How do I get a business manager visa to run a private lodging business?

[Explanatory video] Obtaining a business manager visa for a private lodging business

Introduction

This article is perfect for those of you who feel the same way.

The private lodging business is getting a lot of attention these days. I’m sure there are some of you reading this article who would like to get a business manager visa in Japan and start a private lodging business. Recently, the number of people doing so has been increasing. Therefore, this article explains the following points:

So let’s take a look at these points together below.

What is the private lodging business?

(1) Overview

Do you know the term “minpaku” (private lodging)? Some people may know it, while others may not. Or, perhaps you have actually used a private lodging, or conversely, some people may want to run a private lodging. In any case, let’s start by finding out what “minpaku” is.

(2) What is private lodging?

The term “minpaku” is widely known. However, surprisingly, there is no clear legal definition of “minpaku.” According to the Ministry of Health, Labor and Welfare, “minpaku” is “the provision of lodging services by utilizing all or part of a residence (detached house, apartment building, etc.).”

The meaning may be similar to homestay. After hearing this explanation, some of you may have noticed that similar services are also available in the United States and the United Kingdom. In fact, services similar to the above-mentioned “minpaku” are widely offered in Europe and the United States. Although the situation overseas is of interest, from here on, let’s take a closer look at minpaku services in Japan.

(3) Background of private lodging services in Japan and the need for regulation

Expectations for private lodgings are rising in Japan. Possible reasons for this include the diversifying accommodation needs of the rapidly increasing number of foreign tourists visiting Japan in recent years, and the need to make effective use of the increasing number of vacant houses due to a declining birthrate and aging population.

On the other hand, it is not acceptable to operate a private lodging business completely freely. This is because, given the need to ensure public health, such as preventing the spread of infectious diseases, and the need to prevent potential trouble with local residents, rules that take these issues into account are required. Furthermore, it is said that there are cases where people are ignoring the legal requirement for permission and providing private lodging services without permission. Therefore, it is necessary to deal with such situations.

The private lodging system from the perspective of obtaining a business management visa

(1) There are three main ways to operate a private lodging

What kind of system does private lodging have? Specifically, there are roughly three ways to do so.

Now that you know there are at least three methods, you might be thinking, “That’s complicated. What’s the difference? Which one should I choose?” So, I’ll give you a brief explanation of each of them below.

(2) Hotel and Inn Business Act

Application for permission under the Inns and Hotels Act

In certain cases, you will need to obtain permission to operate a private lodging business. In that case, you may be wondering in what circumstances you can obtain permission.

Applications are accepted and prior consultations are held in the prefecture (including cities and special wards that have public health centers) where the facility to be used for private lodging is located.

Examples of regulations under the Inns and Hotels Act

According to this system, although there is a regulation on the minimum floor area (33㎡ in principle), there is no limit on the number of business days, which is attractive. Furthermore, it is generally believed that if you can obtain a hotel business license, you will have a fairly high chance of obtaining a business manager visa.

However, it is generally not easy to obtain a hotel business license. Furthermore, the Hotel Business Act requires that hotel facilities must take necessary measures for ventilation, lighting, moisture prevention, cleanliness, and other hygiene measures for guests.What this means is that when starting a private lodging business, you may need to install necessary facilities, etc., and the initial costs to meet the above standards from the stage of interior construction may be higher than expected. As a rough estimate, it is said to cost at least 1 million yen…

(3) National Strategic Special Zones Act

Institutional purpose

You may not be familiar with the term “National Strategic Special Zones.” What is the purpose of the National Strategic Special Zones system? It is to implement bold regulatory and institutional reforms necessary to realize the growth strategy and to create “the most business-friendly environment in the world.” When you hear that, doesn’t it sound like good news for those of you who are thinking about doing business such as private lodging in Japan? I will introduce this point again later.

System overview

In order to run a private lodging business under this law, you must be certified in an area that is specially designated by the government. Specifically, examples of areas within the National Strategic Special Zones where private lodging is permitted include Ota Ward in Tokyo, Osaka Prefecture, and Osaka City.

One thing to note is that the rules vary depending on the area, so you need to check the local ordinances of the local government where you own real estate. We’ll discuss this later.

Characteristics of Special Zone Private Lodgings

There are various systems for starting a private lodging business, and it may seem complicated. To put it simply, it is said that the special zone private lodgings we have just introduced can be certified under easier conditions than the Inns and Hotels Act (2) above.

(4) Private Lodging Business Act (New Private Lodging Act)

Institutional purpose

First, I will explain the background to the enactment of the Private Lodging Business Act.
As private lodging businesses rapidly increase, there are also challenges. For example, the facilities used for private lodging do not adequately ensure safety and hygiene, and there are neighborhood disputes over noise and garbage disposal. Furthermore, the accommodation needs of tourists are diversifying, and it is necessary to respond to these situations.

