Minpaku in Japan: A Complete Guide to Private Lodging – Laws, Benefits, Drawbacks, and Future Outlook

In recent years, “Minpaku” (private lodging or vacation rentals) has rapidly expanded across Japan. While many have heard the term, the details regarding its actual state, relevant laws, and operational methods might not be widely known. Driven by social factors like the increase in inbound tourists and the growing issue of vacant houses, Minpaku is gaining attention as both a new accommodation option and a method for asset utilization.

However, it also presents various challenges, including neighborhood troubles related to noise and garbage disposal, complex legal regulations, and operational hurdles.

Based on the provided report, this article comprehensively explains Minpaku, starting from its definition, covering relevant laws, operational realities, advantages and disadvantages, and future prospects. It’s essential reading for anyone seeking a deep understanding of Minpaku or considering starting a Minpaku business in Japan.

What is Minpaku? Understanding the Basics: Definition and Market Position

The Origin and Modern Meaning of “Minpaku”

The term “Minpaku” originally had connotations related to the mutual aid custom where travelers in unfamiliar lands might stay overnight in local residents’ homes, often free of charge.

However, with the proliferation of the internet and smartphones, especially the emergence of online platforms like Airbnb, its meaning has significantly shifted. Today, “Minpaku” commonly refers to the practice of individuals utilizing vacant rooms in their owned residences (houses, apartments, etc.), investment properties, or vacation homes to provide short-term paid accommodation services to travelers.

Although there isn’t a strict legal definition, the general modern understanding of Minpaku can be described as “providing paid accommodation services to travelers and others by utilizing all or part of a residence.”

Why Has Minpaku Spread in Japan? Exploring the Background

Several social factors have contributed to the rise of Minpaku in Japan:

1. Rapid Increase in Inbound Tourists: Especially before the COVID-19 pandemic, the growing number of foreign visitors necessitated diverse accommodation options.
2. Accommodation Shortage in Urban Areas: During peak seasons, hotels and traditional inns (ryokans) sometimes struggled to meet demand.
3. Vacant House Problem in Rural and Urban Areas: Minpaku emerged as a potential solution for effectively utilizing unoccupied homes.

These factors combined spurred the spread of Minpaku as a new form of lodging.

How Does it Differ from Hotels and Ryokans? Minpaku in the Accommodation Market

Minpaku is recognized as a relatively new market segment distinct from traditional hotels and ryokans. Its legal positioning is primarily defined by the following three frameworks:

1. Simple Lodging under the Hotels and Inns Business Act (Ryokan Gyoho): Operating under the long-standing Hotels and Inns Business Act by obtaining a permit for “Simple Lodging” (Kan’i Shukusho).
2. Special Zone Minpaku under the National Strategic Special Zones Act: Operating with special certification within designated areas (National Strategic Special Zones).
3. Minpaku under the Private Lodging Business Act (Minpaku New Law / Minpaku Shinpo): Operating based on the so-called “Minpaku New Law” enacted in 2018, requiring notification to the prefectural governor.

These laws differ in their objectives, requirements, procedures, and regulations. Operators must choose the appropriate legal framework based on their specific circumstances. This legal complexity is a major characteristic of the Japanese Minpaku market.

Furthermore, the development of these laws was partly driven by the need to address issues like the prevalence of unlicensed “Yami Minpaku” (illegal operations) and associated concerns regarding hygiene, safety, and neighborhood conflicts.

The Three Key Laws Governing Minpaku Operations: A Detailed Comparison

Minpaku businesses in Japan are primarily regulated by three laws: the “Private Lodging Business Act (Minpaku New Law)”, the “Hotels and Inns Business Act (Simple Lodging)”, and the “National Strategic Special Zones Act (Special Zone Minpaku)”. Understanding these laws and their differences is the first step towards a successful Minpaku operation.

The Newest Rules: Deep Dive into the Private Lodging Business Act (Minpaku New Law)

Enacted on June 15, 2018, the Minpaku New Law aims to address the growing reality of private lodging and promote its sound development.

