Can foreigners purchase an Akiya in Japan and run it as an Airbnb? Exploring the risks and how to make it a success

• Table of Contents
• Can foreigners buy Akiya in Japan? Purchasing conditions and points to note
• First, you need to know : There is a difference between an "Akiya" and an "abandoned house"
• Is Airbnb profitable? In reality, what really matters is how much money you actually have left in hand.
• Who is Airbnb suitable for and who isn't?
• Who is suitable for Akiya?
• If you want to buy a Akiya with peace of mind, use a real estate agency
• Summary: Both Akiya and Airbnb are enjoyable if selected and used correctly

We often see this story on social media and in videos: "Buy an Akiya cheaply → Renovate it yourself → Make money on Airbnb." It's certainly a dream story, and I'm sure many people are interested.

But in reality, there are many points to be aware of. In this article, we will explain in an easy-to-understand manner for those who are interested in "Akiya x renovation x Airbnb," the risks you should be aware of, the profitability of Airbnb, and the characteristics of people who are suitable for it.

Can foreigners buy Akiya in Japan? Purchasing conditions and points to note

Foreigners can purchase Akiya in Japan. In Japan, there are basically no restrictions based on nationality when purchasing real estate. You can also purchase Akiya with land.

However, there are a few things to keep in mind when purchasing.

The following article touches on the challenges that foreigners face when purchasing real estate in Japan and provides an easy-to-understand explanation of the process from property search to purchase.

First, you need to know : There is a difference between an "Akiya" and an "abandoned house"

Many of the "Akiya" that are talked about on social media are actually "abandoned houses." No one has lived in them for many years, and there are a ton of risks that an amateur would not be able to assess, such as leaks, termites, and deterioration of the plumbing.

On the other hand, among the "Akiya" that real estate companies are handling, there are some second-hand houses that are well-maintained and can be moved into immediately after some repairs. In other words, there is a wide range of "Akiya," and if you jump at a cheap one, it may end up costing you more.

Is Airbnb profitable? In reality, what really matters is how much money you actually have left in hand.

It is often thought that using Airbnb will lead to high profits, but there are pitfalls here as well.

Certainly, if you look at the surface yield (income divided by purchase price) alone, Airbnb may appear to be higher. In particular, accommodation rates can be raised during the summer holidays and the New Year holidays, so the impact on income is large. However, there are many costs involved in operating a property, as listed below.

・Cleaning fee

・Linen change

・Management system usage fee

・Airbnb management outsourcing fees, etc.

As a result of various costs piling up, the reality is that the "real return" that you actually get may end surprisingly low. It may be a good option if you have an unused property and want to put it to good use, but if you want a stable monthly rental income, Airbnb is not for you.

Who is Airbnb suitable for and who isn't?

Airbnb isn't for everyone. It might be for:

・People who want to have a second home in Japan (living overseas, etc.)

・People who want to earn income by renting out their items when they are not using them

In other words, Airbnb is suitable for people who think, "I'm lucky if I can make some extra money at the same time." On the other hand, people who want to make a lot of money or get stable rental income should consider normal rental properties (condominiums or used houses).

However, if you can purchase a property that is permitted as a special zone private lodging (365 days of operation, whereas normal private lodgings are limited to 180 days) or a hotel, it will be a high-yield property. Please contact us for details.

Who is suitable for Akiya?

On the other hand, the following types of people are suitable for utilizing Akiya:

- People who want to use it as a second home and rent it out as needed

- People who are considering Airbnb, but are not solely interested in making money.

Akiya do not necessarily mean risk. However, it is important to check carefully before purchasing the property "what condition it is in," "can you really live in it," and "how much repairs will cost."

If you want to buy a Akiya with peace of mind, use a real estate agency

For those who want to try out a Akiya but are worried about it, we recommend using a real estate company that specializes in introducing Akiya , such as MINAMIAOYAMA REAL ESTATE Inc. .

MINAMIAOYAMA REAL ESTATE Inc. introduces properties that are not only cheap but also "ready to live in and use right away." The properties we deal with have been checked by experts, so the risk of water leaks and structural problems is reduced.

In addition, for those who are considering Airbnb, we can introduce reliable private lodging management companies. Even those who think it would be difficult to manage by themselves can take on the challenge of operating one with peace of mind. Of course, all correspondence and contracts are available for English speakers, making it a strong ally for foreigners investing in real estate.

Summary: Both Akiya and Airbnb are enjoyable if selected and used correctly

"Akiya= bargain" is not necessarily a good idea. It is important not to judge based on price alone, but to carefully assess the condition and risks.

Also, while Airbnb may appear profitable at first glance, in reality it has high operating costs and may not be suitable for those looking for a stable income.

If you want to start utilizing Akiya with peace of mind, we recommend consulting a reliable real estate company like MINAMIAOYAMA REAL ESTATE Inc..

Depending on the property selection and utilization, Akiya can become assets that generate solid income. With the right knowledge and preparation, utilizing Akiya can be a fun and rewarding investment experience that will lead to a long-term future.

If you are considering purchasing a Akiya in Japan, contact MINAMIAOYAMA REAL ESTATE Inc..

Contact MINAMIAOYAMA REAL ESTATE Inc.