Our Business
Our Business Model
Building a unique business model with the fusion of construction business and leasing business based on the concept that “apartment management exists only because of leasing”
We are building our business based on the basic policy that states “Apartment Management Exists Only Because of Leasing” and with our belief that apartment building construction and leased property management are inseparable businesses. From the perspective of property owners, the biggest concern regarding their decision to build an apartment building is “whether it would be possible to continue securing an adequate number of tenants throughout the years.” Consequently, we provide a “Master Leasing System” to the property owners by conducting the Leasing business on our own and by building an organization that can contribute to consolidating a steady income. We resolve the concerns regarding apartment building management for property owners and provide them with a mechanism that makes it possible to commission us with the construction of an apartment building by realizing a “Model of Synergies between Construction and Leasing”.
By owning such a unique synergy between Construction and Leasing, we are able to realize extremely high stability in our business operations.
Providing effective land utilization measures with minimal managerial burden for the owners
The blue area on the left side of the diagram above is our apartment construction subcontracting business segment.
We propose apartment construction to property owners that are interested in effective utilization of land for inheritance tax preparation or for asset management purposes, and construct apartments for the owners who consent with the proposal.
The ownership of the constructed apartment lies with the property owner, but through our 30-year Master Leasing System, we provide everything from 30 years of rent guarantee to management, operations, and maintenance for the apartment. As a result, the property owner is able to manage apartments without having to deal with complex managerial operations.
Providing convenient leasing units that can be leased even for short periods
After the apartment is constructed and master leased, it is transferred to our leasing business sector (Green area on the right side of the diagram above).
The leasing business segment leases apartments managed by Leopalace21 to people who are interested.
Various needs exist within the prospective tenants including, single students, businessmen/women, families, business travelers requiring short term stays, etc.
To respond to these needs, we offer monthly leasing contracts as well as our standard 2 year renewal leasing contracts.
We currently manage over 570 thousand units all around Japan maintaining high occupancy rates, and approximately half of the contracts are corporate tenants utilizing the units as a dormitory or company housing.
