Authored by the expert who managed and guided the team behind the Japan Property Pack
Yes, the analysis of Osaka's property market is included in our pack
Osaka has become one of the most attractive cities in Japan for foreign property investors looking to generate rental income, thanks to its strong tourism recovery and steady migration inflows.
This guide breaks down everything you need to know about renting out a property in Osaka in 2026, from legal requirements to realistic income expectations.
We constantly update this blog post to reflect the latest market conditions and regulations.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Osaka.
Insights
- Osaka residential gross yields in 2026 range from 4.5% to 5.8%, which is notably higher than Tokyo's typical 3.5% to 4.5% range for comparable properties.
- The central 6 wards of Osaka command rents around JPY 3,150 to 3,450 per square meter monthly, representing a 10% to 15% premium over the city average.
- Professional residential portfolios in Osaka achieve 95% to 97% occupancy, but individual landlords should budget for 6% to 9% vacancy to account for turnover friction.
- Short-term rentals in Osaka can yield 3.8% to 6.5% net, but only if your building's HOA rules explicitly permit it, which many do not.
- Non-resident landlords in Osaka face a 20.42% withholding tax on rental income when the tenant is a company, making tenant type a key financial consideration.
- Station proximity within 10 minutes of the Midosuji Line is the single most important rent-boosting factor in Osaka, often adding 15% to 20% to achievable rents.
- Naniwa-ku and Higashiyodogawa offer some of the best yields in Osaka because purchase prices are lower while tenant demand remains strong due to good transit links.
- The standard lease length in Osaka is 2 years with renewal, and landlords cannot unilaterally raise rent mid-lease due to strong tenant protections under Japanese law.
Can I legally rent out a property in Osaka as a foreigner right now?
Can a foreigner own-and-rent a residential property in Osaka in 2026?
As of early 2026, foreigners can legally buy, own, and rent out residential property in Osaka without any nationality-based restrictions on real estate ownership.
The most common ownership structure for foreign investors in Osaka is direct individual ownership, where your name goes on the title through Japan's registration system handled by a judicial scrivener.
The main limitation foreigners face in Osaka is not a legal restriction but a practical one: you will need to navigate Japanese-language paperwork and appoint local professionals like a tax representative if you do not reside in Japan.
If you're not a local, you might want to read our guide to foreign property ownership in Osaka.
Do I need residency to rent out in Osaka right now?
No, you do not need to be a resident of Japan to own and rent out a property in Osaka, as non-resident landlords are permitted under Japanese law.
While you may not have a Japanese "My Number" tax ID as a non-resident, you will still need to handle Japanese tax obligations, which most foreign landlords do by appointing a local tax representative.
A Japanese bank account is not strictly required, but most non-resident landlords route rent through a Japan-based property management company that collects domestically and remits funds internationally.
Managing an Osaka rental entirely remotely is practically feasible, as property management companies handle tenant sourcing, rent collection, maintenance, and day-to-day issues for fees typically ranging from 3% to 6% of rent.
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What rental strategy makes the most money in Osaka in 2026?
Is long-term renting more profitable than short-term in Osaka in 2026?
As of early 2026, the most profitable rental strategy in Osaka depends on your tolerance for regulation and operations, with long-term renting offering more stable returns and short-term renting offering higher but riskier gross income.
A well-managed long-term rental in central Osaka might generate JPY 1.3 to 1.9 million annually (around $8,500 to $12,500 USD or €7,800 to €11,500 EUR), while a comparable short-term rental could produce JPY 2.2 to 3.5 million gross (around $14,500 to $23,000 USD or €13,300 to €21,000 EUR), though operating costs eat significantly into the short-term figure.
Properties in visitor-heavy areas like Namba, Shinsaibashi, or near Umeda Station tend to favor short-term renting financially, provided your building's rules allow it and you can handle the operational complexity.
What's the average gross rental yield in Osaka in 2026?
As of early 2026, the average gross rental yield for residential properties in Osaka is approximately 4.5% to 5.8%, which is notably higher than Tokyo's typical range.
The realistic range covers most residential properties in Osaka, with yields on the lower end (around 4.5%) for newer buildings in prime central wards and higher yields (approaching 5.8%) in slightly outer but still well-connected neighborhoods.
Studios and compact 1-bedroom apartments in Osaka typically achieve the highest gross rental yields because their lower purchase prices relative to rent create favorable price-to-income ratios.
By the way, we have much more granular data about rental yields in our property pack about Osaka.
What's the realistic net rental yield after costs in Osaka in 2026?
