On September 10, 2025, Toshima Ward in Tokyo announced a strict amendment to its ordinance on short-term rentals (民泊, minpaku).
Under the proposal, rentals would only be permitted during the summer holiday (July – August) and the winter holiday (December 20 – January 10).
The revision is scheduled to take effect in July 2026.

Background

The move comes amid a rapid increase in the number of short-term rental properties — 1,473 units in 2024 — and more than 120 resident complaints annually, mostly related to garbage disposal and noise.

Official reference: Toshima Ward Ordinance Amendment Review Committee, 1st Meeting Materials (Japanese PDF)

Key Points of the Proposal

  • Limit operations to the summer and winter holiday periods (approx. 84 days per year)
  • Prohibit new facilities in residential and educational zones (about half of the ward)
  • Require prior briefing sessions for local residents
  • Require overseas owners to appoint a representative residing in Japan
  • Encourage negotiations on joining neighborhood associations
  • Establish mediation meetings with residents upon request in case of disputes

Regulated vs. Non-Regulated Areas

Other Tokyo wards such as Arakawa and Koto have already introduced weekend-only rules for short-term rentals.
Toshima’s proposal would be similarly strict.

By contrast, some wards still have no such restrictions in place, including:

  • Sumida
  • Kita
  • Katsushika
  • Edogawa

These areas may currently present more favorable opportunities for investors.

Investor Strategies: From Minpaku to Licensed Lodging

In areas like Toshima where restrictions are tightening, relying solely on short-term rentals may no longer be viable.
Investors should consider strategies such as:

  1. Targeting less-regulated wards
    　→ Focus on Sumida, Kita, Katsushika and Edogawa, where restrictions are not yet in place.
  2. Switching operating models
    　→ Apply for a license to operate as a 簡易宿泊 kan’i shukuhaku (simple lodging facility) or under the Hotel Business Act, which allows more stable year-round operations.
  3. Building before the new rules take effect
    　→ For those planning to continue in Toshima, starting construction before the July 2026 enforcement date could secure eligibility for operations under the current rules.

At our company, we have seen a sharp increase in inquiries related to hotel business licenses this year. Among properties for short-term rental use, Sumida Ward has been particularly popular with investors.

Clearly, with the trend toward stricter regulations, the future of real estate investment in Tokyo will hinge on choosing the right area and adopting flexible operating models.

Ai Construction specializes in fire-resistant wooden buildings and has experience not only with apartment projects but also with hotels, budget lodgings, and ryokan.
For investors considering Tokyo hospitality projects, even in wood construction, we are here to help.