ShinonomeThe Urban Renaissance (UR) Agency is cracking down on tenants who are illegally subletting their rental apartments to provide short-term accommodation to foreign tourists.

According to UR, as many as 80 rental apartments were found to be illegally sublet by tenants. The majority of the properties were in UR-operated buildings in Tokyo and Osaka. The agency became aware of the issue after receiving a growing number of complaints from residents reporting large numbers of foreigners with suitcases coming and going from apartments.

Under UR rental agreements, sub-leasing is prohibited. If a tenant is found to be sub-leasing their apartment, UR can cancel the lease and demand that the tenant vacate the premises. Tenants who refuse eviction orders can face penalties equivalent to 1.5 month’s rent.

UR have started to conduct more on-site building inspections, and have also started to contact short-term accommodation listing sites to seek the removal of illegal listings in UR buildings.

The Urban Renaissance Agency is a semi-public housing corporation that provides rental apartments at market rates but does not require guarantors, key money, renewal or commission fees.

The Ministry of Health, Labour and Welfare is currently preparing legal revisions that will relax short-term letting laws, with the aim of submitting the new bill to the National Diet within the year. The proposed changes would require hosts to have a manager or caretaker to respond to any troubles with neighbours, keep a register of guests and identification documents, and provide notice of operations to local government authorities. While amendments remain under discussion, the number of illegal short-term rentals has skyrocketed.

Sources:
NHK, July 22, 2016.
News24, July 21, 2016.
The Yomiuri Shimbun, July 21, 2016.

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