Tourists walk through Osaka's Nishinari Ward, where some residential areas have seen a surge in short-term rentals.
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Tourism is an important driver of Japan's economic growth. But policies aimed at boosting prosperity lose their purpose if they end up undermining the quality of life of local residents.
The Japan Tourism Agency plans to allow local governments to effectively ban Airbnb-style short-term rentals, known in Japan as minpaku, in residential neighborhoods where they are deemed to harm the living environment. The agency will soon issue guidance to municipalities outlining the new policy.
Communities Under Pressure
Complaints from residents about minpaku guests have been rising across Japan, with noise, improper trash disposal, and other nuisance behavior becoming increasingly common. In Tokyo's Shinjuku Ward, which has the highest number of registered minpaku properties in the capital, complaints related to issues such as noise and garbage disposal surged from 70 in fiscal 2021 to 924 in fiscal 2025.
As Japan grapples with overtourism, giving local governments greater authority to regulate short-term rentals is a necessary step toward protecting residential communities.
Legal Status
Minpaku became legal in residential areas in June 2018 under the Private Lodging Business Act, which allows operators to rent out properties for up to 180 days a year.
Municipalities have been able to limit operating days through local ordinances. However, the central government had maintained that setting the limit at zero days—effectively banning minpaku—was inconsistent with the law's purpose of promoting the industry.
In response to a growing number of disputes, the government has now reversed its position and will allow municipalities to impose zero-day restrictions. They will also be permitted to require operators to install noise monitors and security cameras at property entrances.
Japan also has another category of short-term rentals known as "special zone minpaku," which operate under the National Strategic Special Zones Act. The system was introduced to spur economic growth by easing regulations in designated areas and allows operators to accept guests year-round.
However, in Osaka, where about 90% of all special zone minpaku properties are located, complaints from nearby residents over noise and other nuisance behavior have become so widespread that the city stopped accepting new applications on May 29. Tokyo's Ota Ward has likewise tightened its approval standards.
Long-Term Balance
The minpaku industry cannot thrive in the long term without the understanding and support of local residents. Operators must ensure guests follow local rules and be prepared to comply with municipal requirements, such as limiting operating periods or keeping a manager on site.
Some municipalities are calling for amendments to the Private Lodging Business Act that would allow operating areas and periods to be regulated directly by law. To prevent short-term rentals from becoming a source of conflict in local communities, a fundamental review of the current system is needed.
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Author: The Sankei Shimbun
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