How to Operate Your Japan Property as an Airbnb / Short-Term Rental (Minpaku)

Many of my international clients tell me the same thing:

“I visit Japan frequently and want to purchase my own property—but since I won’t be here all the time, I’d like to rent it out on Airbnb when I’m away. Is that possible?”

In Japan, renting out a property through platforms like Airbnb is commonly referred to as Minpaku. While Minpaku is not a strict legal definition, it generally means renting all or part of a private residence to paying guests.

If you’re considering buying property in Japan and operating it as a short-term rental, this guide will help you navigate the legal systems, licensing options, zoning rules, and market opportunities.

Minpaku Market Trends

Japan’s Minpaku market has continued to grow steadily since the Private Lodging Business Act (Minpaku Shinpō) came into effect in June 2018. When the law was first introduced, there were only 2,210 registered properties nationwide. But as inbound tourism increased and local governments refined their regulatory frameworks, the number of registrations expanded year after year.

By 2025, with tourism rebounding strongly, the total number of Minpaku notifications reached a new record high. For foreign buyers considering short-term rental operations in Japan, this trend shows that the market remains active, regulated, and full of opportunity.

Start Here: Understanding Minpaku Basics

Before explaining how to start Minpaku, such as obtaining permits, choosing a property, or preparing your operations, it’s important to understand the fundamental legal frameworks that govern Minpaku in Japan. These rules determine what type of operation you can run, where you can run it, and what procedures are required.

Before you can decide how to operate Minpaku, it’s essential to understand that Japan recognizes several different legal categories of short-term rentals—each with its own rules, advantages, and limitations. Operating without permission is considered illegal Minpaku and may result in criminal penalties.　

Whether you already own a property or are planning to purchase one, the first step when considering Minpaku is to decide which operational framework best fits your goals.

Choosing the right one will determine how often you can rent out your property, what procedures you must follow, and even which locations are legally eligible.

Types of Minpaku You Can Operate in Japan

Here are the three legal categories:

1. Simplified Lodging (Hotel Business Act)

A full hotel/inn license for operating more than 180 nights per year. This framework is regulated like a small hotel, with strict facility and safety requirements. You should also be aware that hotel/inn businesses can only be operated in zones where such use is allowed under Japan’s zoning regulations.

2. Special Zone Minpaku

Allowed only in designated National Strategic Special Zones such as parts of Tokyo and Osaka. There is no limit on operating days, but availability is limited. In Tokyo, for example, the only ward authorized for Special Zone Minpaku is Ōta Ward. (Cabinet Office – National Strategic Special Zones:)

3. Private Lodging Business (Minpaku Shinpō)

The most easy option.
Allows operation for up to 180 days per year, even in residential zones.
If the host does not live on-site, hiring a licensed Minpaku management company is mandatory. I’ll go into more detail in the following section. (Japan Tourism Agency – Starting a Private Lodging Business)

Category	Private Lodging Business (Minpaku Shinpō)	Special Zone Minpaku	Simplified Lodging (Hotel Business Act)
Operating Days	Up to 180 days/year	No limit	No limit
Where You Can Operate	Residential zones allowed	Only in designated strategic zones	Commercial-use zones only
Permit / Notification	Notification filing required	Special Zone approval required	Full hotel/inn license required
Renovation Requirements	Minimal (basic home facilities only)	Moderate	Often extensive renovations required
Management Requirement	Licensed management company required if host-absent	Licensed operator required	Self-management or licensed operator
Difficulty Level	Easy	Medium	High
Best Suited For	Owners renting part-time	Properties in designated zones	Full-scale hospitality business

Private Lodging Business (Minpaku Shinpō)

The Easiest Way to Start Minpaku in Japan

Since the Private Lodging Business Act (Minpaku Shinpō) is the easiest framework to begin with, and the most suitable for owners who don’t plan to operate a full-scale Minpaku business, this article will focus on this option.

Advantages:

1. Easier and Faster to Start

Unlike hotel licenses, this system requires only a notification filing, not a full inspection-based approval. As long as you submit the required documents and meet the criteria, the filing is accepted.

