Complete Guide for Foreign Investors Buying Real Estate in Japan and Starting a Minpaku Business

In Japan, foreigners and overseas residents can purchase real estate. There are no general ownership restrictions simply because the buyer is a foreign national. However, being able to buy property, being able to live in Japan, and being able to legally operate a minpaku business are separate issues.

When a non-resident acquires real estate in Japan or rights related to such real estate, a post-acquisition report to the Ministry of Finance is generally required. From April 1, 2026, certain exceptions were introduced, such as acquisitions for personal residence or use as the buyer’s own company office. However, investment properties intended for minpaku operation usually do not fall under these exceptions.

In addition, purchasing real estate does not automatically grant a status of residence. If the investor wishes to reside in Japan and personally manage the business, they must separately satisfy the requirements for the “Business Manager” status of residence.

In practical minpaku operations, the first important step is to decide which legal framework to use. In Japan, minpaku operations are broadly divided into three systems: the Private Lodging Business Act, which allows the use of residential properties for up to 180 days per year; the Hotels and Inns Business Act, which has no annual operating day limit; and Special Zone Minpaku, which is available in National Strategic Special Zones.

For example, in Osaka City, new applications for Special Zone Minpaku are scheduled to end on May 29, 2026, and only already approved facilities will be able to continue operating. Since the applicable area, operating days, zoning, building use, fire safety requirements, and neighborhood response requirements differ depending on the system, deciding the legal framework before searching for a property is the correct order to avoid costly mistakes.

This article explains the process for foreign investors to acquire real estate in Japan and launch a minpaku business in the following order:

system selection → property due diligence → purchase → company/tax/banking setup → permits and approvals → start of operation

The particularly important points are zoning, building use, lease agreements and building management rules, fire law compliance, neighborhood complaint handling, tax planning, and remittance structure.

In the latter half, we also include comparison tables, practical checklists, timelines, guest instruction templates, and complaint response templates that blog readers can use directly.

Can Foreigners Buy Property in Japan, and Which Scheme Should They Use?

Can Foreigners Buy Real Estate in Japan?

In Japan, foreigners and overseas residents can acquire real estate. The first practical question is not “Can I buy?” but rather:

After acquisition, under which system, in whose name, and with what operating structure will the property be managed?

As a general rule, when a non-resident acquires real estate or similar rights in Japan, a report must be filed within 20 days from the date of acquisition. From April 2026 onward, there are exceptions for personal residence, use as one’s own company office, and certain other purposes, but investment minpaku properties usually do not fall under these exceptions.

Also, under Japanese tax rules, whether someone is classified as a “resident” or “non-resident” is not determined simply by the number of days they stay in Japan. It is judged based on objective facts such as the person’s main base of life, residence, occupation, assets, and family situation. If a tax treaty applies, the treaty-based residence determination may also be relevant.

In other words, owning property in Japan and becoming a Japanese tax resident are not the same thing.

Which Minpaku System Should You Choose?

For readers, Japan’s minpaku systems can be understood as follows:

If you want to make use of a residential property and start relatively lightly, choose the Private Lodging Business Act.

If you want to operate year-round as an accommodation business, choose the Hotels and Inns Business Act.

If the property is located in a Special Zone area and can satisfy the relevant requirements, consider Special Zone Minpaku.

System	Suitable for	Operating days	Main features	Key points to note
Private Lodging Business Act	Those who want to legally start using a residential property	Up to 180 days per year	Easier to operate in residential areas. Operation is possible even when the owner is absent.	Annual limit of 180 days. If the owner is absent or there are more than a certain number of rooms, outsourcing to a registered management operator is required.
Hotels and Inns Business Act	Those aiming for year-round operation and high occupancy	No limit	No limit on operating days	Zoning, change of building use under the Building Standards Act, and fire safety compliance can be burdensome.
Special Zone Minpaku	Those operating in eligible Special Zone areas and assuming somewhat longer stays	No limit	May be possible even in certain residential areas	Limited to designated municipalities. Minimum stay requirements, floor area requirements, neighborhood explanations, and municipality-specific rules can be strict.

