Minpaku

#６．Management simulation based on minpaku shinpou (new laws on minpaku)

Now, from here, let’s do a simulation according to specific requirements. This is for people who will manage minpaku based on the minpaku shinpou.

１．Earnings from managing a minpaku (host)

First, I would like to simulate the host’s earnings. Let’s calculate with 180 days per year, or in other words 15 days per month.

(1) How much do you earn？

If we calculate based on the average price for one night at a minpaku and the current minpaku data, the earnings would be 9000 yen x 15 days, or 135,000 yen per month. In a year, it would be 1,620,000 yen.

However, the actual accommodation price will include “the basic charge+fees for additional persons+cleaning fees.”

The setting changes depending on the host, but because cleaning fees will only be paid “for one day,” the earnings will change depending on the optional fees you set at first and the length of the stay. By surveying foreign tourists in a city, I found out that most people come in groups of two and stay for five days, four nights.

If you set the basic charge at 6,000 yen, fees for additional persons at 1,000 yen per person, and cleaning fees at 2,000 yen, you can expect to earn about 130,000 yen per month.

(2) How much would it cost?

①Rent

The average price for one room in Tokyo costs 70,000 to 100,000 yen per month.

②Public utility charges

Also, it will cost around 15,000 yen per month for electricity, gas, and water. However, you must explain the rules about electricity to the guests; or else they might use the air conditioning for 24 hours or leave the lights on, and the electricity bills will increase and you will have to change expendable supplies often.

③WIFI fees

Furthermore, in order to make a better environment, you must get WIFI. Normally, tourists would rent WIFI at the airport. However, if the host is also going to provide WIFI, make sure it doesn’t have a speed limit. For hosts who want to be ready for the loss of routers or malfunctioning, I also recommend fixed-line internet (both cost about 5000 yen).

④Expendable Supplies

Other expendable supplies include shampoo, body wash, garbage bags, cleaning supplies and electronic supplies. (Can be mostly purchased in 100 yen shops)

⑤Cleaning fees

If you use a cleaning company for cleaning, you will need to pay fees for that too. It will cost about 6,000 yen every time. However, you won’t need to worry about this if you are going to clean the room yourself.

(３) How much do I earn？

According to the above, for the homestay-type, since you will be lending a part of your own house, there will be no extra fees for rent. However, for the no-host type, if you rent a room and manage a minpaku, you must subtract the rent. One room in Tokyo costs an average of 70,000 to 100,000 yen per month, so after subtracting that and other fees of 15,000 yen, what will be left for you is 30,000 to 50,000 yen. If you are only going to manage one room, there may not even be enough money to hire someone to clean the room.

(４) Retrieving initial investment is quick

However, you can start minpaku at a low investment. Deposit and key money for one room in Tokyo will cost 150,000 to 300,000 yen, so compared to other real estate investments, retrieving the initial investment will be quick.

(5) There is an irreplaceable advantage

Also, communicating with foreign tourists would be a unique experience in Japan. You can improve your English and other foreign language skills and become more sophisticated by learning about different cultures. As long as you prevent problems, it will be a splendid environment.

２．Managing minpaku using an app

First, download minpaku apps like Airbnb, and learn how it works by looking through all the explanations. By acting quickly when you get an inquiry, you will be able to set up a reservation. Next, make sure you know the numbers of inquiries and reservations per day. Depending on the number, you may need to adjust the price on the calendar. If the number of reservations decreases, try searching for the problem and solve it.

３．Tips for succeeding in minpaku management

(1) ”Hospitality” is measured by cleanliness.

Basically, the owner should do the cleaning themselves and see if there are any problems with the room. Also, remember that “adding an extra thoughtfulsomething” somewhere you cannot see will lead to a higher evaluation.

Be especially careful about cleaning the bathtub. Since the bathtub and bathroom are in the same space, if hair gets stuck in the pipe, it gives off a bad smell and water will leak from the floor. Also, check whether the air conditioner is not deteriorating or dirty, as those that are can cause allergic reactions.

４．Owners who ○○ in minpaku

Owners who succeed

Those who can value human relationships, not money.

Owners who don’t succeed

Irresponsible people. Those who don’t have manners. Those who try to manage one room with two people to avoid risk (this business will not necessarily make money).

５．A shortcut to succeed in minpaku management

As in all businesses, people who succeed can put themselves in “others’ shoes.” The more you can come up with suggestions like “doing this would be better,” the better service you can provide. (For example: the pillow is too flat, the mattress is too hard and my back hurts, there is a sound every time I turn over in my sleep, there are not enough supplies, etc.)