Are you interested in starting a vacation rental business but worried you might need a special license or qualification?

Since Japan’s Minpaku Act (Private Lodging Business Act) took effect in 2018, entering the vacation rental market has become much easier. Still, starting a business without proper knowledge can feel daunting. That’s why we’ve put together this detailed guide on qualifications related to vacation rental operations. The cases where a qualification is required—or where having one gives you an advantage—vary depending on your operating style, so please use this as a reference and compare it with your own situation.

Do You Need a Qualification to Run a Vacation Rental?

To get straight to the point: no, a qualification is not strictly required to operate a vacation rental. Vacation rentals in Japan are generally run under one of three legal frameworks: the “Minpaku Act,” the “Hotel Business Act,” or the “National Strategic Special Zone (Special Zone Minpaku) system.” For example, if you’re operating under the Minpaku Act, you can get started without any personal qualifications simply by outsourcing management to an external company. On the other hand, if you’d like to build your own knowledge base or reduce outsourcing costs, obtaining a relevant qualification might be worth considering.

That said, there are cases where a qualification is either required or advantageous—for instance, when operating under the Hotel Business Act, or when acting as your own property management business operator. In these situations, holding the right qualification is either mandatory or can make operations run much more smoothly.

3 Types of Vacation Rental Business Licenses You Should Know Before Getting Started

Before diving into qualifications, it’s important to understand the three main operating frameworks for vacation rentals in Japan: the “Minpaku Act,” the “Hotel Business Act,” and the “Special Zone Minpaku” system. Each comes with its own requirements and regulations.

1. The Minpaku Act

The Minpaku Act was enacted in 2018 to promote healthy, well-regulated vacation rental operations. The application process is simpler than the other frameworks—you just need to file a notification to start operating. However, operating days are capped at 180 days per year, which limits earning potential. Some regions also impose additional, stricter regulations, so it’s important to check local rules in advance.

2. The Hotel Business Act

Operating as a “simple lodging” business under the Hotel Business Act comes with no cap on operating days, and even hourly rentals are allowed. While this offers higher earning potential, it also requires meeting stricter conditions, such as compliance with zoning regulations and the Building Standards Act. Preparing to open under this framework can be complex, often requiring floor plans drawn up by a licensed architect and applications filed through an administrative scrivener (gyoseishoshi), so extra care is needed.

3. Special Zone Minpaku

Special Zone Minpaku is a special system available only within areas designated as National Strategic Special Zones, such as parts of Tokyo, Osaka, and Kyoto. There’s no limit on the number of operating days, but stays must be at least two nights and three days. As a result, this framework calls for a business strategy geared toward longer-staying travelers.

When Is a Qualification Required or Advantageous for Vacation Rental Operators?

Here we’ll introduce three main scenarios where obtaining a qualification becomes necessary. Compare these with your own situation and consider preparing to obtain the relevant qualification if needed.

1. When You Plan to Become a Registered Residential Accommodation Manager

First, if you plan to act as a registered residential accommodation manager (jutaku shukuhaku kanri gyousha), a qualification is required. Vacation rentals fall into two categories: “owner-occupied” and “owner-absent.” If you’re renting out part of your own home, that’s owner-occupied; if you’re using a separate property, it’s classified as owner-absent, and in this case, you’re legally required to outsource management duties to a third party. That said, it’s also possible to register yourself as a residential accommodation manager and handle the property management on your own.

What Qualifications Are Needed to Become a Residential Accommodation Manager?