What Kind of Homes Qualify? Defining “Residence” and “Business”

• Residence: A house equipped with essential facilities for daily life (kitchen, bathroom, toilet, washbasin). This includes currently inhabited homes, vacant houses, and second homes.
• Private Lodging Business: Defined as a business, other than those licensed under the Hotels and Inns Business Act, that provides lodging services for a fee in a residence, where the total number of days guests stay does not exceed 180 days per year.

Who is Involved? Hosts, Management Companies, and Intermediaries

• Private Lodging Business Operator (Host): An individual or entity that notifies the prefectural governor, etc., to operate the business.
• Private Lodging Management Business Operator (Management Company): An entity registered with the Minister of Land, Infrastructure, Transport and Tourism (MLIT) that undertakes management duties commissioned by the host, typically for non-owner-occupied properties or facilities exceeding a certain size.
• Private Lodging Intermediary Business Operator (Booking Platform): An entity registered with the Commissioner of the Japan Tourism Agency (JTA) that facilitates contracts between guests and hosts.

Is the Host Present? Differences in Operational Styles

• Host-Present Type (Home-sharing Type): The host resides in the house and is present while guests are staying.
• Host-Absent Type: The host is not present, and management is typically outsourced to a management company.

How to Start? The Notification Procedure

Notification to the relevant prefectural governor, etc., is required before starting the business. This is generally done online via the “Minpaku System.” Numerous documents are needed, including operator information, property details, management company information (if applicable), pledges, and a fire safety compliance certificate. For rental properties or condominiums, landlord consent and confirmation of management association rules are mandatory.

Rules to Follow: From Day Limits to Hygiene and Safety

• Annual 180-Day Cap: The maximum number of days lodging can be provided is 180 days per year (counted per night).
• Additional Restrictions via Local Ordinances: Some municipalities impose further restrictions on operating days or areas through local ordinances. For example, specific areas or periods in Shibuya Ward (Tokyo) or Nagoya City have limitations. Operators must check both national laws and local regulations.
• Hygiene Measures: Ensuring a minimum floor space of 3.3m² per person, regular cleaning and ventilation, providing clean bedding, pest control, etc., are mandatory.
• Safety Measures: Installation of emergency lighting, displaying evacuation routes, and other disaster safety measures are required. Compliance with the Fire Service Act regarding equipment installation may also be necessary.

Host Responsibilities: Checking Your Obligations

• Maintaining hygiene and safety standards.
• Explaining house rules to guests (noise prevention, waste disposal, fire safety, etc., including multilingual support).
• Creating, maintaining, and storing a guest registry for three years, including identity verification.
• Displaying a legally required sign.
• Submitting regular reports to the prefectural governor, etc. (6 times a year, detailing lodging days, guest numbers, etc.).
• Responding appropriately and promptly to complaints from neighbors.
• Notifying authorities of any business changes or cessation.

Operational Partners: Responsibilities of Management and Intermediary Businesses

• Private Lodging Management Business Operators: Mandatory entrustment of management duties if the host is absent or if the number of guest rooms exceeds five. Registration with the MLIT is required, and proper business conduct is expected.
• Private Lodging Intermediary Business Operators: Registration with the JTA Commissioner is required. Obligations include providing explanations to guests beforehand, ensuring listed properties are legally compliant, establishing a complaint handling system, and submitting regular reports.

What Happens in Case of Violations? Penalties

Operating without notification, submitting false notifications, or exceeding the 180-day limit can lead to penalties under the Hotels and Inns Business Act, etc., such as imprisonment for up to 6 months or a fine of up to JPY 1 million. Violating management or intermediary entrustment obligations carries a fine of up to JPY 500,000. Other violations (failure to report changes, incomplete guest registry, failure to display signs, failure to submit regular reports, etc.) can result in fines of up to JPY 300,000. Strict penalties also apply to management and intermediary businesses.

