One of the most popular ways of property investment is renting it out. But before starting all the preparations and searching for prospect tenants, you'll have to decide either you rent out your property for a short term or for a long one.
You must have heard of Private Lodgings or Airbnb, but another option is targetting people on short term business trips which may last up to 1 month. In Japan, running a Private Lodging would require legal registration of the property and recieving a permition from the local authorities. Of course, you can leave the registration process to your real estate agent, which will make it less stressful for you. Revenue potential for the short-term rentals is considered to be high. Still, keep in mind that it's more fluctuating than the long-term one and also its maintenance is considerably high.
In Japan, many company workers are being send on long business trips. If you target this type of tenants, the average rental contract duration will be from a couple of weeks to a year. To be honest, it's a bit vague if such a rental contract period can be considered short or long term one. Anyway, to meet the needs of such tenants your property should better either have some household appliances in it or offer some household appliances and furniture rental service. A vacuum cleaner and a small fridge may be a smart and affordable option. The washing machine may be excluded from the list, as your prospect tenants would agree to use coin laundry or clothes cleaning service.
Targetting foreign professionals temporary residing in Japan or foreign students may be a great option too, especially if you share the same language. In this case you either may rent out a single room, or set up a share house which is extremely popular with US and European youth these days. Some Japanese property owners refuse to let the foreign tenants in so this may be your opportunity to offer a better option for tenants seeking for comfort in a new country.
Long term property rental market in Japan has various target groups depending on the property size and location. If you have a smaller property or a one room apartment you wish to rent out, your target group would possibly be students, young company workers and seniors. Spacious apartments or houses renting out would be targetting families or tenants with higher income.
When renting out your property in Japan you also can apply some extra rules to attract a particular target group of tenants. For example, you may allow your tenants to keep a pet or do some minor renovations. Such a sense of freedom would attract prospect long term tenants. But remember, that the building your property is located in may have its own rules and regulations you can't ignore. For example, even installing sound proof panels won't guarantee you alowing your tenants to practice on musical instruments if the builduing itself has strict noise level restrictions. Renting out your property for a long term may also guarantee you a more stable revenue. Have you already made up your mind which renting out term would work better for you?
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