New Minpaku Law and 180 days

Cabinet decision was made for New Minpaku law in March, 2017 .
At the time this New minpaku law has become effective, you can operate hotel similar business without hotel license.
( At the earliest, it may become effective in January , 2018.  So, information in this page has not been determined ).
As of now, you can not accommodate guests and receive hotel charge without hotel license ( including ryokan license, budget hotel license ).
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, it is stipulated 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 with registration or notification to authority ( 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 if you submit notification to authority. However, you may not like such situation. So, hereinafter I assume you do not stay with your guest )
.
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.
So, you are required to pay fee for it.
This administrator is a company registered with Ministry.
If a 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 such person.

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 business in the apartment, you can not operate new minpaku hotel business.

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.

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 (October, 2017), this new minpaku law has not been enforced. We can not know precise amount of 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, there are possibilities that the number of illegal hotel operator will decrease ( to some extent ).
minpaku Japan

  As for 180 days regulation

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

As for Zoning

In the case of Tokku minpaku, 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.

error: Content is protected !!