With the rise in foreign workers, the demand for rental properties catering to foreigners is gaining significant attention in the real estate industry. Many property owners should consider this approach as a way to reduce vacancy rates.
However, the traditional Japanese rental market differs from the needs of foreign tenants. What may be perceived as a drawback in Japan might not concern foreigners or be considered an attractive feature. Adapting to foreign tenants’ needs can not only attract new tenant demographics but also boost profitability.
There are various approaches to increasing profitability, such as designing renovations, converting units into shared housing, or offering furnished apartments. By learning from case studies, property owners can determine the best approach that fits their property characteristics and budget. This article will introduce a successful case of property value enhancement through renovations catering to foreign tenants.
Table of contents
- Successful Renovation Case for Foreign Tenants｜Increased Occupancy & Profitability｜Solio Mukonoso
- Maximizing Space with a Well-Defined Layout
- A Unified Design for a Refined “Wa-Modern” Property
- Key Takeaways from This Case Study
Successful Renovation Case for Foreign Tenants｜Increased Occupancy & Profitability｜Solio Mukonoso
The property introduced in this case is located near Mukonoso Station on the Hankyu Kobe Main Line. It is a well-known yet somewhat hidden gem, ranking 4th in the Kansai region’s list of up-and-coming neighborhoods. [1]
Solio Mukonoso underwent renovation in 2020 to cater to foreign tenants. As a result, the rent increased by ¥10,000, and 7 out of 8 vacant units were successfully filled, leaving only one remaining vacancy out of the total 18 units.
This case study will highlight key points explaining how the renovation not only reduced vacancy rates but also improved profitability.
Maximizing Space with a Well-Defined Layout
Separating the 3-in-1 Unit Bath
Creating Independent Spaces for Each Water Facility
A male resident shared his experience: “I’ve never found having only a shower inconvenient. With a unit bath, the sink and toilet would get wet and humid, which I didn’t like. This setup is much better.”
A “3-in-1 unit bath” refers to a bathroom layout where the bathtub, sink, and toilet are all contained within a single space. This compact design is commonly found in Japanese apartments for single occupants, shared housing, and hotels, as it allows for efficient use of limited space.
It’s no surprise that many Japanese tenants prioritize having a separate bath and toilet when searching for a home, given the cultural emphasis on relaxation in the bath. However, this preference is not unique to Japanese residents—many foreign tenants also share the same demand.
“I prefer a property where the bathroom, toilet, and sink are separate.” (Female, Afghanistan)
“It’s inconvenient when someone is showering because I can’t use the toilet, especially when I have guests over.” (Male, Indonesia)
“Japanese apartments are small.” (Male, Philippines)
“When the bath and toilet are combined, the smell and humidity can be an issue.” (Female, UK)— Feedback from SUGEE Housing Users
When renovating to separate the 3-in-1 unit bath, the focus was on the bathtub space. The practice of soaking in a bathtub daily is uncommon globally. By removing the bathtub and opting for a shower-only design, the same floor area was reconfigured to create independent water facilities.
Simple & Effective Storage Renovation
Hanger Rack
Before
After
The traditional built-in closet (oshiire/押し入れ) was removed and replaced with a large-capacity hanger rack. Without doors and in a clean, white finish, the space feels more open and bright.
For many foreigners, the initial costs for moving to Japan can feel particularly expensive.[2] Furnished apartments help reduce the financial burden and increase property appeal. As a first step toward offering furnished units, starting with affordable storage solutions like this can be a practical approach. This idea is useful especially when converting a Japanese-style room into a modern living space.
Kitchen Shelf
Before
After
The renovation transformed the kitchen into an open-concept space, removing cabinet doors and incorporating a compact, stylish design suited for single occupants. The old tiled surfaces, which were prone to grime buildup, were replaced with a flat, easy-to-clean finish.
One of the hidden highlights among tenants is the built-in kitchen shelf. One resident used it to store food supplies. The design maintains consistency with the overall aesthetic of the building, contributing to a sleek and cohesive look.
Kitchen shelf
Tenant’s use case
A Unified Design for a Refined “Wa-Modern” Property
Before
After
The brown brick exterior was replaced with white tiles, and the approach was redesigned with concrete. The result is a sophisticated “wa-modern/和モダン” (Japanese-modern) aesthetic, blending a monochrome color scheme with the warmth of wood.
Additionally, the traditional roof tiles (kawara/瓦) under the eaves were intentionally preserved, serving as a retro accent that enhances the property’s unique character.
As seen with the previously mentioned kitchen shelf, this design approach is consistently applied throughout both the building’s exterior and individual units. The updated look eliminates any sense of outdatedness, attracting not only foreign tenants but also a growing number of Japanese younger residents.
The use of crisp white enhances the perception of space, making rooms appear brighter and more expansive. However, rather than a flat and monotonous white, subtle textured wallpapers and flooring were chosen to add depth. This technique of introducing variation through materials is an effective design strategy worth emulating.
Key Takeaways from This Case Study
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- Breaking traditional layout norms – Optimizing floor plans based on actual tenant needs.
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- Understanding needs to identify solutions – Addressing challenges through tenant-driven insights.
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- Leveraging design for cost-effective renovation – Achieving maximum transformation with minimal expenses.
As local lifestyles continue to globalize, catering to foreign tenant preferences can be a valuable strategy for enhancing property value and appeal.
References
[1]SUUMO Most Desirable Neighborhoods of 2020 Kansai Edition – Ranking of Hidden Gem & Preferred Train Line Area
https://suumo.jp/article/oyakudachi/oyaku/sumai_nyumon/data/sumimachi2020kansai_sonota/
[2]Ensuring Smooth Access to Private Rental Housing for Foreigners (Ministry of Land, Infrastructure, Transport, and Tourism https://www.mlit.go.jp/jutakukentiku/house/jutakukentiku_house_tk3_000017.html
