain common areas. It generally has no direct contractual relationship with rental tenants.

• •Role: Cleaning of common areas, equipment maintenance, and assistance with management association operations
• •When to contact: Emergencies in common areas (power outages, elevator failures)

Generally, rental tenants should contact ① the rental management company (or landlord).

Correct Points of Contact for Repairs and Problems

Problems in Private Units (Your Apartment)

For problems such as a broken faucet, a non-functioning air conditioner, or a broken lock, contact the rental management company or landlord. Repairs to private units are the landlord's responsibility (under Civil Code Article 606), so you should first notify the landlord.

Problems in Common Areas

For problems such as a non-functioning elevator, a burned-out corridor light, or a crack in the building exterior, contact the rental management company, which will then contact the apartment management company. In emergencies, you can contact the apartment management company's emergency hotline directly. The management company's contact information is usually posted at the entrance or on the building notice board.

Neighbor Disputes (Noise and Disruptive Behavior)

Contact the rental management company or landlord first. The management company will then contact the neighboring unit's owner or resident.

Relationship Between Building Bylaws and Rental Rules

Building bylaws apply not only to unit owners but also to occupants (including rental tenants) (Building Owners' Association Act Article 6).

In other words, rules stipulated in building bylaws (pet prohibition, restrictions on musical instrument playing times, garbage disposal methods, etc.) must be followed by tenants.

When moving in, confirm whether you "received a copy of the building bylaws (or house rules)." If you did not receive one, request it from the real estate company or landlord.

Summary: Key Points Tenants Should Remember

• •Management Association: A self-governing organization of owners. Though tenants are not members, they are bound by the building bylaws.
• •Management Company (Rental): Contact here first for day-to-day rental issues
• •Management Company (Building): Contact here for emergencies in common areas and equipment (contact information is posted at the entrance)
• •Repair Costs: Private unit repairs are the landlord's responsibility; common area repairs are handled by the management association (using repair reserves)
• •Building Bylaws: Review the contents when moving in and familiarize yourself with the rules

When a problem arises in a rental apartment, contacting the wrong party can delay resolution. It's helpful to note down the contact information for both the "rental management company" and the "apartment management company" at the time you move in.

Sublease properties involve a complex contract structure with three parties: the owner, management company, and tenant. This guide clarifies key issues that foreign renters should understand beforehand—from confusion about points of contact when problems arise, to unclear responsibility in move-out settlements, to risks if the management company fails—from an industry practice perspective.