In April 2026, Japan introduced a new “domestic administrator system,” which allows condominium owners living outside Japan to appoint an individual or company to act on their behalf.
A domestic administrator is not just an emergency contact, either. They have real power and responsibilities, including receiving owners’ association meeting notices, exercising the owner’s voting rights, and paying management fees and repair reserve fund contributions. This means that a domestic administrator’s actions can affect not only the owner, but also the management and finances of the entire building through their votes and payments.
The new system addresses several common issues faced by property owners living outside Japan. Problems can arise when owners cannot be contacted, do not participate in owners’ association votes, or fall behind on management fees or repair reserve fund payments. By having someone in Japan act as an intermediary, communication between the owner and condominium association can become much smoother, making it easier to handle important decisions.
At the same time, however, it is important to understand where the rules currently stand. The domestic administrator system was introduced as part of the revised Act on Building Unit Ownership, but it does not currently require all overseas condominium owners to appoint a domestic administrator. Importantly, though, individual buildings can make the appointment mandatory through their management regulations.
Potential conflicts of interest remain a concern. Restrictions regarding who can be appointed as a domestic administrator are limited, and both individuals and corporations are eligible. Because the appointed party does not necessarily live in the building for which they have been given rights, they may not have a genuine vested interest in matters such as condominium management, large-scale repairs, or contractor selection. At the same time, they may be allowed to vote on issues such as repair timing, budgets, and project scope.
Major repairs are especially sensitive. As we saw in a recent article, just one or two people can hold a considerable amount of decision-making power. Decisions regarding large-scale repairs can affect how much is taken from the repair reserve fund, whether owners face additional payments, whether monthly reserve fund contributions later increase, and the building’s long-term financial condition. Because of this, even if you trust the person, you may want to appoint a domestic administrator whose interests are naturally aligned with keeping the building in good condition, such as another unit owner in the same condominium.
If you are considering purchasing a condominium from overseas, you will want to review the building’s management regulations to confirm whether appointing a domestic administrator is required. If it is, make sure to confirm:
- When the requirement applies
- Whether companies may be appointed
- What information must be submitted
- Whether parties connected to management or repair work are restricted
- Whether the building has clear conflict-of-interest rules
- Whether domestic administrator details are actively reviewed by the board or simply recorded by the management company
If you currently own a condominium in Japan and plan to move overseas, you will want to identify potential domestic administrators sooner rather than later. In particular, try to confirm whether they have any existing relationships with the management company, repair contractors, consultants, or design and supervision companies. Make sure you understand what you are agreeing to before officially appointing them, and inform the owners’ association of any changes to the appointment.
While this system can make managing a condominium from overseas more, well, manageable, it is also a new garden full of thorns. Both foreign buyers and overseas owners will need to take extra care to understand their building’s rules regarding domestic administrators. This is still a new system, so most buildings cannot reasonably be expected to have fully adapted to it yet. Ideally, however, they will establish clear rules regarding selection, disclosure, and conflicts of interest. And do not forget to be especially careful about whom you appoint.
Ready to get started with buying (or selling) your condo or home in Japan? The Dovetail team is ready to hear from you.
Source: https://yokohama-mankan.com/domestic-manager-selection-criteria/