With the new law, restrictions will be loosened. Trials in specially designated zones have begun last month ahead of the law’s enforcement on June 15, Kyodo News reported.
Under a new law in Japan, property owners will be able to rent out their homes to tourists from June onwards by notifying municipalities - a move that is expected to kickstart the "minpaku" business ahead of the 2020 Tokyo Olympics and Paralympics.
The law aims to help cope with the sharp increases in foreign visitors and a consequent shortage of accommodation.
Previously, while accommodation in private homes has been allowed in Japan, providers needed a licence as stipulated by the Hotel Business Law.
With the new law, restrictions will be loosened. Trials in specially designated zones began last month ahead of the law’s enforcement on June 15, Kyodo News reported.
A website explaining the new system has been launched by the government. Owners of private residences can submit their registration online through the central government site; they must also submit the necessary paperwork to prefectural governments or designated major cities.
The rentals are subject to restrictions such as a maximum of 180 days a year. Owners must keep a registry of guests, maintain hygienic conditions and respond to complaints, if any, from neighbours.
Restrictions have been passed by local governments too.
In Kyoto, the city assembly passed an ordinance in February to limit minpaku rentals in residential areas to the period from January 15 to March 15, a relative off-season for tourism in Japan's former capital.
Kurashiki in the western Japan prefecture of Okayama has entirely banned the minpaku business in the city's historic quarter, popular among tourists.
Despite some uncertainty over prospects in the minpaku business, companies have been eyeing new opportunities in the fledgling market.
U.S. online home-rental service Airbnb Inc. has tied up with Recruit Holdings Co., which provides housing information, in an attempt to secure a large number of houses and apartments for the minpaku business.
Seven-Eleven Japan Co. plans to enter the minpaku business in a tie-up with JTB to enable tourists to receive and return room keys at its convenience stores. E-commerce company Rakuten Inc. and railway operator Keio Corp. have also ventured into the industry.