Which Law Should You Choose? Comparing Pros and Cons: Minpaku New Law vs. Simple Lodging vs. Special Zone Minpaku

Choosing the right legal framework is crucial for your Minpaku business. Let’s compare the advantages and disadvantages of each.

Feature	Private Lodging Business Act (Minpaku New Law)	Hotels and Inns Business Act (Simple Lodging)	National Strategic Special Zones Act (Special Zone Minpaku)
Governing Law	Private Lodging Business Act	Hotels and Inns Business Act	National Strategic Special Zones Act
Procedure Type	Notification	Permit	Certification
Operation in Residential Zones	Possible (※Subject to local ordinances)	Generally Not Possible	Possible (※Subject to zone/municipal rules)
Max. Annual Operating Days	Up to 180 days	No Limit (365 days possible)	No Limit (365 days possible)
Min. Stay Requirement	None (1 night possible)	None (1 night possible)	2 nights / 3 days or more
Key Facility Std. (Floor Area)	Min. 3.3m² per guest	Min. 33m² total floor area (or 3.3m²/person if <10 guests)	Generally min. 25m² per room
Front Desk Requirement	Generally Not Required	May be required by ordinance, etc.	Not Required
Mgmt. Entrustment (Host Absent)	Required	Not Specified	Not Specified
Typical Contract Type	Accommodation Agreement	Accommodation Agreement	Accommodation-like Agreement (Note: Implied difference from lease)

• Minpaku New Law: Easier entry via notification, but the 180-day rule significantly limits profitability. Risk of additional local ordinance restrictions.
• Simple Lodging: Allows 365-day operation for higher potential profit, but obtaining the permit is challenging, and location options are restricted.
• Special Zone Minpaku: Allows 365-day operation in specific zones, but requires a minimum stay of 2 nights/3 days.

Choosing the optimal framework depends on your business goals, property characteristics, and target clientele.

Minpaku in Japan by the Numbers: Market Trends and Operational Realities

How has the Japanese Minpaku market changed since the New Law’s implementation, and what is its current state? Let’s explore the reality through statistics and survey data.

How Much is it Growing? Market Size and Growth Trends

The number of notifications filed under the Minpaku New Law has trended upward since its enforcement in June 2018. However, note that figures vary depending on the reporting date and whether they represent cumulative or currently active (excluding ceased operations) notifications.

While there was a temporary stagnation during the COVID-19 pandemic, lodging performance has shown a remarkable recovery following the resumption of inbound tourism from late 2022. For instance, available data for a period around late 2023/early 2024 showed nationwide lodging days under the New Law increased by approx. 28% year-on-year, and the total number of guests grew by about 30%. However, growth rates fluctuate significantly depending on factors like the pace of inbound demand recovery.

While precise data on the market’s total consumption-based value is limited, it’s clear the market is on a growth trajectory.

Where are They Concentrated? Area-based Distribution of Minpaku Facilities

Minpaku facilities (especially those registered under the New Law) are heavily concentrated in major metropolitan areas and key tourist destinations like Tokyo, Osaka, and Hokkaido, which account for the vast majority. While some rural areas have few registered properties, post-pandemic recovery trends show increasing guest numbers even in regional areas. Concentrations are often found in specific wards (“ku”) within cities, with smaller clusters appearing in towns (“machi”) and villages (“mura”) in certain tourist spots.

Who Operates Them and How? Profile of Operators (2022 Survey Data)

According to a JTA survey (data published in 2022), operations under the Minpaku New Law exhibit the following characteristics:

Feature	Category	Proportion/Note (※At time of survey)
Property Type	Apartment/Condo	Approx. 39%
	Detached House	Approx. 33%
	Apartment Building (non-condo)	Approx. 16%
Operating Entity	Corporation	Approx. 54% (Est., higher tendency for apartments/condos)
	Individual	Approx. 46% (Est., higher tendency for detached/kominka)
Host Presence	Host-Absent	Approx. 65% (Est., higher tendency for apartments/condos)
	Host-Present	Approx. 35% (Est., higher tendency for detached/kominka)
Combined with Rental?	Yes	Approx. 75% of apartments/condos
	No	Over 80% of detached/kominka
Main Reason to Start	As Primary Business	Approx. 37%
	As Side Business	Approx. 35%
	Interaction with Guests	Approx. 26%
	Utilize Vacant Property	Approx. 24%
Total Initial Cost	< JPY 3 Million	Over 50%
	JPY 3M – < JPY 10 Million	Approx. 18%
	JPY 10M – < JPY 50 Million	Approx. 15%
	>= JPY 50 Million	Over 10%

These results show a mix of diverse operational styles and motivations: corporate vs. individual, host-absent vs. host-present, primary vs. side business, low-cost vs. high-investment.

How are Bookings Made? The Role of Booking Platforms

Online booking platforms like Airbnb and Booking.com play a crucial role in attracting guests to Minpaku properties. While detailed data on specific platform market shares or the extent to which hosts use multiple platforms is limited, it’s believed many hosts leverage several channels for guest acquisition.

These platforms (if registered as Private Lodging Intermediary Business Operators) are legally obligated to verify that listed properties have the necessary notification, permit, or certification, thereby helping to exclude illegal listings.

A market also exists for Private Lodging Management Business Operators, essential for host-absent models, but detailed data on its size or service quality is scarce. Careful selection of a reliable management company is crucial when outsourcing operations.

Who Stays There? Guest Characteristics and Purpose

Guests consist of both domestic travelers and inbound foreign tourists. Post-pandemic recovery has been largely driven by inbound travelers, but Japanese guests still constitute a significant portion (though the ratio varies by period). International guests come from diverse countries and regions, including Asia, the US, and Australia.

While tourism is the primary purpose, some guests likely seek unique, local experiences different from hotels/ryokans or value interaction with hosts. Affordability and larger spaces suitable for families or groups might also be appealing factors.

The average length of stay varies by data source and Minpaku type, but data from major areas under the New Law suggests an average of around 3-4 nights per person.

Does Money Trickle Down? Contribution to the Local Economy

The growth of the Minpaku market is expected to generate ripple effects in local economies, not just through accommodation fees but also via spending on food, shopping, and activities during the stay. It also holds potential for job creation in related service sectors like management, cleaning, and brokerage. However, quantitative data demonstrating the specific scale of these economic effects is limited.

Not Just Benefits: Minpaku’s Impact on Local Communities

While potentially offering economic advantages, the spread of Minpaku also creates various challenges within local communities.

Getting Along with Neighbors: Common Troubles and Countermeasures

The most frequently reported issues include noise (late-night conversations, parties, suitcase sounds), non-compliance with garbage disposal rules, and unease about the constant flow of strangers. These can contribute to a negative image of Minpaku and cause friction with local residents. However, recent surveys suggest the proportion of operators who have received complaints is limited, indicating these issues might be subsiding somewhat.

Preventive measures and appropriate responses include:

• Strict House Rules: Clearly state rules regarding noise and garbage in multiple languages.
• Facility Considerations: Use clear labels and provide appropriate bins to facilitate waste separation.
• Security Measures: Installing security cameras or smart locks can enhance security.
• Communication: Make an effort to build good relationships with neighbors proactively.

Responsible handling by management companies is crucial for host-absent types. Local governments also provide complaint hotlines and implement regulations via ordinances.

Will Rents Rise? Impact on the Real Estate Market

The effect of increased Minpaku operations on local housing markets is debated.

• Concerns: There’s concern that converting properties previously available for long-term rent into short-term Minpaku rentals could reduce the supply of long-term housing, potentially leading to higher average rents, especially in popular tourist areas.
• Expectations: Conversely, operating as Minpaku might offer higher returns than standard rentals, potentially increasing property asset values. During periods of a weaker Yen, Japanese real estate might seem cheaper to overseas investors, potentially boosting investment (including in Minpaku properties) and pushing up prices in certain segments.

