Owning a second home in Japan can be a smart move. In fact, it is a growing trend among foreign buyers in Tokyo. A second home gives you a private base for business trips and family vacations, but leaving a property empty for months can be a waste of money and lead to damage like bad smells, mold and infestations.
Many buyers now use a hybrid model. They use the property when they are visiting and rent it as a furnished monthly rental when they’re away.
The backdrop to this is that Tokyo continues to be recognized globally as a stable and attractive real estate market with strong long-term demand. However, it is not simple to manage a second home as a monthly rental property, especially if you are based overseas.
An experienced agent and property manager can help you succeed. Plaza Homes is a bilingual real estate agency with over 55 years of experience helping expats rent, buy, and sell property in Tokyo, and a long-time partner of Real Estate Japan. This article shares some of their insights from their experience working with second home buyers.
What exactly is a monthly rental?
To succeed with this investment strategy, it helps to understand what a monthly rental looks like in Tokyo. Unlike standard Japanese long-term rentals, which require two-year leases and massive upfront fees, monthly apartments are designed for speed, comfort and flexibility.
- Fully Furnished for Move-in Readiness: Tenants expect a true turnkey experience. Properties must be fully furnished and equipped. This includes appliances like a washing machine, refrigerator, microwave and vacuum cleaner. It also includes essential furniture like a bed, sofa, dining table and desk.
- Daily Essentials Provided: To attract premium renters, the home should have kitchenware, cooking utensils, tableware and an iron. High-speed Wi-Fi and home electronics must be ready to use from day one.
- All-Inclusive Utilities: In a monthly rental, utilities like electricity, gas, water, and internet are already set up. The cost is usually bundled directly into the monthly rent or charged as a flat fixed fee. Tenants do not have to open or close utility accounts themselves.
- Flexible Stays with Low Barriers: There is no traditional “key money” or complex guarantor system. This makes it highly attractive to international business travelers, expats on short assignments and locals looking for temporary housing.
Advantages of the monthly rental model
Some buyers consider short-term rentals like Airbnb (minpaku, in Japanese). However, Japan’s laws are strict. The Minpaku Law caps short-term rentals at 180 days per year. Also, most high-end Tokyo condo boards ban short-term guests completely.
The monthly rental market is different. It uses a fixed-term lease and the minimum stay is one month. This avoids the 180-day rule, so most condominium buildings allow it.
Monthly rental apartments also make sense in the context of Japan’s inbound and corporate market. As a global hub, Tokyo sees year-round demand for short-term stays among vacationers, corporate travelers and remote workers. In central areas like Minato, Shibuya, Shinjuku, and Meguro, this keeps nightly rates exceptionally high, while avoiding the legal and logistical hurdles of operating an Airbnb.
How Plaza Homes supports buyers
Plaza Homes provides full support for international buyers, handling every step of their property journey.
1. Comprehensive purchase support
Plaza Homes provides professional guidance in English and Chinese throughout the purchase process, from property selection to contract signing.
They also have services to accommodate international funds transfers and online contract signing, depending on the property. This allows buyers to complete transactions without traveling to Japan for the contract process.
Their team will explain Tokyo real estate market trends, purchase procedures, transactions costs and taxes and contract details and legal considerations.
2. Property Management
Their services include payment support for building management fees and repair reserve funds; vacant property inspections and light cleaning; assistance with property-related taxes; and local contact and representation services in Japan.
3. Monthly Rental Management
Plaza Homes specializes in furnished monthly rentals for short-term residents staying in Tokyo for business or personal purposes.
Their services include monthly rental operation during owner vacancy periods, tenant recruitment and screening and lease agreements and rental management.
Please note that they do not provide support for Airbnb and short-term vacation rentals.
4. Tax filing and accounting
Working with English and Chinese-speaking tax professionals, Plaza Homes can also assist you in filing Japanese taxes for rental income and consult on ownership structures and corporate entities.
5. Furnishing and renovation support
They also provide support services like property renovation, furniture appliance purchase, leasing and installation and regular property cleaning.
Ready to take the next step?
Plaza Homes provides comprehensive assistance covering every stage of the Japanese property purchase process, from property search and contract procedures to introducing trusted renovation partners.
If you are considering purchasing a condominium in Japan, whether for family, as a future home or as an investment, Plaza Homes is available to support you in English wherever you are in the world.
English (US) · 