The table above is based on the system comparisons provided by the Japan Tourism Agency, Q&A materials from the Ministry of Health, Labour and Welfare, and guidance from local governments.

Private lodging businesses are limited to 180 days per year. Special Zone Minpaku has minimum stay requirements set by each local government, and in Osaka City the minimum stay is set at three days by ordinance. The Hotels and Inns Business Act has no limit on operating days, but confirming building, fire safety, and zoning restrictions becomes even more important.

Individual Ownership or Company Ownership?

One of the first questions investors often face is whether to purchase the property:

as an individual,through a Japanese company,or through a branch of a foreign company.

The Japan External Trade Organization, JETRO, generally classifies the forms of foreign business expansion into Japan as representative offices, branches, and subsidiaries, meaning Japanese corporations.

However, a representative office cannot conduct sales activities and usually cannot open a bank account or lease real estate in its own name, so it is not suitable as the ownership or operating entity for a minpaku business.

For Japanese corporations, the most common forms are a Kabushiki Kaisha, KK, and a Godo Kaisha, GK. A GK provides more flexibility in its articles of incorporation than a KK and is not required to publish financial statements.

Item	Individual ownership	Japanese company	Branch of foreign company
Setup burden	Low	Medium	Medium
Separation of liability	Weak	Strong	Difficult to separate from parent company
Bank accounts, payments, operating contracts	Can be difficult for non-residents	Relatively easier to structure	Possible, but registration and representative requirements apply
Tax filing	Non-residents often face issues such as withholding tax and tax agent requirements	Corporate tax filing required	Permanent establishment and foreign corporation taxation must be considered
Practical suitability for investors	Suitable for small-scale or one-off investments	Suitable for multiple properties and expansion	Suitable for integrated management with an overseas head office

This comparison reflects practical considerations based on JETRO’s guidance on business establishment forms, the Ministry of Justice’s Q&A on foreign company registration, and the National Tax Agency’s rules on non-resident taxation.

When a non-resident individual owns property, issues such as withholding on rental income, income tax filing, appointment of a tax agent, and restrictions on bank accounts often become major concerns. If the investor plans to own multiple properties or hire staff, company ownership is often easier to structure from an operational perspective.

Due Diligence: Avoiding Properties You Should Not Buy

Key Points to Confirm Before Searching for a Property

The most common mistake in searching for minpaku properties is prioritizing “good location” or “low price” while postponing the question of whether the property can legally be operated as a minpaku.

The points to check differ considerably depending on whether the property is a used condominium unit, an entire apartment building, a detached house, or a building with leasehold rights.

Before purchasing, at minimum, the following six points should be checked:

First, zoning.

Second, the current building use and whether a change of use is required.

Third, whether the property is freehold ownership or leasehold.

Fourth, lease agreement terms and whether subleasing is permitted.

Fifth, condominium management rules.

Sixth, whether fire safety, evacuation, and neighborhood response systems can realistically be arranged.

Minimum Due Diligence Table

Check item	What to check	Where to confirm	When to walk away
Zoning	Whether the area is residential, whether hotel/inn business is allowed, and whether local ordinances impose restrictions	Municipal zoning maps, National Land Numerical Information	You plan to operate under the Hotels and Inns Business Act but the area does not allow it
Building use	Whether the building is currently classified as a residence, apartment house, dormitory, hotel/inn, etc.	Building confirmation certificate, inspection certificate, building registry, building department	Change of use is required but cost and timeline are uncertain
Suitability for Private Lodging Business Act	Kitchen, bathroom, toilet, washbasin, residence requirements, 180-day limit	Japan Tourism Agency portal, local government office	The property does not meet the definition of a residence
Lease/sublease	Whether the lease agreement prohibits subleasing or hotel/inn use	Lease agreement, landlord consent letter	Prohibition clause exists and consent cannot be obtained
Management rules	Whether condominium rules clearly prohibit minpaku or whether the management association has a policy against it	Management rules, meeting minutes, written confirmation	Condominium management prohibits or is negative toward minpaku
Rights structure	Freehold or leasehold, remaining term, ground rent, consent fees, transfer conditions	Registry, important matters explanation, contracts	Leasehold terms are unfavorable and resale potential is weak
Fire safety	Fire alarms, extinguishers, evacuation routes, possibility of obtaining fire law compliance notice	Prior consultation with local fire department	Fire safety upgrades would be large-scale and costly
Neighborhood operations	24-hour contact, on-site response, noise and garbage flow	Site inspection, management company, neighborhood conditions	High likelihood of neighborhood complaints

Among these items, it is especially important to understand that zoning and building use are different issues.

