Experts explain how to identify renovated properties and their benefits and drawbacks.
Reviewed by: Nobuyuki MoriPresident, M-Assets Co., Ltd. / Licensed Real Estate Transaction Specialist (Miyagi #018212)
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Renovation refers to comprehensive remodeling and reconstruction of existing buildings to add new value. Unlike simple repairs, renovations are characterized by substantial updates to design and functionality.
In the rental market, this distinction is often unclear, so it's important to confirm specifically which areas were renovated during a property viewing.
The greatest benefit of renovated properties is that the interior is in a condition similar to new construction.
Examples of new fixtures:
While new apartments, especially in central urban areas, command premium rents, renovated properties offer the convenience of new construction at the more affordable pricing of older buildings.
Compared to new buildings in the same area and layout, renovated properties typically offer rent savings of 15-30%.
While the surface may look new, the plumbing and electrical systems behind walls and under floors often remain unrenovated.
Problems that may occur after moving in include:
The skill level of renovation contractors varies significantly from property to property.
Renovated properties are a valuable option that combines the appeal of new construction with the affordability of older buildings. However, because renovation quality varies significantly, it's important to use the inspection checklist during viewings and confirm all unclear points before signing a lease.
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