On July 10, Masashi Haranaka, a member of the Fukuoka prefectural assembly, confirmed that anyone who wants to rent out rooms on a nightly basis using online sites, including Airbnb, is required to obtain a license under the Inns and Hotels Act. This includes private individuals looking to offer out rooms in their own house to people in exchange for payment.

Under the Inns and Hotels Act, individuals and businesses looking to rent out rooms or entire homes to guests on a nightly basis must receive permission from the prefectural governor. This is the first time the prefecture has specifically indicated that this definition also applies to people renting out their own home to guests.

The prefecture has also indicated that they will conduct physical inspections to identify and prosecute people found to be operating illegally.

At a prefectural committee meeting, the bureau chief of the Fukuoka Prefectural Police said that they are prepared to treat these situations as criminal cases. This means that there is a chance that anyone caught operating without a hotel license could face criminal charges.

The issue was recently brought to the attention of the prefectural committee by the manager of an apartment building in Fukuoka City who was concerned about two rooms in the building that were being rented out on a nightly basis without providing any notice to the building management or owners association. The Fukuoka City Health and Welfare Centre conducted an inspection of the property and confirmed that the two rooms were being rented in violation of the the Inns and Hotels Act. The host of one of the rooms has since moved out, while the host of the second room is insisting that the apartment is a share house and continues to take in overnight guests. The building manager is seeking an appropriate response from the prefecture, since licensing is a prefectural matter.

Fukuoka Prefecture provided the following information with regards to renting out a property to short-term guests, particularly when using a site such as Airbnb:

  1. Under the Inns and Hotels Act, licensing is provided by the prefecture.
  2. Regardless of whether the property is a hotel, ryokan, simple lodgings, or share house, if it is offered as a accommodation to an unspecified large number of people on a repeated basis and for a continued duration, the act of receiving compensation for providing the accommodation requires a license to be obtained under the Inns and Hotels Act. Airbnb listings fall under this definition.
  3. If you are providing accommodation, whether a hotel, ryokan, simple lodgings or share house, the prefecture has the following advice:
    • If food is provided, you will need to comply with the Food Sanitation Act
    • If you are simply acting as an agent for an accommodation service, you will need to comply with the Inns and Hotels Act.
    • Check the zoning of the land. In many residential zones, providing accommodation is prohibited and it will not be possible to obtain a license. Zoning such as Category I and II exclusively low-rise residential and Category I and II mid/high-rise oriented residential zones do not permit hotels.
    • Under the Fire Services Act, the fire department will need to issue written notification that the property complies with fire safety laws. If the property does not comply, it will not be possible to obtain a license.
    • Under the Infectious Disease Act, license holders are required to make appropriate efforts with sanitation to stop the spread of disease.
    • Anyone accepting money for providing accommodation is required to file this income as earnings from enterprise operations, rather than normal employment income, on their tax return.

The Inns and Hotel Act applies nationwide and the above information may apply to any area in Japan. In addition, local cities and towns may have their own specific rules.

Renting out an apartment, house or even a room in your house in Japan on a short-term basis requires a hotel license, regardless of the prefecture. For stays of over 30 days, a hotel license is not required, although a rental agreement may be required.

If you are thinking of renting your place on Airbnb in Japan, please consult with the local Health and Welfare Centre.

Sources:
Net IB News, July 10, 2015.
Net IB News, July 13, 2015.

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