Under the Private Lodging Business Act, a registered residence is treated under the Building Standards Act as a residence, row house, apartment house, or dormitory, and operation is possible in residential districts.

On the other hand, when operating under the Hotels and Inns Business Act, hotel or inn business may be prohibited in certain zones, and a change of building use under the Building Standards Act may be required.

In other words, the legality of the same property can change depending on the system you choose.

Even leased properties can, in principle, obtain permission under the Hotels and Inns Business Act. However, it is necessary to confirm that the lease agreement does not prohibit subleasing or use for hotel/inn business.

For condominium units, the management rules must also be checked. In Osaka City Special Zone Minpaku cases, if the rules state that minpaku is permitted, the property may be eligible for certification. If the rules state that minpaku is prohibited, the property is excluded.

Even if the rules only state that the property is for “residential use only,” operation can become practically difficult if the management association interprets or resolves that minpaku is prohibited.

Properties with leasehold rights also require caution. Under the Ministry of Land, Infrastructure, Transport and Tourism’s interpretation of the Real Estate Brokerage Act, when a real estate broker handles the sale of a building with leasehold rights or land subject to leasehold rights, the broker should explain the content of those leasehold rights.

From an investor’s perspective, remaining lease term, ground rent, renewal conditions, consent for transfer, and consent for reconstruction or renovation affect both profitability and exit value, so leasehold properties must be examined even more carefully than freehold properties.

Purchase, Company Formation, and Financing

Basic Purchase Flow

A typical real estate purchase in Japan proceeds as follows:

property selection → purchase application → explanation of important matters → sales contract → payment of deposit → formal loan screening → settlement of remaining balance and registration.

The explanation of important matters is a legally required explanation provided by a real estate broker before the contract is concluded. It can also be conducted online.

At the time of the sales contract, the deposit is often around 10% to 20% of the purchase price in practice. However, what is legally defined is the upper limit and the mechanism, not that the deposit must always be within that range.

Brokerage fees are also capped by law. For transactions exceeding 4 million yen, the simplified upper limit calculation is generally:

purchase price × 3% + 60,000 yen + consumption tax

Practical Flow from Investment Plan to Operation

If the goal is residential use and operation within 180 days, consider the Private Lodging Business Act.

If the goal is year-round operation, consider the Hotels and Inns Business Act.

If the property is in an eligible Special Zone area, consider Special Zone Minpaku.

A practical flow is as follows:

1. Clarify investment purpose

2. Select operating scheme

3. Choose one of the following:

   • Private Lodging Business Act

   • Hotels and Inns Business Act

   • Special Zone Minpaku

4. Conduct property due diligence

5. Submit purchase application

6. Receive explanation of important matters

7. Sign sales contract and pay deposit

8. If using financing, complete screening and loan agreement

9. Prepare overseas remittance or purchase funds

10. Settle remaining balance

11. Complete ownership transfer registration

12. Prepare fire safety, building compliance, and neighborhood response systems

13. Submit notification, application, permit, or certification

14. Set up OTA listings and payment systems

15. Start operation

This flow is based on the important matters explanation system under the Ministry of Land, Infrastructure, Transport and Tourism, real estate transaction practices, the minpaku system portal, and local government manuals.

In practice, property purchase and minpaku permit preparation should proceed in parallel. If zoning and fire safety are checked only after purchase, the risk becomes significantly higher.

Documents Foreigners and Overseas Residents Should Prepare

When an overseas resident becomes the registered owner of Japanese real estate, proof of address must be prepared.

