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The day something stops working: repairs were 1.0% of revenue, and six of twelve months were zero

October 14, 2026 · Ami Kawabe, Founder, All Good Stay

廊下の収納棚に、たたんだ白いリネンと無地の箱、シャワーホースが並んでいる

Across our own three buildings and six rooms, equipment and fittings repairs came to 1.0% of revenue over twelve months (October 2025 to September 2026, measured 1 October 2026, our own figures, published with the method at operating data).

That line is not small because the equipment is tough. Split the same twelve months by month and six of them are 0.0% while the largest is 4.7%. The question is never whether something will stop working. It is what happens in the hours after it does, and those hours set both the height of this line and the reviews for that month.

What actually happens when the Wi-Fi or the hot water stops?

The first move is not a repair, it is a message. In the minutes after a guest reports something, there are exactly two jobs: work out whether it can be restored remotely, and decide whether the room is still usable tonight.

The order of those checks is fixed per symptom, so nobody is improvising at midnight. Everything that can be done remotely is tried first, and someone travels only when that fails. First response runs around the clock and hands over to a person at the point where judgement is needed (whether a rental needs 24-hour guest response). All six of our rooms have air conditioning, heating, hot water and a washing machine, so every row below can happen in any of them.

SymptomTried first, remotelyDoes someone travel?
No Wi-FiRemote router restart, the carrier's outage notices, the guest's own deviceUsually not
No hot waterBreaker and water-heater reset, walked through with photographsYes, if that does not restore it
Air conditioning not coolingSettings and remote, filter, whether the outdoor unit is blockedOften yes
Washing machine stoppedReading the error display, drainage and the door lockUsually not
Front door will not openReissue the entry code, check battery levelYes if it is the battery (three buildings, three key methods)

What decides how long a repair takes?

Whether the part is already inside the building. The contractor's diary comes second.

Call a contractor and the earliest is usually the next day, and in the busy season several days out. If the air conditioning fails in a Tokyo August or the water heater fails in a Sapporo February, those days are nights the room cannot be sold. So what we keep in each building is only what can be swapped in five minutes and does not spoil in storage: a spare router, bulbs, smart-lock batteries, a shower head and hose, an extension lead, a full set of linen. A spare water heater or air conditioner cannot be kept on a shelf, so that gap is covered by how long we have worked with the same contractors rather than by stock.

The other resource is time. Checkout is 11:00 and check-in is 16:00, which leaves a five-hour window (10:00 at one unit), and most of it belongs to the changeover clean. Anything over half an hour therefore waits for a day with no arrival, and at 83.7% occupancy a room has only about five such nights a month. Scheduling repairs is a competition for those five nights.

A hand reaching toward a small control panel beside a bathroom door, its display out of focus and unreadable

Why do repairs stay at 1.0% of revenue?

Because somebody is inside each room seven to eight times a month.

Cleaning is 17.0% of revenue, the largest line in our operating costs (the full cost breakdown), which is seventeen times the repair line. The two look like separate costs and are really one mechanism seen twice. At 83.7% occupancy and an average stay of 3.3 nights a room turns over seven to eight times a month, and each changeover puts a person in front of a noise that is not yet a failure or a water mark that is not yet a leak. Deciding to make cleaning cheaper is also deciding to inspect less often (how the cleaning runs).

MonthEquipment and fittings repairs, share of revenue
October 20251.2%
November 20251.5%
December 20251.4%
January 20262.2%
February 20264.7%
March 20260.0%
April 20260.0%
May 20260.0%
June 20260.0%
July 20260.0%
August 20261.3%
September 20260.0%

What operating data publishes is the twelve-month total; the rows above are the same window split by month from the books. The six months that carried any spend were October 2025 through February 2026, plus August 2026, which is the heating load and the peak of the cooling load. The six months at 0.0% were March through July and September, the mild ones.

Six rooms over twelve months cannot prove a cause. They are enough to time an inspection, though, so we look at the air conditioning before June and at the heating and hot water before October. In Sapporo the effort and the money land not in February, when the snow is deepest, but in November, when the building is made ready for it (winter in snow country). The separate question of when replacement peaks arrive is in furnishing a rental.

When is the guest told, and what are they told?

Before it is fixed. Even with no estimate for when it will be working, the message goes out with the not-knowing in it.

