Let's try to figure out how the Private Lodging business works in Japan and whether it 's worth trying.
The Private Lodging Act enforced on June 15, 2018, gave a legal start to the Japanese Private Lodging market, enabling both residents and foreign investors to engage in the «minpaku» business.
Japanese laws are famously told to be very complicated, so let's see if it's that hard to register a Private Lodging business.
According to the law, minpaku, or Private Lodging refers to a lodging facility that may be fully or partially rented by people for a short period. The Lodging owner may reside in the same building or be only managing the venture. So, from this point, the Japanese Private Lodging system doesn't differ much from the one we are accustomed to.
From this point, it may sound quite simple, but the Private Lodging registration and operation procedures are regulated by strict rules made up to secure both customers' and neighborhood's safety and well-being.
So what are the main features of the Japanese Private Lodging Law?
The property owners must apply to register their residence legally, providing the venture with evacuation routes and directions in foreign languages. Also, the owner must instruct the potential guests on local garbage separation rules and noise restrictions to avoid complaints from the local community.
Private Lodging can be operated for 180 days or less within a year.
Private Lodgings must keep a guest registry either manually or digitally. The data must be reported to the local authorities every 2 months.
If the owner doesn't reside on the same property, the Lodging management must be carried out by some property management company. Note that some local authorities may issue extra requirements for Private Lodging operations, so be sure you know all the details when applying for the license.
Of course, there are some more rules, and we are going to look into them further in a series of articles, so check our updates if you dont want to miss the details.
If you already imagined starting a Private Lodging business in some busy tourist area like Kyoto, you must note that such locations have some additional regulations issued.
Private Lodging Regulations in the most popular areas
Tokyo
Chuo, Taito, and Shinjuku ward authorities limit Private Lodging operations to weekends with a compulsory check-out deadline on Monday morning. Shinjuku ward additionally allows business on Fridays. Taito ward allows receiving guests only if the owner doesn`t reside at the same property. Shibuya ward is much stricter allowing operation within particular seasons only.
Kyoto
Uji, Kameoka, and Nagaoka authorities allow the business only for two months in winter. As for Kyoto itself, one may run a Private Lodging for up to 180 days annually from mid-March to mid-January.
Osaka
Business is allowed from Friday afternoons to Monday mornings if the property lies outside of a 100-meter circumference from schools. One may run a Private Lodging for up to 180 days annually. Still, if the property is close to a school the operation is limited to weekdays.
Kobe Same as Osaka, business is allowed for up to 180 days over a year, except for areas around 8 schools specified in the guidelines.
Nara
Operation is restricted during sightseeing season (allowed for a couple of months in Autumn) near historical districts such as Asuka.
Some other requirements for a property to be registered as a Private Lodging are listed on each area's official authorities websites, still, there are general rules common around the whole country.
A minimum of 3.3 square meters of personal space must be provided for each guest
Emergency lighting equipment must be installed and regularly checked. The evacuation route schemes must be displayed in visible places
The property must be provided with foreign language instructions for all the equipment or amenities, along with information on means of transport and emergency phone numbers
The venture must receive fire department approval and must be provided with regularly checked emergency fire safety equipment
Garbage must be collected by an industrial waste collection company
Signs notifying the property purpose must be displayed outside in a visible place
The owner must maintain a guest information record with a name, nationality, and passport number listed as well as the days when the Private Lodging was in business
The number of days hosting lodgers in the notified building, the current number of lodgers, the total number of lodgers, and a breakdown of the number of lodgers per nationality must be reported every 2 months
If reading this article inspired you to consider investing in Private Lodging in Japan, contact us.
We will gladly assist you in finding the perfect property and completing its legal registration!
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