Tokyo Minpaku Investment Guide

Tokyo detached house as a vacation rental: what does the math actually look like for foreign owners?

By BESSO TO GO  ·  April 2025  ·  8 min read

If you've been thinking about buying a detached house (ikkodate) in Tokyo and putting it to work as a short-term rental, you're not alone. But before you commit, you need to understand the numbers — revenue potential, ongoing costs, and realistic net income across different occupancy scenarios. This simulation is based on a typical 3LDK detached house (50–80㎡) in Tokyo, managed end-to-end by BESSO TO GO.

Property assumptions

The figures below are based on a 3LDK detached house in a mid-tier Tokyo residential neighbourhood (e.g. Suginami, Setagaya, Nerima). Purchase price is excluded — this is a pure operating simulation once the property is up and running.

Property size 65㎡ 3LDK, detached

Nightly rate (avg.) ¥28,000 Incl. cleaning fee

Max operating days 180 days Minpaku law cap

Three occupancy scenarios at a glance

Under Japan's Minpaku Law, standard private lodging is capped at 180 days per year. The three scenarios below model conservative (50%), standard (65%), and strong (80%) occupancy within that cap.

Conservative (50%) Gross revenue ¥2,520,000 Net income ¥1,284,400

Standard (65%) Gross revenue ¥3,276,000 Net income ¥1,820,320

Strong (80%) Gross revenue ¥4,032,000 Net income ¥2,316,960

Detailed cost breakdown (standard scenario — 65% occupancy)

The table below shows the full cost breakdown for the standard scenario of 117 nights per year, which we consider the most realistic baseline for a well-managed Tokyo property.

Item	Annual (¥)
Rental revenue (117 nights × ¥28,000)	3,276,000
BESSO TO GO management fee (20%)	▲ 655,200
Utilities (electricity, gas, water)	▲ 360,000
Property tax (固定資産税)	▲ 180,000
Maintenance & minor repairs	▲ 120,000
Platform fees (Airbnb etc., ~3%)	▲ 98,280
Net annual income	¥1,862,520

The 180-day cap applies to standard minpaku registration. Properties that qualify under a ryokan or tokutei minshuku licence — or are located in special zones — may operate year-round. BESSO TO GO handles the eligibility check and application process.

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What's included in BESSO TO GO's management fee

The 20% management fee covers guest communication (24/7, in English and Japanese), check-in/check-out coordination, professional cleaning scheduling, platform listing management, monthly income reporting, and emergency support.

For foreign owners who are not based in Japan, this means you never need to be on the ground to keep your property running smoothly. BESSO TO GO acts as your fully bilingual representative in Japan.

Key considerations for foreign buyers

Foreign nationals can legally purchase and own detached residential property in Japan with no restrictions. However, operating a minpaku without the correct permit is a criminal offence. Additionally, income from the rental is subject to Japanese income tax, and — depending on your home country — may also trigger reporting obligations abroad. BESSO TO GO coordinates the permit application and works with affiliated tax advisors to keep you compliant on both fronts.

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