1. Market Snapshot

Central locations capture both business nights and weekend leisure, letting short‑term rentals push ADR while reacting to seasonality and events faster than long‑term leases.

2. Asset Selection Framework

Within 5 minutes to station, 20–30 sqm, post‑1981 code, bylaws and zoning compatible with short‑term stays, solid ventilation and bath setup, low external noise. Operational flow for trash, laundry, and deliveries drives stability.

3. Pro Forma Example (illustrative)

Acquisition ¥22,000,000, renovation ¥1,800,000, furnishings ¥600,000, total capex ¥24,400,000. ADR ¥15,800, 78% occupancy yields monthly revenue about ¥370,000. Platform fee 3%, cleaning ¥28,000, variable ¥25,000, fixed ¥55,000. Monthly NOI ≈ ¥250,900 or ¥3,010,800 annually, implying a 12.3% yield on total cost. Debt ¥17,000,000 at 1.9% for 35 years gives monthly payment about ¥55,500, leaving annual cash flow ≈ ¥2,344,800 and cash‑on‑cash ≈ 31.7%.

4. Stress Case

At 60% occupancy and ADR −10%, revenue ≈ ¥256,000 per month. Monthly NOI ≈ ¥152,320 and post‑debt cash flow ≈ ¥96,820 remain positive. Dynamic pricing plus turn optimization cushions downside.

5. Compliance and Operations

Align home‑stay filing or hotel license, fire safety, local ordinances and lodging tax. Enforce ID verification, noise monitoring, and a neighbor response plan. Verify building bylaws upfront.

6. Value‑Add and Exit

Lift ADR and occupancy via dynamic pricing, stronger photography, review management, and mid‑stay discounts. Exits include reversion to long‑term rent around ¥105,000 or investor sale backed by NOI history. Track quarterly KPIs to keep compounding returns.

Note: The figures in this article are illustrative. Actual returns and legal compliance will vary by property and local government requirements. Make investment decisions at your own discretion and consult a qualified professional as needed.