The real yield drivers: record tourism and a weak yen
Two forces are inflating short-stay (minpaku, minpaku) demand in Japan. First, record tourism: 42.7 million visitors in 2025, an all-time high that fills nights in Tokyo, Osaka and Kyoto. Second, a weak yen that makes the country very cheap for foreign travellers: they book longer and accept higher nightly rates (ADR) than five years ago.
The result: well located and well run, a short-stay property can target a double-digit yield, where classic long-term rentals often cap out around 4-6% gross. But beware: these drivers mainly work in tourist hyper-centres and areas near stations. In the outskirts, demand falls off fast.
One rule before any figure
Real yield = ADR × occupancy × legally usable nights − costs. That third term, often forgotten, is decisive: the legal regime sets the cap on nights. To frame your project from the purchase stage, lean on our guide to buying property in Japan.
Three regimes that change everything: minpaku, tokku minpaku, ryokan-gyō
The yield of the same property varies hugely with the operating permit. Three frameworks coexist:
jūtaku-shuku nuitsjigyō-hō (minpaku) — capped at 180 nights/year
The national notification regime (minpaku) is the easiest to obtain, but it caps operation at 180 nights per year. Even if your unit is fully booked the rest of the year, you must close once the quota is hit. This cap mechanically cuts revenue. Details in our dedicated article: the 180-night minpaku licence.
tokku minpaku — Osaka, up to 365 nights
In special national strategic zones (kokka senryaku tokku), above all Osaka, the tokku minpaku regime allows year-round operation (365 nights), subject to a minimum stay length. That is what makes Osaka a prime playground. See our analysis: Airbnb in Osaka and tokku minpaku.
ryokan gyō-hō (kan'i shukusho) — 365 nights under a hotel licence
The "simple lodging" hotel licence (kan'i shukusho) allows 365 nights wherever zoning permits, with no cap. It is more demanding (fire safety, sanitation, yōto chiiki zoning) but unlocks the property's full potential. See: the ryokan-gyō licence to operate 365 days.
Common mistake to avoid: believing a simple minpaku can run 365 nights. The 180-night cap of a notified minpaku roughly halves the potential of a comparable ryokan-gyō.
The 180-night cap: what it really costs
Take two identical properties, same ADR, same occupancy on open days. One is a minpaku (180 nights max), the other a kan'i shukusho (365 nights). All else equal, the second can generate nearly double the nights sold — hence a much higher yield. This table shows the mechanism (ADR and occupancy are working assumptions, not guaranteed figures):
| Assumption | minpaku (180 nights) | kan'i shukusho (365 nights) |
|---|---|---|
| Usable nights/year | capped at 180 | up to 365 |
| Occupancy on open days | identical | identical |
| Nights sold (equal occupancy) | base 100 | ≈ 180-200 |
| Relative revenue | base 100 | far higher |
| Compliance complexity / cost | low | high (zoning, fire) |
The lesson: where the goal is maximum yield, targeting the kan'i shukusho (or Osaka's tokku minpaku) changes the equation far more than a slightly better ADR. To test your own night, ADR and cost assumptions, use our yield simulator.
The cost structure: what eats into your yield
Gross revenue is not yield. In short-stay, costs are heavy and recurring:
- OTA commission (Airbnb, Booking): roughly 3-15% of the amount depending on platform and model.
- Cleaning: charged at each departure; the shorter the stays, the more it weighs.
- Management / concierge (minpakudaikō): often 15-25% of revenue if you delegate guest handling, linen and check-in.
- Building fees (kanri-hi / shūzen tsumitatekin) and local accommodation tax (shukuhaku-zei) in some cities.
- Consumables, laundry, maintenance and low seasons.
Cautious order of magnitude: between commissions, cleaning and management, 30-45% of revenue can go to costs before tax. That is why a high ADR is not enough: a property run remotely without reliable concierge support can show a fine gross and a disappointing net.
Expert tip
Check the building rules (kanri kiyaku) BEFORE buying: many buildings ban minpaku outright. The properties we feature in our listings (Les pépites) are filtered on this criterion.
City comparison: read the factors, not invented numbers
Rather than inventing precise ADRs, here is how the big cities compare on the factors that drive yield. Always cross-reference with the legal regime available on the target property.
| City | Most favourable regime | Tourist demand | Key yield factor |
|---|---|---|---|
| Osaka Osaka | tokku minpaku (365 nights) | very strong | 365 legal nights = maximum potential |
| Kyoto Kyoto | ryokan-gyō (minpaku heavily restricted) | very strong | strict rules, zoning decisive |
| Tokyo Tokyo | minpaku 180 or ryokan-gyō | very strong | high ADR but 180 cap common |
| Fukuoka Fukuoka | minpaku / ryokan-gyō | rising | lower entry price, growing demand |
| Sapporo Sapporo | minpaku / ryokan-gyō | seasonal (ski) | strong winter seasonality |
Kyoto restricts minpaku very tightly: see Airbnb in Kyoto and its regulation. Osaka remains the best ground to legally target 365 nights. In every case, the winning trio is near a station + 365-night regime + serious management.
Conclusion: regime first, city second
Airbnb yield in Japan is not read city by city in the abstract, but regime by regime, property by property. The 180-night cap of a simple minpaku drags the yield down; Osaka's tokku minpaku and the ryokan-gyō licence unlock 365 nights. Add a nearby station, reliable concierge and a controlled cost base, and record tourism (42.7M visitors) does the rest.
Never trust an advertised ADR without correcting it for legal nights and real costs. Test your assumptions in the simulator, spot eligible properties in our listings, and get support from search to operation through our personalised buying support.
Frequently asked questions
Which city is the most profitable for an Airbnb in Japan?
There is no universal answer: it all depends on the legal regime available on the property. Osaka is often cited because tokku minpaku there allows 365 nights, maximising potential. Elsewhere, only the ryokan-gyō (kan'i shukusho) regime also permits 365 nights; a simple minpaku is capped at 180 nights and structurally earns less.
Why does the 180-night cap reduce yield so much?
Because profitability depends directly on the number of sellable nights. At equal ADR and occupancy, a property limited to 180 nights (minpaku) generates nearly half the revenue of one operated 365 nights (ryokan-gyō or tokku minpaku). The cap closes the calendar once the quota is reached, even in peak season.
What costs should I budget for a Japanese Airbnb?
Budget the OTA commission (Airbnb, Booking), cleaning at each departure, management/concierge (minpakudaikō, often 15-25% of revenue), building fees (kanri-hi / shūzen tsumitatekin) and, in some cities, the accommodation tax (shukuhaku-zei). In total, 30-45% of revenue can go to costs before tax.
Can ADR and occupancy be estimated in advance?
Only as orders of magnitude: ADR (average daily rate) and occupancy vary by neighbourhood, season and quality of the unit. Use our yield simulator to test several cautious assumptions rather than relying on a single figure found online.
Can a building ban Airbnb even if the city allows it?
Yes. The building rules (kanri kiyaku) prevail: many buildings ban minpaku outright regardless of municipal regulation. Always check this BEFORE buying, because a municipal permit is worthless if the building association forbids it.
Official sources
Take the next step
Browse immoJapon's hand-picked properties — machiya, kominka and income properties, analysed (photos, zoning, licence, local market) — or tell us about your project.