The Cost of Trust: How Subletting to a Men’s Esthetic Salon Turned into a Nightmare

In recent years, the men’s esthetic industry has been booming, but it has also taken on an alarming nature due to illegal services offered by some establishments and the customers who seek them out. One of the most striking aspects is the rapid expansion of these businesses.

Ordinarily, adult entertainment businesses require a permit under the Entertainment Business Law, but since many men’s esthetic salons operate under the pretense of not being part of the adult industry, they do not need such permits and can discreetly run out of apartment units. As long as they secure a location and female workers, they can start operating, making their expansion rate incomparable to other adult businesses. With the increase in these establishments, disputes over rental properties being used as business locations have become increasingly common.

What was supposed to be a 30,000 yen per month sweet deal turned into a nightmare

During his university days, I-san was approached by a senior from his part-time job who was planning to open a men’s esthetic salon. “I thought it was a great deal to just rent out a room and sublease it for an extra 30,000 yen per month.” he now says with deep regret.

“He asked me, ‘Can you rent a room on my behalf? I’ll transfer 30,000 yen to you every month on top of the rent. You don’t have to do anything else.’ So, I signed a lease for an apartment in Tokyo,” I-san recalls.

Since they had known each other for a long time, I-san didn’t feel suspicious and agreed to rent the room. For the first six months, he received both the 70,000 yen rent and the 30,000 yen sublease fee. However, one day, the payments suddenly stopped.

“I tried contacting my senior, but he completely disappeared. That’s when I knew he had ‘ghosted’ me. I couldn’t afford to keep paying rent for a room I wasn’t even using, so I immediately contacted the real estate agency to terminate the lease—but that’s when things got really bad.

The room had been renovated with new wallpaper, the bathroom was covered in massage oil and mold, and there were cigarette stains even though smoking was prohibited. The place was a total mess. On top of that, all the leftover items were still there, which drove up the moving-out costs. In the end, I lost more money than I had earned. I never thought about what could go wrong. This is my own fault, I guess,” he admits.

When he explained the whole situation—including the fact that the room had been used for a men’s esthetic salon—the real estate agency told him that it was a breach of contract. Naturally, all the restoration costs fell on I-san. The deposit wasn’t nearly enough to cover the damages, and he had to pay a significant amount out of pocket.

The cost of restoring the apartment to its original condition amounted to 600,000 yen. Since it was such a high amount, I-san tried consulting the property management company, but they refused to accommodate him due to his violation of the special clauses in the lease agreement. Depending on the management company and property owner, cases of severe misuse like this can even lead to civil lawsuits. Furthermore, because I-san had rented the apartment through a specific real estate group, there is now a possibility that he will be unable to rent from them in the future.

Men’s esthetic businesses believe that you can’t make a profit without increasing the number of rooms

Why do such troubles occur? The reason seems to lie in the nature of the men’s esthetic (Men’s Este) industry itself.

When we spoke to K, who has operated three men’s esthetic salons in Tokyo, he explained that increasing the number of rooms is the only way to boost revenue.

“Men’s esthetic businesses are often thought to be easy money, but in reality, there is a limit to how much revenue can be generated per room. The only way to make more money is to secure more rooms. That’s why business owners ask acquaintances and friends to rent apartments and sublease them, just like in I’s case.” (K)

To sign a rental contract, applicants are typically required to undergo screening, which includes providing details about their annual income, occupation, and employer if applicable. However, many men’s esthetic business owners do not file tax returns, making it difficult to prove their income. Others may have poor credit histories that prevent them from passing the screening process. Because of these limitations, the industry frequently relies on name lending and subleasing.

“Recently, I’ve been hearing about cases where men’s esthetic operators offer their female employees incentives like flexible shifts or priority access to high-paying customers in exchange for signing rental contracts. This makes it harder for them to leave for another establishment and also provides a scapegoat in case of a police crackdown.” (K)

Moreover, there are even brokers who specialize in recruiting people solely to lend their names for rental contracts.

“This is likely handled by people in the adult entertainment scouting business. They receive requests from men’s esthetic owners to secure apartments for them. I’m not sure how much they earn per contract, but since it’s just a side hustle for low-level scouts, the amount probably isn’t significant. If they also send the women they scouted to work in the rented apartments, they can double their leverage over the owners.” (K)

In principle, subleasing rental properties is prohibited under most lease agreements. Property owners face significant risks in renting out rooms to unknown individuals, as incidents or accidents could lead to lawsuits.

As in I’s case, getting caught up in such schemes can result in huge financial losses instead of easy extra income.

Despite this, the men’s esthetic industry continues to expand, with new establishments opening at a rapid pace. To avoid getting involved in legal troubles, it’s wise to steer clear of suspicious offers.

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