When travelers visit Japan, hotels are usually the first accommodation option that comes to mind. However, for stays that last several weeks to several months, hotel costs can become prohibitively expensive. In addition, for group travelers such as families or friends, there is a growing demand for accommodations that offer private, independent spaces rather than booking multiple hotel rooms and sharing common areas with other guests.
On the other hand, standard rental properties in Japan pose a number of challenges: they often require a large number of documents at the time of application and contract, there’s a risk of failing the guarantor company’s screening, tenants must purchase their own furniture and appliances, and it’s difficult to find real estate agencies that offer services in foreign languages. As such, renting a regular long-term apartment is often impractical for short-term visitors.
To meet these needs, the demand for furnished short-term accommodations like vacation rentals as known as Minpaku and monthly apartments has increased in recent years. These options are viewed as affordable and convenient alternatives to hotels and are becoming increasingly attractive to international travelers.
Differences Between Minpaku and Monthly Apartments
For foreign visitors staying for a few weeks to a few months—for reasons such as travel, working holidays, study abroad, or job hunting—Minpaku accommodations and monthly apartments offer a more affordable and practical alternative to hotels. These accommodation types are already widely available and well-established in many parts of the world. What makes them especially attractive is that they come fully furnished with essential appliances and household items, so tenants can move in with just a suitcase and immediately begin living comfortably.
Overview of Minpaku
Minpaku is accommodations where all or part of a residential property is rented out for short-term stays. These are typically managed through platforms like Airbnb1. In recent years, such rentals have become popular in urban areas and tourist destinations.
They are ideal for stays ranging from one night to a few weeks. In properties with kitchens and living rooms, guests can enjoy a home-like experience. Rental prices are usually set by the owner, and during peak tourist seasons, rates can rival or even exceed those of hotels.
Operating a Minpaku in Japan requires permission under the Private Lodging Business Act, enacted in 20182. Property owners must register with the local government and meet various requirements for each property, such as maximum occupancy, cleanliness, and fire safety measures. Additionally, there is a limit of 180 operating days per year, and in some tourist areas, local governments may impose special restrictions. Due to high application volumes, it can sometimes take months to receive approval.
Overview of Monthly Apartments
While there is no legal definition, monthly apartments refer to rental properties available for fixed periods—typically from one month to a year (the term “monthly apartments” as used here refers to short-term rental properties with lease terms of more than one month and less than one year, commonly referred to in Japanese as “マンスリーマンション/monthly mansion.”) These properties are usually fully furnished and equipped with appliances. A fixed-term lease agreement is generally used, meaning the lease does not automatically renew after expiration, though it may be extended through a new contract3.
Once mostly associated with business trips or exam preparation stays, monthly apartments are now gaining popularity among foreign visitors, contributing to market growth. Rates tend to be lower than Minpaku, particularly for longer stays. However, unlike Minpaku accommodations, which allow stays of just a few days, monthly apartments typically require a minimum one-month stay, making them a stable source of rental income for owners.
Moreover, since the move-out date is predetermined at the time of contract, owners can begin advertising for the next tenant well in advance. Compared to Minpaku—where tenants may share the property with the owner or other guests—monthly apartments offer more privacy and independence.
Comparison Table
Here is a breakdown of the differences among hotels, Minpaku, and monthly apartments:
| Item | Hotel | Minpaku | Monthly Apartment |
|---|---|---|---|
| Main Target | Travelers | Travelers | Travelers, Working Holiday participants, International Students, Job Seekers |
| Length of Stay | A few days to weeks | A few days to months | 1 month or more |
| Relevant Laws | Hotel Business Act | Private Lodging Business Act, Special Zone Regulations | Real Estate Transaction Act |
| Contract Type | Lodging Agreement | Lodging Agreement | Lease Agreement (typically fixed-term) |
| Services | 24/7 staff, cleaning services | No on-site staff, furnished, cleaning done by guest (some options available) | No on-site staff, furnished, cleaning done by guest |
| Cost | Expensive (several thousand to tens of thousands of yen per night) | Often cheaper than hotels but may be pricey during peak season | Typically most affordable for multi-month stays |
Combining Minpaku and Monthly Apartments
While most properties are operated as either Minpaku accommodations or monthly apartments, it’s also possible to combine the two models. As mentioned earlier, Minpaku are legally limited to 180 operating days per year. By renting the property as a monthly apartment for the remaining 185 days, property owners can potentially maximize their profits.
However, this approach does come with its challenges. Operators must obtain the necessary licenses for both business models, prepare and manage contracts, ensure that the property meets all relevant standards, and handle separate platforms for advertising to different types of renters. Managing these factors carefully is crucial to avoid issues like double bookings, and the overall administrative workload can become complex. Anyone considering this hybrid model is strongly encouraged to consult with professionals who have expertise and experience in both areas.
Conclusion
By understanding the unique characteristics of Minpaku and monthly apartments, property owners and renters alike can choose the most suitable option based on the location and the target demographic.
If you’re looking to start a rental business in urban or rural areas or want help utilizing a vacant property, feel free to contact SUGEE Housing, a company with extensive experience supporting international residents in their housing search.
- Airbnb（https://www.airbnb.jp/） ↩︎
- Portal Website for Private Lodging「minpaku」（https://www.mlit.go.jp/kankocho/minpaku/index_en.html） ↩︎
- “What is the fixed term lease system?” Fixed-Term Lease Promotion Council
（https://teishaku.jp/system/） ↩︎
