New minpaku law regulates rentals

By Di on July 9 2018

A new law will go into effect in June 2018 to regulate minpaku, private residences rented out by their owners as short-term lodgings. The new law will address changes that have occurred in recent years due to the rise of Airbnb, the worldwide online service that allows travelers to book rooms in private homes directly from the owners of those residences.

After June 15, minpaku rentals will be permitted throughout Japan. Under the new law, if owners don’t live in the building where they rent rooms, they will be required to hire a management company to take care of the property. 

The most contentious aspect of the new law is that it contains no restrictions with regard to the type of property that can be used. One of the main sources of complaints about Airbnb rentals has been condominium owners and tenants who object to neighboring units being used as de facto hotel rooms without their approval. Other complaints include garbage being thrown out on non-designated days, visitors staying up all night and making lots of noise and, most significantly, loss of security.

The government is hoping that with the new regulations, minpaku can alleviate some of the problems associated with the growing number of vacant houses and apartments in Japan, many of which are available for renting but stay empty for long periods of time due to the dwindling number of renters.

Teaching notes

from the article: "Japan has long had a similar type of system called *minshuku*, which usually involves rooms in private homes that are offered as lodging. But people who want to let rooms as minshuku must apply for a license, which requires that the room be a certain size. Also, a management-type person must always be on the premises. These rules, however, have never been strictly enforced, which is why Airbnb was able to gain a foothold in Japan, even though, technically, such rentals are illegal."

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Discussion
What is your opinion of minpaku?
Are you, or anyone you know, involved in the minpaku business? Do you think it has the potential to create significant revenue for Japan?
When you travel, do you prefer to stay in hotels or in more intimate lodgings such as Airbnb or minpaku rentals?