Your complete guide to launching a successful Airbnb business in Tokyo. Written by active hosts with real licensing and operational experience.
Understanding the two main licensing options in Tokyo
Key Insight: Choosing the right license type is the most important decision you'll make. It affects your operating days, revenue potential, and regulatory requirements.
Governed by the Housing Accommodation Business Act (住宅宿泊事業法), enacted in June 2018. This law was created specifically to regulate short-term rentals like Airbnb.
Governed by the Hotel Business Act (旅館業法), a traditional hospitality industry regulation that has existed since 1948. This is the same license used by hotels and traditional inns.
| Factor | Minpaku License | Ryokan License |
|---|---|---|
| Operating Days | Max 180 days/year | 365 days/year |
| Application Type | Notification (届出) | License (許可) |
| Processing Time | 2-3 months | 4-6 months |
| Initial Cost | ¥50,000-¥150,000 | ¥200,000-¥500,000+ |
| Property Requirements | Residential property | Facility standards required |
| Best For | Side income, testing market | Full-time business |
Choose Minpaku if you want to test the market, have a residential property, or plan to use it as side income. Choose Ryokan if you're committed to full-time operation, want maximum revenue potential, and can meet facility requirements.
Step-by-step process for both license types
Confirm your property meets residential requirements and check local zoning regulations.
1-2 weeksGather property deed, floor plans, fire safety equipment certificates, and management contracts.
2-3 weeksSubmit notification to local government (ward office or city hall) with all required documents.
1 dayGovernment reviews your application. They may request additional documents or clarifications.
4-6 weeksReceive your official notification number (届出番号). You can now legally operate.
1 dayRegister your notification number with Airbnb and other booking platforms.
1-2 daysTotal Time: 2-3 months
Meet with local health department to confirm facility requirements and feasibility.
1-2 weeksInstall required fire safety equipment, ventilation systems, and meet structural standards.
4-8 weeksPrepare detailed floor plans, equipment certificates, building confirmation, and business plan.
2-3 weeksSubmit application to local health department with all required documents and fees.
1 dayGovernment inspector visits property to verify compliance with all facility standards.
2-4 weeksAddress any issues found during inspection and request re-inspection if necessary.
2-4 weeksReceive your official Ryokan license (許可番号). You can now legally operate.
1-2 weeksRegister your license number with Airbnb and other booking platforms.
1-2 daysTotal Time: 4-6 months
Visual timeline with key milestones
Learn from others' experiences
Many apartment buildings prohibit short-term rentals in their management rules (管理規約). Always check with your building management before starting the licensing process.
Solution: Obtain written permission from building management before investing time and money.
Some Tokyo wards have additional restrictions on Minpaku operations (e.g., residential-only zones, specific operating days). Ota City, Shinjuku, and Shibuya have unique rules.
Solution: Research your ward's specific regulations on their official website or consult with local government.
Missing or expired fire extinguishers, smoke detectors, or emergency lighting. This is the #1 reason for Ryokan license rejections.
Solution: Hire a certified fire safety company to inspect and install all required equipment before application.
Missing floor plans, outdated property deeds, or unsigned management contracts. Government offices will reject incomplete applications immediately.
Solution: Use a checklist and have all documents reviewed by a professional before submission.
Expecting to launch within 1 month. Many hosts sign lease agreements before getting licenses, wasting rent money during the application period.
Solution: Plan for 3-6 months minimum. Don't sign property leases until you have your license number.
Forgetting about fire safety equipment (¥50,000-¥150,000), professional cleaning setup, furniture, and ongoing management fees.
Solution: Budget at least ¥500,000-¥1,000,000 for initial setup beyond licensing fees.
Thinking you can manage everything yourself while working full-time. Guest communication, cleaning coordination, and emergency response require significant time.
Solution: Decide on management approach before launching: self-manage, partial service, or full management.
Expecting 100% occupancy year-round. Tokyo Minpaku averages 60-70% occupancy, with seasonal fluctuations.
Solution: Use conservative estimates: 60% occupancy, ¥8,000-¥12,000 per night for 1-bedroom apartments.
Operating without proper liability insurance. Standard home insurance doesn't cover commercial short-term rental activities.
Solution: Purchase Minpaku-specific insurance (民泊保険) from providers like Sompo Japan or Tokio Marine.
Not having 24/7 emergency contact or multilingual support. This is a legal requirement for Minpaku operations.
Solution: Set up automated messaging systems and partner with multilingual support services.
Forgetting to file tax returns or register as a sole proprietor (個人事業主). Minpaku income is taxable and must be reported.
Solution: Register with your local tax office and keep detailed records of all income and expenses.
Not informing neighbors about your Minpaku operation. Neighbor complaints are the #1 reason for license revocations.
Solution: Inform neighbors in advance, provide your contact information, and establish house rules for guests.
The best way to avoid these common pitfalls is to work with experienced professionals who have successfully navigated the licensing process multiple times. Our team has helped dozens of hosts launch their Tokyo Minpaku businesses without delays or rejections.
Learn About Our Support ServicesRealistic income projections for Tokyo Minpaku
Approximately ¥15,000/month
Approximately ¥47,500/month
Central Tokyo (Shibuya, Shinjuku, Minato) commands 30-50% higher rates than outer wards. Proximity to stations is critical.
Peak seasons (cherry blossom, autumn leaves, year-end) can double your rates. Summer and winter are slower.
Modern, well-designed spaces with quality amenities achieve 20-30% higher occupancy and rates.
Properties with 4.8+ ratings and 20+ reviews see 40% higher booking rates than new listings.
Dynamic pricing based on demand, events, and competition can increase revenue by 25-35%.
Fast response times, clear communication, and thoughtful touches lead to repeat bookings and referrals.
Decision criteria and comparison
10-20 hrs/week
¥0
(except cleaning)
3-5 hrs/week
15-25%
of revenue
0-1 hr/week
25-35%
of revenue
YES: Consider Self-Management
NO: Consider Management Service
YES: Self-Management might work
NO: Management Service recommended
YES: Self-Management possible
NO: Management Service strongly recommended
YES: Self-Management feasible
NO: Management Service essential
YES: Consider Full Management for optimization
NO: Partial or Full Management recommended
We handle everything from licensing to daily operations, so you can enjoy passive income without the hassle. Our team has real operational experience in Tokyo and knows exactly what it takes to succeed.
Complete application assistance
Multilingual communication
Dynamic pricing & marketing
Book a free 30-minute consultation to discuss your property, timeline, and goals. We'll provide personalized advice based on real operational experience.