The Ministry of Justice explains that when a foreign individual or foreign company with an address overseas becomes the registered owner of real estate, documents proving the address, prepared by the government of the person’s home country or country of residence, are generally required.

For commercial registration as well, issues often arise regarding signature certificates when a foreign national cannot provide a Japanese seal certificate, and translations of foreign-language documents.

In other words, the process cannot be completed with only a passport. Proof of address, signature certification, and translations are required at an early stage.

Which Type of Company Should Be Used?

When forming a Japanese company, the main practical choices are a Kabushiki Kaisha, KK, or a Godo Kaisha, GK.

According to JETRO, compared with a KK, a GK offers greater flexibility in its articles of incorporation, allows the method for approving financial statements to be defined in the articles, and does not require public notice of financial statements.

For a small group of investors or a property-holding company controlled by investors, a GK is often easy to use. On the other hand, if perception by business partners or lenders is important, a KK may be chosen.

If operating through a branch of a foreign company, a representative in Japan must be appointed and registered. At least one representative must have an address in Japan.

However, simply forming a company is not enough. From a tax perspective, after incorporation, the company must submit a corporation establishment notification and, if necessary, an application for approval of blue return filing.

If the company wishes to use blue return filing from its first fiscal year, the filing deadline is generally the earlier of the day before three months have passed since incorporation or the day before the end of the first fiscal year.

For corporations starting a minpaku business, these initial tax filings are easy to overlook but very important.

How Much Financing Can Foreign Investors Expect?

This is one of the areas most often misunderstood by overseas investors.

In Japan, ordinary housing loans are generally products for owner-occupied residences.

For example, housing loan products from the Japan Housing Finance Agency require foreign nationals to be permanent residents or special permanent residents. MUFG Bank’s housing loans are available to Japanese nationals or foreign nationals with permanent residence, and properties not used as the applicant’s own residence are excluded from preliminary screening.

Sumitomo Mitsui Banking Corporation states that non-permanent residents may be able to apply in some cases, but the applicant must be able to communicate in Japanese independently and understand the contract. It is still a housing loan product.

Therefore, it is risky for foreign investors to assume that they can purchase an investment minpaku property using a standard Japanese housing loan.

In practice, it is more realistic to consider cash purchase, financing from the investor’s home country, business financing through a Japanese corporation, non-bank financing, or commercial loans.

Is a Status of Residence Required?

If the investor only invests from overseas and owns property, residence in Japan is not necessarily required.

However, if the investor plans to live in Japan and personally manage the business, the “Business Manager” status of residence becomes an issue.

JETRO and immigration-related materials indicate that obtaining Business Manager status requires securing a business office and either investing 5 million yen or more, or employing two or more full-time employees, among other requirements.

The important point here is that buying real estate does not mean obtaining a visa.

Permits, Approvals, and Opening Preparation

Starting Under the Private Lodging Business Act

When using the Private Lodging Business Act, the registered residence must be equipped with a kitchen, bathroom, toilet, and washbasin, and must satisfy residence requirements.

The operating limit is 180 days per year for each registered residence, counted from noon on April 1 to noon on April 1 of the following year.

In addition, according to Osaka City’s guidance, if the owner is absent or the number of guest rooms exceeds a certain threshold, outsourcing to a registered residential accommodation management operator is required. There is also an obligation to display a sign.

Year-Round Operation Under the Hotels and Inns Business Act

When operating under the Hotels and Inns Business Act, it is possible to obtain permission even for leased properties, but the lease agreement must not prohibit hotel/inn use or subleasing.

For condominium units, the management rules must also be checked.

In some regions, hotel/inn business may be prohibited depending on the zoning, and confirmation for change of use may be required.

Furthermore, regardless of whether a formal change of use procedure is required, the building must comply with the Building Standards Act.

Year-round operation can be profitable, but the initial legal compliance check is the most demanding.

Considering Special Zone Minpaku

Special Zone Minpaku is a system that allows certified operations in National Strategic Special Zones and functions as a special exception to the Hotels and Inns Business Act permit system.

