Japan Airbnb Law and How To Start Airbnb in Japan

Considering purchasing a property in Japan with the goal of listing it on Airbnb?

Or perhaps you're interested in renovating an akiya and turning it into an income-generating property?

Maybe you have a second house in Japan that is unoccupied for the majority of the year, and you want to consider turning it into a short-term rental while you're not using it...

In this article, we'll cover Japanese legal regulations on Airbnb listings and how to list your property on Airbnb in Japan.

Why have an Airbnb property in Japan?

The following are a few of the primary reasons why people wish to start an Airbnb.

1. Utilizing the vacant property

If you've purchased a property in Japan but only use it as a vacation home, chances are high that it will sit vacant for most of the time. By listing on Airbnb in Japan, you'll be able to generate income, which can go toward property maintenance, property taxes, etc.

2. Generating passive income

Becoming an Airbnb host is a popular method for generating passive income worldwide, and this trend is also popular in Japan. As of March 2024, there were 23,142 registered home-sharing properties in Japan, marking a 23% increase from 18,780 the previous year.

Average monthly earnings for well-managed Airbnb properties in Japan's major cities:

3. Minimal investment

Depending on the property itself, the investment amount may be minimal. For example, if you are considering renting out your Japanese vacation home, it is likely already furnished, which lowers the startup cost of launching your Airbnb.

For already furnished properties, startup costs can be surprisingly low:

Of course, if you plan to purchase an akiya and renovate it, that could cost significantly more than renting out your already-furnished second home or apartment.

However, since akiya tend to be cheap to acquire, and if you find one in good condition, then it's possible you'll still be able to keep startup costs under 50,000 USD.

Is Airbnb legal in Japan?

Airbnb is legal in Japan, provided you operate with a minpaku license or a minshuku license. Both licenses are essential for ensuring your property meets Japan's safety and regulatory standards for lodging-related businesses.

Getting a license to run an Airbnb will depend on the license type you apply for. Airbnb is legal in Japan, provided you operate with a minpaku license or a minshuku license. Both licenses are essential for ensuring your property meets Japan's safety and regulatory standards for lodging-related businesses.

We'll take a quick look at both types of licenses below.

Minpaku license—easy to obtain, limited to 180 days

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 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.

*Note: the number of operational days may vary depending on where your property is located, as certain areas designate a higher or lower number of days.

On-premise vs. owner-absent minpaku

Within the minpaku license, there are 2 designations, depending on whether 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 of contact when managing the property.

The owner will be in charge of: 

• 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 square meters of guest rooms is over 50, then the property becomes an owner-absent type. 

The property must be under a management company to handle guest requests.

When you obtain a minpaku license, you will receive a business notification number, which you will need in order to list your property on Airbnb in Japan.

👉 Read the following article if you're interested in learning more about the various designations under the minpaku license.

Minshuku license—harder to obtain, can operate 365 days

Whereas the minpaku license only allows you to operate for 180 days out of the year, the minshuku license allows you to operate throughout the year.

This is the license type that many small to medium-sized inns and hotels in Japan operate under.

The minshuku license has more stringent fire safety guidelines that one must follow in order to obtain this license. And is therefore a little harder to obtain than the minpaku license.

👉 Read the following article if you're interested in learning more about the minshuku license.

Quick overview of the difference between minpaku vs minshuku for Airbnb hosts

How to become an Airbnb host in Japan

The following section contains what you need to know and do to become an Airbnb host in Japan.

Step 1: Obtain a minpaku or minshuku license

To get a private lodging business certificate, you need to apply for a minpaku or minshuku 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 basic living necessities: a working kitchen, toilet, shower, heating, etc.

• Have health and safety measures in place: the fire measures you implement will depend on the type of license you obtain. If you are getting an owner-present minpaku license, then you will need smoke detectors, evacuation maps, and emergency lighting. A minshuku license will require a further level of fire safety measures, such as exit signs, etc.

• Outsource to a management company: outsourcing is required if the owner is not present on the property.

Once your paperwork has been submitted, either online via the Minpaku Portal Site or in-person at the local health department, 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 and business operation number, you can create and publish your 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 in the area to make your property stand out.

Additionally, you should strategically price your property based on its location, lodging 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

Clear communication with guests will be key to your success. Answer any questions promptly, give clear house rules, and provide instructions for the check-in and check-out process to maintain a smooth experience for your guests.

Another aspect of responsible booking management for Airbnb hosts is to stay within the regulations of 180 days per year if you are operating under a minpaku license. Remember, 180 days is the maximum number of days you can rent your property annually (unless your property is in a special zone area).

If you think you might exceed your allotted limit of 180 days, consider offering a flexible cancellation policy to accommodate guests' changed plans in case you need to cancel to stay within regulations.

Step 4: Keep records and pay taxes

Under the Minpaku law, you need to keep records of your guests. This includes the full name of the individual staying, their passport number, their address in Japan, 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.

How to use MailMate for remote bill and mail management of your listing 

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

MailMate is a one-stop solution for everything you need for your property set-up and ongoing peace of mind.

• We provide the following services and more: Receive and pay your property tax bills without a Japanese bank account.

• Register MailMate as your Domestic Point of Contact at the time of your property purchase.

• Receive your Japanese Mail digitally with English summaries & an interactive Mail Concierge.

• Local point of contact and bill pay for your condo or building association.

• Local point of contact for utility set-up and ongoing bill-pay.

• Get fiber optic internet set-up at your property (inclusive of monthly internet fees).

Frequently asked questions

Why do I need a Minpaku license to open an Airbnb in Japan?

A Minpaku license is required for Airbnb hosts in Japan so that their private lodging services operate with safety, hygiene, and compliance in mind.

Can I operate my Airbnb year-round instead of just 180 days?

Yes, but you would need to obtain a Minshuku or Ryokan license instead of a Minpaku license. These licenses require stricter building standards but allow for 365-day operation.

How strict is the enforcement of Airbnb regulations in Japan?

Enforcement has increased significantly since 2018. Regular inspections occur in tourism hotspots, and non-compliant listings are actively removed from platforms.

How can I manage my Airbnb if I don't live in Japan?

You must hire a licensed management company if you operate an owner-absent property. They handle all aspects of guest management and regulatory compliance.

What happens if neighbors complain about my Airbnb?

Complaints are taken seriously in Japan. Multiple complaints can lead to license revocation. Proactive community relations are essential.

In closing

Starting an Airbnb in Japan requires more preparation than in many other countries, but the rewards can be substantial.

By following proper procedures, providing excellent hospitality, and understanding local expectations, you can create a successful and legally compliant short-term rental business.