A Vacant House in Bunkyo—What Now? Sale, Use, and Management

Risks Under the System When a Vacant House Is Left Unattended

If a vacant house continues to be inadequately managed, it may become subject to guidance or a recommendation from the municipality under the Act on Special Measures concerning the Promotion of Countermeasures against Vacant Houses (空家等対策の推進に関する特別措置法; the 'Vacant Houses Act'). If, after receiving a recommendation, it is designated as a 'Specified Vacant House' (特定空家等) or a 'Poorly Managed Vacant House' (管理不全空家等), it is excluded from the fixed asset tax residential land special exception—the measure under which small-scale residential land (the portion of 200㎡ or less) has its taxable base reduced to one-sixth—and the land's fixed asset tax can become up to six times higher.

This is not a penalty; it is a tax mechanism whereby the reduction measure applied to land on which a home stands ceases to apply. Beginning to move toward one of management, use, or sale—before the building deteriorates or the impact on the neighborhood grows—is a realistic preparation for keeping the burden down.

*Please confirm the details of designation and taxation with Bunkyo City and a Tax Accountant (税理士).

Three Exits—Sale, Rental Use, and Management

There are broadly three exits for a vacant house: 'sale,' 'rental use,' and 'management.' You do not need to decide on one of them right away. We begin by lining them up and comparing them along the following four criteria.

• LocationHow easy a property is to sell or rent varies greatly depending on the distance from the station and the surrounding environment. We appraise it taking the Bunkyo market into account.
• Condition of the buildingCan it be rented as is, or does it need repairs or renovation? The costs involved directly affect the income and expenses for both 'selling' and 'renting.'
• The family's wishesWhether there is a possibility of living there in the future, whether it is a family home with sentimental value, or whether the heirs wish to convert it to cash and divide it.
• Tax burdenThe fixed asset tax and the like if you continue to hold it, versus the capital gains taxation if you sell. For a judgment on specific tax amounts, please consult a Tax Accountant (税理士).

Yotsuba Real Estate Co., Ltd. helps from the very step of preparing the materials to compare the three.

The 'Special Deduction of Up to 30 Million Yen' for Inherited Vacant Houses

When you sell an inherited vacant house, there is a special provision (the special deduction for capital gains on a residence (vacant house) of the decedent, 被相続人の居住用財産（空き家）に係る譲渡所得の特別控除) that allows up to 30 million yen to be deducted from the capital gains. It is one of the systems worth knowing about when considering the sale of an inherited vacant house.

However, its application is subject to requirements concerning the building, the time period, the conditions of sale, and so on, and judging whether it can be used is the specialized domain of tax matters. For a judgment on the eligibility requirements, please consult a Tax Accountant (税理士). We provide referrals to partner Tax Accountants and support for the sale itself.

Please Also Consult Us About Vacant Houses with Difficult Conditions

'I was told it cannot be rebuilt,' 'It comes with leasehold rights, and I'm not sure whether it can be sold,' 'It's under joint ownership, and things aren't moving forward'—even for a vacant house with difficult conditions, please consult us before giving up.

Whether rebuilding is possible and what options exist for use differ according to individual circumstances, such as the road-frontage situation and the relationship with adjacent land, so we begin by checking the current state. For a property with leasehold rights, sorting out the relationship with the landowner is key to how to proceed; for a jointly owned property, reaching agreement among the co-owners is. While we do not promise whether a sale is possible or on what terms, it is precisely for properties with difficult conditions that a proposal on how to proceed holds value.

The Option of Conversion to a Group Home and the Like

If an inherited vacant house meets the designation standards for a disability group home (communal-living support, 障害者グループホーム（共同生活援助）), it may in some cases be used as a welfare residence. The location and form of a detached house in a residential neighborhood have an affinity with a communal-living-support residence, making this one option for turning the management burden of a vacant house into active use.

However, checks related to the designation standards for disability-welfare services are required—such as the zoning district, the floor area of the rooms, and fire-safety equipment—and the standards differ by municipality and type of business. Please consult us at the stage before any renovation or contract.

Finding a Property Usable for a Group Home

Even If You Live Far Away—A Sale Conducted Online and by Mail

The inherited vacant house is in Bunkyo, while you live far away or overseas—even in such cases, the sale can proceed. The general flow is as follows.

1. 1Online consultationConsultations can proceed online or by phone or LINE. We handle the on-site checks.
2. 2Document procedures by mailThe documents needed for the contract and procedures can be exchanged by mail. Because the required documents and whether your attendance is needed differ according to individual circumstances, we will explain after hearing about your situation.
3. 3SaleFrom appraisal to handover, we accompany you as a local company in Bunkyo.

The preparation of documents involved in legal procedures such as inheritance registration is undertaken under a separate contract by the affiliated 四葉行政書士事務所 (Yotsuba Gyoseishoshi Office). Because acting as an agent for a registration application is the work of a Judicial Scrivener (司法書士), we refer you to a partner Judicial Scrivener. We also handle consultations from those living overseas. If you live in a Chinese-speaking region, please also see the information for Chinese-speaking customers.