Many people are interested in side businesses, hoping to “add some extra income on top of their main job” or “make better use of their assets.” In fact, some claim that earning around 10 million yen a year through a side business isn’t just a pipe dream. However, results vary greatly depending on the industry, individual effort, and management style, so it’s important to note that this level of success isn’t guaranteed for everyone.
Amid this trend, the minpaku (vacation rental) business has been drawing considerable attention in recent years. Particularly in urban areas experiencing surging tourism and inbound demand, there are reported cases of operators generating over 10 million yen in annual revenue. That said, it’s essential to understand that such results only occur when multiple factors—property location, operational know-how, and a solid grasp of relevant regulations—align perfectly.
In this article, we’ll focus on Osaka City’s “Special Zone Minpaku” and explore why side-business minpaku holds such strong earning potential, while also comparing it to other side businesses and highlighting key precautions. While minpaku isn’t necessarily the superior choice among all side businesses, it’s true that when managed well, it holds tremendous potential.
1. Why Osaka City’s Special Zone Minpaku Makes Earning Side Income Easier
1-1. Growing Inbound Demand and Tourist Numbers
Osaka City is home to attractions that draw visitors from both Japan and abroad, including Universal Studios Japan (USJ), Dotonbori, Shinsaibashi, and Umeda. In recent years, rising inbound demand has fueled a sharp increase in accommodation needs across the city.
Now that foreign tourists have returned in force following the pandemic, opportunities for generating revenue are expected to keep expanding—so much so that it’s been said hotels alone can’t meet the supply. If a Special Zone Minpaku property can make the most of its location and accessibility, achieving a high occupancy rate year-round becomes a realistic goal.
1-2. An Operating System With No 180-Day Annual Cap
Under the standard minpaku framework (the Private Lodging Business Act), properties are restricted to a maximum of 180 days of guest accommodation per year. By contrast, Osaka City’s Special Zone Minpaku program allows properties that have obtained municipal approval to potentially operate year-round without this restriction.
This means operators can run their property at maximum capacity during peak seasons and major events, which is exactly what makes Special Zone Minpaku so appealing as a side business with strong revenue potential. Of course, meeting the requirements involves clearing strict hurdles related to building structure and fire safety equipment, but doing so opens the door to achieving a high occupancy rate.
1-3. The Synergy Between Property Value and Branding
Choosing the right property is critical to succeeding in side-business minpaku. Osaka City offers a wide range of property types, from condos to standalone houses. By operating a property as a Special Zone Minpaku and maintaining stable occupancy throughout the year, there’s real potential to generate significantly greater returns than through standard real estate leasing alone.
Furthermore, by designing interiors that highlight Japanese cultural experiences for international guests or by developing concepts unique to the local area, you can position your property as offering “a stay experience you can’t get anywhere else”—the kind of thing that spreads through word of mouth and social media, boosting your brand in the process.
2. Minpaku as a Side Business Compared to Other Side Businesses
2-1. Pros and Cons Compared to Product Sales and Investment
Common side business options include product sales (resale or e-commerce) and stock/FX trading. Compared to these, running minpaku (specifically Special Zone Minpaku) has the following characteristics:
- Advantages
- While the initial investment is high, capturing Osaka City’s inbound demand could yield substantial returns
- Leveraging real estate assets makes it easier to build stable income, and property values may be more resistant to economic downturns in some cases
- A unique concept or prime location can serve as a powerful point of differentiation
- Disadvantages
- Administrative procedures (applications, inspections, etc.) require significant time and cost
- Purchasing and renovating a property may require substantial upfront investment
- Cleaning and guest support demand more hands-on effort than investment products, making it a relatively labor-intensive endeavor
2-2. How It Differs From Service-Based Side Businesses (Coaching, Online Teaching, etc.)
Service-based side businesses—online teaching, coaching, translation and interpretation—offer the advantage of flexibly managing your time while earning income from your own skills. Minpaku, on the other hand, is a business built on assets that can generate income even in your absence. Once the system is in place, guests can stay and generate revenue for you even while you’re occupied with your main job—a compelling appeal.
That said, once you’ve purchased or renovated a property, backing out is far harder than simply “deciding to quit,” and fixed costs such as labor and property taxes present ongoing risks—making the barrier to entry considerably higher than with service-based options. In other words, if managed skillfully, it’s a side business model with strong potential for substantial, sustained income.
3. Key Points for Aiming at 10 Million Yen in Side Income
3-1. Property Location and Target Guest Profile
To aim for annual revenue in the range of 10 million yen in Osaka City, it’s essential to fully leverage the power of location. Properties in areas with concentrated tourist traffic (such as Namba, Shinsaibashi, Umeda, Tennoji, and the area around USJ) are more likely to support higher nightly rates and consistently strong occupancy.
It’s also important to clearly define your target guest. Families, large groups, business travelers, and long-term visitors from abroad each require different facilities and services, so tailoring your floor plan, interior design, and amenities to your target audience is essential.
