High-end Realty Specialist

Amid aging buildings, population decline, and the increasing age of residents, condominium management across Japan is facing serious and widespread challenges. In response, the government is moving forward with a comprehensive review of the Model Rules for Condominium Management and related systems, with major institutional reforms scheduled for 2025. To shape the direction of these reforms, three expert meetings were held between June and September, covering a broad range of topics.

One of the core pillars of the revision is the expanded use of reserve funds for repairs. Traditionally, these funds were designated solely for repair work, but in reality, various costs arise—such as inspections, design, and overall management operations. Under the 2025 revision, reserve funds may also be used for practical needs beyond repairs, including pre-demolition preparation costs. This shift positions the reserve fund as “usable capital” for future reconstruction or redevelopment, making long-term planning more feasible for condominiums.

Another major point is the clarification of the authority to claim damages. When accidents occur in common areas, it has long been unclear who may file a claim on behalf of all unit owners. The upcoming revision is expected to explicitly authorize the board chair to act as the representative claimant. Furthermore, all compensation received must be used for repairs or prevention measures benefiting the entire condominium, ensuring fairness and transparency.

To address the nationwide issue of shortages in board members, an option allowing family members or relatives of unit owners to perform board duties is being considered. Additional reforms include mandatory identity verification to prevent impersonation, stronger disaster-prevention measures—such as standardized manuals and evacuation route checks—and clearer rules regarding smoking within condominium premises.

Several mechanisms that improve decision-making are also being introduced:
• Relaxed voting requirements for major resolutions
• A system to exclude unreachable owners from voting
• A new domestic representative system for owners living overseas
• A court-appointed management system for abandoned or poorly managed units

Together, these reforms represent a major turning point—shifting condominium management from one where responsibility falls on a small number of board members to a collaborative model supported by all owners.

In the full article, we explain all 12 reform points in greater detail.

“How exactly will the reserve fund rules change?”
“What new responsibilities will the management association take on?”
“How will these reforms affect buying, renting, or investing in a condo?”

We break down each question clearly so that readers can understand how these changes may impact their daily lives and future housing decisions.

Because these revisions will shape the future of the homes we live in,
we invite you to read the full article and explore the details as your own matter of importance.

 

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