In light of the above background, we have established certain rules.The above-mentioned Home Lodging Business Act is a newly enacted law aimed at promoting healthy private lodging services.

System overview

In short, to run a private lodging business under the Private Lodging Business Act (sometimes called “New Private Lodging”), you will need to submit a notification to the prefectural governor. The image is like using the free space in your home to run a small side business. There are various detailed conditions, so if you are thinking of running a private lodging business under the Private Lodging Business Act, you will need to check them.

Characteristics of the Private Lodging Business Act

It is said that the hurdles for private lodging under the new law are relatively low. However, from the perspective of obtaining a business manager visa, it is important to note that there is a limit to the number of days that the property can be operated per year. According to the Private Lodging Business Act, the maximum number of days that the property can be provided per year is 180 days. This is perhaps the biggest feature of private lodging under the new law. The reason for this system is that

The premise of the Residential Accommodation Business Act is that the basis of an accommodation facility is always a residence.

What the above restrictions mean for those who are thinking of starting a private lodging business is that private lodging under the new law is not suited to a business pattern in which one would run a full-scale business and thoroughly increase sales; rather, as mentioned above, it has aspects of a side business.That is because a business period of about 180 days means that you can only operate for half a month, which is generally considered to be insufficient for profit. You may wonder how long it will take to recover your investment. It may be a good idea to consider doing a simulation of your income and expenditure.

(5) Which one to choose?

Well, we have looked at three patterns of private lodging businesses so far, but you can obtain a business manager visa with any of them. The question here is, which of the three should you choose? In conclusion, from the perspective of obtaining a business manager visa, the easiest to proceed with and has the most applications is the private lodging business based on the National Strategic Special Zone Act introduced in (3). The reason for this is, as mentioned above,

This is because special zone private lodging is easier and has more advantages than the other two.

Important points to note when obtaining a business manager visa for private lodging businesses

（1）Don’t let your guard down

Having read this far, you probably have a better understanding of the outline of the private lodging business and a general idea of ​​what it might look like for the future.

However, you must not let your guard down. You don’t want to make a small mistake. You don’t want to regret later, thinking, “If only I had read that article carefully at that time, this wouldn’t have happened.” Since you have come this far in reading this article and have gained a deeper understanding of private lodgings and business manager visas, there are a few more things I would like to cover.

So, below we will introduce some examples of points to be aware of when obtaining a business manager visa that are unique to the private lodging business.

(2) Points to note regarding the private lodging business when considering a business manager visa

Beware of regulations

This is about the private lodging business (special zone private lodging) based on the National Strategic Special Zone Act, which I introduced earlier (3) (3).

“I know the contents of the National Strategic Special Zone Act. The private lodging business I am planning to run meets the requirements of that law. Therefore, I will be able to get a business manager visa. There are no shortcomings, so it should be fine.”

If you think so, you may find that there is actually an unexpected pitfall. That is the existence of ordinances and condominium management regulations. In fact, the National Strategic Special Zone Act is not the only thing that regulates private lodging in special zones. Each area (prefecture, city, town, and village) may have its own original rules, which are called “ordinances.” What does this have to do with the private lodging business you are planning to start? The following are some examples of points that may be of concern.

Therefore, the measure you should take is to check the ordinances of the area (local government) where you own real estate. However, ordinances can be difficult to find on the Internet, and even if you do look at the contents, they can be difficult to understand. Therefore, it is much easier and more reliable to consult and request a professional such as an administrative scrivener.

Don’t ignore the condominium management regulations

In addition to the ordinance, you should also be aware of the management rules of the apartment building. If the property you are considering using as a private lodging is an apartment building, the apartment building often has its own rules. It may be prohibited to use an apartment room as a private lodging. It is a good idea to check the management rules for this as well.

Summary and future recommendations

(1) Summary

Below is a brief summary of the key points in this article.

(2) Future recommendations

“Now I know what I need to do to start a private lodging business. I’m sure I’ll have no problem getting a business manager visa.”

For those of you who feel the same way, we have some recommended information. That is, to ask a professional administrative scrivener. Why? Business management visas are checked down to the smallest detail. There are many other points to note when obtaining a business management visa besides those listed above, and they differ depending on each individual case. In this regard, if you ask an administrative scrivener like ours, you can receive original proposals and advice that are tailored to each individual.

At “Administrative Scrivener Touch,” we provide comprehensive consulting, preparation of various documents such as business plans and profit and loss plans, application on your behalf, and receipt of permission, all in one service to obtain a business manager visa. It may be a waste of time to worry or research on your own. Please feel free to contact us. Consultations are free, and we will carefully listen to any concerns or questions you may have.