Property attributes influencing profitability before and after conversion of vacant long-term rentals to short-term rentals
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View abstract on PubMed
Summary
This summary is machine-generated.Converting vacant long-term rentals (LTRs) to short-term rentals (STRs) in Tokyo can be profitable. Key factors for higher STR profits include lower rent, proximity to busy stations, and tourist attractions.
Area Of Science
- Urban Planning
- Real Estate Economics
- Tourism Management
Background
- Japan faces a growing issue with vacant housing units.
- Increased tourism has caused accommodation shortages and rising prices.
Purpose Of The Study
- Identify physical and locational attributes of vacant long-term rentals (LTRs) in Tokyo that improve profitability after conversion to short-term rentals (STRs).
Main Methods
- Utilized an open dataset of 7,772 Airbnb listings from 2024.
- Developed a hedonic pricing model to estimate rates based on property attributes.
- Applied the model to 20,930 LTR properties to assess pre- and post-conversion profit ratios.
Main Results
- Higher STR profitability correlates with lower pre-conversion rent.
- Proximity to high-ridership stations and numerous tourist attractions (within 10 km) boosts profitability.
- Favorable locations include transport hubs (Setagaya, Shibuya, Meguro, Shinagawa, Shinjuku) and well-connected peripheral wards (Nakano, Suginami).
Conclusions
- Findings provide insights into optimizing housing stock utilization for STRs.
- Offers guidance for developing effective STR regulations and tourism policies in Tokyo.
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