Converting existing and vacant properties into accommodation facilities

Updated: July 2025, 10

According to the Ministry of Internal Affairs and Communications' Housing and Land Statistics Survey, the number of vacant houses nationwide as of October 2023, 10 is 1 million.
Compared to 2018 (849 million units), this is an increase of 51 units, the highest ever, and the ratio of vacant houses to the total number of housing units (vacant house rate) is 13.8%.
In the past five years, the vacancy rate has increased in approximately 5% of local governments.
An increasing number of people are turning vacant homes and existing properties into accommodation facilities (mainly private lodging).
Please take this opportunity to consider converting it into a lodging facility.

1.Advantages of converting existing/vacant properties

[1] Reduction of investment costs

By using existing properties or vacant properties, construction costs can be reduced compared to new construction.

For example, construction of a typical hotel requires an investment of hundreds of millions to billions of yen, but that cost can be reduced if an existing building is repurposed. 

Additionally, since we use properties that have already been built, we can reduce the procedures and costs required for land acquisition and development permits.

[2] Shorten the time to start business

When building a new property, processes such as land acquisition, architectural design, and construction are necessary.

If you use an existing property or vacant property, you can start your business early.

[3] You can utilize properties with good location conditions.

Many existing properties and vacant properties are located in good locations, such as urban areas and tourist areas.

Therefore, there is a high possibility of acquiring a location that is advantageous for business development and customer attraction strategies.

■Examples of properties in good locations

　・Close to tourist spots

　・Close to the station

　・You can experience a simulated Japanese life in a quiet residential area...etc.

[4] Improving asset value

The value of the property may increase.

For example, the value of a building increases through renovation and renovation;

You may be able to sell it at a higher price when you sell it in the future.

〇Example

　Converting a building in Tokyo into a hotel.

　It was operated as a hotel for about a year and a half before being sold. The sale profit was approximately 1 million yen.

There are challenges to receiving the above benefits, such as the condition of the property and legal restrictions.

It is important to seek professional advice

2. Considerations for opening accommodation facilities

Here are some things to consider when opening a lodging facility!

・Have you confirmed the area of ​​use?

・Is the property less than 200㎡? (If the area exceeds 200㎡, the use may be changed with a confirmation application)

・Have you checked the ordinances and unique rules of the relevant local government?

・Have you checked the applicable Fire Service Act and Building Standards Act?

・Is the property not renovated, renovated, or expanded?

・Did you consult with the relevant government in advance?

・Are there any licenses for services associated with the accommodation facility?

・Do you have the necessary equipment?

・Have you explained this to the residents surrounding the accommodation?

・Is the necessary management and operation system in place?

・Are you properly managing hygiene?

　　　　　　　　　　　　　　　　　　　　···Such

After purchasing or renting real estate, it is discovered that the property does not meet the facility standards (properties that do not meet the requirements), and there are many cases where plans are stalled, so expert advice is important.

3.Proposal details

About the flow of support content

[1] Confirmation in advance whether the property is eligible for the requirements as an accommodation facility

・Accommodation facility licensing experts will make full use of regional rules, past examples, and know-how to confirm whether the accommodation facility meets the requirements.

・Our consultants, who are familiar with the licensing of accommodation facilities, will handle cases where it would be difficult to convert an existing property into an accommodation facility.

・If an architect's confirmation is required when converting an existing property into an accommodation facility, we can work with an architect who is familiar with accommodation facility conversions.

■You can prevent such risks!

・I purchased a property for a lodging facility, but was unable to open it due to the property not meeting the requirements, resulting in a large loss...

・The current state of the purchase did not meet the requirements for an accommodation facility, and a large amount of renovation work was required.

・I purchased an accommodation facility from a real estate company, but it turned out to be an illegal property and the business was suspended...

[2]Procedural support for obtaining permission to open an accommodation facility

・We will support you until you receive permission to open an accommodation facility, such as prior consultation with the competent government, preparation of application and notification documents, acquisition of necessary documents, briefings and dissemination to nearby residents, collaboration with architects and firefighting equipment companies, etc. .

- By having our specialized consultants quickly handle the above procedures, you can shorten the time it takes to start your business and start your business sooner.

[3] Other suggestions

・Suggest a management and operation agency

→ We are an accommodation facility management and operation agency that has a track record of supporting many property owners to improve their profits by leveraging our knowledge gained from our extensive experience, our accommodation facility management know-how, and accumulated data on competing properties in each region. I would like to make a suggestion.

We will help you increase occupancy rates with the customer acquisition know-how of our web marketing staff and unique management tools that lower vacancy rates. By increasing the utilization rate, it becomes easier to improve profits.

・Subsidy proposals

→When opening an accommodation facility or renovating an existing facility, we will propose the most suitable subsidy, and our subsidy specialist consultants will also handle the procedural aspects.

We also handle all aspects of the process, from proposals to subsidies, which are available only to accommodation facilities provided by each local government.

[Introduction]

Support Gyoseishoshi Law Firm

[Tokyo Head Office] Shinjuku Monolith 2F, 3-1-25 Nishi-Shinjuku, Shinjuku-ku, Tokyo

[Nagoya Branch] Mitsui Building Main Building 1F, 24-30-18 Meieki Minami, Nakamura-ku, Nagoya City

[Osaka Branch] Dojima Avanza 1F, 6-20-6 Dojima, Kita-ku, Osaka

　Our homepage:　https://www.shigyo.co.jp/company

　We also provide support for various permit procedures, utilization of foreign employees (residence status, etc.), and utilization of subsidies.

　The first consultation is free.