In real estate investment, demand for maisonette-style rental properties has been rising in recent years. This article explains, from an owner’s perspective, the investment advantages, disadvantages, and success factors of maisonette apartments, which can create differentiation while keeping construction costs under control.
What Is a Maisonette Rental Property?
A maisonette is a rental property in which a single unit spans two levels. It offers a living experience closer to that of a detached house, and because residents can live with less concern about noise between floors, it is especially popular with families and couples.
What Are the Advantages of Operating Maisonette Rental Properties?
1. Construction Costs Can Be Reduced
Because exterior staircases are unnecessary and the number of units is smaller, construction costs are often lower than those of a standard apartment building. This can also help reduce maintenance and management costs for shared corridors and shared staircases.
2. Differentiation From Competing Properties Is Possible
The supply of maisonette-type units is limited, and their rarity tends to reduce competition. They are more likely to attract applications from couples and families looking for stylish rental housing, making them effective as a differentiation strategy.
What Are the Disadvantages of Operating Maisonette Rental Properties?
1. Profitability Tends to Be Lower Than That of Studio Apartments on the Same Footprint
Because maisonette properties have fewer units, their total rental income is often lower than that of studio apartments even on the same lot size. For example, four maisonette units renting at 100,000 yen each generate monthly income of 400,000 yen, whereas eight studio units on the same land renting at 70,000 yen each generate 560,000 yen.
2. Vacancies Have a Larger Impact
Because the number of units is small, a single vacancy has a significant impact on revenue. Since the target tenant segment is narrower, owners should also account for the risk that it may take longer to find tenants.
Who are the target tenants for maisonette apartments?
Single occupants
They are popular among younger renters who value design elements such as internal staircases, atrium-style openings, and spiral staircases. They also tend to appeal to people seeking a lifestyle with a strong focus on interior design.
Families
Because there are no neighboring units directly above or below, families often favor them because noise issues caused by children crying or footsteps are less likely to occur. This can also help reduce the risk of management-related disputes.
Four checkpoints when evaluating an investment in maisonette apartments
1. Choose an area with strong rental demand
Tenants who specifically choose maisonette units are a minority when viewed against overall rental demand. However, in central urban areas or markets with a large renter population, it is still possible to secure a sufficient pool of prospective tenants even if the target demand is narrower.In regional areas with a smaller renter population, vacancy risk rises.
2. For one-room maisonettes, prioritize design quality
If the staircase does not function as a design feature, such as when it is hidden behind a wall, single occupants are less likely to consider the property. It is important to review the actual design before making an investment decision.
3. Confirm soundproofing performance
Even if noise between floors can be reduced, the benefit for family tenants becomes limited if the walls between adjacent units have poor sound insulation. The soundproofing specifications of the walls shared with neighboring units are a mandatory checkpoint before investing.
4. Confirm thermal insulation performance
Because maisonette units are structured so that warm air on the first floor can easily escape upward to the second floor, weak insulation can reduce tenant satisfaction.Please review the insulation specifications and consider insulation work where necessary.
Key Success Factors for Maisonette Rental Management
A Design That Creates a Detached-House Feel
Providing a private garden and dedicated parking, and adopting specifications that feel like a detached house, can improve tenant acquisition rates. Attention to an exterior and interior with a designer-apartment feel can also be effective, but overly distinctive designs may miss market needs.
Under-Stair Storage and Soundproofing Measures
Ample storage space is directly linked to tenant satisfaction. It is also necessary to strengthen wall soundproofing against horizontal noise from neighboring units; neglecting this can lead to disputes.
What Kind of Owner Is Suited to Maisonette Management?
- Owners who want to keep construction costs down and run a highly cost-effective operation
- Owners who have land in areas with many families and few detached rental houses
- Owners in areas with strong child-rearing environments, such as neighborhoods near schools and parks
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Frequently Asked Questions (FAQ)
- Q. What is a maisonette rental property?
- A. It is a rental property in which a single unit spans two levels. It offers a living feel closer to that of a detached house and is popular with families and couples.
- Q. Do maisonette rental properties offer higher returns than standard apartment buildings?
- A. In general, because they have fewer units than studio apartments on the same footprint, total rental income is lower. The lower construction cost is what helps offset that difference.
- Q. What kinds of locations are suitable for maisonette rental properties?
- A. Demand is easiest to expect in areas with many families, in neighborhoods near schools and parks, and in regions with few detached rental houses.
- Q. How should vacancy risk be managed?
- A. It is effective to increase family-oriented added value, such as private gardens and parking, and to build a marketing strategy tailored to the target tenant segment.
- Q. What is the most important point in soundproofing a maisonette rental property?
- A. Noise between floors is relatively limited by the layout, but the most important measure is stronger soundproofing for the shared side wall with the neighboring unit. This should be clearly specified to the builder at the design stage.
Q1. Are construction costs for maisonette apartments lower than for standard apartment buildings?
When prefabricated construction is used, costs tend to be lower. The fact that no shared common area is required also contributes to cost savings. As a benchmark, around JPY 700,000 per tsubo is typical for wood-frame two-by-four construction.
Q2. What kinds of locations are suitable for maisonette apartments?
Urban areas with strong rental demand from younger tenants and families are generally the best fit. In areas with a smaller renter population, vacancy risk increases.
Q3. What vacancy countermeasures are effective for maisonette apartments?
Well-designed interiors, strong soundproofing, and good thermal insulation are key to attracting tenants. It also becomes easier to build an effective strategy by clearly narrowing the target market to either single occupants or families.
Q4. Is it true that maisonette-style units have limited rental demand?
Compared with overall rental demand, the target segment is certainly narrower. However, in central urban areas with a large renter population, the absolute number of potential tenants can still be sufficient. With the right location, stable occupancy can be expected.