3-2. Building an Interior and Concept That Attract Guests
Keeping a Special Zone Minpaku running at full capacity year-round requires differentiating yourself from the competition. By crafting an interior and concept that adds the value of “an experience you can’t get anywhere else,” you give guests a clear reason to choose your property over a hotel.
For example, adopting a modern Japanese design aesthetic or collaborating with local shopping districts to offer distinctive amenities can add a compelling narrative to your property—one that’s likely to generate buzz on social media.
3-3. Optimizing Operations
Boosting revenue requires raising both your occupancy rate and per-night rate, but doing so can also increase cleaning costs and management workload. If you’re aiming for 10 million yen in side income, you’ll need to secure reliable cleaning and management staff and optimize inventory management (such as restocking supplies) to eliminate waste.
Many operators now rely on management agencies, outsourcing tasks like multilingual guest support and 24-hour inquiry response—significantly reducing the workload even for a side business. Even accounting for agency fees, boosting occupancy and guest satisfaction can make this a worthwhile investment.
4. Realistic Timelines and Legal Procedures
4-1. The Process From Application to Certification
The application process for Special Zone Minpaku typically requires meeting stricter requirements (building codes, fire safety laws, etc.) than the standard minpaku framework. In Osaka City, the process—from reserving your application slot, submitting documents, and undergoing on-site inspection to final certification—can take several months, so keep in mind that you won’t be able to start operating immediately after renovating or purchasing a property.
That said, using this waiting period to finalize your interior design and train your cleaning staff means you’ll be ready to welcome guests the moment certification comes through.
4-2. Building and Fire Safety Checkpoints
You won’t obtain approval for a Special Zone Minpaku unless you clear detailed standards covering building structure, staircase width, fire extinguisher placement, and the use of flame-resistant curtains, among others. If a violation is discovered, you may need to redo construction work and undergo re-inspection, delaying your opening date—so it’s wise to consult with specialists or the relevant government office in advance.
5. Risks and Precautions
5-1. Risk of Legal or Ordinance Changes
Special Zone Minpaku is ultimately a program established independently by local municipalities, so the possibility that laws or ordinances could change in the future cannot be ruled out. If you’re thinking long-term, it’s wise to account for this risk and prepare an exit strategy—such as converting to standard rental use or selling the property.
5-2. Conflicts With Neighbors
Unlike conventional lodging facilities, minpaku properties see frequent comings and goings of domestic and international guests within residential neighborhoods. To avoid complaints from neighbors regarding noise, trash disposal, and security, it’s essential to establish clear rules and thoroughly manage guest behavior. Clearly communicating nighttime quiet hours and trash sorting rules in multiple languages can go a long way toward preventing disputes.
6. Advantages and Disadvantages Compared to Other Side Businesses
6-1. The Risk of Substantial Investment
Compared to other side businesses (online product sales, coaching, investing, etc.), minpaku—and Special Zone Minpaku in particular—often requires significant upfront investment. You may need to accept a period of losses before recouping the costs of purchasing and renovating the property, as well as installing fire safety equipment and other necessary upgrades.
6-2. Substantial Returns and Stability
On the other hand, if successful, Special Zone Minpaku offers the unique appeal of potentially generating revenue in the range of 10 million yen annually. What’s more, because it’s built on real estate, it carries the added strength of retaining tangible property value—unlike financial assets such as stocks. Operating over the long term offers a compelling combination: the peace of mind that comes with property values that tend to hold steady, along with stable cash flow.
7. Conclusion: For Side-Business Minpaku Aiming at 10 Million Yen, Special Zone Minpaku Is a Strong Contender
Osaka City’s Special Zone Minpaku offers a major advantage that standard minpaku lacks—no 180-day annual cap—making it a business model well-suited to achieving both high occupancy and strong nightly rates. Operating a standalone house in Osaka City, where inbound demand remains robust, allows you to offer spacious accommodations for families and group travelers, with the potential to generate substantial profits year-round.
Of course, running such an operation comes with challenging hurdles—meeting legal requirements, providing multilingual support, and coordinating with neighbors—but overcoming these challenges is precisely what unlocks the significant returns on offer. While the required investment is larger compared to other side businesses, success could mean achieving 10 million yen annually in side income.
Because substantial investment carries real risk, it’s important to consult with the relevant authorities in advance and work with specialists to ensure a smooth path toward certification. If you’re looking to gain an edge through side-business minpaku, we encourage you to seriously consider the possibilities offered by Osaka City’s Special Zone Minpaku.
Considering Side-Business Minpaku? Consult Stay Buddy Inc.
If you’re looking to start a side-business minpaku in Osaka City using the Special Zone Minpaku program, or if you already own a property but feel uncertain about operational know-how or licensing procedures, please don’t hesitate to reach out to Stay Buddy Inc.
Drawing on our experience guiding numerous minpaku properties to success, we provide comprehensive support—from checking building and fire safety requirements to setting up cleaning operations, pricing strategy, and multilingual guest support. Even as a side business, Special Zone Minpaku holds the potential to generate 10 million yen in annual revenue when properly prepared and managed. Let’s build a new pillar of income together with Stay Buddy.