For Special Zone Minpaku, each guest room must generally be at least 25 square meters. The operator must provide services necessary for the stay of foreign guests, such as foreign-language guidance, and must satisfy local ordinance requirements such as minimum stay periods.

Under Osaka City’s latest guidelines, the minimum stay is three days. Before certification, operators are required to hold an explanatory meeting for nearby residents and distribute written materials. Operators must also respond properly and promptly to complaints and inquiries.

The important point is that, at the time of writing, new applications for Osaka City Special Zone Minpaku are scheduled to end on May 29, 2026.

Applications for change certification involving the addition of guest rooms or an increase in floor area are also scheduled to end on the same date. Already certified facilities are allowed to continue operating as before.

Therefore, investors who plan to newly start in Osaka should avoid building their property acquisition plan on the assumption that Special Zone Minpaku will be available.

Fire Safety, Safety Measures, and Insurance

Before starting a minpaku business, prior consultation with the local fire department is almost essential.

According to materials from the Fire and Disaster Management Agency, the classification under fire laws may differ depending on whether the owner lives in the property and the floor area of the guest rooms. If the owner is absent or the property exceeds a certain scale, it may be treated similarly to an accommodation facility, and equipment such as automatic fire alarm systems may be required.

Many local governments require the submission of a fire law compliance notice when filing notifications or applications.

Insurance is not itself a legal permit requirement, but it is practically important in preparing for fire, water leakage, liability for bodily injury or property damage, business interruption losses, and guest-caused accidents.

At minimum, before purchase or before operation, investors should confirm with the insurance company whether minpaku use is covered under an ordinary residential fire insurance policy, or whether a business rider or facility liability insurance is required.

When the actual use of the building changes in terms of fire safety, building compliance, or operation, insurance conditions can also change.

This is less a legal requirement than a management decision for protecting capital in the event of an accident.

Taxes, Costs, and Money Flow

Overall View of Taxes

For minpaku investment in Japanese real estate, taxes are easiest to understand by dividing them into four stages:

when buying,while owning,during operation,and when selling.

At purchase, costs may include registration and license tax, real estate acquisition tax, brokerage fees, and, in some cases, consumption tax.

During ownership, fixed asset tax and city planning tax apply.

During operation, income tax or corporate tax, inhabitant tax, and consumption tax may apply.

At sale, capital gains taxation and withholding tax issues related to non-resident sellers or lessors may arise.

Tax item	When it arises	Practical view
Registration and license tax	At ownership transfer registration or mortgage registration	Reduced rates may apply to land transfer registration. Pay attention to standard rates for buildings.
Real estate acquisition tax	After acquisition	Prefectural tax. Rates differ depending on whether the property is residential or non-residential.
Fixed asset tax	Imposed annually on the owner as of January 1	Annual local property tax
City planning tax	Annually on land and buildings in urbanization areas	Local tax in designated areas
Income tax / corporate tax	On profits from operation	Filing system differs depending on individual or corporate ownership
Consumption tax	Sales, building transactions, etc.	Land is non-taxable. Short-term accommodation sales are generally taxable.
Withholding tax	Rent paid to non-residents, or purchase from non-resident sellers	Often overlooked but important

The statutory portions of this table are based on information from the National Tax Agency, local government tax pages, and JETRO guidance.

For example, in Osaka Prefecture, the real estate acquisition tax rate is 3% for land, 3% for residential buildings, and 4% for non-residential buildings. Osaka City’s fixed asset tax rate is 1.4%, and the city planning tax rate is 0.3%. JETRO also identifies fixed asset tax of 1.4% and city planning tax of 0.3% as major Japanese taxes.

Tax Points That Are Often Overlooked

The first is consumption tax.

The transfer or lease of land is non-taxable. However, the transfer of a building used for business may generally be subject to consumption tax.

Also, residential leasing for ordinary residential purposes for one month or longer is non-taxable. However, short-term accommodation such as hotels, inns, vacation rentals, and private lodging businesses is not treated as non-taxable residential leasing and is generally subject to consumption tax.

