Renting out owned land to business operators - process
Posted: Mon Apr 01, 2024 11:53 pm
Basically, can I simply rent out land I own outright for others to perform business on, or do I need to walk a bureaucratic process myself first?
This is probably a very niche query, applicable to very few situations other than my own, but perhaps some may be able to point me in which ways to further my avenues of research.
I bought a plot of land outright many years ago that I had planned to build on, but life events caused that not to happen... I'm in a lucky situation that the Village Office that the land is in does NOT charge a property tax on any land that is unbuilt on (colleagues in the neighbouring City certainly bemoan paying property tax yearly for their unbuilt-on land...)
The land when purchased had a category of being 野原 (wilderness?) and definitely had a buildable area/height ratio listed (70%/200% from memory) against it, and so whilst being in amongst a farming area, construction on the land was/is possible. I'm assuming therefore the land does NOT have to be used as farming land only if offered out for rent?
My thought now is to rent the land out for others to use as a business site (Kayak/SUP tour operator, Kitchen car(s), Container cafe (i.e. anyone who can provide their own non-permanent structures (containers/prehabs for eg).
My query is do I need to gain permission from the Village Office prior to renting out my land as such? Or does this become any potential renter's responsibility/duty of care?
I've spoken to a couple of realtors who were more than pleased to put the land up on their sites straightaway after explaining my business-use rental hopes, but because I wanted to dot the i's and cross the t's, and not fall foul of Japanese law, I put such a prohibitory high monthly rental figure against it so that there'd be no real interest, allowing me the time to sort these details out first.
There have now been some "いいな"s on the online real estate sites and so I’m keen to drop the price to a more reasonable level and hopefully create myself an additional monthly income stream.
But I also don’t want to mis-sell the land as being “perfect for a marine sports operator” (for eg) if the village office deems that it isn’t so…
Any advice or comments very much welcomed.
This is probably a very niche query, applicable to very few situations other than my own, but perhaps some may be able to point me in which ways to further my avenues of research.
I bought a plot of land outright many years ago that I had planned to build on, but life events caused that not to happen... I'm in a lucky situation that the Village Office that the land is in does NOT charge a property tax on any land that is unbuilt on (colleagues in the neighbouring City certainly bemoan paying property tax yearly for their unbuilt-on land...)
The land when purchased had a category of being 野原 (wilderness?) and definitely had a buildable area/height ratio listed (70%/200% from memory) against it, and so whilst being in amongst a farming area, construction on the land was/is possible. I'm assuming therefore the land does NOT have to be used as farming land only if offered out for rent?
My thought now is to rent the land out for others to use as a business site (Kayak/SUP tour operator, Kitchen car(s), Container cafe (i.e. anyone who can provide their own non-permanent structures (containers/prehabs for eg).
My query is do I need to gain permission from the Village Office prior to renting out my land as such? Or does this become any potential renter's responsibility/duty of care?
I've spoken to a couple of realtors who were more than pleased to put the land up on their sites straightaway after explaining my business-use rental hopes, but because I wanted to dot the i's and cross the t's, and not fall foul of Japanese law, I put such a prohibitory high monthly rental figure against it so that there'd be no real interest, allowing me the time to sort these details out first.
There have now been some "いいな"s on the online real estate sites and so I’m keen to drop the price to a more reasonable level and hopefully create myself an additional monthly income stream.
But I also don’t want to mis-sell the land as being “perfect for a marine sports operator” (for eg) if the village office deems that it isn’t so…
Any advice or comments very much welcomed.