Airbnb or Long-Term Rentals: Which is Better for Foreign Property Owners?

For foreign investors in Japan, choosing between Airbnb hosting and long-term rentals depends on various factors, including location, target audience, and personal investment goals.

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‍The Pros and Cons of Airbnb HostingPros:

• Higher Returns: Airbnb properties in tourist hotspots often generate more income than long-term rentals.
• Flexibility: You can use the property personally when not rented.
• Appeal to Tourists: Properties with unique designs or traditional Japanese aesthetics attract international travelers.

Cons:

• Regulations: Strict laws like the 180-day limit may reduce profitability.
• Management Demands: Frequent guest turnover requires ongoing cleaning and maintenance.
• Seasonal Income: Earnings may fluctuate based on tourism trends.

The Pros and Cons of Long-Term RentalsPros:

• Stable Income: Monthly rent provides consistent revenue.
• Less Oversight: Long-term tenants reduce the need for constant management.
• Fewer Regulatory Hurdles: Licensing requirements for long-term rentals are simpler.

Cons:

• Lower Returns: In many areas, long-term rentals yield less income than short-term stays.
• Vacancy Risks: Finding reliable tenants can be challenging in rural or less popular areas.

How Old Houses Japan Can Help

‍We help you assess the best option for your property, offering insights into market trends and providing management solutions tailored to your needs.