2. No Major Renovation Needed

If your property already includes the essential four facilities (kitchen, toilet, bathroom, and wash basin), no major construction is legally required under the Private Lodging Business Act. In contrast, the Hotel Business Act often requires substantial renovations; for example, installing additional fire safety equipment, widening hallways, upgrading ventilation systems, or meeting stricter structural standards similar to a small hotel.

3. No Change of Building Use Required

Under Japanese law, hotels and inns require a different building classification than regular homes. Normally, converting a house into a lodging facility requires a formal “change of use,” which involves inspections and renovation work.
With Minpaku Shinpō, you can operate short-term rentals without changing the building’s official classification, saving both time and cost.

Disadvantages:

1. 180-Day Operating Limit

You may operate only up to 180 days per year.
Many municipalities impose their own additional restrictions, such as allowing Minpaku operations only on weekends, so the actual rules can vary greatly depending on the area. Because these rules differ widely by municipality, checking local regulations is essential.

If you wish to exceed 180 days, one option is to switch to monthly rentals, which fall under long-term leasing regulations. For example, operating as Minpaku during peak travel seasons and switching to long-term or monthly rentals during quieter periods. This hybrid approach allows you to maximize occupancy while staying fully compliant with the law, while also giving you the flexibility to reserve the property for your own stays.

2.“Residential Dwelling” Requirement

The Minpaku Shinpō allows only residential dwellings to be used for short-term rentals. Although this may sound simple, the legal definition is much stricter than many people expect. To qualify as a residential dwelling, the property must be actually used—or clearly intended to be used—for living purposes.

Because of this, some properties cannot be used for Minpaku right away. For example:

• Newly built homes that have never been occupied, and
• Long-vacant properties

may not meet the legal requirement unless you can prove actual residential use, active tenant recruitment, or periodic occupancy by the owner.

This can be an unexpected obstacle for buyers. So it’s essential to verify the property’s eligibility before proceeding with any Minpaku plans.

3. Mandatory Management Company (If Host-Absent)

There are two operational styles under the Private Lodging Business Act: host-staying and host-absent. The requirements differ significantly between the two.

If your goal is to rent out the property while you are not staying there, your operation will naturally fall into the host-absent category.

The host-staying model requires the owner to live on-site during guest stays and handle responsibilities such as guest interaction, ID verification, and daily oversight. Because of these obligations and time commitments, it can be difficult for individuals who also work full-time or live abroad to manage this model effectively.

For this reason, the host-absent model is generally the more realistic and practical choice for foreign property owners.

Host-absent Minpaku must be managed by a licensed Minpaku management company registered with the Japanese authorities. These companies handle all legally required operations allowing you to run your Minpaku smoothly even if you live overseas.

List of registered Minpaku management companies

4. Waste Disposal Rules

This may seem like a small detail, but waste disposal rules can be unexpectedly strict and vary significantly by municipality. Some municipalities do not collect business-related waste from Minpaku operations. In these areas, you cannot simply use the normal household garbage system. Instead, you must contract a private waste disposal company to handle trash generated by guests. This may include arranging regular pick-ups, paying additional service fees, and following local rules on separation and disposal. If you are working with a Minpaku management company, they will typically take care of this entire process, so you don’t need to worry about it yourself.

Application Process

To operate under the Private Lodging Business Act, you must submit a formal notification to the prefectural government. Although the process is simpler than obtaining a hotel license, it is still fairly detailed and can be challenging for first-time applicants, especially if you are overseas or do not read Japanese.

Your submission must include:

• Applicant information (name, address, contact details)
• Property details, including exact location and legal classification
• Floor plans showing all required facilities
• Corporate director names (if you are applying as a company)
• Guardian information (if the applicant is a minor)
• Proof of eligibility, such as certificates confirming you are not bankrupt or legally disqualified

The documents must be prepared in Japanese and follow each municipality’s specific format and instructions. Some prefectures require additional supplementary documents or clarifications, and even small mistakes can delay acceptance of your notification.

