Rental Operations Outlook: About 37% Expect Revenue to Rise. What Changes Should Be Considered: Elderly Support, Interest Rates, and Population Decline?

■ Future Rental Operations: Divided Between 'Rising' and 'Unchanged' Outlooks

Amid various societal changes such as rising prices, fluctuating interest rates, and population decline, attention is turning to the future of rental operations. How do current owners and those considering entering the market perceive the future market?

In collaboration with Nissho Service Co., Ltd., we conducted a survey on 'Future Rental Operations' targeting 139 men and women nationwide who responded in a preliminary survey that they 'have experience in or are interested in rental operations.'

*When quoting from this press release, please provide the following:
- State that the source is a 'Survey by NEXER Inc. and Nissho Service Co., Ltd.'
- Include a link to Nissho Service Co., Ltd. (https://2110.jp/)

'Survey on Future Rental Operations' Overview
Survey Method: Internet-based survey
Survey Period: March 3, 2026 - March 12, 2026
Target Respondents: Nationwide men and women who responded in a preliminary survey that they 'have experience in or are interested in rental operations.'
Valid Responses: 139 samples
Survey Questions:
Question 1: How do you foresee rental operations over the next 5-10 years?
Question 2: Please explain the reasons for your outlook.
Question 3: How do you wish to develop your rental operations in the future? (For current operators)
Question 4: Please explain your reasons.
Question 5: What 'societal changes do you think should be considered' for future rental operations?
Question 6: Please explain your reasons.
*Percentages are generally rounded to the second decimal place, so the total may not be 100%.

1. 36.6% Respond That Rental Operation Revenue Will 'Increase' in the Next 5-10 Years
We asked about their outlook for rental operations over the next 5-10 years.

The results show that 12.9% responded 'I think revenue will increase,' and 23.7% responded 'I somewhat think revenue will increase,' totaling 36.6% who expect future revenue to improve.

On the other hand, 43.9% responded 'I think it will remain unchanged,' 15.8% responded 'I somewhat think it will decrease,' and 3.6% responded 'I think revenue will decrease.'

Here are some of the reasons provided:

Respondents who answered 'I think revenue will increase / I somewhat think revenue will increase'
- Prices are rising, and land prices are also increasing in some cities. (40s, Male)
- Prices are rising, and rental housing is no exception. (50s, Female)
- Due to soaring costs of construction materials and land, the demand to rent seems likely to outweigh the demand to own. (60s, Female)

Respondents who answered 'I think it will remain unchanged'
- I think if I raise the rent, I won't find tenants. (30s, Male)
- Areas with strong demand like the Tokyo metropolitan area will continue to be popular, but other regions won't see the same boom. (40s, Male)
- While rents in some areas might rise due to soaring housing prices, rental demand itself is unlikely to increase due to factors like the utilization of increasing vacant homes. (50s, Male)

Respondents who answered 'I think revenue will decrease / I somewhat think revenue will decrease'
- Interest rates are rising, so real estate values will fall. (20s, Male)
- The population is decreasing, so vacant homes will increase. (40s, Male)
- Housing is saturated. (40s, Male)

Those who foresee an 'increase' view rising prices and land values as tailwinds, while those who believe it will 'remain unchanged' point out that increased expenses will offset gains. Those who foresee a 'decrease' are concerned about population decline and the rise in vacant homes, indicating that outlooks vary significantly by region.

2. 56.8% Respond 'Maintain Status Quo' for Future Rental Operations
We asked current rental operators how they wish to develop their rental operations going forward.

The most common response was 'Maintain Status Quo' at 56.8%.

This was followed by 'Increase Properties' at 27.0% and 'Sell and Cease Operations' at 16.2%. Zero percent responded 'Decrease Properties.'

Over half chose 'Maintain Status Quo,' suggesting a preference for stable operations over aggressive expansion.

