Case Study
Transforming a Tokyo Second Home into a Flexible Space for Personal Use and Short-Term Rentals
Overcoming challenges related to unfamiliar processes, taxes, and management, with a focus on accessibility and affordability, securing a property suitable for both personal use and income generation through monthly rentals.
Overview
The client was interested in buying Japanese real estate but was unfamiliar with property managers and the purchasing process. They wanted to use the property as a second home for themselves, family, and friends visiting Japan, but also wished to generate income from it as an investment. They were unfamiliar with the process of purchasing Japanese real estate, including taxes and costs, so an explanation was necessary.
Challenges
Although they were interested in operating a short-term rental, we explained that it can be challenging to do so in Tokyo. Instead, we suggested using a monthly rental with a fixed-term lease. We also emphasized the importance of accessibility from the airport for an inbound-focused monthly rental.
The Keikyu Line, directly connected to the Asakusa Line, links Haneda and Narita airports. The Asakusa Line stations, including Ginza, Tsukiji, Asakusa, and Akihabara, are close to tourist spots, indicating strong demand for monthly rentals.
Even though the client had returned to the U.S., we provided video and photo presentations of properties they were interested in. Since they intended to use the property personally, good airport access was essential, and for monthly rentals, convenient access to both the airport and tourist destinations was crucial.
Solutions
We found that Asakusabashi Station along the Asakusa Line was more affordable compared to other major stations. We focused on Asakusabashi Station and searched for a 2-bedroom condominium within the client’s budget, approximately 7 minutes from the station.
Additionally, Axios Management, our affiliated company, handled all the setup and payment for utilities, internet, and HOA management fees needed for the second home and monthly rental. This support was extremely helpful.
Results
By renting the property out as a monthly rental when not in use by the client, their family, or friends, we achieved the ideal scenario of generating rental income during vacancy periods.