However, there’s no definitive conclusion yet on the overall impact of Minpaku on Japan’s housing market, and data to assess specific effects is lacking. The Minpaku New Law’s 180-day rule likely acts as a partial brake on full-scale conversion from long-term rentals.

Revitalizing Regions: Potential for Economic Stimulation and Vacant House Utilization

Many sources highlight Minpaku’s potential to contribute to regional economic revitalization. Minpaku guests spend money locally beyond accommodation fees, potentially boosting the local economy.

Minpaku is seen as a particularly effective tool for addressing the worsening vacant house problem. Even in areas lacking sufficient conventional lodging, renovating existing empty houses into Minpaku facilities can accommodate tourists and increase visitor numbers. This allows generating income from previously unused assets, encourages building maintenance, and contributes to preserving the local landscape.

Success stories include renovated historic kominka (traditional houses) offered as whole-house rentals, nouhaku (farm stays) providing agricultural experiences, unique lodgings created from renovated closed schools or vacant shops, and “dispersed hotels” networking vacant houses across an area under single hotel management. These showcase the potential to leverage local resources and create new tourism value.

Perspectives from Different Stakeholders: Hosts, Guests, Residents, Hotels

Views on Minpaku vary depending on one’s position:

• Hosts (Private Lodging Business Operators): Key motivations include income generation, effective use of owned property, and cross-cultural interaction. Challenges include complying with complex regulations, difficulty attracting guests, operational burdens, and handling neighbor disputes.
• Guests (Lodgers): Likely seek affordability, unique experiences distinct from hotels (local culture, host interaction), larger spaces suitable for groups/families, and convenient locations. However, they also have high expectations regarding cleanliness, safety, and information accuracy, leading to dissatisfaction if unmet.
• Local Residents: Concerns often revolve around noise, garbage problems, safety/security anxieties, changes to the living environment, and potential impacts on housing prices or rents. On the other hand, some residents may view revitalization and increased interaction positively.
• Existing Accommodation Providers (Hotels/Ryokans): May perceive Minpaku as competition, particularly in the budget segment. Some operators might feel a sense of unfairness regarding perceived differences in regulations (like operating day limits), though specific data on these views is limited. In response, they might focus on differentiating themselves through service quality, safety, and reliability – their traditional strengths.

Thus, Minpaku’s social impact can be positive or negative, depending heavily on location and the quality of operation and management. Tailored local regulations and responsible management by operators are essential to minimize negative effects and maximize positive contributions.

The Reality of Minpaku Operations: Challenges Faced and Hurdles to Overcome

While Minpaku offers attractive aspects, operating such a business involves various challenges and risks.

Persistent “Yami Minpaku” and Overly Complex Rules

Despite the Minpaku New Law, the existence of unregistered/unlicensed “Yami Minpaku” (illegal operations) continues to be pointed out. These pose risks as they may not meet safety and hygiene standards.

Even for those attempting to operate legally, compliance is challenging due to the interplay of multiple laws and local ordinances. Obtaining permits for Simple Lodging or certification for Special Zone Minpaku can be particularly high hurdles. Ensuring compliance with fire safety regulations, especially when renovating existing buildings, can also be a significant burden.

Ensuring the effectiveness of illegal listing removal by platforms and strengthening enforcement by authorities remain ongoing challenges.

Is it Profitable? The “180-Day Rule” and Profitability Barriers

A major challenge under the Minpaku New Law is the 180-day annual operating limit. This can significantly constrain profitability, especially for those renting properties for Minpaku or relying on it as their primary income source.

Intensifying market competition leading to price wars, difficulties in attracting guests, and the impact of online reviews also affect profitability.

Various operational costs arise, including cleaning fees, linen supply, consumables, utilities, platform commissions, management fees (if applicable), and property maintenance. Covering these costs and generating profit requires stable occupancy rates and appropriate pricing, demanding considerable time and effort.

