Minpaku (private lodging) services — in which accommodations in private residences are rented out to travelers — are being counted on as a solution to a shortage of hotel rooms to serve the growing numbers of inbound tourists, particularly as the nation prepares to host the 2020 Summer Olympic and Paralympic Games in Tokyo. Ahead of the implementation in June of the law enacted last year to lift the tight regulation on minpaku services across the country, prefectural governments next month will start accepting notifications from people who plan to rent out accommodations to tourists.

While regulations on such services have been gradually eased in recent years, some residents of communities with minpaku services harbor concerns that their living environment might be disrupted. Complaints have been filed with authorities concerning visitors making noise at night and ignoring community rules for garbage disposal. Out of concern that such problems may increase, some local governments have imposed more restrictions on minpaku services in their areas. For the minpaku business to take root, gaining the understanding of local communities will be crucial. People engaged in the minpaku business must make sure they follow the rules stipulated under the new law. To gain public support for the system, the government and municipalities should monitor and crack down on those who rent out accommodations without registering with the authorities.

Under the new law, property owners who have notified their prefectural governments of their intent can rent out accommodations for up to 180 days a year. If they want to provide the service beyond this limit, they will be required to get a license to run simple lodging facilities under the Hotel Business Law. The owners or businesses commissioned to run the service are also obliged to post relevant signs on the properties and to deal with any complaints from local residents. Businesses that provide web-based intermediary service between the property owners and their prospective customers need to register with the Japan Tourism Agency.