Minpaku Renovation for Max Revenue! Hokkaido Success Stories & Layout Tips
2024.04.06
Contents
- 1 Vacation rental has become a common method of real estate operation
- 2 Renovation and Renovation for Vacation Rental Properties
- 3 [With Case Study] Average Costs for Minpaku Renovation
- 4 Renovation and Renovation of Vacation Rental Properties in Hokkaido
- 5 Renovation and Renovation are Essential Conditions for Starting a Vacation Rental!
- 6 If you are going to invest in a vacation rental in Hokkaido, choose JANKEN
Vacation rental has become a common method of real estate operation
There are many forms of investment, such as stock investment and FX investment. Among them, real estate investment is often recommended for reasons such as the relatively stable asset value due to physical asset investment and the ability to generate long-term profits.
Among the various methods of real estate investment, vacation rental investment has been gaining attention recently. With the increase in inbound demand and the need for accommodations for foreign tourists, the number of vacation rentals has been increasing day by day.
Barriers to Starting a Vacation Rental
When you hear about vacation rental operations, you might think, “It seems easier than operating a hotel or inn!” However, vacation rental is a legitimate accommodation business, and there are many barriers to overcome and considerations to be made.
Specifically, they include
- Purchasing real estate for vacation rental facilities
- Checking the requirements of applicable vacation rental laws and applying to local governments
- Renovation and renovation of the interior and the entire property
- Methods of attracting customers
This article focuses on renovation and renovation, which significantly affect the popularity of accommodation facilities.
For laws related to vacation rentals and purchasing vacation rental real estate, please refer here.
Renovation and Renovation for Vacation Rental Properties
First of all, are you confusing “renovation” and “renovation”? Actually, there is a difference in the meaning of these two words.
- Renovation: Restoring the property to its original condition at the time of new construction (e.g., replacing wallpaper)
- Renovation: Changing the facilities and interior of the property to something more convenient (e.g., improving the layout)
Calling a complete overhaul of everything except the foundation of the property “full renovation” instead of “full renovation” is also due to this difference. Knowing the meaning of each word when carrying out renovation work to transform into a vacation rental property can help eliminate discrepancies with contractors.
Points to Consider for Interior and Facilities of Vacation Rental Properties
What’s important in renovation and renovation for vacation rentals is to think from the perspective of the users.
Examples
- Number of shower rooms, washbasins, and toilets → Ensure a sufficient number to guarantee convenience
- In the case of a share house, the flow from the private rooms to the common space → Pay attention to whether the private environment of each room is secured
- Modify the layout to suit minpaku use—not just for residential comfort, but also to meet the expectations of guests.
It’s wonderful to renovate with a particular interior in mind, but be careful not to indulge in self-satisfaction.
Renovation and Renovation Examples
Powder Chalet Niseko, a share house-type vacation rental facility in Kutchan Town in the Niseko area, started operations after a major renovation. Originally, this property was old and far from being suitable for a vacation rental in terms of interior and facilities, but as a result of the renovation, it evolved into a vacation rental facility with a very high occupancy rate.
Specific Renovation Details
- Changing the layout to protect the privacy of each room
- Providing a washbasin in each room on the second floor
- Preparing three shower rooms
- Replacing wallpapers and flooring materials
In the following article, we introduce many examples of interiors of vacation rental facilities operated by our company. Please take a look.
With experience managing over 500 minpaku properties across Hokkaido, JANKEN offers renovation and remodeling services that bring out the full potential of your real estate.
We create spaces optimized for minpaku operations, delivering a comfortable and memorable stay for guests.
For minpaku renovations in Hokkaido, trust JANKEN to handle it all.
[With Case Study] Average Costs for Minpaku Renovation
How Much Should You Spend on Minpaku Renovation? – Striking the Right Balance Between Costs and Profitability
To run a successful minpaku (private lodging) business, it’s crucial to strike the right balance between renovation costs and return on investment (ROI). In high-demand tourist destinations like Hokkaido, investing in appealing interior design and comfortable amenities can directly increase nightly rates and occupancy. On average, renovation costs for minpaku properties range from ¥500,000 to ¥2,000,000 per room, while full-scale renovations involving plumbing or layout changes can exceed ¥3,000,000.