If you want to manage your property yourself without outsourcing, you’ll need to register as a residential accommodation manager. This registration typically requires completing a dedicated training course and submitting an application to the relevant government authority. However, if you already hold one of the following qualifications, the training requirement is waived:

• Licensed Real Estate Transaction Specialist (Takuchi Tatemono Torihikishi)
• Certified Property Manager (Kanri Gyomu Shuninsha)
• Certified Rental Property Management Consultant (Chintai Fudosan Keiei Kanrishi)

How to Obtain These Qualifications

Each of these qualifications requires passing an exam. Here’s an overview of the main exam details:

• Licensed Real Estate Transaction Specialist: The exam is held every year on the third Sunday of October, with an exam fee of ¥8,200.
• Certified Property Manager: The exam is held around December each year, with a fee of ¥8,900. If you lack practical experience after passing, a separate practical training course is required (at an additional cost).
• Certified Rental Property Management Consultant: The exam is held every November, with an exam fee of ¥12,000 and a registration fee of ¥6,600. Applications can be submitted by mail or online.

Understand which scenarios require a qualification, and prepare accordingly before launching your vacation rental business.

2. Operating a Vacation Rental Under the Hotel Business Act

If you’re operating a vacation rental as a simple lodging business under the Hotel Business Act rather than the Minpaku Act, holding certain qualifications can help the application process go more smoothly. Since applications and procedures under the Hotel Business Act tend to be more demanding, obtaining a relevant qualification in advance can give you an advantage. One particularly useful qualification here is the First-Class Architect license.

The First-Class Architect Qualification

A First-Class Architect is a specialized qualification for designing buildings and managing safety, with no restrictions on the scale of buildings they can design. This qualification is also useful for preparing the site layout plans and floor plans required for simple lodging business applications. If you already have relevant work experience or hold a Second-Class Architect license, obtaining a First-Class Architect license can help streamline your application process.

How to Obtain a First-Class Architect License

The First-Class Architect exam consists of a written knowledge test and a design/drafting test. The written exam is held every July, and the drafting exam every October. The exam fee is ¥17,000. With a pass rate of only about 10%, it’s a highly challenging qualification, and eligibility requires completing designated coursework at a university or specialized school, or already holding a Second-Class Architect license.

3. Pursuing a Dedicated Vacation Rental Qualification

Simply becoming a host doesn’t require any qualification. However, obtaining a specialized certification can help you run your vacation rental business more smoothly by demonstrating industry knowledge, boosting guest trust, and ultimately leading to higher earnings. Among these, the “Certified Minpaku Management Specialist” (Minpaku Tekisei Kanri Shuninsha) is especially recommended for those just starting out or wanting to build a solid, systematic understanding of the field.

What Is the Certified Minpaku Management Specialist Qualification?

The Certified Minpaku Management Specialist qualification is designed to help you systematically learn the laws, contracts, and dispute-resolution knowledge relevant to vacation rentals, making it easier to prevent problems and run your business efficiently. Through this program, you’ll gain foundational knowledge of the Minpaku Act, the Hotel Business Act, fire safety regulations, and more, which helps streamline notifications and applications. It also has the added benefit of building trust with property owners and condominium management associations.

How to Obtain the Certified Minpaku Management Specialist Qualification

After completing the training course and submitting a report, you’ll earn the qualification once you meet the passing criteria. The course itself takes 4 hours and can be completed either in-person (¥30,350) or via online correspondence (¥31,370). A separate registration fee of ¥10,800 applies after completing the course. This certification is a great choice for anyone wanting to build foundational knowledge and practical skills for running a vacation rental business.

Not Mandatory, But Never a Bad Idea to Have

In general, no qualification is required to run a vacation rental business, though there are exceptions—for example, when acting as a residential accommodation manager or operating under the Hotel Business Act, a qualification may be necessary. On top of that, obtaining certifications such as the Certified Minpaku Management Specialist or First-Class Architect license can boost your credibility as an operator. Start by deciding which operating framework fits your situation, then consider whether obtaining a relevant qualification makes sense for you.

At Stay Buddy Inc., we provide comprehensive support for your vacation rental business—from finding the right property and handling permit applications to full operational management. Whether you’re looking to make effective use of a vacant house or vacation home, hand off day-to-day vacation rental operations entirely, manage cleaning services, or boost profitability, we’re happy to help. Please feel free to reach out with any questions about vacation rentals.