A real estate company that should provide relaxing living spaces has instead plunged its tenants into uncertainty. It bears a heavy responsibility for this situation.
Many apartment buildings constructed across the nation by major rental accommodation operator Leopalace21 Corp. have been found to fall short of Building Standards Law requirements. There are concerns that ceilings, external walls and internal partition walls at these buildings could have insufficient fire resistance and sound insulation.
Residential facilities in which many people live require even higher levels of safety. Leopalace must be described as lacking awareness about legal compliance.
More than 1,300 problematic buildings have been detected in 33 prefectures. Up to about 14,400 tenants living in these buildings will need to move out so repairs can be made. About 7,800 people living in apartments found to be especially high-risk will be pressed to move as soon as possible.
Leopalace will shoulder the residents' moving expenses, but this whole situation was a bolt from the blue for them. This situation coincides with the period before the end of the fiscal year, which is the prime moving season, so it is possible Leopalace will be unable to arrange for moving companies to help all these residents. Leopalace must steadily complete the required procedures and cover the expenses to ensure turmoil does not erupt.
Leopalace boosted its business performance through sublease agreements in which it takes on the construction of apartment buildings from landowners, and then leases out all the apartments. The defective properties were constructed from 1996 to 2001, which overlaps with the period when Leopalace started growing quickly.
Why were corners cut?
In 2018, it was revealed that fire prevention and soundproofing material had not been installed in the ceilings separating apartments in some Leopalace buildings. The latest defects were found during the process of checking 39,000 buildings across the nation.
Why did shoddy construction work happen in so many buildings? Leopalace President Eisei Miyama and other officials insisted at a press conference that this was due to "decisions made at the construction sites." However, this claim is extremely dubious.
The company found some cases in which the actual completed construction differed from the blueprints. It is difficult to imagine that arbitrary decisions made at each building construction site made similar changes to materials and specifications. It is natural to think there was systematic involvement in this process.
Was this done for reasons such as shortening construction periods or cutting costs? The property owners who have been told that their own buildings do not meet the required standards also can be considered victims. This scandal will unavoidably tarnish the rental property industry's image.
Leopalace said it will create a system to prevent a recurrence, such as by bolstering checks when building materials are changed. Leopalace must exhaustively examine the background to these problems and improve the entire company's culture as it works toward winning back public trust.
The Land, Infrastructure, Transport and Tourism Ministry also will set up a panel of experts to discuss measures to prevent any repeat of this incident. The panel also should consider issues such as how local governments and private institutions might conduct construction completion inspections that could spot defective workmanship.
(From The Yomiuri Shimbun, Feb. 21, 2019)
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