{"id":1923,"date":"2019-09-12T16:19:01","date_gmt":"2019-09-12T07:19:01","guid":{"rendered":"https:\/\/www.artavenue.co.jp\/global\/blog\/?p=1923"},"modified":"2019-11-01T11:01:31","modified_gmt":"2019-11-01T02:01:31","slug":"oyo-life-new-style-of-renting","status":"publish","type":"post","link":"https:\/\/www.artavenue.co.jp\/global\/blog\/2019\/09\/12\/oyo-life-new-style-of-renting\/","title":{"rendered":"OYO Life – New Style of Renting in Japan"},"content":{"rendered":"

Renting a room in Japan could be time-consuming and frustrating sometimes. The rental process of room-searching to actually moving-in could take as long as a month in most cases.<\/p>\n

To make the rental process more convenient, OYO Life has launched its business in Japan in 2019.<\/p>\n

Hassle-free Rental<\/h3>\n

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OYO Life\u00a0provides furnished-rooms<\/strong> with a hassle-free rental process.<\/p>\n

As some of you may have already known, OYO Life was first established in India in 2013 and later in China in 2017. Up to date, OYO Life is operating 450,000 units around the world including Japan.<\/p>\n

While conditions might differ among countries, in Japan, rooms provided by OYO Life do not require brokage, deposit, and key-money.<\/p>\n

Moreover, the most time-consuming process – contract signing, can be done through smart phone application. Customers can move in as soon as the day after application.<\/p>\n

Differences between OYO Life and Traditional Rental<\/h4>\n
1. Hassle-Free Contract<\/h5>\n

Room-searching, contract-signing and payment can all be done through OYO’s smart phone application. The contract process that usually takes at least one week (Art Avenue’s average) can be shortened to 30 minutes.<\/strong><\/p>\n

Furthermore, a short-term rental agreement of one month and above can be made.<\/p>\n

2. Low Contract Cost<\/h5>\n

As mentioned above, brokage, deposit, and key money are not required. In\u00a0 traditional rental agreement, it usually costs 1 month’s deposit, 1 month’s key money (non-refundable), and 1 month’s brokage. This can sum up to 300,000 ~ 500,000JPY depending on the monthly rent.<\/p>\n

However, with OYO Life, all these can be waived<\/strong>.<\/p>\n

3. Furnished-rooms<\/h5>\n

All rooms provided by OYO Life are furnished<\/strong> with necessary furnitues and household appliances. Wi-Fi and lifelines are all ready to use on the day of move-in.\u00a0Customers do not need to worry about buying furnitures and making a reservation with a moving company.<\/p>\n

The move-and-pack industry in Japan has been under labor shortage since a few years ago. Reservations are extremely difficult to make especially during peak season.<\/p>\n

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OYO Life in Japan<\/h3>\n

In Japan, short to medium-term business trips are common among white-collar workers. Compared to traditinoal rental agreement that requires at least 6-months-long lease, OYO Life provides short-term agreement which matches the needs of Japanese work culture.<\/p>\n

How does this Benefit Property Owners?<\/h4>\n

In customers’ perspective, OYO Life is convenient as it makes the moving decision much easier. Shall there be any unsatisfication occurs during tenancy, customers can just move to another OYO apartment.<\/p>\n

So, how does this benefit property owners?<\/strong><\/p>\n

OYO Life’s biggest benefit to property owerner, I would say, is\u00a0to prevent vacancy loss.<\/strong><\/p>\n

OYO will be the lessee to the apartment and further sublease to OYO users. Therefore, promising a stable rent income to owners regardless of vacancy.<\/p>\n

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What are the Cons?<\/h4>\n

Looking at the pros of this new style of renting, sure it is attractive to many tenants as well as\u00a0real estate\u00a0investors.<\/p>\n

Let’s also look at some\u00a0the disadvantages<\/em> that comes with it.<\/p>\n