5 Latest Ways to Utilize Vacant Homes in 2025 | Vacation Rental? Lease? Sale? Or Something Else…

“Vacant houses” are increasing across Japan and have become a serious social issue.

Simply owning one means paying property taxes and maintenance costs, and leaving it neglected not only lowers its asset value but can also threaten the local landscape and safety. Vacant houses are sometimes even called “negative assets”—but is there really nothing that can be done?

No, that’s not true at all.

Let us share the conclusion of this article upfront.

At this pivotal moment in 2025, when society and lifestyles are undergoing major transformation, vacant houses are not “problems”—they are full of “potential” to generate new value and income. What matters most is breaking free from old conventions and finding the “optimal solution” that matches both your vacant property and the needs of the times.

In this article, we’ll thoroughly compare and explain five concrete strategies—from classic options like vacation rentals, leasing, and selling, to the latest trends—for turning your vacant house into a “hidden treasure.”

Why Is Vacant House Utilization Such a Big “Opportunity” Right Now?

While vacant houses tend to carry a negative image, four major tailwinds are creating an unprecedented business opportunity right now.

• 1. A Growing Social Issue and “Strong Government Support”: National and local governments consider the ever-increasing number of vacant houses one of their top priorities. As a result, they have prepared numerous non-repayable “subsidy” programs for demolition, renovation, and business use of vacant houses, actively supporting owners who want to take on the challenge.
• 2. The “Diversification” of Lifestyles and Work Styles: New ways of living and working—such as relocating to rural areas, dual-base living, and location-independent “workations”—are spreading rapidly. This is creating fresh demand even for vacant houses in rural or suburban areas once considered “inconvenient.”
• 3. Inbound Recovery and “Changing Tourism Needs”: Following the pandemic, inbound tourism has made a strong comeback. Travelers’ needs have also shifted—from group tours to individual travel, and from famous urban attractions to “experience-based tourism” that lets visitors connect with Japan’s traditional scenery and local culture in deeper, more diverse ways.
• 4. The 2025 “Osaka-Kansai Expo” Catalyst: Particularly here in the Osaka-Kansai region, an explosive number of domestic and international visitors are expected in the lead-up to the Expo. This represents an extraordinary, once-in-a-lifetime business opportunity for accommodations and a wide range of related services.

[Thorough Comparison] What’s the Best Way to Utilize Your Vacant House? 5 Options

Let’s look at five concrete strategies for making the most of these opportunities, along with their respective pros and cons.

Option 1: [High-Revenue Type] Vacation Rental (Ryokan Business License / Simple Lodging)

• Overview: Renovate the vacant house into accommodation and rent it out to travelers. This is one of the most attention-grabbing options, especially in Osaka ahead of the World Expo.
• Advantages:
  • Can expect **2 to 3 times higher profitability** than standard leasing. Captures **inbound demand** directly.
  • Easy to turn a property’s individuality—like a traditional Japanese house (kominka)—into a **strength**.
• Disadvantages:
  • Initial investment (renovations, fire safety equipment, etc.) can be substantial.
  • Regulations like the Hotel Business Act are strict, making licensing a high hurdle.
  • Day-to-day operations (cleaning, guest support) require significant effort (typically outsourced to a management company).
• Keys to success: Aim to obtain a **”Ryokan Business (Simple Lodging)” license**, which allows year-round operation. And rather than simply offering a place to sleep, deliver **”experiential value”** that showcases the charm of the local area.

Option 2: [Stable Income Type] Long-Term Leasing (Including Renovation)

• Overview: Renovate the vacant house and rent it out long-term as a standard residential property.
• Advantages:
  • Provides stable monthly rental income, making it **easy to forecast returns**.
  • If you outsource to a management company, operational effort is minimal.
  • No strict regulations like those governing vacation rentals.
• Disadvantages:
  • Profitability is generally lower than vacation rentals.
  • Under the Land and Building Lease Act, once you rent to a tenant, it’s difficult to ask them to leave for the owner’s convenience.
  • There’s a risk of **prolonged vacancy** if no tenant is found.
• Keys to success: Clearly define your target tenants (families, singles, seniors, etc.) and renovate accordingly (e.g., family-friendly layouts, barrier-free design). Setting appropriate rent and choosing a trustworthy management company are also essential.

