Today I have somewhat of a rant topic that I seriously came to hate, namely owners turning their entire apartment buildings into Air BnB’s or residential style hotels to maximize profit in soaring markets.
This week I found out that our former apartment in Tokyo-Ebisu is now also a victim of this conversion trend and now being listed on various booking platforms charges ~US$300 per night to stay there.
It goes without saying that most larger cities already have a shortage of apartments but with tourism numbers and hotel rates exploding in cities such as Tokyo the financial incentive is clearly there for owners to get rid of current tenants (often under partly false pretenses such as renovation) and then converting it into an Air BnB.
When I walked by my old neighborhood this week I noticed that my former apartment buildings garage was open and had tons of hotel-style laundry bags and cleaning supplies sitting there.
My friend who still lived there until early last year was then told by the owner that the building would be completely renovated due to age which isn’t unusual in Tokyo. They even offered money to break the lease early and now it all makes sense why – the profits with this new hotel are insanely high.
Here is how the apartment types are now listed on Booking (among other sites):
Here are the pictures I took from the publicly accessible areas:
The rates charged here (~$300/night with a 5-night minimum) are quite amazing especially if you compare it to the previous rate for a regular rental of 240,000 Yen per month. Every single unit is currently generating ~ US$10000 per month, which is quite insane. Of course, there are utilities and taxes involved.
Most booking platforms do charge a cleaning fee per reservation in addition to the rate listed.
This isn’t the only building in Ebisu that did this. I noticed that in the last two years a lot of apartment style rooms have popped up on Agoda, Booking, Airbnb and other platforms. Pure greed to the detriment of Tokyo residents.
Conclusion
I spotted our former apartment building in Tokyo’s fashionable Ebisu district, which was cleared of residents last year under the guise of a “complete renovation due to age” having been converted to an Air BnB style residence now which can be booked on various platforms at ~ US$300 per night.
The profit margin running an entire building AirBnB in an affluent area such as Ebisu is great. 300 bucks per day and a five night minimum. Hotel rates are very high in Tokyo right now. Although, as much as I love that neighborhood, there is no way I’d spend $300 on a small apartment like that. I’d rather go to an actual hotel.
I really hate this trend. This was a nice apartment building where residents could live very peacefully and close to Ebisu station. Now it’s off the market, only to accommodate tourists at insane daily prices. Things like these should be banned!