Rental income ('payback', ペイバック) comes through the hotel lease: you lease the room to the operator, which pays you rent. Tokyu Resort describes three main models. (1) Own-room revenue: your room's takings minus the hotel's share, linen and management costs; this swings with occupancy. (2) Pooled whole-hotel revenue shared out by points, based on each room's original price plus the days, weekdays and seasons it was offered; common in Okinawa and more stable. (3) Fixed or guaranteed rent, often time-limited and with tighter limits on owner use.
Payment is commonly quarterly. Tokyu says the year is split into four three-month periods, with rent sent by bank transfer together with an occupancy report and a rent calculation sheet. Imhome says its Coldio Premium profit-share model passes 70% of sales profit to owners (the sponsor's own claim). Nisade quotes Niseko rental management at about 35% of the nightly rate (10% admin + 25% management), plus fixed annual costs.
What owners actually received, according to Tokyu Resort: 2023 paybacks (tax included) were about ¥2.887m at HIYORI Ocean Resort Okinawa, ¥1.986m at Alamanda Jacuzzi Terrace and ¥1.273m at Hotel Sunset Hill. After management costs and fixed asset tax, that left net income of about ¥2.315m, ¥1.574m and ¥0.882m. These are averages across room types, not guarantees. Tokyu also reports an Okinawa main-island average gross yield of about 3.66% (Oct 2022–Sep 2023, about ¥2.74m on an average listing price of about ¥75.05m). Aoyama Jisho says that can fall into the high-2% range after costs. Nisade cites Niseko net yields of 1–3%, depending on owner use.
Tax for non-residents: Japanese rent paid to a non-resident is generally subject to 20.42% withholding (income tax plus reconstruction surtax), which the paying company deducts and pays to the tax office by the 10th of the following month (Real Estate Japan / realestate-tokyo.com). Nisade's FAQ shows 20.24%, which looks like a typo for 20.42%. Applying this to hotel-operator rent is an inference from the general rule; confirm with the operator. Tax treaties may reduce the rate.
Non-residents must also file a Japanese tax return on rental income and appoint a tax agent (納税管理人), notifying the tax office (National Tax Agency, Sapporo bureau guide). Filing a final return, generally February 16–March 15, settles the actual tax and can recover over-withheld amounts (realestate-tokyo.com). Nisade gives individual rates of 5–45% (progressive) on net rental profit and roughly 20–26% for companies. Tokyu notes that hotel buildings in reinforced concrete have a 39-year depreciation life versus 47 years for RC residential, which some buyers use to reduce tax. Get advice from a Japanese tax accountant.