Option 3: [Immediate Cash] Strategic Sale

• Overview: Sell the vacant house either as-is, or after renovations that increase its value.
• Advantages:
  • You can receive a lump sum of cash immediately.
  • Completely free yourself from property taxes and maintenance burdens.
• Disadvantages:
  • You’re not guaranteed to sell at your desired price. This is especially true for rural properties or those in poor condition, which can be hard to sell.
  • Costs such as agent commissions apply.
  • There can be emotional resistance to letting go of a home you have memories attached to.
• Keys to success: Request appraisals from multiple real estate companies to understand fair market value. Before selling, do minimal cleaning and clear out belongings to improve how the property “presents” itself. Registering with an “Akiya Bank” (vacant house bank) can also be an effective option in some cases.

Option 4: [Community-Contribution Type] Local Community Hub

• Overview: Use the vacant house as a space for local residents or a specific community.
• Examples: Community spaces, children’s cafeterias, senior gathering spots, relocation support centers, shared art studios, welfare facilities (day services, etc.).
• Advantages:
  • Offers great fulfillment through **contributing to the local community**.
  • Easier to receive subsidies and support from local government.
  • Helps build good relationships with local residents.
• Disadvantages:
  • Direct profitability is often low (rental income or usage fees alone may not cover operating costs).
  • Planning and operations require specialized know-how and a personal network.
• Keys to success: Thoroughly research what the local community actually needs, and build a sustainable operating model in cooperation with local government, NPOs, and key figures in the area.

Option 5: [Hybrid Type] Mixed-Use Facility

• Overview: Combine multiple options above and give a single building several functions.
• Examples: A café on the first floor and a vacation rental on the second. The main house as a residence-cum-shop, with a detached building as an art studio. Adding shared-house functionality to a co-working space.
• Advantages:
  • Having multiple revenue streams helps spread out risk.
  • Each function can drive customers to the others, creating a **”synergy effect.”**
  • You can flexibly adjust the balance of functions as the times change.
• Disadvantages:
  • Requires a more sophisticated and complex business plan as well as diverse operational skills.
  • You must satisfy all relevant regulations for each function (e.g., food service license + lodging license).
• Keys to success: Ensure consistency between the target audience and concept for each function. Success or failure often hinges on whether you can effectively partner with professionals in each specialized field.

3 Steps to Finding the Optimal Solution

STEP 1: Accurately Assess the “Current Condition” of Your Vacant House

• Location: Distance from the station, surrounding environment, presence of tourism resources, etc.
• Condition: Building age, structure, degree of deterioration, and costs required for renovation.
• Legal Constraints: Zoning designations, whether rebuilding is permitted, width of the road in front of the property, etc.

STEP 2: Clarify Your “Objective”

• Profitability: How much profit do you want, and by when? (High short-term returns, or stable long-term income?)
• Effort: How much time and effort can you devote to operations?
• Personal Values: What feelings do you have toward the property and the local community? (Community contribution, cultural preservation, etc.)

STEP 3: Consult with Experts and Make an Objective Decision

In addition to the self-assessment above, getting objective advice from experts in each field is essential to making the best choice.

• Real estate appraisers, real estate consultants
• Architects, renovation companies
• Administrative scriveners (for licensing and permits)
• Tax accountants (taxation and tax-saving strategies)
• Vacation rental management companies and other operational professionals for each use case

Conclusion: Vacant Houses Aren’t a “Problem”—They’re a “Possibility.” Choose Wisely and Build Your Future

A vacant house is no longer something to simply neglect as a “problem.” Depending on your decisions and actions, it’s a raw gem holding endless “possibility” to generate new value and income.

As we head into 2025, a time of major change, let go of old conventions and use the five options introduced in this article to discover the most brilliant way to utilize your vacant house—and shape the brightest future for yourself.

Let Our Professionals Help You Find That “Optimal Solution”

“I understand the options, but I can’t decide which one fits my vacant house…”

“I want to know objectively which strategy has the lowest risk and the highest return.”

Please feel free to consult with us about these concerns.

Stay Buddy Co., Ltd. is not simply a vacation rental management company. We are real estate utilization professionals who maximize the untapped potential of dormant properties and produce them into profit-generating “businesses.”

We will:

• **① Carefully listen** to the specifics of your vacant house (location, condition, legal constraints) and **your objectives** (profitability, stability, personal values),
• ② Analyze every option—vacation rental, leasing, sale, community-contribution model, or mixed-use facility—based on objective, data-driven analysis,
• and ③ Present you with the “optimal solution” for your vacant house, complete with a concrete business plan, entirely free of charge.

We will never push a specific strategy on you.

Why not work with us to find the wisest, most satisfying choice for maximizing your asset’s value and bringing your vision to life? We look forward to hearing from you.