As of early 2026, the average net rental yield after all costs for residential properties in Osaka is approximately 3.2% to 4.3% for long-term rentals.
The realistic range most landlords experience in Osaka spans from around 3% net for premium properties with higher management costs to about 4.5% net for well-located units with efficient operations.
The three main cost categories that reduce gross yield to net yield in Osaka are the mandatory condo management and repair reserve fees (often JPY 15,000 to 40,000 monthly), the annual fixed asset and city planning taxes (1.4% plus 0.3% of assessed value), and property management fees if you use a company to handle tenants remotely.
You might want to check our latest analysis about gross and net rental yields in Osaka.
What monthly rent can I get in Osaka in 2026?
As of early 2026, typical monthly rents in Osaka range from JPY 65,000 to 95,000 ($425 to $625 USD or €390 to €575 EUR) for a studio, JPY 110,000 to 160,000 ($720 to $1,050 USD or €660 to €965 EUR) for a 1-bedroom, and JPY 170,000 to 260,000 ($1,115 to $1,700 USD or €1,025 to €1,570 EUR) for a 2-bedroom.
A realistic entry-level monthly rent for a decent studio in Osaka starts around JPY 55,000 to 70,000 ($360 to $460 USD or €330 to €420 EUR) in outer but transit-accessible areas.
A typical mid-range 1-bedroom apartment in central Osaka rents for JPY 120,000 to 145,000 ($785 to $950 USD or €725 to €875 EUR) per month.
A typical mid-to-high range 2-bedroom apartment in desirable Osaka neighborhoods commands JPY 200,000 to 280,000 ($1,310 to $1,835 USD or €1,205 to €1,690 EUR) monthly.
If you want to know more about this topic, you can read our guide about rents and rental incomes in Osaka.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Japan versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
What are the real numbers I should budget for renting out in Osaka in 2026?
What's the total "all-in" monthly cost to hold a rental in Osaka in 2026?
As of early 2026, the total "all-in" monthly cost to hold a typical rental condo in Osaka ranges from JPY 45,000 to 85,000 ($295 to $555 USD or €270 to €510 EUR), excluding any mortgage payments.
A realistic range covering most standard rental properties in Osaka spans from JPY 35,000 monthly ($230 USD or €210 EUR) for a compact studio with low fees to JPY 100,000 monthly ($655 USD or €605 EUR) for a larger 2-bedroom with higher condo assessments.
The single largest contributor to monthly holding costs in Osaka condos is typically the combination of building management fees and repair reserve contributions, which together often run JPY 15,000 to 40,000 per month regardless of whether your unit is occupied.
You want to go into more details? Check our list of property taxes and fees you have to pay when buying a property in Osaka.
What's the typical vacancy rate in Osaka in 2026?
As of early 2026, the typical vacancy rate for well-located rental properties in Osaka is approximately 3% to 5% for professionally managed portfolios, though individual landlords should budget for 6% to 9%.
A landlord in Osaka should realistically budget for about 0.7 to 1.1 months of vacancy per year to account for tenant turnover, unit preparation between tenancies, and potential slower leasing periods if the rent is set too high.
The main factor causing vacancy rate differences across Osaka neighborhoods is station proximity, with units within 10 minutes of major rail lines like the Midosuji Line experiencing significantly faster tenant placement.
The highest tenant turnover and vacancy in Osaka typically occurs in March and April, when Japan's fiscal year ends and many workers relocate, creating both departures and new demand simultaneously.
We have a whole part covering the best rental strategies in our pack about buying a property in Osaka.
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Where do rentals perform best in Osaka in 2026?
Which neighborhoods have the highest long-term demand in Osaka in 2026?
As of early 2026, the top three neighborhoods with the highest overall long-term rental demand in Osaka are Umeda in Kita-ku, Tennoji in Tennoji-ku, and the Honmachi and Yodoyabashi area in Chuo-ku.
Families in Osaka tend to favor neighborhoods like Uehonmachi, Nishi-ku around Awaza and Nishi-Nagahori, and the Suita and Toyonaka areas just north of the city for their combination of space, schools, and calmer environments.
Students in Osaka cluster around Nakamozu near Osaka Metropolitan University, Tennoji and Abeno corridors with good transit and affordability, and areas along the Midosuji Line with campus access.
Expats and international professionals in Osaka prefer Namba and Shinsaibashi in Chuo-ku for lifestyle convenience, as well as Umeda and Nakatsu for fast connections and newer tower residences.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Osaka.
Which neighborhoods have the best yield in Osaka in 2026?
