Ōta Ward issues first-ever official certification for vacation rental service

On 12 February this year, Tokyo’s Ōta Ward issued Japan’s first-ever certificate of approval for a vacation rental service to Chiyoda-Ward-based travel agency Tomareru. Under the Hotel Business Law, only hotels, Japanese-style inns and similar establishments have traditionally been allowed to offer paid lodging services. However, under the National Strategic Special Zone policy for promoting business opportunities, Ōta Ward enacted an ordinance that went into effect and established holiday rentals as an exception to the Hotel Business Law.

There has been a chronic shortage of accommodation with the ever-increasing number of foreign tourists pouring into the country. Tokyo and other popular tourist destinations have been hit particularly hard, with hotel occupancy rates consistently exceeding 90 per cent. These areas are in dire need of assistance, and the prospect of individuals renting out their own properties is seen by many as one potential solution.

Tomareru, Inc. operates a service called ‘STAY JAPAN’ which allows people to rent their residences out to travellers. Reservations are already available for locations that have received approval. Up to three people can stay at SJ Apartments Kamata A for 12,000 yen a night which, when split three ways, is just 4000 yen per person. Though the room is only 26 square metres, it has the advantage of being only a three-minute walk from JR Kamata Station.

However, the ordinance requires that visitors remain for at least six nights, so those planning a short trip are out of luck. They can stay for a maximum of 30 days.

Airbnb offers a similar service, but the main difference is that it lets individuals rent directly to other individuals, which places the service in a legal grey area. By contrast, Tomareru, Inc. is sanctioned by the government to provide paid lodging through its network of private renters.

Though the service is still in its infancy and there are not many rooms available, STAY JAPAN has plans to offer themed lodgings in an initiative it has dubbed ‘Concept Rooms’. Advance reservations are currently available for a wide range of unique accommodation, including a Japanese-style house transformed from an old cottage, a stylish and well-furnished ‘appliance room’ aimed at businessmen and a ‘manga room’ with bookcases chock-full of your favourite Japanese comics. And there’s sure to be more to come.