In 2014, Airbnb, the private lodging platform, entered the Japanese market.
In June 2018, the Housing Accommodation Business Act, often referred to as Japan’s “new minpaku law,” came into effect. Since then, operators have been required to file notifications or registrations and take certain measures in order to run private lodging businesses legally.
Even so, demand has remained strong, especially with the sharp increase in inbound tourism.
Today, we are also seeing more minpaku businesses being operated in compliance with the law.
From the perspective of real estate investment, minpaku has also attracted considerable attention.
More than ten years have passed since then.
Recently, however, Japan’s minpaku system seems to be showing signs of a major shift.
From an Era of Expansion to an Era of Restriction
In 2025, a number of local governments passed amendments to strengthen minpaku regulations.
These changes seem to have been driven largely by an increase in complaints from local residents, especially regarding garbage, noise, and other neighborhood issues.
Although regulations have become stricter, minpaku operations themselves have still been allowed to continue in various forms.
Under the so-called new minpaku law, a notified residential property can be operated as private lodging for up to 180 days per year.
In addition to this national rule, some local governments have introduced their own additional regulations.
For example, they may restrict the days of the week when minpaku operations are allowed, shorten the number of operating days in exclusive residential zones, require an on-site manager, or require prior explanation to neighboring residents.
Local Governments May Be Allowed to Effectively Ban Minpaku
However, on June 16, 2026, a striking article was published by Nikkei.
“Local Governments to Be Allowed to Effectively Ban Minpaku Operations: Japan Tourism Agency to Issue Notice Amid Rising Problems”
— Nihon Keizai Shimbun
Until now, the Japan Tourism Agency had not allowed local governments to set the maximum number of operating days for minpaku at “zero”.
Going forward, however, local governments are expected to be allowed to set the operating limit at zero days.
In other words, municipalities may become able to effectively ban minpaku operations.
Regulations Are Tightening in Tokyo, Osaka, and Kyoto
Since 2025, many local governments have in fact been moving toward stronger regulations.
In Taito City, Tokyo, private lodging properties without a resident manager are restricted from operating from noon on Monday to noon on Saturday.
In addition, operators are required to provide prior notice to nearby residents, schools, and other parties, respond to complaints within 30 minutes, and properly handle waste disposal.
In Sumida City, Tokyo, the guidelines for housing accommodation businesses will be revised from April 1, 2026.
On June 1, 2026, the city also established standards for administrative measures such as business improvement orders, suspension orders, and orders to discontinue business.
Toshima City, Tokyo, has also amended its ordinance regarding housing accommodation businesses, and the revised ordinance came into effect on December 15, 2025.
On the city’s website, the ordinance, enforcement rules, and committee materials have been made public.
This shows that minpaku regulation is not just a temporary topic, but something being reviewed as part of the overall system.
In Osaka City, Osaka Prefecture, new applications for special-zone minpaku were closed as of May 29, 2026.
Facilities that have already been certified are allowed to continue operating as before, but new applications are no longer being accepted.
Osaka is also an area with extremely strong inbound tourism demand.
For such a city to stop accepting new applications is quite symbolic.
In Kyoto City, Kyoto Prefecture, stricter regulation of minpaku has also become a major issue.
Kyoto City already limits the operating period for housing accommodation businesses in exclusive residential zones, in principle, from noon on January 15 to noon on March 16.
In a mayoral press conference in January 2026, the city even stated that it would consider, without ruling it out, the possibility of setting so-called minpaku-prohibited areas.
Looking at these examples, it seems that regulatory review is progressing simultaneously not only in Tokyo, but also in major cities and tourist cities such as Osaka and Kyoto.
Even Operating Under the Hotel Business Act May No Longer Be Enough
Another important point is that national and local governments have also begun to look more closely at the practice of avoiding the new minpaku law by operating under the Hotel Business Act.
Under the new minpaku law, there is a 180-day annual limit on operations.
On the other hand, hotels, ryokan inns, and simple lodging facilities under the Hotel Business Act are not subject to the same 180-day restriction.
As a result, there has been an increase in cases where individual condominium units or detached houses are registered as hotel business facilities and operated throughout the year.
Especially in central Tokyo, there seem to be more and more accommodation facilities operating individual condominium units as hotels.
Even if the property is just one unit in a condominium building, if it is operated under the Hotel Business Act, it is not subject to the 180-day limit.
As a result, this has effectively become a kind of loophole in minpaku regulation.
