Get a house for free after living in it for 7 years!? A new common sense for housing, changed by vacant houses in rural areas

A unique initiative that combines vacant house countermeasures with regional revitalization is underway in Kawanehon Town, Shizuoka Prefecture.

To start off, what would you think if you heard, "If you live in a house for 7 years, you get it for free"?

Some of you might think, "Wait, really?" while others might think, "There must be a catch..."
However, this is an initiative that is gradually spreading in various places.

Today, I would like to write about a somewhat unusual system called rent-to-own housing.
I have introduced this system on my note a few times before.

The case in Kawanehon Town, Shizuoka, that I saw in the article this time was introduced as "rental housing with transfer of ownership", but I think it is almost the same thing.

This is an idea that creates a middle ground, rather than just "renting" or "selling" a vacant house.

I think this is a story that can make both business operators who want to utilize vacant houses and the owners themselves think, "Oh, there is such a way to use them."

To begin with, what is "rent-to-own"?

To put it very roughly, it is a contract method where "you rent at first, but if you continue to live there for a certain period, we will give you the house.".

For example, it looks like this.
It's like, "Please pay 50,000 yen every month and live here for 7 years. After that, if you meet the conditions, we will transfer this house to you."
It is a system where you gradually move closer to future ownership while living there.

The big appeal for the borrower is that they can aim to own a home in the future without taking out a mortgage.

A "realistic exit" for owners

The reason why people who own vacant houses cannot easily take action is that they are caught in a triple bind: "it won't sell immediately," "but management is difficult," and "but it costs money to demolish it."

They want to sell, but there are no buyers.
It hurts to leave it abandoned.
But they have neither the energy nor the funds to take action.

For such people, rent-to-own becomes a realistic exit where they can "let someone live there for now, and eventually let it go."

If someone is living there, ventilation and water flow are handled naturally.
The risks of plants growing wild, leaving roof leaks unnoticed, or illegal trespassing are also significantly reduced.
You get rental income, you can eventually let it go, and your management worries are reduced.
I think it is quite an attractive story for owners.

However, there are also disadvantages

You might think, "Then everything will work out, right?" but the reality of vacant houses is that it is not that simple.

For the owner, the sale proceeds do not come in immediately.
The contract design is also a bit complicated.
The risk of tenant trouble or unpaid rent is not zero.

Also, in the case of vacant houses, you need to be especially careful, and you have a responsibility to check in advance and properly explain points such as building aging, roof leaks, termites, earthquake resistance, boundary issues, and whether it can be rebuilt.
If you start with the feeling of "just rent it out for now," it can lead to big trouble later.

Borrowers should also not act on dreams alone

I would ask you to wait a moment before jumping at the idea of "pay rent and get a house!"

After the transfer, you will inherit the responsibilities of homeownership, such as property taxes, insurance premiums, maintenance costs, grass cutting, and future demolition costs.
Whether you can be happy about "acquiring an asset" depends significantly on the condition of the building and its location.

Another important point is what happens if you can no longer continue living there midway through.
Job changes, nursing care, illness, or a decrease in income.
There are many unpredictable things in life.
You need to confirm clearly before signing the contract: "What happens to the rent I've paid so far if I have to move out before the 7 years are up?"

Who is this system suitable for?

For those on the renting side, it is suitable for those considering moving to rural areas or families raising children who want to live in the same place for a long time.
Conversely, I suspect this is exactly who these initiatives are targeting.

The ability to check your compatibility with the local community while living there is a big advantage.
It is very common to hear people say, "It was more inconvenient than I thought after moving in," or "The local people were warmer than I expected."
Being able to make a decision after living there also helps to lower risks.

Furthermore, knowing that it might become your own home in the future makes it easier to be proactive about garden maintenance, small DIY projects, and renovations.
This is also a benefit for the vacant house side, as it means the tenant will take proper care of the property.

What opportunities are there for businesses?

From here, I will change my perspective a bit and talk to those involved in the vacant house business.

Since transfer-type rentals have complex contract designs, there is plenty of room for professionals to get involved.

For real estate companies, there is a role in coordinating contracts that differ from standard sales or rentals. For licensed professionals (judicial scriveners, administrative scriveners, lawyers), there are opportunities to be involved in drafting contracts and organizing property rights. For architects and building inspection experts, there is a need for building surveys before the transfer. For renovation contractors, new forms of business emerge, such as pre-move-in repairs or supporting DIY projects while the tenant is living there.

From the perspective of a vacant house manager, I believe the role of bridging the gap between the owner and the tenant while accompanying them through the process of a safe handover is very important.
Ensuring that there are no "I wasn't told" or "I didn't know" situations after the contract is signed is the key to whether this system will take root in the community.

It is not a "system for acquiring a house cheaply"

I will say this quite firmly: the essence of a transfer-type rental is not a "convenient way to get a house cheaply."

【It is a system for safely handing over a vacant house to the next person】

Visualize the condition of the building.
Decide on the division of repair burdens.
Properly explain taxes and expenses.
I believe it only "works" when such processes function properly.

Without that, it could easily become just a "dumping of dilapidated buildings."As someone who has seen the reality on the ground, I want to write this honestly.

Things you should prepare in advance

Finally, for those who are interested in getting involved in this system, I will share a few small points to check.

For owners, please start by understanding the condition of your vacant house.
This includes basic information such as whether there are roof leaks, seismic resistance, confirmation of boundaries, and whether it can be rebuilt.
If this "visualization" is not done, no system will help you move forward.

For business operators, it is helpful to research contract examples of rent-to-own schemes and the initiatives of pioneering local governments.
I think you will find hints on how you can get involved in your own industry.

So, today I wrote about the mechanism of rent-to-own housing, using the somewhat unique initiative of "get a house for free after living in it for 7 years" in Kawanehon Town, Shizuoka Prefecture, as an entry point.

If you thought, "Could my vacant house be used this way?" or "Could I combine this with my own work?", please feel free to send us your comments or inquiries.

▼ Thank you for reading until the end.
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▼How to start a "Regional Happy Business" created with weekend side jobs and weekday multiple jobs
"Your business might save the 'region'."
When people think of vacant house management, they tend to think of real estate or construction professionals.
But in fact, it is compatible with various industries.
In this series, we introduce "different industry" jobs that create unexpected chemical reactions with vacant house management.
You should be able to find something that sparks an idea within yourself in "Different Industry x Vacant House Business."
Why not start with "I'm a little interested"? Your sensibility might be the first step in changing the region.

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