Here are some of the reasons provided:

Respondents who answered 'Maintain Status Quo'
- It's a rural area, so customers won't increase. (60s, Male)
- I'm in the process of 'shukatsu' (preparing for the end of life), so I don't plan to increase them further. (50s, Female)
- Rebuilding old buildings is too expensive. (60s, Male)

Respondents who answered 'Increase Properties'
- I want to build assets, after all. (40s, Female)
- I want to reduce income fluctuations during vacancies. (50s, Male)
- Having enough properties to live on provides peace of mind with stable income. (60s, Female)

Respondents who answered 'Sell and Cease Operations'
- Concerns about immigration, and I fundamentally hope to conduct rental contracts with Japanese people. (50s, Male)
- Preparing for the end of life (seizen-sou). (60s, Female)
- Management is difficult. (70s, Male)

Reasons for 'Maintain Status Quo' range from financial constraints to end-of-life preparations. 'Increase Properties' indicates a proactive stance focused on asset building and income stability, while 'Sell and Cease Operations' reasons include management burden and future anxieties.

3. 19.4% Select 'Responding to Elderly Tenant Admissions' as a Societal Change to Consider
We asked about societal changes they believe should be considered for future rental operations.

The most frequent response was 'Responding to elderly tenant admissions (support, guarantees, etc.)' at 19.4%.

This was followed by 'Continued Interest Rates/Inflation' at 16.5%, and 'Population Decline/Intensified Competition due to Increased Vacant Homes' at 12.9%.

These results indicate that the rental operation environment is changing from both the perspective of tenant demographics and economic conditions.

Here are some of the reasons provided:

Respondents who answered 'Responding to elderly tenant admissions (support, guarantees, etc.)'
- The population is aging, and there are more elderly people. (30s, Male)
- Aging population and increasing single-person households. (50s, Male)
- Elderly people are increasing, yet I've heard of reluctance to rent to them. (60s, Female)

Respondents who answered 'Continued Interest Rates/Inflation'
- Interest rates are important. (40s, Male)
- Recent inflation is quite severe. (40s, Female)
- It affects profits. (50s, Male)

Respondents who answered 'Population Decline/Intensified Competition due to Increased Vacant Homes'
- The population will gradually decrease, so proper measures are needed. (40s, Female)
- Competition will reduce income. (50s, Male)
- It might be difficult outside major metropolitan areas. (60s, Male)

For 'Responding to elderly tenant admissions,' concerns about risks like lonely deaths and reluctance to rent were common. 'Interest Rates/Inflation' were seen as issues directly impacting financial performance, and regarding 'population decline,' worries about intensified competition, especially in rural areas, were prominent.

■ Conclusion
This survey revealed that while the largest segment views the future of rental operations as 'unchanged,' approximately 37% hold a positive outlook expecting 'revenue to increase.' However, over half of current operators chose 'Maintain Status Quo,' indicating a cautious stance.

Societal changes to consider include elderly support, interest rate trends, and intensified competition due to population decline, which ranked high.

The rental market exhibits significant regional differences, making uniform judgments increasingly difficult. It is becoming ever more crucial to develop long-term operational strategies by looking ahead at property locations and changes in tenant demographics for future rental management.

Regarding Use in Articles, etc.:
- State that the source is a 'Survey by NEXER Inc. and Nissho Service Co., Ltd.'
- Include a link to Nissho Service Co., Ltd. (https://2110.jp/)

About Nissho Service Co., Ltd.:
Headquarters: 1-2-1 Sannomiya-cho, Chuo-ku, Kobe 650-0021
President & CEO: Tomohiko Nakamura
Business Activities: Real estate purchase, real estate sales, real estate management, real estate brokerage, construction, renovation, insurance agency, real estate appraisal (including affiliated companies)
URL: https://2110.jp/

About NEXER Inc.:
Headquarters: Rise Arena Bldg. 11F, 4-5-2 Higashi-Ikebukuro, Toshima-ku, Tokyo 170-0013
CEO: Yuya Miyata
URL: https://www.nexer.co.jp
Business Activities: Internet research, SEO, web branding, review content, real shop support, website creation

Keywords: Survey, Questionnaire, Rental, Rental Operations, Revenue, Price Increase, Interest Rates, Population Decline