As of early 2026, the top three neighborhoods with the best rental yield in Osaka are Naniwa-ku around Daikokucho, parts of Higashiyodogawa and Yodogawa-ku near Juso, and select areas of Nishinari-ku near Shin-Imamiya.
The estimated gross rental yield range for these top-yielding Osaka neighborhoods is approximately 5.5% to 7%, compared to 4% to 5% in the most central premium wards.
The main characteristic allowing these neighborhoods to achieve higher yields is that purchase prices remain significantly lower while tenant demand stays strong due to excellent rail connections to central Osaka job hubs.
We cover a lot of neighborhoods and provide a lot of updated data in our pack about real estate in Osaka.
Where do tenants pay the highest rents in Osaka in 2026?
As of early 2026, the top three neighborhoods where tenants pay the highest rents in Osaka are Kita-ku around Umeda and Nakatsu, Chuo-ku including Honmachi and Shinsaibashi, and Nishi-ku especially the Horie area.
The typical monthly rent range for a standard apartment in these premium Osaka neighborhoods is JPY 150,000 to 300,000 ($980 to $1,965 USD or €905 to €1,810 EUR) for a 1-bedroom to 2-bedroom unit.
These neighborhoods command the highest rents in Osaka because they combine direct access to the Midosuji Line with walkable dining, shopping, and nightlife that appeals to professionals willing to pay for convenience.
The typical tenant profile in these highest-rent Osaka neighborhoods includes corporate professionals, dual-income couples without children, and senior executives on housing allowances who prioritize commute time and lifestyle amenities.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Japan. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
What do tenants actually want in Osaka in 2026?
What features increase rent the most in Osaka in 2026?
As of early 2026, the top three property features that increase monthly rent the most in Osaka are proximity within 10 minutes walk to a Midosuji Line station, newer reinforced concrete construction with modern soundproofing, and auto-lock entry with a delivery box (takuhai box) for package reception.
The single most valuable feature, station proximity on the Midosuji Line, can add an estimated 15% to 20% rent premium compared to similar units farther from major transit.
One commonly overrated feature in Osaka is fancy kitchen upgrades like expensive countertops, which local tenants rarely pay significant premiums for since many rely on convenience stores and restaurants more than home cooking.
One affordable upgrade that provides strong return on investment for Osaka landlords is installing a modern intercom system with video, which costs relatively little but meaningfully increases perceived security and tenant appeal.
Do furnished rentals rent faster in Osaka in 2026?
As of early 2026, furnished apartments in Osaka typically rent 1 to 3 weeks faster than unfurnished ones when targeting expats, corporate relocations, or newly arrived foreigners, though the difference is minimal for local Japanese tenants who often prefer unfurnished.
Furnished apartments in Osaka command a typical rent premium of 10% to 20% over unfurnished equivalents, but this premium is concentrated in the expat and short-term corporate segments rather than the broader local market.
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How regulated is long-term renting in Osaka right now?
Can I freely set rent prices in Osaka right now?
In Osaka, landlords have full freedom to set the initial asking rent at whatever the market will bear when signing a new lease with a tenant.
However, rent increases during an ongoing tenancy are constrained by Japan's Act on Land and Building Leases, which means you cannot unilaterally raise rent mid-lease and any disputed increase may require formal mediation or court proceedings.
What's the standard lease length in Osaka right now?
The standard lease length for residential rentals in Osaka is 2 years with the option to renew, which is the most common arrangement across Japan's rental market.
Security deposits in Osaka typically range from 1 to 2 months of rent (JPY 65,000 to 320,000 or $425 to $2,100 USD or €390 to €1,930 EUR depending on unit size), and there is no strict statutory cap but rather market-driven norms.
At the end of a tenancy in Osaka, landlords must return the security deposit minus legitimate deductions for damages beyond normal wear and tear, with disputes sometimes resolved through municipal mediation services.
We made this infographic to show you how property prices in Japan compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
How does short-term renting really work in Osaka in 2026?
Is Airbnb legal in Osaka right now?
Airbnb-style short-term rentals are legal in Osaka, but only if you operate under one of the approved frameworks and your building's rules permit it.
To operate legally in Osaka, you need either to register under the national Private Lodging Business Act (minpaku) with proper notification, or qualify under Osaka's special zone "Tokku minpaku" pathway, both of which require specific compliance steps through city authorities.
Under the standard minpaku framework in Osaka, properties are subject to an annual cap of 180 nights of short-term rental, though the Tokku minpaku route may offer different terms depending on location and compliance.
The most common consequence for operating an unlicensed short-term rental in Osaka includes administrative penalties, potential fines, and being reported to platforms like Airbnb which may delist your property.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Osaka.
