Osaka City to tighten vacation rental regulations

Osaka City is moving to tighten regulations on short-term vacation rentals, known as ‘minpaku’, following a surge in noise complaints and resident disputes. After halting new applications for ‘Special Zone Minpaku’ in May 2026 due to frequent troubles, the city has seen a massive spike in alternative applications under the Hotel Business Act. Specifically, filings for building plans related to the Hotel Business Act increased 7.7 times compared to the previous year.

A proposed ordinance amendment, expected to be submitted to the city council on September 15 with an aim to implement by October, includes several strict requirements. To improve soundproofing, the city will generally prohibit new rentals in wooden or steel-frame apartments where residents already live, requiring instead reinforced concrete or steel-reinforced concrete structures.

Additionally, the city plans to mandate that staff be stationed within 1 kilometer of the facility during guest stays. This rule would apply to existing operators as well. The city’s previous promotion of the Special Zone Minpaku system led to the certification of 8,887 facilities over ten years, accounting for over 90% of Japan’s total.