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Master the rule change! Review of management business requirements

Consultant
Junpei Tsukamoto

Hello.

This is Tsukamoto from Support Administrative Scrivener Corporation.


A proposal to revise the qualification requirements for private lodging management businesses that operate private lodging businesses (hereinafter referred to as private lodging) has been announced.


Here we will give you a detailed overview!

This rule change

Practical experience and qualifications related to real estate business were required requirements.You can meet the requirements by taking the course.Especially!

Press release

  • On December 2022, 12, the Ministry of Land, Infrastructure, Transport and Tourism held the ``Opinion Exchange Meeting (7st Meeting) with Related Organizations to Securing Workers in the Private Lodging Management Business in Local Areas''.

    In the Regulatory Reform Implementation Plan approved by the Cabinet on June 2022, 6, necessary measures will be taken, such as newly recognizing those who have completed a designated course, regarding the system requirements necessary for registration of private lodging management businesses. In response to the announcement of this policy, we held an exchange of opinions with related organizations regarding the content of new courses and the ideal form of the system.

  • On December 2023, 3, the Ministry of Land, Infrastructure, Transport and Tourism held the ``Opinion Exchange Meeting (7st Meeting) with Related Organizations to Securing Workers in the Private Lodging Management Business in Local Areas''.

    On December 2022, 12, we held the first exchange of opinions with organizations implementing training in similar industries, organizations requesting and proposing regulatory reform, and related ministries and agencies. Opinions were exchanged and a summary was made regarding the contents of the course and the proposed system.


[Source]

・“Meetings to exchange opinions with related organizations to secure personnel in the residential lodging management industry in local areas”

 https://www.mlit.go.jp/totikensangyo/const/content/001575220.pdf (From the Ministry of Land, Infrastructure, Transport and Tourism website)

・“Opinion exchange meeting with related organizations to secure personnel for the residential lodging management business in rural areas (2nd meeting)”

 https://www.mlit.go.jp/totikensangyo/const/content/001593236.pdf (From the Ministry of Land, Infrastructure, Transport and Tourism website)

Administrative opinion

1. Background of the proposed revision of registration requirements

The Ministry of Land, Infrastructure, Transport and Tourism, which has jurisdiction over the industry, has relaxed the requirements for private lodging management businesses that operate private lodging facilities, and has decided to eliminate the need for practical experience or qualifications related to the real estate business.

The reasons behind the recent relaxation of requirements include ``It is difficult to meet the requirements and become a private lodging management company when using vacant houses etc. in rural areas to become a private lodging management company,'' and ``There is no private lodging management company nearby, so the contract is outsourced.'' As some people said, "I can't find a future," we decided to consider relaxing the requirements.

2. Details of the specific revision proposal

When registering a private lodging management business, the enforcement regulations of the Ministry of Land, Infrastructure, Transport and Tourism's Private Lodging Business Law Enforcement Regulations, which had been a bottleneck for business operators in registering their private lodging management business, required that the execution of operations related to the conclusion of management contracts be regulated by law. We have decided to consider reviewing the "necessary systems to ensure compliance."

Current situation: Either of the following ① or ② must apply.
Relaxation: ③ has been added, and we have established a policy that if any of ①, ②, and ③ can be met, the requirements for residential lodging management business will be met.

① The person must have been engaged in work involving contract work for two years or more, such as coordinating with clients regarding contracts related to housing transactions or management, explaining matters related to contracts, and preparing and delivering documents containing such matters.

② Be recognized as having the same ability as those people (condition is that one of the following is met)

-If the applicant is an individual
- Must be registered as a real estate transaction specialist as stipulated in the Real Estate Transaction Business Act.
- Must be registered as a management operations chief stipulated in the Act on Promotion of Appropriate Management of Condominiums.
・ Must have received certification from the registration certification business stipulated in the Enforcement Regulations of the Act on Proper Management of Rental Housing, etc.

-If the applicant is a corporation
・ Having a person who meets the above requirements as an employee
- Be licensed as a real estate transaction business operator as stipulated in the Real Estate Transaction Business Act.
・ Be registered as a condominium management company as stipulated in the Act on Promotion of Appropriate Management of Condominiums
- Must be registered as a rental housing management company as stipulated in the Act on the Appropriation of Rental Housing Management Operations, etc.

                      +

③A person who has completed a course on practical matters related to the conclusion of a management contract, which is registered by the Minister of Land, Infrastructure, Transport and Tourism pursuant to the provisions of a ministerial ordinance (hereinafter referred to as the "Registered Practical Course").

The review was made because it is possible to meet the requirements of "a necessary system to ensure that the execution of operations related to the conclusion of management contracts complies with laws and regulations" by taking the prescribed training conducted by a registered practical training organization. We are in the process of proceeding.

3. Flow of application for residential lodging management business

If you apply for ① or ② above, the application method is the same as the current application method, but for ③, the process will be as follows.

