Temporary Living Arrangements In Japanese Home Insurance Claims: Key Considerations – In this article, we look at the basic considerations needed to determine if you can legally rent out your home in Japan on a short-term basis, such as on AirBnB.
These are frequently asked questions in our free residential webinar series, where attendees can ask questions after the keynote presentation. The variants of this question are:
Temporary Living Arrangements In Japanese Home Insurance Claims: Key Considerations
Yes, as a property owner in Japan, you can legally rent out your home or part of your home for a short period of time, as long as you comply with the specific housing laws you choose to use. . Many apartment management contracts, however, expressly prohibit short-term rentals. Apartment owners should check management agreements to ensure they comply with building regulations.
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If you rent a house in Japan, you are not allowed to rent your house to other people, including short term.
The information below is intended to provide an overview of the main types of hotels in Japan and is not intended to be a comprehensive discussion or to provide investment or legal advice. Contact a real estate professional and/or administrative law attorney for advice about your situation.
According to the Ryokan Business Law, a “simple inn” (簡易旅行所) is a house shared by many people. This is the most commonly used type of private shelter.
If you want to use one or more rooms in your house or apartment for private accommodation, submit an application for a simple house operation permit under the Ryokan Business Act. However, if you are considering renting a
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If you have a short-term rental property, your Property Management Agreement must also allow for this. We will talk more about this phenomenon below.
Unlike other private residences, there is no upper limit on the number of working days in a year you can work and no upper limit on the number of consecutive nights.
If you choose to rent a room under the Ryokan Business Law, you have a high degree of freedom in how you operate your rental; it may also be easier to make a profit, after you have made the initial investment in obtaining the necessary permits and equipment to fit a simple residence.
The main obstacle is having to meet the requirements of the Ryokan Business Law and all related regulations set by the local government.
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An in-depth discussion of the requirements is beyond the scope of this article, but here are the basics:
In addition to the requirements of the Ryokan Business Law above, the rental must comply with the standards set by the City and Regional Planning Law of your municipality, the Law on the Building, and all related ordinances imposed by the local government.
The important thing to note is that you must apply for permission to advertise your accommodation on a short-term rental site such as AirBnB.
Most people who apply for a “simple residence” permit tend to use the services of an administrative clerk because of the complexity and amount of paperwork required. If you apply on your own, the cost of the permit depends on where your property is located. In Tokyo, the price is around ¥16,500 and in Osaka it is around ¥22,000.
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In addition, there are documents that you will be required to support your application, including obtaining a registry, floor plan and layout of the building, and the cost of water quality testing.
The “Minpaku Special Zone” law was enacted in December 2013 (about three months after Tokyo won the bid to host the 2020 Olympics) to quickly help welcome growing foreign tourists and promote regional development.
The purpose of the law is to allow local governments in designated areas to make their own ordinances to completely relax the law and make it easier for foreigners to rent short-term housing. Remember, the law was enacted in a time before COVID and before border closures!
Tokyo’s Ota Ward became the first municipality to establish a special zone for private housing in January 2016.
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In order to rent a private residence under the special Minapaku Zone law, you must obtain a certificate from the government. It is considered less expensive and requires less paperwork than obtaining a “simple residence” permit (1. above). Please contact your municipality for specific information about your area.
There is no upper limit to the number of nights you can rent a room according to Minpaku Special Zone law, but the room must be rented for two nights three days or more.
There are also rules for guests, compared to rooms rented under the Ryokan Business Law. Special Minpaku Zone rentals are considered rental businesses and are not subject to the Ryokan Business Law, although they are considered a “special case” of the Ryokan Business Law.
This means, for example, that business operators are not responsible for managing the behavior of guests. Guests are expected to self-regulate, but property managers should notify neighbors in advance to let them know that short-term rental guests will be staying in the property. Source: Special Case on Ryokan Business Law in National Strategic Special Regions, Ministry of Health, Labor and Welfare, PDF in Japanese)
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The New Minpaku Law was promulgated in June 2018 to create a new form of short-term accommodation in addition to the four already defined in the Ryokan Business Law (hotels, guest houses, ordinary dwellings, and dwellings).
The main difference is the number of business days you pay your rent. If you register your house or apartment as a registered property under the New Minpaku Law and rent it out for 180 days or less per year, it is exempt from the Ryokan Business Law.
The requirements for operating a short-term rental business under the New Minpaku Law are easier than those for operating “private accommodation” (1. above) and “private accommodation in a special area” ( 2. above).
To rent a private residence under the New Minpaku Law, you need to submit a notification (助出) to the prefectural governor.
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Special event lodging is the short-term use of a building or residence as accommodation for a major regional event where a shortage of lodging is suspected.
This type of hotel is designed to accommodate tourists for the Tokyo Olympics, but it can be used for future major events such as the World Expo that will be held in Osaka in 2025, for example.
Special hotels for events do not require a work permit, but are not intended for people who intend to do long-term business, for which “simple accommodation” (1. above) may be better.
There are severe penalties for violating the Ryokan Business Act and other laws related to the operation of private accommodations.
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For example, the penalty for violating the Ryokan Business Act is up to six months in prison and a fine of up to ¥1 million.
If you are thinking of buying a unit in a condominium to use it as a short-term or continuous rental, or for part of the year, if you do not live there, you should be sure to check the management agreement. the building and consult with the management association beforehand. This is because most condominium buildings do not allow the use of units for private rental companies, such as AirBnB.
Many condominium buildings base their management contracts on standard contracts issued by the Ministry of Land. In the standard contract, the owner of the building is prohibited from renting out his house for private residence.
This is based on the idea of protecting the value of quality of life issues related to renting a house in a residential building, especially a high-end building. For example, short-term guests may make a lot of noise when dragging suitcases down the hall or when using the elevator; or may cause problems with the security of the building. Short-term guests can damage the value of common areas such as swimming pools or gyms, for example, in high-end buildings.
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You should also be aware that the management agreement can be changed to prohibit special occupancy by a three-quarters majority vote of the homeowners association, even if special occupancy permits have been granted. the contract was even specific when you bought the property.
Yes. You can buy a house in Japan regardless of your nationality or country of origin. There are also no requirements to buy a house in Japan. Securing financing as a resident alien is more difficult. For financing information, please see Basic Requirements for Obtaining Insurance as a Foreigner in Japan
Please see the seminars page for a current list of seminars on: how to buy a house in Japan, Japanese real estate investing for beginners, how to apply for permanent residence in Japan, how to selling real estate in Japan, and more.
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