Because of these complexities, many applicants choose to hire a licensed administrative scrivener (Gyoseishoshi) to handle the application.

The cost of hiring an administrative scrivener (Gyoseishoshi) to handle the Minpaku application varies depending on the region and the specifics of your property. Generally speaking, the typical range is around ¥50,000 to ¥120,000.
If you need an administrative scrivener who can provide full English support, the fee is often slightly higher, but for many foreign owners, the added clarity and smoother communication are well worth the investment.

Detailed instructions:　https://www.mlit.go.jp/kankocho/minpaku/

Choosing the Right Property for Minpaku

If you don’t yet own a property, your biggest question is likely how to choose a home that can actually be rented out as Minpaku. This decision is crucial, selecting the right property from the start will determine whether your Minpaku operation is successful, compliant, and sustainable in the long run.

Now that you understand the key legal frameworks surrounding Minpaku in Japan, and have clarified the strategy you want to pursue, let’s move on to the next critical step: identifying the locations that best align with your goals.

Where Minpaku Properties Are Concentrated

Minpaku registrations in Japan are not spread evenly across the country. They are heavily concentrated in major tourism and transportation hubs. The prefectures with the highest number of registered Minpaku homes include Tokyo, Osaka, Hokkaido, Chiba, and Fukuoka, all of which benefit from strong visitor demand and well-developed travel infrastructure.

Recent data from the Japan Tourism Agency shows this concentration clearly. Nationwide, total guest-nights reached 1,240,220, representing 119.6% growth compared to the same period the previous year.

Among all prefectures, Tokyo ranks first with 595,494 guest-nights, followed by Hokkaido (188,031) and Osaka (49,119). This shows how strongly Minpaku demand aligns with tourism intensity. Although Kyoto is one of Japan’s major tourism destinations, the number of registered Minpaku properties is surprisingly low. This is largely due to the exceptionally strict local regulations that make it difficult to operate Minpaku legally within the city.　

Within Tokyo itself, Minpaku activity is further concentrated in a handful of highly visited wards, including Shinjuku, Taito, Sumida, Shibuya, and Toshima, where major railway stations, popular sightseeing areas, and relatively flexible municipal rules make operations smoother.

(The latest data published by the Japan Tourism Agency in 2025)

Why These Areas Show the Fastest Minpaku Growth

These regions dominate Minpaku performance for five key reasons:

1. High inbound tourism demand

Tokyo, Hokkaido, and Fukuoka are among Japan’s most frequently visited destinations.
Chiba benefits from Narita Airport and Tokyo Disneyland, attracting international travelers year-round.

2. Hotel shortages during peak seasons

In these popular cities, hotels often reach full occupancy during weekends, holidays, and large events. Minpaku fills this supply gap.

3. Exceptional transportation connectivity

• Tokyo wards contain major hubs such as Shinjuku, Shibuya, and Ueno.
• Chiba provides direct, fast access to Narita Airport.
• Fukuoka’s airport is uniquely located minutes from the city center.
  This convenience makes these areas ideal for short-term visitors.

4. Favorable or flexible local regulations

Some municipalities, such as Taito and Sumida, avoid strict weekday limits, making day-to-day operations easier. However, even in these areas, complaints and neighborhood concerns have been increasing, and some districts are now considering tightening their rules. Investors should stay aware of potential regulatory changes going forward.

5. Lower acquisition costs in regional cities

Real estate in regional areas such as Chiba, Hokkaido, and Fukuoka is generally more affordable than in Tokyo. This allows investors to achieve stronger ROI while still benefiting from steady visitor traffic and robust tourism demand in these regions.

Location and Zoning Considerations

The Private Lodging Business Act (Minpaku Shinpō) was originally created to make it possible for residential properties to be used legally for short-term lodging.
For this reason, Minpaku under this framework is generally permitted anywhere residential buildings can be built from a zoning perspective. Please not that this is separate from the question of whether the property meets the legal definition of a “residence.” As far as land-use zoning is concerned, traditional hotel zoning restrictions do not apply.