If minpaku revenue is treated with the same mindset as ordinary rent income, this creates a mismatch.

The next point is withholding tax on payments to non-residents.

When rent is paid to a non-resident or foreign corporation for real estate located in Japan, withholding tax of 20.42% is generally required.

Conversely, when purchasing land or similar property in Japan from a non-resident and paying the purchase price, withholding tax of 10.21% is generally required. An exception applies only when an individual purchases the property for the residence of themselves or relatives and the purchase price is 100 million yen or less.

If a corporation enters into a master lease arrangement or purchases from an overseas-resident seller, overlooking this point can cause serious problems later.

In addition, when a non-resident individual earns real estate income in Japan, they generally need to file an income tax return through a tax agent.

If the reader plans to continue living overseas, it is safer to secure a tax accountant and tax agent before signing the purchase contract.

Practical Issues with Bank Accounts and Payments

Banking is one of the areas where overseas investors often get stuck.

Japanese banks explain that foreign nationals can open bank accounts if they have an address or place of residence in Japan, but restrictions may apply to non-residents.

Some banks state that non-Japanese nationals may be treated as non-residents if they have been in Japan for less than six months after entry or do not have employment status in Japan.

Japan Post Bank also requires a residence in Japan, presentation of a residence card and other documents, and notification if the customer is a non-resident.

In other words, it is risky to assume that an individual account can be opened smoothly while the investor remains overseas.

Non-resident restrictions imposed by banks may also affect domestic transfers and yen account operations. MUFG Bank has announced changes to handling domestic transfers by non-residents, and there are situations where checks under the Foreign Exchange and Foreign Trade Act may be required.

When considering the account to receive minpaku revenue, payments to cleaning companies and management companies, and consistency with OTA deposits, a structure involving a Japanese company, a corporate bank account, and an operating manager in Japan is often the least likely to cause practical issues.

This is not an absolute legal requirement, but the practical smoothness differs greatly.

For OTA payout settings, for example, Airbnb states that the bank account for receiving payouts must be located in the same country or region as the address set in the account.

The country and name under which minpaku revenue will be received should be designed from the beginning, including tax and KYC consistency.

Estimated Cost Range

The following figures are not statutory amounts themselves, but approximate ranges based on statutory taxes, maximum professional fees, local government procedures, and generally incurred practical costs.

Actual costs vary significantly depending on the property price, region, legal compliance of the existing building, strategy, and how much work is outsourced.

Cost item	Approximate range	Comment
Total purchase-related costs	About 5% to 10% of property price	Initial estimate assuming cash purchase. Includes brokerage fees, registration, acquisition tax, judicial scrivener fees, translation, remittance, etc.
Company formation costs	About 100,000 yen to over 350,000 yen	Varies depending on GK/KK, electronic articles, and whether specialists are used
Furniture, appliances, and linen setup	About 300,000 yen to 1,500,000 yen	Higher for detached houses or multiple bedrooms
Signs, multilingual guides, operating supplies	About 50,000 yen to 300,000 yen	Outdoor signs, indoor notices, evacuation guidance, house rules
Fire safety and safety upgrades	About 200,000 yen to over 2,000,000 yen	Automatic fire alarms, exit guidance, extinguishers, doors, evacuation routes, etc. Depends heavily on the building
Change of use or major renovation	Several million yen or more	Can increase significantly in Hotels and Inns Business Act cases
Fixed costs after opening	From tens of thousands of yen per month	Internet, utilities, cleaning, management, tax, garbage, maintenance, etc.

The key point in this table is not “how much can I afford to buy,” but the total cost required to actually open the business.

Even if the purchase price is low, if the total cost increases sharply due to change of use, fire safety upgrades, neighborhood response, and management outsourcing, a property that is easier to operate legally from the beginning may be more efficient as an investment.

Implementation Schedule and Templates

Realistic Timeline

According to JETRO guidance, forming a subsidiary generally takes about two to three months, while a branch may take about one month after the decision is made.

A real estate purchase can proceed relatively quickly if paid in cash. However, when confirming minpaku compliance, fire safety, neighborhood explanation, and building an operating system are included, it is safer to assume that at least two to four months will be needed from property selection to opening.

