Upside-down real estate system enriching the community through “akiya”

In Japan, where the birth rate is declining and the population is aging, the problem of akiya (vacant houses) has become a serious issue in recent years. According to the Japanese government, the number of akiya in Japan increased by about 1.9 times (from 1.82 million to 3.47 million) in the 20 years from 1998 to 2018, and it is expected to continue to increase rapidly in the future. When akiya are left unattended, there are various adverse effects such as collapse due to deterioration of buildings, fires and illegal dumping of garbage.

Sakasama Fudosan is rethinking the structure of conventional real estate in response to such issues. By disclosing information about people who want to rent instead of property itself on the platform, they are trying not only to solve the problem of akiya but also to create a new regional cultural trend. We interviewed Takefumi Mizutani, the representative of Sakasama Fudosan, about the akiya problem and his efforts to solve it.

From interest in restoration of old folk houses to akiya problem

Mizutani, who was originally engaged in the utilization of Japanese old folk houses, has experience renting a tenement house near Nagoya Station in Aichi Prefecture and running a shared house. He used to be a gardener, so he started to DIY everything from interior decoration to furniture.

Mizutani: Through the owner of the first property we rented, we decided to rent other akiya. I was surprised at the number of akiya that were not listed in the real estate information. Then I realized that I had been unintentionally solving the problem of vacant houses and running a community and came up with the current concept of Sakasama Fudosan. In addition, based on our experience of directly negotiating with owners through renovating and managing the space, we decided to start a service of Sakasama Fudosan that actually matches property owners and renters of akiya.

Rethinking ways to rent vacant houses in Japan

The problem of akiya is so serious that it is estimated that the number will exceed 40% by 2040. On the other hand, owners are reluctant to disclose information about akiya for reasons of privacy and relationships with neighbors.

Mizutani: I think we need to start thinking about how to utilize and dispose of akiya from now on. According to a survey by the Ministry of Land, Infrastructure, Transport and Tourism regarding the problem of vacant houses, 15.6% of respondents answered that they were willing to provide real estate information to the general public. In addition, there were many owners who were not willing to disclose information, and 34.4% answered that they did not intend to provide information at all.

On the other hand, 45.8% of owners were considering renting houses depending on the renter, usage method and rental conditions. I feel that there is a big gap between the current state of information disclosure and the owner’s true intentions. I came to think that the owners would rent out the akiya through trust and communication with the residents.

“Upside down” relationship between owners and renters

Mizutani had an uneasy feeling towards the difficulty of disclosing real estate information, so decided to publish the information about renters instead of owners. That is exactly the “upside down (sakasama in Japanese)” relationship. Therefore, Mizutani and his colleagues first interviewed people who wanted to rent properties.

Mizutani: This interview is, so to speak, the work of verbalizing what the renters want to do with the property. We also provide free consultation and follow-up on space creation. Some people point out the fact that we provide consulting services for free. If we receive a brokerage fee, the focus would be on how many properties can be contracted. Instead of “quantities,” we want to focus on seeing how people connect through akiya and what kind of story they will create.

Why “upside down” system?

In 2018, Sakasama Fudosan implemented crowdfunding and started operating the service in 2019. Their site archives information on people who want to rent akiya. In fact, since the service was released in June 2020, there have been 14 matching cases.

Mizutani: At Sakasama Fudosan, we devised a system in which owners do not have to provide real estate information. The reason why the owners do not want to disclose information is that they feel it could raise safety issues. For example, the address is specified, so akiya in areas with few residents are at risk of intrusion.

Also, publicizing whose house is vacant can complicate things socially in the neighborhood. Some Japanese neighbors might ask personal questions to the owner such as “Are you going to give up your parents’ house?” or “Are you in trouble with money?”

Mizutani: Owners want to use akiya for the sake of the town, so I think it is important to stimulate their desire to “rent with a purpose.” The essential thing is to motivate the reluctant owners to say, “I want to rent the property if it could be used in this way.” Also, we are striving to find better ways to connect unlisted vacant properties with people who could benefit from these resouces.

Involving the community to create new connections between people

Through Sakasama Fudosan, a wide range of businesses and people, including bookstores, bicycle stores, marine plastic artists and candy stores, have been successfully matched with akiya properties. In addition, their communities have also been strengthened.

Mizutani: In general, real estate agents end their relationship with customers once they mediate between the owner and them. However, at Sakasama Fudosan, we have observed that people who have been matched invite new people and liven up the town. If it is clear what you want to do with the akiya property, it will become a force to attract other people. A relationship has been created in which a key person in the region intervenes and invites other players to the region.

That’s why I think it’s important to picture what kind of people you want to bring into the town. Sakasama Fudosan takes action based on the renter’s desire to lease a property. Many of the matched renters have dreams and a strong motivation for community development. So, I feel that the presence of “local influencers” who are active in the region is a key point for town planning.

In the future, Sakasama Fudosan plans to start a branch office system not only in the Tokai region but also in each region of the country. Through these initiatives, he hopes to create a flow in which diverse people can develop businesses and cultures in the region, rather than simply filling akiya.

Mizutani: Three regions have already started developing branch offices. We are currently receiving inquiries from 15 regions, and holding a study session on the problem of akiya. In the future, I would like to work on our actions across the country and build a network of information regarding akiya solutions.

Editor’s Note

In order to solve the akiya problem, it is necessary to actually match such houses with people who want to rent. However, if there is little interaction with local people, it will be difficult for renters and property owners to cooperate. Not being able to exchange information with each other or not being aware of the existence of akiya for rent are the examples of the barriers. As an approach to the problem, Sakasama Fudosan not only matches akiya with people who want to rent out properties but also takes the possibility of interaction within the community into consideration.

In addition, the branch office system, which Mizutani said he would like to work on in the future, will likely create connections between people nationwide, not only in specific regions. As a result, Sakasama Fudosan’s initiatives could also contribute to tackling social isolation issues besides the problem of akiya.

Originally published on IDEAS FOR GOOD.
Translated by Mari Kozawa.

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