What's the average short-term occupancy in Osaka in 2026?
As of early 2026, the average annual occupancy rate for short-term rentals in Osaka is approximately 58% to 72%, with significant seasonal variation throughout the year.
The realistic range most short-term rentals experience in Osaka spans from about 45% occupancy for poorly located or reviewed properties to over 80% for top-performing listings in prime tourist areas.
The highest occupancy rates for short-term rentals in Osaka occur during cherry blossom season in late March and April, Golden Week in early May, and autumn foliage season from October to November.
The lowest occupancy rates in Osaka typically hit during the humid summer months of June through August and the post-New Year period in January and February when tourism dips.
Finally, please note that you can find much more granular data about this topic in our property pack about Osaka.
What's the average nightly rate in Osaka in 2026?
As of early 2026, the average nightly rate for short-term rentals in Osaka is approximately JPY 15,000 to 18,000 ($100 to $120 USD or €90 to €110 EUR) for a well-located entire-home listing.
The realistic range covering most short-term rental listings in Osaka spans from JPY 8,000 ($52 USD or €48 EUR) for basic studios in secondary locations to JPY 35,000 ($230 USD or €210 EUR) for premium 2-bedroom units in Namba or near Osaka Station.
The typical nightly rate difference between peak season and off-season in Osaka is approximately JPY 5,000 to 10,000 ($33 to $65 USD or €30 to €60 EUR), with rates during cherry blossom and autumn often 40% to 60% higher than summer lows.
Is short-term rental supply saturated in Osaka in 2026?
As of early 2026, the short-term rental market in Osaka is moderately saturated in prime tourist corridors but still has opportunities in well-connected areas just outside the most crowded zones.
The number of active short-term rental listings in Osaka has been gradually growing as tourism recovers, though regulatory compliance requirements limit supply growth more than in some other cities.
The most oversaturated neighborhoods for short-term rentals in Osaka are Namba, Dotonbori, and Shinsaibashi, where competition is intense and only listings with excellent reviews and legal compliance can perform well.
Neighborhoods that still have room for new short-term rental supply in Osaka include Fukushima, parts of Nishi-ku, and areas near major hubs like Tennoji that offer tourist convenience without the extreme competition of the Dotonbori corridor.
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What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Osaka, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why It's Authoritative | How We Used It |
|---|---|---|
| Savills Research Osaka Residential Spotlight | Global real estate adviser with transparent, published research methodology. | We used their Osaka rent benchmarks and tourism context. We also relied on their central ward premium data to frame neighborhood comparisons. |
| ARES AJPI Flash Report | Japan's real estate securitization association publishing fund-performance indices. | We used the Osaka residential income return as a grounded proxy for net yields. We triangulated it against rent levels to estimate realistic landlord returns. |
| Japan Law Translation - Private Lodging Business Act | Official government translation repository for Japanese statutes. | We used it to anchor key legal requirements for short-term rentals. We explained the 180-day framework and management operator rules based on this source. |
| Osaka City Minpaku Guidance | City government's official compliance page for lodging administration. | We used it to describe Osaka-specific procedures and pathways. We highlighted condo rule sensitivity based on their guidance. |
| National Tax Agency Japan | Japan's tax authority providing official guidance and examples. | We used it to explain how rental income is treated for non-residents. We clarified the 20.42% withholding scenario based on their documentation. |
| Japan Law Translation - Act on Land and Building Leases | Official statute governing landlord-tenant protections. | We used it to explain rent revision constraints during ongoing leases. We framed landlord flexibility at lease signing versus mid-tenancy limitations. |
| Mitsui Fudosan Accommodations Fund | Listed residential J-REIT with standardized investor reporting. | We used their occupancy disclosures as an independent data point. We triangulated stabilized occupancy expectations for Osaka rentals. |
| Advance Residence Investment Corporation | Listed residential J-REIT with audited-style disclosures. | We used their occupancy data to cross-check market vacancy rates. We established a lower-bound vacancy expectation for well-managed properties. |
| Kanazawa City Fixed Asset Tax Guide | Japanese municipality document explaining tax formulas and standard rates. | We used it to ground the 1.4% fixed asset tax and 0.3% city planning tax rates. We applied these to holding cost budgeting assumptions. |
| PwC Worldwide Tax Summaries | Widely used global tax reference summarizing statutory tax items. | We used it to cross-check annual tax rate language. We ensured our budgeting ranges are defensible for non-resident owners. |
We have made this infographic to give you a quick and clear snapshot of the property market in Japan. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
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