This structural limitation of the 180-day rule may influence the types of operators under the Minpaku New Law. It might encourage more casual, supplementary income models or use of owner-occupied properties, while potentially pushing operators aiming for a full-scale lodging business towards the more complex but year-round options of the Hotels and Inns Business Act (Simple Lodging) or Special Zone Minpaku, or forcing them to consider other business models due to profitability concerns.

Safe to Stay? Safety and Hygiene Management Challenges

Ensuring safety, security, and hygiene is paramount for Minpaku as facilities used by numerous unspecified individuals.

• Hygiene: Compliance with legally mandated standards (floor space per person, regular cleaning/ventilation, clean bedding, pest control) is required. However, reports indicate inconsistent cleaning quality in practice, sometimes leading to guest complaints and raising questions about management quality. Managing the quality of outsourced cleaning services is crucial.
• Safety: Fire prevention is critical. Depending on the property, installation of fire alarms, extinguishers, clear evacuation route signage, and use of flame-retardant materials might be mandated by the Fire Service Act. These investments can be costly, especially for older buildings. Thoroughly instructing guests on the safe use of stoves and heaters is also important.
• Security: Operators need to address risks like property damage or misuse by guests, and unauthorized entry by third parties. Measures like proper guest registry management, ID verification, and potentially smart locks or security cameras are options, although specific data on the prevalence of these technologies is limited.

Relationship with Hotels/Ryokans: Coexistence and Competition Dynamics

Minpaku is sometimes seen as being in direct competition with existing accommodation providers, especially budget business hotels and simple lodgings. Some traditional operators reportedly feel a sense of unfairness regarding what they perceive as less stringent regulations for Minpaku, though specific data on these opinions is scarce.

Conversely, some argue that hotels/ryokans and Minpaku can coexist by offering different value propositions. Hotels often emphasize consistent quality, comprehensive services, and high levels of safety and reliability. Minpaku, on the other hand, can highlight affordability, unique experiences, larger spaces, and a closer connection to the local area.

Operational quality is a key differentiator in this competitive landscape. Issues like poor cleaning or inadequate management can damage the reputation of Minpaku as a whole. Successful Minpaku operation requires more than just providing a property; it demands professional management and delivering an experience that meets guest expectations. Selecting high-quality management companies or acquiring operational expertise is vital for maintaining and enhancing competitiveness.

The Future of Minpaku: Upcoming Trends and Sustainable Growth

How will Japan’s Minpaku market evolve? Let’s consider future trends and recommendations for sustainable growth.

What’s Next? Market Trends to Watch

Japan’s Minpaku market is likely to evolve driven by several trends:

• Sustained Growth: Driven by robust inbound demand recovery and growing interest in diverse lodging types, overall market growth is expected to continue.
• Emphasis on Experiential Value: A shift from merely providing accommodation to offering unique “experiences” is highly probable. This includes farm stays (nouhaku), cultural activities, local interactions, and themed stays (e.g., kominka, art, anime), a trend strongly suggested by source materials. Collaboration with local activity providers and businesses is likely to increase.
• Professionalization of Operations: Market maturation will demand higher operational quality. This could involve an expanded role and improved quality of management companies, adoption of hotel-like management systems (PMS) and technologies like smart locks, and data-driven pricing and operational improvements. M&A for scaling businesses and entry by specialized investors may also increase.
• Technology Utilization: Reliance on online platforms will continue, but expect increased use of software for operational efficiency. In the future, AI for demand forecasting and price optimization might be adopted (though specific current adoption data is limited).
• Interest in Direct Bookings: To bypass platform fees and build direct customer relationships, interest in direct bookings via proprietary websites, etc., could grow.
• Sustainability: Operations conscious of sustainability, such as reducing environmental impact and contributing to the local community, are expected to gain more value in the future.