Additionally, zoning alone is not enough. Additional layers such as Special Use Districts (特別用途地区) and municipality-specific rules can significantly affect what is allowed. Some cities impose:

• limits on operating days
• restrictions near schools
• additional notification requirements

Because of these factors, it is essential to check both zoning and local municipal rules before purchasing a property.

Condominium Rules

Most condominium buildings in Japan explicitly prohibit Minpaku in their management bylaws. Although the data is from 2018, a nationwide survey at that time showed that 80.5% of condominium associations in Japan explicitly prohibited Minpaku. Since this was shortly after Minpaku laws were first introduced, and many buildings had not yet updated their internal rules, it is reasonable to assume that the percentage of condominiums banning Minpaku has increased in recent years.

Given this reality, the most practical property types for foreign investors are:

• A standalone house, or
• An entire small apartment building

Standalone homes offer flexibility but require careful attention to local neighborhood sentiment.
Entire buildings provide operational control and are often ideal for investors who want to combine long-term tenants with Minpaku usage.

Choose a Reliable Operator

Choosing the right Minpaku management company is just as important as choosing the right property, and it has a major impact on how smoothly your operation will run. Because Minpaku, especially host-absent operations, requires meticulous legal compliance, selecting a company with a strong reputation and municipal experience is essential.

Your management company should be able to handle:

• Cleaning and linen replacement
• Waste disposal (including arranging private collection when required)
• 24/7 emergency support
• Guest check-in and ID verification
• Multilingual guest communication
• Compliance with local regulations

And as for the fees, which owners are often concerned about, most companies charge 20–30% of your gross rental income.
However, picking a reliable operator involves much more than comparing fees.
A good operator not only keeps your property running smoothly but also minimizes neighborhood friction and legal risk.

Finding the Strategy That Fits Your Goals

As discussed, operating Minpaku is rarely feasible if you own only a single condominium unit. For this reason, standalone houses or entire buildings remain the most practical options for flexible Minpaku use.

If you already own a property, or if you do not necessarily want to purchase in a prime tourist district, you may wonder whether such locations can still work for Minpaku. While houses in residential areas are not always close to major sightseeing spots or major stations, Minpaku demand does not come only from international tourists. Many domestic travelers use Minpaku for short visits for various purposes, and many foreign visitors, including digital nomads, prefer quieter residential neighborhoods where they can stay for longer periods and experience everyday life like locals.

For those purchasing a vacation home in a regional area, it is also reasonable to assume that others may wish to enjoy the same environment you value.

Ultimately, the right approach depends on how much income you expect. If maximizing revenue is your priority—and you wish to operate more than 180 days a year—obtaining a Hotel Business Act license in a high-demand location may be worth considering. But if the property is primarily for your own use and you simply want to generate some income while you are away, occasional Minpaku or monthly rentals can be both realistic and practical. In fact, in popular tourist areas where competition is high, properties slightly outside the core may even benefit from having fewer competing listings.

Support for English-Speaking Owners

Japan’s Minpaku system offers meaningful opportunities for foreign investors, but only if you navigate the legal requirements and understand local regulations. With the right planning, you can enjoy your property whenever you visit Japan while generating income during your absence.

However, operating Minpaku from overseas presents challenges that many owners do not anticipate. While most management companies can communicate with guests in English (as they should), very few provide clear, reliable English support to property owners themselves. As a result, many foreign owners feel uncertain or disconnected from the daily operations of their own property.

To bridge this gap, I work closely with clients by:

• helping them evaluate and choose a trustworthy management company,
• assisting with communication between owners and operators, and
• making sure they stay informed throughout the entire Minpaku operation.

And my support goes beyond simply showing properties.
I assist with property selection, developing your Minpaku strategy, and ensuring that you work with the right partners, because successful Minpaku management requires not just a good property, but also a reliable team and ongoing communication.

If you need help evaluating your approach, identifying Minpaku-friendly properties, or navigating communication with management companies or judicial scriveners, please feel free to contact me. I’m here to support you from the very first property search all the way through full Minpaku operation.

Disclaimer: Regulations may change. Please verify the latest requirements with a qualified professional.