3 Co-living subscription services that are taking over Japan

Deciding to buy a house is no small decision to be made. It takes significant monetary commitment, and often years of debt to clear. For many, that is one of their ultimate goals in life. But there is an emerging trend that branches away from the traditional need to own a house, and that is co-living.

Digital nomads will not be strange to the term co-living, because it is a service that strongly supports their work- and lifestyles. However, co-living services are getting more and more attention in Japan that feels like we are on the edge of a work-life revolution.

What are co-living subscription services?

We are familiar with subscription-based services like Netflix or Spotify, which allows unlimited access to movies and music respectively for a monthly fee. Subscription-based co-living works similarly.

Co-living subscription services let users stay at their choice accommodations for a monthly fee. Many services allow users to “hop” from one place to another, staying where they like. Furthermore, they will be living together with other users, much like a share house, while sharing facilities and amenities. Some may think that this is limiting to privacy, but there are benefits to coliving that we will soon cover.

It can seem daunting at first to actually think about using such services. Doing so means not owning somewhere permanent to live in. However, there is a growing trend of sharing economy and circular economy, which questions, “Do we really need to buy or own [it]?” Since it will take considerable resources, there might be more social and environmental merits than not. (What is “somewhere permanent” anyway?)

Furthermore, using subscription-based housing services is not meant to replace owning a house. Instead, it fits certain individual’s lifestyle or workstyle. For example traveling couples, remote workers and artists, who would benefit from interaction and change of environments.

Co-living vs Share house

While both welcome tenants from diverse backgrounds, the main difference lies in their functions. Share houses are mainly for accommodation, whereas co-living housing has an added focus on co-working spaces. The intent is to improve the exchange of ideas, which can lead to business opportunities.

The benefits of co-living

We can imagine the disadvantages of co-living (like the decrease in privacy), but there are also benefits to co-living with others.

No debt, no long-term commitment, no fuss

In Japan, one is often expected to stay long-term (ie years) when renting a place. Those who decide to buy a home goes into debt to purchase their place. Either way, there is a lot of paperwork and scrutiny before one is granted permission for accommodation.

These co-living services take a lot of the work out, mostly requiring only your membership and owner approval. There is no obligation to long term contracts, as one is free to end or change their membership status. This flexibility allows for any quick changes in life or work.

Fully furnished

There is no concern about furniture or fixtures when moving into a co-living space. The basics will most likely be provided for, like beds, tables, washing machine and kitchen wares. So it makes settling in that much easier.

Building connections with local communities

Individuals looking to participate in a community where they live will naturally join the co-living community. Not only does it combat loneliness, these co-living spaces may offer opportunities like business or art collaboration.

Supports new emerging work styles

With a growing discourse on work styles in Japan, “Travel and Work” style is getting more attention. Very often, professionals have to travel to other Japanese prefectures to work. Support for regional revitalization is another reason professionals move too, often back and fro.

These subscription-based co-living housing allows one to move from one place to another without paying for more than one accommodation. Again, the movement is simplified, only needing room availability over checks or administrations.

Introducing 3 Japanese subscription-based housing service

ADDress

One of the consequences of depopulation of rural areas in Japan is the abandonment of homes. Therefore ADDress acts as a solution for regional revitalization, providing furnished accommodations. For a low 40,000 yen per month subscription, users have a selection of 24 residences around Japan to choose from (as of Aug 2019). Of course, amenities, furniture and Wi-Fi are included.

Considering the above, many of the residences are located off city-centers. This gives two merits to ADDress’ residences. Firstly, the seclusion offers city-dwellers a change of pace and environment. Artists from creative industries may find inspiration, and professionals may find reconnection with nature. Secondly, it offers the chance to get to know the locals more, so one may not get the sense of loneliness often found in urban jungles.

One has to admire ADDress’s ethics. Instead of expanding their services to maximize profit, there is a controlled growth in the membership. At this moment, they are not signing up new members, instead focusing on growing their network quality They understand the preciousness of a relationship population, where visitors build a close relationship with the local population (a key concept in regional revitalization).

HafH (Home away from Home)

HafH is another service that is welcoming the era of new work styles, inviting not only digital nomads, but also traveling professionals too. For that, power supplies, Wi-Fi access and working spaces are available in most of their 123 locations across 15 countries (as of 25 Sep).

HafH offers flexibility, knowing that there are many forms to a new age of digital nomadism. While there are a number of plans one can choose from, HafH has two long-term options: Earth and Wind. The Earth plan offers one a permanent residency, with the option to stay at different residencies within the network each month. The Wind plan, on the other hand, lets users move from place to place for mid-lengths of time.

There is also another interesting feature we don’t usually see in accommodation services: HafH coins! It’s not quite blockchain, but rather a loyalty program that one can use to upgrade rooms and other benefits.

Hammosurfing

We talked about Mima in Tokushima in a previous article about how it is a bedrock for advancements in social innovation. Co-living service Hammosurfing is one of those advancements that started in Mima city. In fact, it was three years ahead of the other services in Japan. It is reclaiming the vacant homes in Shikoku to transform them into co-living spaces.

Hammosurfing’s monthly membership is 10,000yen, and that price includes family members, including parents, spouses and family. Furthermore, part of the profits will go into promoting social and economic initiatives in the region. This is in part of Hammosurfing’s effort to become a sustainable business.

As a matter of fact, ADDress is a service under Hammosurfing, that serves a network all over Japan. Hammosurfing, on the other hand, has all 19 locations in the Shikoku region at the moment (as of Feb 2019). The next expansion they have is not towards other Japanese regions, but overseas, like in Europe, Australia and Hong Kong.

So do you want to try co-living?

Most certainly, it’s not for everyone, because it depends on each individual’s life cycle. But who knows, subscription-based housing services may evolve to accommodate different niches. Fully furnished apartments for young families to live around the city? Highly accessible accommodations for the disabled? Instead of diversity hotels, there will be diversity housing?

However, one thing is certain: co-living is the mark of a change. As the awareness of sharing economies and circular economies grow stronger, the need to own is diluting. Users of these services understand that they don’t need excess in their lives, but to use as and when they need it. Co-living is also helping to pave the way for a diversity in work style, which would bring about its own set of social and economical merits.