Blog
7 min read

Cost Breakdown of Our Japanese Home + Renovation for Airbnb

Written by
Derek Cirillo
Published on
August 2, 2025

Ever wondered how much it costs to buy and renovate a home in Japan, especially one you can Airbnb when you’re not there? Here’s a full breakdown from purchase to renovation, including what we spent and why.

Once the renovation is done ill write a post with tons of before and after photos!

Purchase Price:

  • We bought our home for 4,000,000 JPY.

It’s a charming, late-century home, no structural issues, just a bit dated. Totally live-able as is.

Closing Costs:

  • Registration fee: 126,000 JPY
  • Real estate acquisition tax: 150,000 JPY
  • Settlement of current property taxes: 12,164 JPY
  • Brokerage fee (3%): 333,000 JPY
  • Total closing costs: 621,164 JPY

So, all in, our total purchase cost was 4,621,164 JPY

Renovation Costs (To Bring It to Airbnb Standard):

While the home was perfectly livable as-is, we wanted to turn it into a top-tier Airbnb that guests would rave about and come back to. I’ve stayed in a lot of Airbnb’s in my time exploring Japan, so I just focused on what I would want as a client and things I felt were missing from other homes.

Here’s what we invested:

  • Hotel code & fire safety upgrades + rental license: 722,500 JPY
  • 5 Heat Pumps (A/C + Heat for every room): 2,023,000 JPY
  • Most Airbnb’s in Japan skip this. We didn’t. Comfort = 5-star reviews.
  • Wallpaper for entire home: 1,380,000 JPY
  • Second bathroom & shower upstairs + new toilet downstairs: 1,638,200 JPY
  • Multiple bathrooms = more guests = more revenue.
  • New floors + a modern twist on Tatami mats and other carpentry work (photos coming soon!): 1,498,300 JPY
  • Electrical work: 703,000 JPY

Total renovation: 9,412,700 JPY

Grand Total Investment:

14,033,864 or about $95,524.34 USD

That includes everything, purchase, paperwork, taxes, upgrades, and all the little things that always come up.

Final Thoughts:

This isn’t just a house, it’s a part-time home, full-time asset.

It’s cozy, beautiful, and fully licensed for short-term rentals. When we’re not there, it helps pay for itself.

And while many assume “cheap Japanese houses” are falling apart, that couldn’t be further from the truth. There are tons of affordable, well-maintained homes across Japan and if your okay with a fully function kitchen from the late 1970s or 80s you don’t need to worry about upgrading.

If you're dreaming of owning a home in Japan and renting it out as a Short Term Rental, hopefully this gives you a real-world idea of what’s possible and what it actually costs. Of course you can do it much cheaper but we’ve always been believers in going the extra mile and making future guests happy!

want one of your own?

DM us or book a free consultation. Let’s make it happen.

Derek Cirillo
July 17, 2025

Take the Next Step

Join our community for exclusive insights and resources on Japanese real estate investments.

Our team

Meet the founders.

Derek Cirillo
Co-founder

Derek has been working in the Airbnb space for the past 10+ years and recently purchased a home in Japan. He is excited to bring this investment opportunity to others in the States & abroad.

Nick McLoota
Co-founder

Nick has a passion for adventure and has always dreamed of owning a property in Japan. His dreams finally came true when Derek brought him in on a deal of a lifetime in Hokkaido, Japan - one of Nick's favorite places on Earth.