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Insight into Rental Preferences for 2025

AtHome Corporation, based in Ota, Tokyo, recently published a comprehensive study under the title "2025 Rental Property Inquiry Trends," reflecting the preferences of clients seeking rental accommodations throughout the year. This survey involved AtHome's affiliated real estate agents across the nation, aiming to understand the prevalent demands and conditions that future renters prioritize.

Key Findings of the Survey

The backbone of the report lies in two sections: conditions and equipment, where various factors influencing renters' decisions were collated. Throughout the year, real estate professionals collected anecdotes and preferences from clients, shedding light on the shifting dynamics in the rental market.

Stories from the Field

1. Economic Shifts: One noteworthy case involved a client who, on the brink of purchasing a home, had to reconsider due to a sudden interest rate hike announced by the Bank of Japan, leading them to choose a rental option instead.
2. Unique Preferences: Another client expressed the desire for a property equipped with a sheltered bicycle parking space after purchasing an electric bicycle. Furthermore, there was a marked increase in inquiries regarding internet speed, highlighting the growing significance of connectivity.
3. Negotiating Rent: Almost all clients approached their real estate agents seeking reductions in rental prices.

Top Conditions Sought by Renters

According to the survey, the condition ranked most frequently was the need to relocate due to job transfers, accounting for 34.1% of inquiries. Following closely was the desire for rentals near their educational or workplace premises at 33%.

The feedback from real estate agents emphasized an observable uptick in relocations due to job transfers and a dispersal of the typical transfer season. Additionally, many corporations are increasingly inquiring about employee housing, reflecting a trend where companies are providing housing assistance in response to nationwide rent increases.

The third most cited condition was clients wanting to lower their monthly rent, attributed to rising living costs affecting rental negotiations. Agents noted that clients are becoming more meticulous about calculating their overall living expenses in an environment influenced by inflation.

Advice for Future Renters

Real estate professionals shared valuable insights for upcoming renters, including:

• - Preparation is Key: Early preparation of income proof documents, such as withholding tax statements, is essential, as the acquisition may take up to three weeks. Delays in this process could lead to missing out on potential rentals.
• - Start Property Search Early: For those faced with job transfers, it is advisable to begin the property search as soon as possible, particularly to avoid extra costs associated with temporary accommodations, like staying in a business hotel.
• - Consider Flexible Options: A client who was adamant about only considering 1LDK (1 bedroom, dining, and kitchen) properties was advised to keep an open mind about 1DK configurations, as the allocated space can significantly affect the usability of a rental.

Equipment Preferences

On the equipment side, the paramount requirement was access to parking, with 41.8% of clients prioritizing this feature. Real estate agents remarked that many clients owning multiple vehicles often made it a prerequisite for their property search.

The second most sought-after amenity was free internet access, with agents noting that the surge of remote work has intensified the focus on speed and convenience, leading some clients to prefer properties with included internet service.

The third most requested feature was the presence of an auto-lock entry system, a reflection of the growing awareness around security amongst potential renters. A previous AtHome survey indicated a significant rise in awareness regarding safety, with nearly half of respondents acknowledging increased concerns in this area over the past two years.

The professional insights and data presented in this report underscore the shifting landscapes of residential rentals as both renters' needs and societal norms evolve. As a result, staying informed about these trends is increasingly vital for both agents and prospective renters alike.