Hi, I am Hazuki, the owner of THE EVERGREEN HOSTEL. I’m writing how this hostel was made based on the writings that I had accumulated in the past.
■2015/10/5 – Rejected from Property A！
I visited JFC yesterday for primary consultation. I presented them the reference based on property A, but it cannot be rent for the owner’s decision. It appeared the fact right after I put much time to make these references. I understood the situation, but I already estimated the balance and have no other property to look into. Just a try, I went to see Mr. N of the real estate company to have his opinion.
Although we committed so much about the Property A, but why it turned out to be rejected suddenly? A short answer; “The owner has changed the mind.” I might want to write about this further next time. Mr. N said, “I was very sorry for wasting your these two months.” Although he said so, it turned out to be a good case study. By the way, I heard nobody else except for me was approaching to the property. It was so regrettable…
Well surprisingly, Mr. N introduced Property B to me immediately.
Considering this turnout, I think getting to know Mr. N is a crucial key.
※If I write in this way, it sounds like I already hold the property, but nothing has finalized yet.
Anyhow I think, I would like to ask for Mr. N (his company), pay for it, and do good business with them after this deal.
Although I had a rough ride, the property B he introduced to me this time became THE EVERGREEN HOSTEL!
■2015/10/6 – The hard stuffs to decide property！
I called up Mr. N to see like, “I am very positive about the Property B, so how is going?” Mr. N answered with lowered voice unusually, so I heard him like some worried.
“We not only introducing the tenants and rent but also managing the building itself (Property B occupies one of the floors in the building) about the Property B. The board members might reject your case because of your business style. Another property is in a trouble now….let’s put your case in hold and let me think a good strategy.”
It has many difficulties of the business style for guesthouse. These are legal aspect and the owner’s strategic and emotional aspect. There might be a reader of this article who wishes to OPEN guesthouse. I will write specifically as much as I can.
Obstacles ①Legal aspect
Depending on the floor-area, it requires “Change of use” unless renovating the existing accommodation facility. The guideline to require the modification or not is the size is 100sq. meters (≒33 Japanese housing area). But, depending on the officer, there might be a case: “Required the modification, although less than 100 sq. meters.”
Reference： http://create-guesthouse.com/guesthouse-100m2/
Actually, I recalled that there was a case having a strict officer when I was working for a project developing the eatery. We all in the developing the project were anxious about, “Can we really proceed to build?” Back then I was used to be a strange feeling, “Even the law and regulation define, but actual operation is done by analogically = people.”
■”Change of use”
This will be dealing with the Building Division in the City Hall (or Ward Office ) complying with Building Standards Act and related laws.
■Crucial point
If it turns out to require “Chang of use”, the most critical points are such as: if the proof of examination of existing building is ready”, “The plats can be presented”, and to short, others to prove the fact, “How easier to understand the current information of the building”. If the building is very old or the owner is not an organized person, you cannot set up the documentations. This can be hopeless. If in this, it is better to walk away to find other property.
■Applied to deficient in current regulations
The deficiency in current regulations applies (except for some cases) to “Change of use.” This means, “Even if the building complied with the regulations at the time of construction, they must comply with current regulations.” The building having deficiency partially might be required to correct entire building. The reason I say this, you cannot apply to “Change of use” if you do not submit the all plats of the building.
I was advised with my friend architect: even if I set up for the plats and ask for the Building Division later, I should talk with the owner of the building about what is the current status prior to hold a discussion with City. To short, if I submit the application to the Building Division without any strategy, that might end up opening the Pandora’s box. In case, if I will be told many deficiencies and cannot get to a deal with rent, it not only causes burden and cost to the owner but also nothing will be left for us. It would not happen unless the hostel tries to rent (seek to change the use).
Definitely the possible cost to correct the deficiencies will be on the table of the negotiation with the owner. I am willing to take it. This will be the necessary cost when checking out as a tenant. However in case, there are many deficiencies and it piles up the cost too much, it will exceed the volume a person can take.
Writing and scratching too much made me confused. To short, easiness to understand the current status is very crucial. If I were a teacher, I want to put this on my exam.
■How about pending Property B？
The property B was built in July, 1991, relatively new. But actually, how should I do to know whether it has the deficiency in current regulations or not… for I am not an expert and I went at a loss. I have no ideas. I asked for Mr. N, also.
“I honestly do not know about the deficiencies. Since it has built, they did not do any major fix, I am optimistic in addition to it is the residential from the third-floor…”
I am not sure yet. Let set aside this matter. Or I want the architectural professional I will see later will handle this.
Obstacles ②The owner’s emotional concern
What will I think if I were the owner?
What if I have never heard of guesthouse?
First of all, what is a guesthouse? Ha? Inn?
I will be concerned to lend own building to unfamiliar business
・・・certainly I feel uncertainty a little bit.
What will I think if I were the owner?
Everyday unspecified general public would hang around own building.
Do they use neatly?
Don’t they break anything?
Do they maintain good manner?
・・・certainly I feel uncertainty a little bit.
What will I think if I were the owner?
Furthermore, if I were bad at English, foreign guests would make rejection.
Also, I cannot communicate well enough.
・・・certainly I feel uncertainty a little bit.
To short, emotional concern means these various feelings.
From exact this reason, the Property A rejected on the other day.
The real estate company is handling with many properties, but it is extremely rare of the owners to lend this type of business. It is thankful Mr. N is filtering this kind of matters.
I should put much effort as much as I can to wipe out this emotional obstacle, “・・・certainly I feel uncertainty a little bit”, from he renting side, and certainly this will be a major task for me later now on. (Definitely it does not happen they come to understand everything if I explain. What we call “emotion” exists in the different dimension with explanation)…I really want to be in this concerning phase. I am just standing at the gate if the pending property fits envision or not.
