Listed: 2022/10/16
Rare Certified Kyoto-Machiya Guesthouse — Business Transfer; Ryokan Business License Obtained; Currently Leased at ¥110,000/Month (Kyoto Prefecture, Business Transfer)
KinkiConstruction
Business description
■ Business Model
- Business description
These days, with new condominiums and housing materials soaring in price, those who find it hard to buy should consider a precious detached house — fully renovated and certified as a Kyoto machiya — before prices rise further. When we put it up for lease, it was an extremely popular property: a lease contract (rent ¥110,000) was signed in just one day.
You can use it yourself, or since a tenant is already in place, it is also well suited to keep as an investment.
A Kyoto machiya fully renovated in June 2019, with attractive features including clean water-related fixtures and a charming hinoki cypress bath. We purchased it about two years ago because we liked it, and we have since added a few interior touches of our own.
[Property Overview]
Layout: 3DK (Japanese-style 6 / 4.5 / 4 plus DK 9.7); building area 71.39 m²; land area 71.39 m² (registry); private-road burden area: yes, 35.00 m²
Built August 1926 (95 years 9 months old); 2 stories; no parking; wooden structure; ryokan business license obtained
* A website exists. The data and domain can be transferred.
* The Airbnb account can be transferred, but since the ryokan business license will likely need to be re-obtained, the account would probably have to be recreated rather than transferred.
* A Twitter account exists and can be transferred.
* An Instagram account also exists, but it is slated to be repurposed for another business. If you really want it, this can be discussed separately for a fee.
- Product and service features
This guesthouse is a 2-story, 3DK detached house rented out as a whole, priced at ¥17,500 per night (tax included) no matter how many guests stay. It was operated casually, taking only the bookings that happened to come in through its Airbnb listing, but as customers declined due to COVID, it was mostly used by the owner to invite friends and was largely left idle for a long time. It was put up for lease on May 1 of this year.
- Customer and client base
For the guesthouse business, customers were mainly foreigners before COVID and Japanese after. Bookings come mainly through the website, social media, and Airbnb. In fact, because the main business kept us busy, we put no effort into it at all, so more bookings would surely come with more marketing. In my case, I was satisfied just using it myself. People around me said it was too much of a waste, so we put it up for lease starting this year.
- Staff and organization
None in particular
- Strengths and selling points
With Kyoto's real estate market currently soaring, this is more affordable than a new condominium, and above all, its appeal is its certification as a Kyoto machiya — a category expected to gain scarcity value going forward. It is a Kyoto machiya built in 1926. It was fully renovated in June 2019 and barely used, so until it was put up for lease it still smelled almost new. For the motivated, it is ideal as a guesthouse; for those who prefer minimal effort, it can also be repurposed as a detached-house rental and left as-is like the current arrangement — good for business and good for leasing, making it an advantageous asset to hold as an investment.
* Example for purchase via a mortgage: in the case of Kyoto Chuo Shinkin Bank
- Recommended: 3+ years at current employer
- With collateral: 35-year loan possible (paid off by age 80)
- With a guarantee company: 20-year loan possible (paid off by age 80)
- Variable rate: 0.525 (as of September 16) ← maximum rate preference
- 35 years / annual repayment = ¥938,490 / monthly payment ¥78,207
- Rental income ¥110,000 / management company -¥10,000 / net ¥100,000
- Difference: +¥21,793 per month
Machine translated from the original Japanese listing. View original (Japanese)
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Assets to be transferred
事業譲渡
Reason for sale
事業見直しのため
Products and services
■希望売却価格
2,800万円
■売却形式
事業譲渡
■売却対象資産
土地,、建物・付属設備、ノウハウ
■売却理由
選択と集中
Asking price¥10M–¥30M
