Your Guide to Stress-Free Short-Term Rentals in Japan

Overview

Immerse yourself in the vibrant, multi-layered culture of Japan through the rising trend of short-term rentals. A spectrum of chic urban lofts, tranquil century-old ryokans, and everything in between await the visitors looking for a unique, authentic experience. Japan’s short-term rental market bursts with diversity, offering a variety of options for travellers - from those desiring a taste of traditional Japanese lifestyle, to the nomadic professionals hunting for a fully-equipped contemporary space. A thrilling blend of traditional ethos and modern hospitality, this rapidly expanding sector is redefining the landscape of Japan's tourism industry and reimagining how visitors explore the Land of the Rising Sun. Let's delve into this captivating world of short-term rentals in Japan, and unravel the myriad opportunities it presents.

Overview

Yes, the Japan Association of Vacation Rentals is a national body that provides support and guidance for short-term rental owners in the country. It offers resources like education and training, advocacy for the interests of vacation rental owners and hosts, and the platform to network and collaborate with counterparts and industry professionals. The association's mission is to enhance the growth and success of the vacation rental industry in Japan.

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Introduction

What are short Term Rentals in the Country?

Short-Term Rentals, commonly known as "Minpaku" in Japan, offer a unique and diverse accommodation experience for both international visitors and locals alike. Anchored in the heart of Japanese society, these rentals have become an indispensable part of Japan's hospitality industry. Extending from modern condominiums in bustling cities like Tokyo and Osaka to traditional Japanese houses in serene countryside settings, short-term rentals offer a wide array of lodging options typically intended for less than 30 days occupancy. Convenient, cost-effective, and brimming with the promise of adapted living conditions, these rentals provide an authentic, immersive encounter with Japanese culture and lifestyle—right from the comforts of an abode chosen by the guests themselves. Indeed, their increased popularity is testament to the shift in how Japan's tourism landscape is ever-evolving, aligning itself with the global trend of favoring personalized, intimate, and experiential travel.

What is the maximum length of stay?

In Japan, the maximum length of stay for short-term rentals, also known as Minpaku, is typically 180 days per year. However, this can vary depending on the regulations set by local governments.

Is there any National Registration Requirement or Permit?

In Japan, short-term rentals, often referred to as "Minpaku" properties, are subject to certain legal requirements. As of June 15, 2018, laws have required hosts to register their listing and display a registration number on their listing page. These laws also establish several rules regarding the operation of these rentals. For instance, a rental property can be rented out for a maximum of 180 days per year.

In terms of licenses, if the property owner lives in the property and rents it for less than 180 days a year, they will need to register the property with the local government and will be required to display a Minpaku registration number on their online listing. If the property owner doesn't live in the rental property, or if they plan to rent it for more than 180 days a year, they need to obtain an Innkeeper License.

In addition to these permits and licenses, hosts must follow strict guidelines related to fire safety, noise control, and garbage disposal, among others. They are also required to keep a guest registry and report guest stays to the local government.

Please note, these regulations vary by region and it is advised for hosts to verify local laws before renting out properties.

Are there National Rules or Regulations Governing Short-Term Rentals in the Country?

In Japan, short-term rentals, often referred to as "minpaku," are primarily governed by the Private Lodging Business Act, which was implemented on June 15, 2018. Prior to this, renting out a residential property on a short-term basis was somewhat of a grey area legally in many areas of Japan.

Under the new law, hosts are required to register their property with the local government and comply with certain requirements, including:

A limit of 180 rental days per year per property.
Some local governments may establish additional restrictions on minpaku operations. This may include the times of year when rentals are allowed or specific zones where rentals are permitted.
The property must meet certain fire safety and other health and safety standards. There could also be a requirement for hosts to provide information in multiple languages.
An updated record of all guests must be kept.
Hosts must also arrange for a Property Management Company or similar to handle guest complaints and other related matters, particularly when they are not close to the property.

It's important to note that rules and regulations could be different or more restrictive on a local level. For example, condominium associations may ban minpaku rentals altogether. It is always best to check the specific local rules in the area where the property is located.

Is there any National Tax that affects short-term rental?

In Japan, the tax commonly affecting short-term rentals, also referred to as Minpaku, is the income tax. If you are receiving income from renting out your property, you are required to declare this to the Japan Tax Agency and pay income tax on your earnings. This applies even if you are a non-resident but are generating income in Japan. The tax rate can range from 5% to 45% depending on the amount earned from the rental. It's important to note that if the property is considered a business, it could be subject to corporate tax.

However, Japan does not have a national tax specifically for short-term rentals but tax implications might vary based upon the host's overall income. Yet, local governments may have their own taxation or permit systems in place. For example, in some regions, hosts might be liable to pay lodging taxes, commonly known as Accommodation Tax or Hotel Tax, besides the national income tax. Also, a consumption tax may apply.

It is always advisable to consult with a tax professional or a legal advisor to understand the tax obligations thoroughly in the specific region where the short-term rental property is located.

Are there any Permits, Licenses, or Registrations for Short-term Rentals in the Country?

Please note, these regulations vary by region and it is advised for hosts to verify local laws before renting out properties.

Is there any National Association for STR owners in the Country?

Japan

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