Japan cities tighten vacation rental regulations amid resident complaints

Local governments in Japan are tightening regulations on vacation rentals (minpaku) following rising resident complaints regarding noise and waste. In Osaka, the city suspended new applications for the Special Zone Minpaku system in May due to excessive applications and neighborhood disturbances. However, reports indicate a growing trend of foreign investors using the “Ryokan Business Act” as a loophole. By obtaining hotel-style licenses for individual apartment units, operators can bypass the 180-day annual limit imposed on standard residential rentals and accept single-night stays.

In Tokyo, Shinjuku City is moving toward a policy that would effectively prohibit vacation rentals in residential areas and near schools. This regulatory shift, aimed at protecting the living environment, could impact approximately 2,000 existing facilities. Former lawmaker Taizo Sugimura commented on the necessity of these measures, describing the unregulated expansion of the industry as a “runaway of capital” that has resulted in social nuisances like noise pollution.