Laws and Lawsuits – Page 10 – JAPAN PROPERTY CENTRAL K.K.

Tokyo’s Taito Ward tightens rules on AirBnb-type rentals

On March 29, members of the local government in Tokyo’s Taito Ward voted unanimously in favour of reforms to regulations under the Inns and Hotels Act that will make it overwhelming difficult to operate AirBnb-type short-term rentals.

The reforms will require an employee of the host company to be stationed on the premises during business hours, as well as having a front desk at the property’s entrance. Under these rules, studio apartments or entire houses would not meet the conditions. A local council member said that the ward is not opposed to short-term accommodation, but wants to ensure the safety of anyone who visits the area.Read more

by Zoe Ward

Only 1 applicant for Ota-ku’s new short-term letting license system

On January 29, Tokyo’s Ota Ward introduced relaxed rules for short-term letting that allows ordinary homes and apartments to be rented to tourists. Licensing requirements still apply, however, although the terms are not as strict as they are under the hotel licensing law.

In the lead up to the regulation change, Ota’s city office received over 120 inquiries from companies interested in opening accommodation facilities under the new system. Information sessions held in January were attended by over 200 people at a time. Since January 29, they have handled an additional 220 inquiries.

Despite the strong interest, there has only been one applicant, a Tokyo-based company called Tomareru. Read more

by Zoe Ward

Ota-ku to introduce relaxed letting rules from today

From January 29, Ota City in Tokyo will enact a new lodging ordinance to allow private residences and homes to be used as accommodation for tourists. The relaxed rules have shortened the minimum stay to 6 nights and 7 days (down from 30 days), and have reduced the need for hotel-like facilities such as a check-in counter. Hosts, however, must still be approved by Ota City before they can rent out their properties.

Ota ku January — A packed room for Ota City's information session held on January 27.

Over the past three months, Ota City has received over 120 inquiries from companies interested in applying for permission to operate lodgings under the newly relaxed rules, and is expecting to have applications for approximately 200 rooms by the end of March. At an information session held by the City on January 27th, 200 people showed up - twice the number expected by the City. One of the attendants was the president of a real estate company who was planning to lease between 50 ~ 100 rooms.

There are already over 300 rooms in Ota that are listed on online booking sites, the majority of which are operating without the legally required license.Read more

by Zoe Ward

New reporting requirement to boost transparency in Japan's property market

In an attempt to improve transparency and encourage more circulation in the resale or 'second-hand' real estate market in Japan, the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) plans to introduce several new measures including enforcing status checks on listings, and encouraging building inspections.

Japan’s real estate market is decades behind other foreign markets in terms of the resale market, and also falls far behind in terms of disclosure laws and ethics. This may partially explain why the sale of second-hand properties accounts for just 10% of all home sales in Japan, while the resale market in the US and UK can account for as much as 90% of transactions.Read more

by Zoe Ward

Redevelopment voting ratios may be revised down to 2/3rds

Danchi

The government is considering revising the redevelopment voting ratio downwards for apartment buildings that form part of urban redevelopment projects.

Under the Urban Renewal Act, 100% of apartment owners must agree, in principle, before the building can be redeveloped. The government wants to reduce this ratio to a 2/3rd vote in favour, but only when the redevelopment includes some public component such as a park.

The revision will target the large-scale housing developments that were built during Japan’s period of rapid economic growth following WWII, and which are now in varying stages of deterioration. Residents, too, are ageing and it is hoped that new apartment buildings will attract younger families.Read more

by Zoe Ward

Sumitomo bans AirBnb-type rentals in new condominium

According to the Nikkei Shimbun, property developer Sumitomo Realty & Development has taken an unusual step by adding a clause to the management bylaws of a new condominium that outright bans any short-term letting by individual apartment owners.

This is in response to a growing number of complaints from buyers after moving into a building and finding that a number of units, even the guest suites usually reserved for residents and their guests, were being illegally rented out by investors as overnight accommodation to tourists.Read more

by Zoe Ward

Osaka's new short-term letting rules leave out Osaka City

On October 27, Osaka Prefecture became the first area in Japan to approve the new and relaxed rules regarding short-term accommodation.

Despite the changes, there are still strict requirements, including:

Obtaining permission from local authorities before letting out the property.
Having a signed fixed-term rental agreement with the host and the guest.
A minimum room size of 25 sqm. Each room must have it’s own lockable bath, toilet and kitchen.
The minimum stay must be 6 nights and 7 days.
Hosts will be obligated to keep a guest book with guest names, passport numbers, and must check and confirm the identity of each guest.
Local authorities will have the right to conduct physical inspections of the properties. If a problem is found, the operator will lose their permission to operate short-term letting.
The following areas are not included in the relaxed rules: Osaka City, Sakai City, Takatsuki City, Higashi-osaka City, Toyonaka City, Hirakata City.

It is important to note that a large part of the urban area in Osaka is not part of the relaxed rules. Operators of properties in areas in white in the map below will require a hotel license to provide accommodation for less than 30 days.Read more

by Zoe Ward