Towards a Better Market: Needed Policy Measures

To foster the healthy development of the Minpaku market, the following policy responses could be considered:

• Re-evaluation of the 180-Day Rule: Examine the need for more flexible application or revision of the annual 180-day limit under the Minpaku New Law, considering regional realities, property types, and operational models, while carefully balancing this against the need to protect residents’ living environments.
• Streamlining and Clarifying Regulations: Simplify and rationalize the complex regulatory framework involving multiple laws and local ordinances to enhance clarity and predictability for operators. This could include clearer guidelines on the scope and standards for additional local ordinance restrictions.
• Strengthening Enforcement Against Illegal Minpaku: Enhance surveillance of unregistered/unlicensed operations, improve cooperation with platforms to remove illegal listings, and increase the effectiveness of swift and strict enforcement against violators.
• Quality Improvement Measures: Beyond enforcing safety and hygiene standards, consider implementing certification systems or incentives for high-quality operators to encourage service improvement.
• Data Collection and Research: Strengthen systems for collecting and analyzing more precise and continuous data on market size, economic impact, effects on the housing market, and community impacts. Research focusing on the realities under different legal frameworks and regional variations is particularly important.
• Coordination with Regional Revitalization: Promote policies (subsidies, consulting support, etc.) that support Minpaku businesses utilizing local resources, linking them with vacant house countermeasures and regional development strategies.

What Each Stakeholder Can Do: Tips for Success

Sustainable development of the Minpaku market requires each stakeholder to play their part:

• Private Lodging Business Operators (Hosts): Carefully select the optimal legal framework (New Law, Simple Lodging, Special Zone) based on business goals and resources. Prioritize full compliance with national laws and local ordinances. Enhance operational quality (cleanliness, safety, comfort) to earn positive guest reviews. Show thorough consideration for neighbors and strive to build good relationships. Differentiate through unique experiences or added value, not just price. Actively utilize technology for operational efficiency. If outsourcing management, thoroughly research potential partners’ track records and reputation to choose a trustworthy company.
• Platform Operators: Strengthen and enforce processes for verifying the legality of listed properties. Enhance information provision and support functions for hosts regarding legal compliance and quality improvement. Consider initiatives contributing to good relationships with local communities.
• Local Governments: Enact and enforce ordinances tailored to local conditions, balancing tourism promotion/economic benefits with preserving residents’ living environment. Enhance consultation services and information provision for operators and residents. Facilitate dialogue and consensus-building among stakeholders.
• Existing Accommodation Providers: Develop strategies leveraging their strengths (service, reliability, brand power). Explore possibilities for collaboration with Minpaku (e.g., guest referrals, joint promotions) or developing new services incorporating insights from the Minpaku market.

Japan’s future Minpaku market may see a polarization between casual, supplementary operations under the relatively accessible Minpaku New Law, and more professional lodging businesses pursuing profitability through the Hotels and Inns Business Act or Special Zone Minpaku, or achieving high added value and differentiation even under the New Law.

Conclusion: The Current State and Future of Minpaku in Japan

Japan’s Minpaku sector is characterized by its multifaceted nature: complex legal frameworks, dynamic market growth driven by inbound tourism, a diverse mix of operating models, and both positive and negative impacts on local communities. While the Private Lodging Business Act brought some order, the 180-day annual operating limit remains a significant constraint, and issues like illegal operations and neighbor disputes persist.

The key challenge lies in navigating the difficult balance between maximizing the economic and social benefits (like vacant house utilization and creating new tourism demand) while minimizing negative impacts on living environments and risks to safety and hygiene. Addressing this requires regulatory authorities to pursue flexible, evidence-based, and effective policy adjustments. Operators must prioritize legal compliance, operational quality, and community coexistence. Platforms need to ensure legality and support hosts.

The sustainable future development of Japan’s Minpaku market hinges on continuous dialogue and cooperation among these stakeholders, coupled with the ability to adapt to a changing market environment. Regulatory evolution, operator professionalization and differentiation strategies, and the effective use of technology will be crucial factors shaping the quality and direction of the market moving forward.