We would like to enter into a Master Lease contract with FANSS INTERNATIONAL for the following property:
PBKK desires and Fanns International agrees in principle, that PBKK shall Master Lease Fanns International Regalia Minami Azabu property for a period of 5 years effective from June 1st, 2018.
PBKK will transition Regalia Minami-Azabu into a hybrid rental strategy. The property will be advertised as serviced apartments, furnished weekly/monthly rental apartments, and depending on legal requirements being met, short-term stay apartments for vacation rentals and business travellers.. If guests select the serviced apartment option, PBKK’s cleaning staff will provide the requested services to customers.
Advertising will target business travellers, recreational travellers, and people relocating to Japan and long term residents.
PBKK will include a statement in the master lease contract stating that PBKK accepts full responsibility to operate the property in accordance with Japanese Law.
To successfully advertise Regalia Minami-Azabu for the above advertising targets, PBKK will need to make some cosmetic improvements to the room decor and take new photos. This would be paid for by the owner and an estimate would be provided beforehand.
TERMINATION AND RENEWAL
Upon the termination date of this agreement, it shall be renewed automatically on a month-to-month basis if neither party has given notice to terminate the agreement. The agreement may be terminated by either party by giving not less than 90 days’ notice in writing to the other party.
OPERATION COST BREAKDOWN
Utilities and sewer
Maintenance for the structure of the building
Smart Internet Bundle (So-net 2 Giga fiber line and monthly monitoring and support)
Housekeeper handling fee / trip charge would still apply for short-term rentals as it does now
Basic maintenance not related to the building structure or it’s internal systems
Cleaning and garbage fees
House and cleaning supplies
Base Master Lease: 400,000 JPY
Profit sharing above 600,000 JPY profit
100% of the profit sharing revenue to Fanns International from 600,000 JPY to 800,000 JPY
90% of the profit sharing revenue to Fanns International from 800,000 JPY to 1,000,000 JPY
85% of the profit sharing revenue to Fanns International from 1,000,000 and up
PBKK will continue to provide a monthly report to Fanns International as is currently done.
Monthly Total Gross Revenue
Master Lease Payment
Profit Sharing above 600,000 JPY Revenue
Percentage (%) Share to Fanns Int.
JPY Share to Fanns Int.
JPY Share to PBKK
Total Fanns Int.(Master Lease Base Fee + Percentage Share)
Total JPY to PBKK