For this reason, Tokyo’s 23 wards have begun tightening regulations on hotels and ryokan as well.
In April, Katsushika City and Sumida City amended their ordinances to require staff to be stationed on-site at newly established hotel business facilities.
In Chiyoda City, from July onward, newly opened hotels and ryokan will be required to have a total guest room floor area of at least 200 square meters.
In Koto City, new facilities will also be required to have on-site staff from July.
Meguro City is also planning to amend its ordinance around autumn 2026.
In addition, on May 28, 2026, the Ministry of Health, Labour and Welfare and the Ministry of Land, Infrastructure, Transport and Tourism issued a notice requiring stricter confirmation of compliance with the Building Standards Act when hotel business licenses are granted.
When a residence or apartment building is converted into a hotel, ryokan, or simple lodging facility, a certificate of confirmation for change of use is required if the converted area exceeds 200 square meters.
Even when the area is 200 square meters or less and building confirmation procedures are not required, the notice states that a certificate from a licensed architect confirming compliance with building-related regulations should be requested.
The old assumption that “it is small, so it should be fine” or “an old house can be turned into accommodation with a little renovation” may no longer work.
Turning a Residence into an Accommodation Facility
The safety requirements for a building used as a residence and a building used by an unspecified number of guests as accommodation are different.
Evacuation routes, emergency lighting, fire safety equipment, zoning, road access, structure, fire resistance, and neighborhood response all become important.
If the building itself is old, confirming whether it complies with current laws and carrying out the necessary renovation work will not be simple.
In particular, when converting an old vacant house or old residence into a minpaku facility, cosmetic interior renovation alone may not be enough.
Rather, once you check the Building Standards Act, Fire Service Act, Hotel Business Act, and local ordinances one by one, larger-scale construction work and procedures than originally expected may become necessary.
Before Thinking About Yield, Ask Whether the Business Can Continue
From a real estate investment perspective, minpaku can certainly look attractive.
It may generate higher revenue than ordinary rental housing, and inbound tourism demand appears likely to remain strong for the time being.
It can also be a way to make use of vacant houses and older buildings.
In that sense, minpaku itself is not a bad option.
However, when considering minpaku from now on, the first thing to check should not be the expected yield.
The first thing to check is whether the property can really be operated as accommodation, and whether it can continue generating income.
Can it be notified as a housing accommodation business?
Are there restrictions on operating days or areas under local ordinances?
If operating under the Hotel Business Act, can the building comply with the Building Standards Act and the Fire Service Act?
If it is a condominium unit, is minpaku prohibited under the building management rules?
Who will handle neighborhood communication and emergency response?
And can the property respond to future ordinance revisions?
Even if a property can be operated today, future changes to local ordinances may reduce the number of days it can operate.
Also, after confirming compliance with the Building Standards Act and Fire Service Act, renovation work far beyond the original estimate may become necessary.
In some cases, renovation alone may not be enough.
Inbound visitors to Japan will probably continue to increase, and in some areas, hotels alone may not be enough to meet accommodation demand.
From the perspective of using vacant houses and older buildings, minpaku still has certain potential.
However, what will remain from now on may not be minpaku or hotel businesses that rely on loopholes in the system.
Rather, it may be accommodation facilities that are safe as buildings, accepted by the local community, and properly managed.
Minpaku Is Becoming a Business of Reading Both the Area and the Building
From this perspective, so-called old vacant houses may become more difficult as targets for minpaku investment than before.
Of course, this does not mean that old buildings are unsuitable for minpaku.
If the location is good, the building condition is not bad, and legal compliance, fire safety, neighborhood response, and management systems can all be properly arranged, there may still be potential to use the property as accommodation.
However, the risks are becoming greater if the project is based only on the idea that “it is a cheap vacant house” or “guests can stay there if we just renovate the interior a little”.
What will be needed is not only the purchase price of the property.
It will also be necessary to check compliance with the Building Standards Act and Fire Service Act, whether change of use is possible, local ordinances, neighborhood response, management systems, and preparedness for future regulatory changes.
When all of this is taken into account, minpaku is no longer becoming an easy real estate investment that anyone can casually start.
Minpaku itself is not coming to an end.
In fact, given the increase in inbound visitors and the need to make use of vacant houses, there will likely continue to be situations where minpaku is needed.
However, what will remain from now on may not be minpaku businesses that take advantage of gaps in the system.
It may instead be accommodation facilities that are safe as buildings, compatible with the local community, and properly managed.
The current wave of stricter regulation may be a turning point.