2022.03.01 UpDate

TUESDAY, MARCH 01, 2022

Airbnb Not as Effective in the Japan Market

Pre-Covid-19, I think we can all agree that Airbnb had taken the hospitality industry by storm . My first encounter with the gig economy giant  was when I lived in Toulouse, France, back in 2017. I was planning a trip to Paris I couldn’t believe how affordable their prices were! The only website I had ever. And all the guest houses and hotel prices were down right ridiculous.  One night, while browsing online, I came across the Airbnb site and decided to try it out .known with prices like that was Couch-Surfing.comBut this site was different. One had the ability to book an entire apartment for $ 100 or less for a few days! That’s a bargain right there! My first experience using the platform was nothing short of amazing. 


In cosmopolitan Asian cities such as Singapore, Hong Kong and Seoul, Airbnb was gaining major momentum. You honestly can’t blame them for having. The silicon Valley based company had been dominating the western market and capturing a bit of the Asian market as well That’s just the power of the internet! As much of a hot streak, the confidence to enter markets without needing an invitation.The tech giant may have been on, they had no idea what was waiting for them when entering the Japanese market. They did not anticipate strict rules and regulations by the Japanese government. The bureaucratic laws can be quite an obstacle for property investors looking to cash On June 15, 2018, the home-sharing law, known as minpaku, was introduced. The law was passed to formally legalize and provide a structural framework for those wishing to list their rentals on the platform.


Under this law, the hosting and use of Airbnb or similar platforms requires a process of registration with the Japanese government.


-The official information is only available in Japanese so foreign property investors are at a disadvantage, unless they can speak and read Japanese.


-Permission from property owners and landlords must be granted if the host doesn’t own the property.


-Health and safety requirements must be met.


-In some commercial areas of Tokyo, weekly rentals are prohibited.


-Hosts are also expected to submit reports to the government. These have to be submitted consistently every few months with information about guests who stayed as well as their nationalities.


-If individuals fail to cooperate with the registration along with the rules and regulations, they may be fined up to 1,000,000yen or possibly spend six months in prison.


For foreigners looking to invest in the Japan real estate for profit, the best strategy is to list their rental with a real estate agency. 


 


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