Japan Airbnb Law and How To Start Airbnb in Japan

After purchasing your property in Japan, the journey to making it the perfect Airbnb listing might be more difficult than in other countries.

Despite the complexities of Japanese regulations, we explain how your property can be on Airbnb in Japan. 

Why have an Airbnb property in Japan?

Here are three main reasons why people put their property on Airbnb.

Utilizing the vacant property

You can turn that vacant property into a listing on Airbnb in Japan and generate income.

Hosting guests in your property will ensure it will always be in good condition.

Passive income

Hosting on Airbnb can provide another source of income, whether it will be your main source or a side income.

Minimal investment

Airbnb offers an entryway for property management. With already furnished property, you can start hosting immediately with little cost.

The registration and license fee will vary depending on your property’s location.

Is Airbnb legal in Japan?

This question has plagued Airbnb from taking over Japan, and the answer is yes.

Airbnb is legal in Japan with a Minpaku license and a private lodging business certificate or a Minshuku license.

Minpaku law and Airbnb Japan rules

The Minpaku law in Japan, officially known as the 住宅宿泊事業法 (Juutaku Shukuhaku Jigyohou), regulates short-term rentals, and it affects Airbnb hosts.

Under the new Minpaku law, your property can only operate for 180 days of the year, as stipulated by the 旅館業法 (Ryokan Gyohou) or the Hotel Business Law. However, special exceptions apply if your property falls under a specific zone in Japan.

You will need a Minpaku license or the notification number for your property to be on Airbnb in Japan. This license is essential for ensuring your property meets the safety and regulatory standards.

On-premise vs. owner-absent for Airbnb in Japan

There are two ways to run your airbnb business in Japan, depending on if the owner is on the property or not.

a. Owner-on-premise type (家主居住型 = yanushi kyojū gata)

The Airbnb host is present during the guests’ stay and is the main point person when managing the property.

The owner will be in charge with: 

• Maintaining property hygiene

• Ensuring guests’ safety

• Providing the guest comfort and convenience 

• Keeping and tracking a guest list

• Explaining how to prevent damage to the surrounding area

• Handling complaints 

b. Owner-absent type (家主不在型 = yanushi fuzai gata)

If the owner will be absent during the guest's stay or the number of rooms at the property is over 5, then the property becomes an owner-absent type. 

The property must be under a management company to handle the the duties.

For all your Airbnb and property mail management: use MailMate! 

Whether you will stay on the property or not, use MailMate to handle all incoming mail. 

They will manage your mail and any bill payments for your properties. Whether it's for akiyas, Airbnb, a vacation rental, or your second home, you can remotely manage these properties.

Virtual mailbox

With MailMate’s virtual mailbox to view all your mail online.

From here, you can request for your property mail to be opened, forwarded to yourself, or shredded. 

Tax representative

When you’re not near your property, let MailMate manage your property-related taxes. With MailMate, you can handle all your tax obligations, including property taxes, even when you are not in Japan.

Utility bill payment

For your regular utilities on your Airbnb property, MailMate can also handle those when you are not near your property or in Japan.

How to start Airbnb in Japan

Here is all you need to know about becoming an Airbnb host in Japan.

Step 1: Obtain a Minpaku license with a private lodging business certificate from the city ward.

To get a private lodging business certificate, you need to apply for a Minpaku license.

To prepare, you will need to book a health consultation at the local public health as well as:

• Notify your neighbors: they need to be aware of extra occupants in case of potential loud noises or loitering.

• Ensure your property has the basic living necessities.

• Have health and safety measures in place: you might need fire extinguishers, emergency lights, and displaying evacuation maps in case of any emergency.

• Outsource to a management company: only if the owner is not on the property.

Once your paperwork has been processed and approved on the Minpaku Portal Site, you will receive a private lodging business certificate from your local government. 

Step 2: List your property on Airbnb

Once you have your license and certificate, you can create a listing on Airbnb.

When you do, use high-quality photos and detailed descriptions of the property so that guests will know the vibes and amenities of your space. You can highlight the views or what’s around to make your property stand out.

Additionally, you should strategically price your property based on its location, demand within the area, and seasonal timing. So, look into similar listings around your area for the appropriate pricing and to stay competitive.

Step 3: Manage your bookings responsibly

There are three ways to do so:

1. Communicate with guests: You need to answer any questions, give clear house rules, and provide instructions for the check-in and check-out process to maintain a smooth experience for your guests.

2. Operate within 180 days per year: this is the maximum number of days you can rent out your property annually unless your property is in a special zone area.

Optionally, you can offer a flexible cancellation policy to accommodate guests' changed plans.

Step 4: Keep records and pay taxes

Under the Minpaku law, you need to keep records of your guests. So you need to scan foreign national passports or any form of Japanese ID and how long they have stayed.

Additionally, you need to fulfill the tax obligations that your Airbnb listing generates, which may include income taxes, local taxes, and business taxes.

For all your mail management: use MailMate! 

Whether you will stay on the property or not, use MailMate to handle all incoming mail. 

They will manage your mail and any bill payments for your properties. Whether it's for akiyas, Airbnb, a vacation rental, or your second home, you can remotely manage these properties.

You will receive a virtual mailbox where you can view all your mail online. So you will never miss important notices for your second property, such as tax obligations or utility bills. They will even translate any bill summary upon request.

Frequently asked questions

Why do I need a Minpaku license for my Airbnb?

A Minpaku license is required for Airbnb hosts in Japan so that their private lodging services operate with safety, hygiene, and compliance in mind. This new law regulates private lodging businesses that were popping up uncontrollably, which resulted in noise complaints and increased rent.

In closing

Once you have that Minpaku license, operating an Airbnb in Japan will become much easier. Take the leap if you aspire to be an Airbnb host in Japan.