However, overspending can delay your breakeven point and reduce profitability. To maximize cost efficiency, focus on features that guests truly value—such as cleanliness, stable Wi-Fi, and a comfortable bed. While not utilized in the following case, local government subsidies may also help reduce upfront costs and enhance property appeal.
After renovation, minpaku properties in prime locations can yield 10–20% annual ROI, while excessive spending or poor location choices can push ROI below 5%. Conducting a thorough financial simulation in advance is key to determining the appropriate renovation budget for a profitable investment.
Case Study: Self-Funded Minpaku Renovation in Niseko
Property Overview: 28-year-old mountain villa (2LDK + loft) in Niseko, Hokkaido
Renovation Details:
- Converted tatami room to Western-style bedroom (flooring & closet modifications)
- Added stairs and safety measures for loft access
- Upgraded bathroom and toilet with insulation for cold climates and bidet system
- Redesigned interior using natural wood for a Scandinavian-style aesthetic
- Installed smart lock with English-language support
Total renovation cost: approx. ¥4.6 million (fully self-funded)
Annual occupancy rate: approx. 65% (90%+ from December to March)
Average nightly rate: ¥22,000
Annual revenue: approx. ¥4.8 million
Estimated payback period: approx. 5 years
ROI: approx. 10.4%
This self-funded minpaku renovation is a strong example of how to generate high returns without relying on subsidies. By focusing on layout improvements and winter-specific upgrades, the owner successfully enhanced guest satisfaction and seasonal performance. The property continues to attract bookings even during off-peak periods thanks to its practical and stylish features.
In Niseko, ambience and functionality have a direct impact on perceived value and pricing. Instead of overspending, a strategically targeted renovation plan is the key to maximizing long-term profitability in the minpaku business.
Renovation and Renovation of Vacation Rental Properties in Hokkaido
Renovation and renovation of real estate are not uniform and are carried out according to the characteristics of the region and the condition of the property.
For example, if you are going to operate a vacation rental in Hokkaido, where our company is located, you need to pay attention to the following:
- Are cold protection measures such as double windows and heating equipment sufficient?
- Is the parking lot fully equipped for snow?
- Is there an air conditioner (even relatively new properties in Hokkaido may not have one)?
It is recommended to request local real estate and construction companies when you reform or renovation
If you ask a company like ours that can act as a vacation rental operator, it is possible to operate a vacation rental in Hokkaido no matter where you live. However, considering the renovation and renovation of the property without knowing the local housing situation and living comfort is a difficult task.
In such cases, it’s good to ask a local company that undertakes interior work. If you ask a construction company with a certain track record in the area to do the renovation and renovation, the likelihood of regretting the interior and layout later will surely be reduced.
When operating a minpaku in areas like Furano or Niseko, it’s essential to work with local contractors who can promptly handle regular maintenance and emergency repairs.
In the article below, we introduce real estate professionals who are well-versed in the Niseko and Furano regions.
If you’re considering renovating or remodeling a minpaku property in Hokkaido, we highly recommend taking a look.
Real Estate Companies in Niseko
Real Estate Companies in Furano
Renovation and Renovation are Essential Conditions for Starting a Vacation Rental!
Although there is certainly a simple and personal aspect to operating a vacation rental, it is a legitimate accommodation facility. Naturally, if customers are not satisfied, the reputation in reviews will drop, and the prospect of revenue which important for minpaku investor will disappear. To be loved for a long time, it is necessary to transform into a convenient environment through renovation and renovation.
If you are going to invest in a vacation rental in Hokkaido, choose JANKEN
If you’re considering renovating or remodeling a minpaku property in Hokkaido, leave it to JANKEN. Leveraging our experience from over 500 minpaku operations, we design spaces that maximize your profitability.
JANKEN is a specialized minpaku service provider that supports investors through every phase—from property acquisition to full-scale operation.
Whether you’re planning to start a minpaku business in Hokkaido or considering renovations in preparation for launch, feel free to contact JANKEN for expert assistance.
