The Cabinet approved a new vacation rental (minpaku in Japanese) law, which clarifies rules for vacation rental hosts, house management providers and platforms. The new law is expected to promote healthy vacation rental business using general houses in combination with the amended Hotel Business Act, which calls for rise of penalty against illegal vacation rental hosts up to 1 million JPY.
The new law mandates a host to give notice to a prefectural governor. Possible business days are up to 180 days a year, however the regulated days can be changed in an ordinance according to local conditions. Also, a host living in a vacation rental property is required explanation to neighbors, troubleshooting, an identification signage or a guest book. The same requirements are imposed on a house management provider.
A house management provider needs a registration in Ministry of Land, Infrastructure, Transport and Tourism, and a platform with an obligation to explain contract details to users needs a registration in Japan Tourism Agency.
The Cabinet’s decision is just an outline of the new law. The Diet will deliberate on the law, and at the same time the related-ministries will draw up the concrete rules and operation of the rules.