Three things belong in it: what cannot be used, the time of the next message, and the substitute for the gap between them. A night without hot water means the nearest sento, the neighbourhood public bath, which most Japanese residential districts still have. A dead washing machine means the nearest coin laundry. Failed air conditioning means a fan carried in. When there is no substitute to offer, the conversation moves to another room or a shortened stay.

On money, this article promises nothing. Whether a refund, a partial refund or the cost of a move falls to the owner, the operator or an insurer depends on three documents: the booking platform's policy, the management contract and the insurance cover. The places to read are the contract and the policy schedule (reading a management contract, insurance at a Japanese rental). Settle it in advance or it gets settled at two in the morning.

A rating drops not because something broke but because nobody wrote. That sentence is judgement from running six rooms, not a figure we counted: a review that records a fault handled is not the same star as a review that records being ignored (guest ratings).

A phone face down on a pale wood table beside a glass and a key on a brass fob

Can a replacement touch the permit or require a notification?

We treat a like-for-like swap and a change of specification as two different things.

There is no table here, because the conditions differ by building and by municipality and a published table is out of date the day it goes up. What we do instead is telephone before a change of specification, not after. Plumbing and ventilation go to the relevant section of the public health centre, the hokenjo; extinguishers, alarms and emergency lighting go to the inspection contractor and the fire service (fire inspections after opening). Work that touches a condition of the permit itself is checked at the drawing stage (how a hotel-business permit is obtained).

Doing it in the other order is expensive. Ask after the work is finished and you may be taking apart what you just paid to build.

What should I ask a management company about equipment?

Four questions. Each has exactly one answer, and vague answers mean nobody there has worked a night like this.

  • If the hot water stops at eleven at night, who does what, in what order? Make them say the sequence out loud. "We will deal with it immediately" is not a sequence.
  • What spares are kept in the building? A company that keeps none waits for a contractor every time.
  • Over the last twelve months, how many guests were moved because of equipment, and who paid for the move?
  • Who can authorise a repair, and up to what amount without asking? And above that amount, who decides, and how fast?

The last one is worth writing into the contract. With no ceiling agreed, nothing starts until somebody answers the phone in the middle of the night. In our own fee structure, linen, supplies and repairs are passed through at cost with no markup (how our fee works). An arrangement that earns the manager a margin on repairs mixes the decision to fix with the decision to earn.

Does this 1.0% apply to my property?

No. A repair ratio is the result of the age of the building and the age of the equipment in it, and the same building reads differently in year one and year ten of a fit-out. Our own three buildings are of different ages.

What we can give an owner is not a future ratio but a measured one every month. The cost lines are handed over as they are, with what stopped working, who attended and where the money went (what belongs in the monthly report). We promise no occupancy figure and no repair figure.

Questions we get

Who handles a breakdown at a managed short-term rental in Japan?
The split is set by the contract, so there is no industry answer. Across our own three buildings and six rooms, the guest's report is received around the clock, anything that can be restored remotely is restored on the spot, and someone travels when it cannot be. A property we take on works the same way: we take first response, triage and the contractor, and the cost of the equipment itself is passed through at cost with no markup. Before signing, get two things in writing: who receives the first report, and who can authorise the repair.
How much of revenue should be set aside for repairs?
Over twelve months across our own three buildings and six rooms (October 2025 to September 2026, measured 1 October 2026), equipment and fittings repairs were 1.0% of revenue and consumable supplies 4.4%. Month by month, though, repairs were 0.0% in six months and 4.7% in the largest one, so reserving at the average leaves a shortfall in the months that actually bill. The ratio follows the age of the building and the equipment, so our 1.0% is not a forecast for another property.
Does the guest pay for a night when something is not working?
There is no single rule: it follows the booking platform's policy, the management contract and the insurance cover, which is why it belongs in the contract rather than in a midnight decision. What we do first is offer a substitute, the nearest public bath when the hot water is out, the nearest coin laundry when the washer is, and move to another room or a shortened stay when no substitute exists. A refund line drawn at two in the morning always costs more than one drawn in advance.
How do I check a management company's response to equipment failures before signing?
Make them narrate the sequence. If the hot water stops at eleven at night: who receives it, what is tried remotely, how many minutes until someone is on the way, and what the guest is told meanwhile. Ask as well for the list of spares held in the building and the number of guests moved for equipment reasons in the last twelve months. Putting the repair authorisation ceiling in the contract is what stops a repair stalling overnight.

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