Key Facts
• June 2025: Residents of a 40-year-old rental building in Tokyo received rent hike notices.
• Rent increase: Over 2x the original amount, from approximately ¥70,000 to higher rates.
• Elevator shutdown: Marked as “under repair,” leading to 40% of residents leaving or planning to leave.
• Owner’s motive: Suspected to secure units for short-term rental operations.
• Short-term rental profitability: ¥25,000 per night for two guests, significantly higher than monthly rent.
• Post-pandemic trend: Increased demand for short-term rentals due to inbound tourism growth.
• Chinese-owned companies: Notable presence in short-term rental operations, with over 40% in Osaka.
• June 2025: Owner retracted rent hike after backlash, citing “careful reconsideration.”
Summary
A rental building in Tokyo’s Itabashi Ward became the center of controversy after its owner, reportedly a Chinese-affiliated company, attempted to double rents and shut down the elevator, prompting 40% of residents to leave. Experts suggest the motive was to convert units into short-term rentals, which yield significantly higher returns compared to traditional leases. For instance, nightly rates for two guests can reach ¥25,000, far surpassing monthly rents. This trend aligns with the post-pandemic surge in inbound tourism and the growing prevalence of Chinese-owned firms in Japan’s short-term rental market. Following public outcry, the owner rescinded the rent hike, though concerns about aggressive tactics in the short-term rental industry remain.
