About Private Lodging Business Act (New Private Lodging Business Act)

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About Private Lodging Business Act (New Private Lodging Business Act)

The Private Lodging Business Act became effective in June 2017 as a newly established law for setting rules and disseminating sound private lodging services, among the rapidly increasing "Private Lodging," in order to secure safety and hygiene, respond to trouble with neighbors, such as noise and garbage disposal that are becoming social issues, and respond to the various lodging needs of international visitors in Japan.

New Private Lodging Business Act Targets 3 Types of Operators

The New Private Lodging Business Act regards 3 types of operators―the "private lodging business operator," the "private lodging administrator" and the "private lodging agent"―in order to secure integrated and smooth execution of the system and determine the duties and obligations of each role.

  • ・"Private Lodging Business Operator"
  •   ⇒ A person who has registered, in respect to Article 3, paragraph 1 of the Private Lodging Business Act, and is operating a private lodging business.
  • ・"Private Lodging Administrator"
  •   ⇒ A person who has registered, in respect to Article 22, paragraph 1 of the Private Lodging Business Act, and is operating a private lodging administration business.
  • ・"Private Lodging Agent"
  •   ⇒ A person who has registered, in respect to Article 46, paragraph 1 of the Private Lodging Business Act, and is operating a private lodging agent business.

Overview of System for Each Operator

1.Establishment of System on Private Lodging Business Operator

[1] A person who intends to operate a Private Lodging Business needs to notify the prefectural governor, etc. (*1).
Annual provision days shall be a maximum of 180 days (nights) and a mechanism must be established that reflects the situation in the local area (*2).
(*1) Mayors of cities with established health centers (ordinance-designated cities, core cities, etc.) and mayors of special wards (the 23 wards of Tokyo) may handle acceptance, supervision and ordinance establishment administrative work instead of the prefectural governor.
(*2) Limitation on the implementation of the Private Lodging Business, in accordance with the ordinance.

[2] Measures for conducting a proper Private Lodging Business (*3) are required of the Private Lodging Business Operator, in cases where the owner lives on the premises.
  (*3) Measures to secure hygiene, explain about noise prevention to lodgers, respond to complaints from the neighborhood, create and maintain a Lodgers' Registry Book, posting of signs, etc.

[3] Entrustment of the above mentioned measures (except for posting of signs) to a Private Lodging Administrator is required of the Private Lodging Business Operator, in cases where the house owner is absent.

[4] The prefectural governor, etc. will implement supervision on the Private Lodging Business Operator.

2.Establishment of a System for Private Lodging Administrators

[1] A person who intends to operate a private lodging management business needs to obtain registration from the Minister of Land, Infrastructure, Transport and Tourism.

[2] Measures for properly conducting private lodging business as a Private Lodging Administrator (*1) measures for conducting a proper private lodging administrator business (*2) are required of the private lodging administrator.
  (*1)Measures to secure cleanliness, explain about noise prevention to lodgers, respond to complaints from the neighborhood, create and maintain a Lodgers' Registry Book, etc.
  (*2)Explanation of details on management entrustment contract, issuance of contract document, etc.

[3] The Minister of Land, Infrastructure, Transport and Tourism will implement supervision on Private Lodging Administrators.

[4] The prefectural governor, etc. will implement supervision on the "measures for conducting proper private lodging business."

3.Establishment of a System for Private Lodging Agents

[1] A person who intends to operate a Private Lodging Agent Business needs to register with the Commissioner of the Japan Tourism Agency.

[2] Measures for conducting a proper Private Lodging Agent Business (*1) are required of the Private Lodging Agent.
  (*)Explanation of the details on the contract to the lodger, etc.

[3] The Commissioner of the Japan Tourism Agency will implement supervision on Private Lodging Agents.

Definition of Housing, etc.

Although permission is required in principle upon conducting a private lodging business in accordance with the Inns and Hotels Act, a person who registered with respect to Article 3, paragraph 1 of the Private Lodging Business Act may operate a Private Lodging Business, not withstanding the provision of Article 3, paragraph 1 of the Inns and Hotels Act. The "Private Lodging Business" is stipulated as a business where any person other than a business operator, as set forth in Article 3.2, paragraph 1 of the Inns and Hotels Act, provides lodgings at a private house for a fee, the use of which does not exceed 180 days a year.
In addition, the "housing" is required to meet the requirements for equipment and residence as follows.

○ Equipment Requirements
"Kitchen" "Bathroom" "Toilet" "Washing facilities"

○ Residence Requirements
"The house shall be currently used as the main home of a person"
"A house which is advertised to a new dweller"
"A house which is advertised to a new dweller after the period of a lease with an old dweller has expired"

In addition, the method for calculating 180 days set forth by ordinance of the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) and ordinance of the Ministry of Health, Labour and Welfare (MHLW), as the number of days to lodge a person, is as follows and is calculated per registered lodging.

  • 1Year = From 12 p.m. of April 1 to 12 p.m. of April 1 of the next year
  • 1Day  = From 12 p.m. to 12 p.m. of the next day