Land Trust Co., Ltd.

Representative Director

Satoshi Komori

satoshi komori
Solve Rental Vacancy Issue Together with Local Real Estate Firms

Today, it is said that about 12,000,000 households use private rental housing in Japan. There are about 16,000,000 private rentals in the market, meaning about 4,000,000 houses remain empty. We at Land Trust aim to solve the housing vacancy issue in each community in cooperation with local real estate firms.

Name
Land Trust Co., Ltd.
Headquarters
24F World Business Garden Malibu West, 2-6-1 Nakase Mihama-ku, Chiba, Chiba
Founded
1992
Type of business
Master lease and property management
url
https://landtrust.co.jp/
The vacancy issue stems from surplus supply. Since there are no regulations on the construction of private housing, housing manufacturers construct 400,000 houses every year across Japan as a means of reducing inheritance tax for clients, not for the purpose of meeting market demand. In the future, the population of Japan will decrease, and the number of households will hit the ceiling. Obviously, the number of unoccupied rental houses will clearly increase although they can secure tenants for the first several years after construction. Then, the owners of apartment buildings and the real estate agencies managing the operation will be at a loss most.

The real estate firms at risk tend to be unable to find tenants because they cannot transmit housing information or set rent prices due to the aging of corporate managers and/or lack of successors. Compounding this, such real estate firms tend to have close relationships with housing owners, making it difficult for new players to replace them. We really understand the situation, having run business in the real estate industry for nearly 30 years since we also started as small-scale real estate agent. Accordingly, we developed Land Master, the lease guarantee system for pre-existing housing to solve the housing vacancy issue while preventing conflict between housing owners and other real estate firms.

Land Master is an administrative outsourcing service which leases each unit of apartment through local real estate agencies, and engages in operations ranging from the invitation of new tenants to the tasks connected to tenants’ moving out. We can deploy our businesses while keeping good relationships with local real estate firms because they can continuously manage buildings and communicate with housing owners while reducing leasing costs. Today, we have nine offices within Japan from Kanto to Kyushu and over 700 partner real estate agencies, having operated Land Master since 2014. Our success is greatly attributable to the segmentation and division of all businesses. In fact, very recently, we have managed to make profit, having made prior investment and employed human resources to arrange the system. I feel the growth of the company has accelerated as the implementation of businesses has accelerated.

The real estate industry is sensitive to influences of the time. Having experienced the burst bubble economy and the Lehman shock, I realized that business models in real estate development and real estate ownership do not last long. Land Master’s business model is that of serving as the landlord without owning real estate, developed based on my experience. As a matter of fact, there are no fixed property taxes or risks affected by interest rate fluctuation. The housing we handle is generally older, like 30-year-old buildings, and the locations are not very close to the station. That’s why the large-scale real estate companies rarely get involved. However, there is constantly a demand for such rentals in society. To put it simply, price matters. As a lessor, we aim to solve the issue of ever-increasing unoccupied housing in Japan by promptly providing rentals that have the lowest financial burden in the community.

We are planning an initial public offering (IPO) based on the Land Master business in three years, or in the fall of 2022 for two purposes. One is to raise social credibility, and the other is to have a new perspective. If you go up on a high mountain, you will be able to see farther. I and our employees will have higher goals if we can see the long view. We look forward to having the day of stock listing very much.
In three years, we will start a development-based real estate business in Tokyo when our sales reach ten billion yen, visualizing a two-layered real estate owner business. We are also planning to purchase rental businesses from real estate firms while taking on owners and advancing the business gradually.

The private rental market is very large: the annual market size is approximately 8 trillion yen while the number of rentals is about 12,000,000, and the average rent is 52,000 yen. In our long-term management vision, we aim to take 1% of the market in ten years, which corresponds to 80 billion yen. Such a big goal. To achieve it, we should expand the corporate scale. We would like to establish a strong base for the organization for meaningful expansion.

satoshi komori
satoshi komori

*Information accurate as of time of publication.

Land Trust Co., Ltd.

Representative Director
Satoshi Komori