Property Selection Determines 80% of Your Revenue
How to identify winning properties — from rental to purchase
On property selection
Choosing the right property is the key to success.
エリア別家賃相場
Shinjuku
- 1LDK家賃相場
- ¥140,000–¥180,000
- ADR目安
- ¥14,000
- 収益性コメント
- Medium (higher rent)
Shibuya
- 1LDK家賃相場
- ¥150,000–¥200,000
- ADR目安
- ¥13,500
- 収益性コメント
- Medium (highest rent)
Asakusa
- 1LDK家賃相場
- ¥100,000–¥140,000
- ADR目安
- ¥11,000
- 収益性コメント
- High (strong cost efficiency)
Namba (Osaka)
- 1LDK家賃相場
- ¥80,000–¥120,000
- ADR目安
- ¥11,000
- 収益性コメント
- Highest (low rent)
Rent Level Is the Most Critical Factor in Short-Term Rental Profitability
Short-term rental profit is determined by: Revenue - Rent - Management Fee - Cleaning Fee. If rent is too high, you'll never break even.
- Rent should be within 40-55% of gross revenue to stay profitable
- A useful rule: ADR x Occupancy Rate x 0.6 > Rent
- In Shinjuku/Shibuya at ADR ¥14,000, max rent is approximately ¥180,000-¥200,000
Profitable Rent Ceilings by Area
Maximum rent at which you can break even, calculated from each area's ADR and expected occupancy.
Shinjuku / Shibuya
ADR: ¥14,000–¥16,000家賃上限: ¥180,000–¥220,000
Based on 1LDK
Asakusa / Ueno
ADR: ¥11,000–¥13,000家賃上限: ¥130,000–¥170,000
Based on 1LDK
Osaka / Namba
ADR: ¥10,000–¥13,000家賃上限: ¥100,000–¥150,000
1LDK with strong cost efficiency
Kyoto / Higashiyama
ADR: ¥12,000–¥16,000家賃上限: ¥140,000–¥190,000
Depends on occupancy rate
Conditions for a Short-Term Rental-Suitable Property
No short-term rental prohibition in building management rules
Essential
Within 10 minutes' walk of the nearest station
Important
Zoned as commercial or quasi-residential district
Important (year-round operation possible)
Structure compatible with smart lock installation
Recommended
Separate entrance or lockable door
Recommended
Property Patterns to Avoid
It's safest to avoid properties that match any of these conditions.
- Condominiums where the management association explicitly prohibits short-term rentals
- Exclusively residential zones (operations limited to weekends, significantly reducing revenue)
- Properties over 30 years old with heavily deteriorated facilities
- 4th floor or above with no elevator (difficult for cleaning and moving supplies)
- Rooms without windows or with insufficient natural light (significant negative impact on reviews)
Area Stability Data
Shinjuku
Asakusa
Namba (Osaka)
家賃交渉のポイント
- Present StayJP's management track record to establish credibility
- Offer to prepay 6-12 months of security deposit
- Include a special clause to share monthly revenue reports with the landlord
- Propose a trial period of 1-2 months to start
StayJP Property Selection Support
StayJP provides free consulting on property selection and day-to-day operational management, within the scope of a licensed residential accommodation manager. For permit applications, we connect you with our affiliated administrative specialists.
How StayJP Approaches Property Selection
StayJP selects high-revenue potential properties based on four key criteria.
- Real-time calculation of area ADR x rent ratio
- Only properties pre-verified for management rules and zoning introduced
- Pre-confirmed zoning and building regulations to eliminate property risk
- Smart lock-compatible with cleaning team coordination from day one
82% of owners who started operations with StayJP-selected properties achieved profitability in their first year.
Frequently Asked Questions
Q1.Is it OK if there's no explicit prohibition in the management rules?
The absence of a prohibition clause creates a legal gray area, but management associations may later vote to prohibit short-term rentals. We strongly recommend confirming with the management association in advance.
Q2.Can I hide the short-term rental purpose from the landlord?
No. Concealing short-term rental subletting can result in immediate eviction and damage liability if discovered. Please explain honestly and obtain consent.
Q3.What should I do if rent negotiation fails?
We recommend looking for another property. StayJP can also introduce short-term rental-compatible properties.
Summary: 3 Principles for Choosing a Short-Term Rental Property
Three principles for property selection that prevent failure in short-term rentals.
- Keep rent within 50% of projected revenue
- Check management rules and zoning first
- Choose areas within 10 minutes' walk of a station with strong ADR benchmarks
StayJP's free property assessment can check the profitability of your candidate properties in advance.