Course → Attach the certificate of completion to the registration application documents and apply → Permit


In addition, the registered practical training course will be conducted as follows, and a final exam will be held at the end.If you pass, you will complete the course.

Correspondence course (20 hours) → Lecture (7 hours) → Completion exam → Pass → Completion

4. Registration of registered practical training institutions

Persons who wish to conduct affairs related to the implementation of registered practical training courses may register by applying to the Minister of Land, Infrastructure, Transport and Tourism.


The registration requirements are as follows.

  • The applicant intends to conduct training that conforms to the prescribed standards.
  • The instructor must fall under any of the following.
    • A person who is a lawyer and has practical knowledge regarding the conclusion of management contracts.
    • A person who has more than two years of experience in the residential lodging management business and has the ability to provide appropriate guidance regarding the practical matters related to the conclusion of management contracts.
    • A person who has knowledge and experience equal to or greater than those listed in the above two points.

*Registration renewal is planned every 3 years.

Expert perspective

〇About the impact of this relaxation of requirements and future trends
  • This was a bottleneck for business operators when applying for residential lodging management business.Requirements for "necessary systems to ensure that the execution of operations related to the conclusion of management contracts comply with laws and regulations" will be relaxed.It is thought that this will lead to an increase in the number of residential lodging management companies, especially in rural areas.

    Private lodging management companies are concentrated in urban areas, and as of April 2022, out of 4 companies nationwide, just under 2993% are located in Tokyo, Osaka, and Fukuoka.
    Tokyo has the largest number of companies, with 1005 companies, whileThirteen prefectures, including Aomori, Fukui, and Kochi, have fewer than 13 companies.
    Particularly in the Tohoku and Chugoku regions, there are only one or two residential lodging management companies per prefecture.

    In rural areas, there are many facilities suitable for private lodging, such as old folk houses, which are popular among foreign tourists.
    However, if a facility owner in a rural area tries to outsource it to a residential lodging management company in an urban area,In some cases, the application is refused on the grounds that ``daily cleaning is difficult,'' or a high fee is charged.It seems.
    There were also reports of people giving up on opening private lodging businesses because they could not find a residential lodging management company.

    Once the coronavirus subsides, the recovery in inbound tourism will provide a tailwind for the increase in private lodging facilities, and demand for local residential lodging management companies is expected to increase.

  • When applying for residential lodging management business, the above-mentionedIf you choose the registered practical training course in ③, you will not be able to apply until you have completed a total of 27 hours of training.
    It is expected that it will take more days to register than those with real estate agent qualifications or work experience.Will be

    Additionally, you will not be able to complete the course unless you pass the final exam, so depending on the difficulty of the exam, a certain amount of preparation may be required.

    It takes up to 3 months from application to registration.Businesses wishing to register as a private lodging management business must complete early procedures and preparations. will be important.

  • Those who have more than 2 years of experience in the residential lodging management industry,You may be able to meet the registration requirements of a registered practical training organization.

    If you wish to register as a registered practical training institution, please consider the burden on the business operator who wishes to register as a residential lodging management business.It seems necessary to operate a style where courses are mainly conducted online.

  • A disadvantage of relaxing requirements is that low-quality residential lodging management companies may enter the market.

    However, as a response from the government, on January 2023, 1,We have implemented the "Standards for Supervision and Punishment of Violations by Residential Lodging Management Businesses" and have made them available on our website.
    The content includes the disciplinary action for violations by private lodging management companies, and it appears that the law is expected to have the effect of deterring malicious private lodging management companies from entering the industry.

    If you are considering registering as a residential accommodation management business, this information is worth reading.

    [Source]
    Standards for supervision and disposition of violations by residential lodging management companies (enforced on January 5, 1)
    https://www.mlit.go.jp/totikensangyo/const/content/001583737.pdf (From the Ministry of Land, Infrastructure, Transport and Tourism website)

Points to master rule changes

Take the course early!

If you are aiming to apply for registration as a residential lodging management business through training, it will take at least 27 hours.
After the course, you must take and pass a final exam.

Only then will you be ready to apply for registration as a residential lodging management business.
Considering that it takes up to three months from application to registration, we recommend taking the course early.

*Currently, it is said that the actual training will begin around December 2023 or January to March 12.

Opportunities in areas where there are few management companies!

As mentioned above, there are currently few residential lodging management companies in rural areas.
You may want to start a private lodging facility, but are unable to do so because you don't have a management company.

Be prepared to meet such dormant needs by obtaining management qualifications as soon as the requirements are relaxed.

We are available for consultation

At Support Administrative Scrivener Corporation, we provide application support and highly specialized consulting regarding inn business licenses for both those newly entering the inn business and those already in the inn business and hotel business. .


Hotel business licenses are under the jurisdiction of each health center, and each health center has its own local rules.

Our staff has a track record of applying in all prefectures across the country. Please contact us by all means.

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