For Hotels and Inns Business Act cases or major renovations, four to eight months or more may be needed.

The former timeline assumes a relatively light preparation burden under the Private Lodging Business Act. The latter reflects cases involving Special Zone Minpaku or the Hotels and Inns Business Act, where building and fire safety requirements are heavier.

A practical timeline for foreign investors launching a minpaku business in Japan is as follows:

1. Clarify purpose and select scheme

2. Search for property

3. Establish company

4. Conduct due diligence on management rules, zoning, building use, and fire safety

5. Submit purchase application and receive explanation of important matters

6. Sign sales contract and pay deposit

7. Complete financing review or prepare remittance

8. Prepare application documents, fire safety, and neighborhood response

9. Complete settlement and registration

10. Submit notification, obtain permit, or obtain certification

11. Prepare furniture, signs, and OTA settings

12. Start operation

This timeline is not a statutory processing period. It is Tabiyui’s practical implementation timeline template based on system requirements and operational preparation.

Foreign investors should especially account for the fact that address proof, translation, remittance, KYC, tax agent appointment, and selection of an operating partner often take more time than they do for domestic investors.

Step-by-Step Checklist

Stage	What to check	Completion standard
Strategy design	Has the operating system been chosen? Do the area and expected length of stay match?	The system can be finalized using the comparison table
Property search	Have zoning, building use, rights structure, and management rules been checked?	Major disqualifying factors have been eliminated
Before contract	Have important matters explanation, subleasing permission, fire consultation, and neighborhood response been checked?	Reflected in contract conditions
Ownership structure	Will the property be held individually, by a company, or by a branch? Have a tax accountant, judicial scrivener, and tax agent been selected?	There is an operating structure chart
Funding design	Will funding come from cash, overseas financing, or Japanese corporate financing?	Settlement funds are visible
Permits and approvals	Are fire safety, building compliance, signs, complaint contact point, and management outsourcing prepared?	Application documents are complete
Before opening	Are OTA listings, payout account, KYC, cleaning, guest instructions, and emergency contacts set?	Trial operation is possible
After opening	Are complaint records, guest registry retention, tax filing, and review management in operation?	Monthly operation sheet is functioning

This table combines legal checks and practical operations into one view.

In municipalities such as Osaka, where neighborhood complaint handling is emphasized for Special Zone Minpaku, separating the pre-application checklist and the post-opening operation checklist may increase the risk of omissions. Managing them in one table is often more effective.

Guest Rule Instruction Template

The following is a pre-check-in message template focusing on noise, garbage, and emergency contacts.

Under Osaka City’s revised Special Zone Minpaku guidelines, operators are required not to end important explanations through email or SNS alone, but to confirm guests’ understanding through conversation, telephone, or similar methods. Operators are also required to post notices outside the facility regarding noise and garbage, and to directly warn guests when a complaint occurs.

Therefore, this template should be used as a set of written message + verbal confirmation.

Japanese Version

Subject: Important Information Before Your Stay

Hello. Before your arrival, please review the rules for your stay.

1. Please refrain from loud conversations, parties, and talking in corridors or in front of the entrance at night or early in the morning.

2. Please separate garbage inside the room and do not place it outside the building except by the designated method.

3. Only registered guests may enter or stay in the property.

4. Please strictly follow the property-specific rules regarding smoking, parking, pets, balcony use, and other matters.

5. In case of fire, accident, illness, or another emergency, please first call the emergency contact number. If necessary, call 119 for fire/ambulance or 110 for police.

We will confirm the above rules verbally again at check-in. Please contact us in advance if you have any questions.

English Version

Subject: Important house rules before check-in

Hello and welcome. Please read the following rules carefully before arrival.

1. No loud talking, parties, or gatherings at night or early morning, including in front of the entrance or in common areas.

2. Please separate garbage and keep it inside the room unless we specifically instruct you where and when to dispose of it.

