Housing Accommodation Act vs Hotel Business Act — Which to Choose
Comparing the two minpaku permit systems by day limits, costs, and revenue potential.
Overview of the Two Systems
Japan offers two main systems for short-term residential lodging: the Housing Accommodation Business Act (commonly called 'minpaku law') and the Hotel Business Act (simple lodging category).
The choice affects initial costs, operation days, freedom, and revenue. Property zoning and structure may also limit your options.
Housing Accommodation Act
Enacted 2018, this is registration-based for residential lodging.
Pros: easier to obtain (2-4 weeks), lower building requirements, possible in residential zones with conditions, lower initial costs.
Cons: 180-day annual operating limit, mandatory neighbor consultation and signage, regional regulations may add restrictions (e.g., Osaka limits weekdays in residential-only zones).
Hotel Business Act
An older system requiring formal licensing. Same category as hotels and traditional inns.
Pros: no day limit (365-day operation), higher pricing power, higher resale value.
Cons: license harder to obtain (4-6 months), stricter building/fire requirements (reception, room area), more zoning restrictions.
Comparison Table
Operating days: Housing Act 180 / Hotel Act unlimited
Application time: Housing Act 2-4 weeks / Hotel Act 4-6 months (plus renovation if needed)
Initial cost: Housing Act ¥500k-1.5M / Hotel Act ¥2M-5M
Zoning restrictions: Housing Act loose / Hotel Act strict
Neighbor consultation: Housing Act required / Hotel Act not required (notification recommended)
Resale value: Housing Act standard / Hotel Act high
Which Should You Choose?
Side business / small scale: Housing Act recommended — low risk in cost and time.
Main business / maximize revenue: Hotel Act advantageous — 365-day operation roughly doubles revenue.
Property-determined: Many properties can't qualify for Hotel Act due to building/zoning/fire requirements. Verify property feasibility first.
How We Help
We tell you which permits each property qualifies for when listing. Partner administrative scriveners support optimal system selection through application. Ask on LINE.