the Inns and Hotels Act, the National Strategic Special Zones Act, and the Private Lodging Business Act

What is "Private Lodging"?

Following yesterday, we will explain about Private Lodging in Japan. Below is a comparison table, so please check what is different according to each act.

Although "Private Lodging" is not defined clearly in the laws and regulations, it refers to the provision of accommodation service to travelers and other users by utilizing all or part of housing (condominiums, including detached housing and apartments) is generally called "Private Lodging." In recent years, there has been a rapid development of businesses matching those who want to lend a vacant room for a short period via the Internet with those who hope to find accommodation.

Expectations for Private Lodging are also rising in Japan as well, from the viewpoint of community activation, such as responding to the various lodging needs of the rapidly increasing numbers of international visitors to Japan, and effectively utilizing the increasing number of vacant houses due to an aging society with fewer children.

On the other hand, since there are people conducting Private Lodging without approval, though they fall under the hotel business that requires approval under the Inns and Hotels Act, it is necessary to handle these situations by setting rules, giving consideration to the securement of public health, such as to prevent the spread of infectious diseases, and to prevent trouble with community residents.

Based on these issues, the Private Lodging Business Act (Act No. 65 of 2017) has become effective in June 2017 for disseminating proper Private Lodging services under certain rules.

Starting with the enforcement of the Private Lodging Business Act from June 2018, those who conduct Private Lodging in Japan need to select a method from the following.
1.Obtain permission in respect to the Inns and Hotels Act (Act No. 138 of 1948)
2.Obtain authorization in respect to the National Strategic Special Zones Act (Act No. 107 of 2013) (Special Zone Private Lodging)
3.Register in respect to the Private Lodging Business Act

Comparison of the overview on these systems is as follows.

-	Inns and Hotels Act （Simple Lodging）	National Strategic Special Zones Act （portion related to Special Zone Private Lodging）	Private Lodging Business Act
Appropriate Ministries and Agencies	Ministry of Health, Labour and Welfare (MHLW)	Cabinet Office (Ministry of Health, Labour and Welfare (MHLW))	Ministry of Land, Infrastructure, Transport and Tourism (MLIT) Ministry of Health, Labour and Welfare (MHLW) Japan Tourism Agency
Permission, approval, etc.	Permission	Authorization	Registration
Operation in residential areas	Not available	Available (There may be restrictions for each registering municipality)	Available May be limited by ordinances
Limitation on days of operation	No limitation	Subject to 2-night/3-day stay or longer (The minimum days will be set forth in ordinances, but the annual maximum operation days are not set)	Annual number of days provided are within 180 days (Implementation term may be limited by ordinance)
Obligation to create and store a Lodgers' Registry Book	Required	Required	Required
Obligation to install an entryway (structural standard)	Not required	Not required	Not required
Minimum floor space: secure minimum floor space (3.3㎡/lodger)	Minimum floor space required (33㎡. However, 3.3㎡/lodger, if less than 10 lodgers)	25㎡ or more per room, in principle	Minimum floor space required （3.3㎡/lodger）
Hygiene measures	Measures on ventilation, daylight, illumination, dehumidification, cleanliness, etc.	Measures on ventilation, daylight, illumination, dehumidification, cleanliness, etc. and provision of clean room upon the start of use	Measures on ventilation, dehumidification, cleanliness, periodic cleaning, etc.
Obligation to take measures to secure safety, including emergency lighting equipment	Required	Required Not required for facilities for 6-night/7-day stay or longer	Required Not required for facilities with small lodging room area where the house owner lives on the premises
Installation of fire protection equipment, etc.	Required	Required	Required Not required for facilities with small lodging room area where the house owner lives on the premises
Measures to prevent trouble with neighboring residents	Not required	Required (proper explanation to the neighboring residents, system and method for appropriately responding to complaints and inquiries, and securing contact information)	Required (Obligation to provide explanation to Lodgers, obligation to respond to complaints)
Outsourcing business to a manager upon absence	Not regulated	Not regulated	Regulated