3. Only registered guests are allowed to enter or stay in the property.

4. Please follow all property-specific rules regarding smoking, parking, pets, balcony use, and shared areas.

5. In case of fire, accident, or medical emergency, call our emergency contact first. If necessary, call 119 for fire/ambulance or 110 for police.

We will confirm these rules again verbally at check-in. Please contact us if anything is unclear.

Complaint Response Template

Guest Call Script — Japanese Version

Good evening. This is the property operations team.

We have received a complaint from a nearby resident regarding noise / garbage / use of common areas.

Please correct the situation immediately.

If improvement cannot be confirmed, we may ask you to leave the property in accordance with the contract and house rules.

Please tell us how many people are currently present and what is happening.

We will also come to the property to confirm the situation.

Guest Call Script — English Version

Hello, this is the property operations team.

We have received a complaint from a neighbor regarding noise / garbage / use of common areas.

Please stop the behavior immediately.

If the situation does not improve, we may require you to leave the property under the house rules and contract terms.

Please tell us how many people are in the room and what is happening right now.

We are also arranging an on-site response.

Response to Complainant — Japanese Version

Thank you for contacting us.

We have contacted the guest directly and instructed them to correct the issue immediately. We will also conduct an on-site check if necessary.

We will report the result to you again. We sincerely apologize for the inconvenience.

Complaint Response to Neighbor — English Version

Thank you for contacting us.

We have contacted the guest directly and instructed them to correct the issue immediately.

We will also arrange an on-site response if necessary.

We will update you again after confirming the result. We sincerely apologize for the inconvenience.

Checklist for Choosing a Minpaku Management Company

Finally, here is a checklist for investors who plan to use a management company.

This is not a statutory form, but it is especially useful when assuming strict neighborhood response requirements, such as those in Osaka.

Check item	What to look for
Legal understanding	Can the company explain the differences among the Private Lodging Business Act, Hotels and Inns Business Act, and Special Zone Minpaku?
Neighborhood response	Can the company handle 24-hour phone support, on-site response, complaint records, and improvement reports?
Fire safety and safety measures	Can the company support prior fire department consultation, compliance notices, evacuation routes, and required notices?
Multilingual operations	Can the company handle guest guidance, emergency response, and review replies in multiple languages?
Tax cooperation	Does the company cooperate with tax accountants, judicial scriveners, and administrative scriveners?
Emergency response	Can it handle nighttime, early-morning, facility trouble, and unauthorized guest issues as the first responder?
Transparency	Are monthly reports, KPIs, fees, cleaning quality, and review responses visible?

This table is designed not to check only the legal obligations themselves, but to determine whether the company can actually operate in a way that fulfills those obligations.

Legal obligations and the operational ability to carry them out on site are different things.

Looking at Osaka City’s recent monitoring and guidance items, priority monitoring has focused on matters such as warnings given only by email, inadequate 24-hour phone support, on-site response taking more than 10 minutes, failure to retain records, and failure to report results to complainants.

In other words, the key evaluation criterion for a management company is not only its ability to attract guests, but whether it can operate in compliance with the law.

Summary and Consultation

The essence of starting a minpaku business in Japan as a foreign investor is not simply buying a property.

It is designing the project before purchase so that the property can be legally operated.

In Japan, foreigners can acquire real estate. However, status of residence is a separate issue, and tax treatment changes depending on the investor’s residence status.

The requirements also differ greatly among the Private Lodging Business Act, the Hotels and Inns Business Act, and Special Zone Minpaku. If even one point is missed, such as zoning, building use, condominium management rules, subleasing permission, fire safety, or neighborhood response, the investor may be unable to move forward after purchasing the property.

Especially in municipalities such as Osaka City, where neighborhood complaint measures are now strongly required, investment decisions must include the post-opening operating structure.

If system selection, due diligence, ownership structure, tax planning, bank accounts, fire safety, and management outsourcing can be designed together before property acquisition, minpaku investment in Japan is fully feasible.

For those who wish to proceed smoothly from property acquisition in Japan to minpaku launch, including system selection, pre-purchase diagnosis, permit preparation, and operational structure setup, please contact Tabimusubi Co., Ltd. / 旅結株式会社.