New Minpaku Law and 180 days

Assumed that you want to register your real estate in Japan in airbnb and receive hotel charge from customers.
However in order to engage in such activity, you need to obtain hotel license.
In this situation, Minpaku Shinpou has been adopted. If you can satisfy several requirements, you can operate hotel similar business without hotel license.

This new law is scheduled to become effective in mid of June, 2018.

As of now, in the case you operate hotel business in one unit of apartment or detached house, there is a possibility that you can obtain budget hotel business license ( 簡易宿所免許 ). However in order to obtain this license, you need to obtain permit from authority ( health authority ), fire department etc. And you can not obtain this license if the premise is located in exclusive district for residential use ( Jukyo senyo chiiki ). And if in apartment association rule stipulates that your apartment is residential purpose, you can not obtain hotel license. ( It still applies to new Minpaku law, though ). You need to prepare necessary fire prevention equipment, including automatic fire alarm.

On the other hand, in the case of new Minpaku law, there are some deregulation as below.
You can operate this business without permit, but by registration with Prefectural government or chief of ward.

In the case you also stay in your Hotel with your guest, you can start hotel business with notification to authority.
For example, you accommodate guests in your residence and receive hotel charge, as far as you submit (to prefectural government office or ward office) notification to authority, you can operate this new hotel business. However, you may not like such situation. So, hereinafter I assume you do not stay with your guest.
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You can operate your new minpaku hotel business for 180 days or less per one year.
Even if your guest stays in your hotel ( house, apartment. the “Hotel” ) for one day, it is acceptable. However the number of guests should be four or less. Your Hotel does not need to equip with reception desk. You can operate your new minpaku hotel business in exclusive district for residential use ( Jukyo senyo chiiki ).

Administrator of new minpaku business

When you operate new minpaku hotel business, you need to hire a administrator called Kanrisha.
This administrator is a company registered with Ministry.
So, you are required to pay fee for it.

If administrator company assists illegal minpaku business operator ( ex. Person who operates new Minpaku business more than 180 days per a year ), authority can remove this company from registration. So, this company will not assist illegal operation.

This administrator needs to engage in following activity.

1  It needs to handle problem caused by new minpaku hotel business.

2  It needs to prepare hotel register, insurance, keep sanitation, conduct explanation of rule of neighborhood ( how to discard garbage etc. ).

3  It needs to inspect content of apartment association rule and confirm if there is not rule that prohibit operation of new minpaku hotel business.

So, if in apartment association rule stipulates that owner of apartment can not operate New minpaku hotel business in the apartment, you can not operate new minpaku hotel business.

In the case you are renting an apartment and operate new Minpaku hotel business, you need to get permit from owner of your room and apartment owner’s association (all owners constitute apartment owner’s association)

In the case, you are renting the real estate and plan to operate new minpaku hotel business, administrator needs to inspect content of lease contract between owner of real estate and you.
So, if lease contract stipulates that you can not rent out the Hotel to subtenant ( In most of cases, it should be stipulated ), you can not operate new minpaku hotel business.
It also needs to make report to relevant authority, including police department, health authority, tax office.
Like this you need to hire administrator and it will examine date of operation and payment of tax. So, in the case of new minpaku law, you need to pay tax properly.

If you do not want to pay fee for administrator, you may be able to become administrator. If you have work experience in real estate company for 2 year or more or have registered as takuchi tatemono torihikishi or Kanri gyoumu shuninsha or Chintai hufousan keiei kanrishi, you may be registered as administrator. (government fee is 90000 yen).

Fee for administrator company

In the case of new minpaku law, you need to hire administrator company ( If you have large detached house and rent out a part of your residence, you do not need to hire it, though ).
As of now (January, 2018), this new minpaku law has not been enforced. We can not know precise amount of its fee. However, some companies engage in supporting of Airbnb business. They list information of your real estate in several kinds of languages, cleaning of room and bed, preparation of shampoo, communication with guest etc, adaptation of hotel charge, taking picture of room,

These  companies charge 20%, 25%, 30%, 35% of hotel charge.

minpaku Intermediator of new Minapaku business

In the case a person or company engages in intermediation of new minpaku hotel business, he/she needs to register with Ministry of sightseeing.

So, Airbnb company may need to register with minister.

And in that case Airbnb company needs to abide by following regulation.

1  It needs to clarify your business is new minpaku hotel business..

2  Authority can order Airbnb company to remove information of illegal hotel business operator.

3  If Airbnb company does not follow regulation, authority can prohibit Airbnb company from operation.
So, after enforcement of new minpaku law, Airbnb company may send operator of hotel business an order to obtain hotel license or registration. Then, if illegal operator does not perform his/her duty, Airbnb company may remove information of your real estate from its list. Subsequently there are possibilities that the number of illegal hotel operator will decrease.
minpaku Japan

Though, new minpaku law stipulates 180 days, it is maximum number of days. So, each prefectural government can reduce this 180 days.

Moreover, each local authority can designate specific area and prohibit from operation of new Minpaku hotel business.

In the case of Tokku minpaku (hotel business in specially designated area), you can not operate Minpaku business in exclusive residential zone. However in the case of new minpaku business, your hotel is deemed as “residence”. So, such regulation is not applied. On the other hand, in the case of apartment, you need to confirm if you can operate new minpaku business with apartment association in advance.

On site inspection

In the case authority thinks a person engages in illegal hotel business, it can conduct on site inspection without consent of business operator.a person.

Like this after enforcement of new minpaku law, you need to solve some hurdles. However, you can understand English language. So, you may be able to find customers outside of Japan and it may provide you advantages.

You can use this new Minpaku law on and after 15th, March, 2018.

As for your real estate

In order to use your real estate for  new Minpaku hotel business, it should be residence that you are using as “Residence” as of now.
So, 1  you are living in the real estate or
2  You are trying to find resident for the real estate or
3  You or other persons are sometimes using it as residence
So, if you build new apartment in order to operate new Minpaku business, your real estate is not included in this “Residence”.

And your real estate should be residential real estate. If you use your real estate for office space other than duration of operation of hotel business, your real estate is not “Residence”.

In order to engage in new Minpaku business, you need to inform neighboring persons of your operation. You need to put plate that indicates your operation. So, you can not operate your business secretly.

There is not limitation of maximum number of guests for one new Minpaku hotel room.

Necessary fire prevention facility in the case of new Minpaku law

Necessary fire prevention facility differs depending on each city.
Generally, even if it is detached house or building, you need to prepare Automatic fire alarm (Jidou kasai houchiki. it may cost 100 thousand yen or several 100 thousand yen) and Emergency exit light (Yuudoutou).

Even if it is detached house or building, in the case room area is 150 ㎡ or more, you need to prepare Fire extinguisher.

Thus, in the case of detached house (less than 150 square meters), you need to prepare ONLY automatic fire alarm and Emergency exit light.
(Though there are exceptions)

If you use a part of your residence (you are actually living there) as new Minpaku hotel and room area for business is 50 ㎡ and it is less than 50% of total room area, you do not need to prepare fire prevention facility. Because it is deemed you residence. (every house needs to prepare fire alarm, though)

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