Differences between inn business and private lodging

Updated: July 2024, 9

What is private residence

A general term for staying in a private house.
For example, going to stay at an acquaintance's house or meeting someone you met while traveling.
Private lodging also means staying at your home.
At this time, it does not matter whether or not money is paid for accommodation, but the image of minpaku is to stay in a private house for free.
In recent years, the perception of private lodging has changed, and a business model of ``accepting travelers for a fee'' has emerged.

Minpaku and minshuku are different

【Homestay】

・Operations that allow people to stay in places other than hotels, inns, and boarding houses for a fee (simple lodging operations*1)

・Buildings that provide accommodation facilities as a "business" (not ordinary private houses)

・This is not a place where you can stay for free (*2)

・Subject to regulations under the Hotel Business Act

[Private lodging]

・Staying in a private house

・No compensation occurs (not receiving compensation has become the norm)

・Do not operate as a “business”

・Not subject to regulations under the Hotel Business Act

In this way, the difference between the two is whether it is a commercial act or not.
Even if a private house is not recognized as a guesthouse, it is considered to be operating an inn as long as the rooms and bedding are always available for the purpose of receiving accommodation fees.

*1 Type of hotel business

Current status and issues of private lodging

- Illegal activities (drug use, etc.) may take place in the rented room, and it may become a base for crime.

・Furniture and equipment in the room are damaged or stolen.

・When renting out a condominium, problems with the use of common areas (complaints from unit owners, breach of manners by tenants, etc.)

・It is unclear whether the “security, safety, and hygiene” aspects of users are being ensured.

As mentioned above, private lodging is expanding mainly through intermediary sites.

However, as a general rule, permission is required in accordance with the Hotel Business Act for activities that are 1) paid, 2) repeated and ongoing, and 3) highly commercially viable.

Regarding businesses operating without a licenseThis is a violation of the Hotel Business Act.

At present, the government is considering whether or not to crack down on it, but under normal circumstances, it would be subject to investigation.

In fact, there have been arrests in Tokyo's Adachi Ward and Kyoto Prefecture.

If you are a corporation and are considering a private lodging business, you need to be especially careful.

The law does not allow you to just say ``I didn't know'' when you are caught.

Paid private lodging is subject to the same legal penalties regardless of whether or not the person knows about it.

In order to operate a hotel business, it is necessary to clear various legal requirements.

Purpose of the Hotel Business Act

① Promote the healthy development of the hotel industry

② Promote the provision of services that respond to the increasing sophistication and diversification of user demand in the hotel industry

③ Contribute to improving public health and people's lives

Deregulation of private lodging

The movement to legalize private lodging is progressing in the National Strategic Special Zone. This is a move by the ward to individually enact an ordinance allowing private lodging, thereby resolving the shortage of accommodation facilities due to the increase in foreign tourists.

[What is Article 13 of the National Strategic Special Zone Law]

① The country designates an area as a national strategic special zone.

② The designated area will formulate an area plan for private lodging.

③ Area plan approved by the Prime Minister

④ If you obtain approval from the prefectural governor, mayor, or ward head within the area, you can conduct a private lodging business (foreign accommodation facility management business) without obtaining an inn business permit.

[What are National Strategic Special Areas]

Kanto area: All of Tokyo, All of Kanagawa Prefecture, Narita City, Chiba Prefecture

Kansai area: Osaka prefecture, Kyoto prefecture, Hyogo prefecture

[Tokyo and Osaka private lodging regulations]

・Ota-ku, Tokyo: Start accepting applications for private lodging permits (specific certification applications) from January 2016
・Suginami Ward, Tokyo: Scheduled to start considering private lodging ordinances
・Osaka Prefecture: Started accepting private lodging permit applications (specific certification applications) from April 2016
　(Osaka City, Sakai City, Chuko City, Toyonaka City, Takatsuki City, Hirakata City, and Higashiosaka City are not eligible)
・Osaka City: Passed the private lodging ordinance in January 2016. Scheduled for construction after October 1

[Limited number of stays]

The minimum number of days a traveler can stay in a private lodging facility is 6 nights and 7 days (Ota Ward & Osaka Prefecture) in the case of private lodging under the Special Zone Act. In other words, if the number of nights of stay is less than that, the traveler will not be able to stay at the private lodging facility.

This can be said to be a disadvantage of applying for private lodging under the special zone law.
On the other hand, if you are aiming for a minpaku (simple lodging business) license under the Hotel Business Act, there are no restrictions on the number of nights you can stay.

For applications related to the hotel business, please contact the Support Administrative Scrivener Corporation

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 have experience applying in all prefectures across the country. Please contact us by all means.