One rule you simply cannot avoid when running a minpaku (private lodging) business is the “180-day rule.” Under Japan’s Private Lodging Business Act (the “minpaku law”), registered residences are capped at 180 operating days per year. For anyone in Hokkaido looking to become a minpaku host—or already running one—this restriction has a direct and significant impact on revenue planning.
What’s more, some Hokkaido municipalities have enacted their own supplementary ordinances that impose even stricter limits than the 180-day cap. If you start operating without fully understanding these rules, you risk serious consequences such as administrative guidance or even revocation of your registration.
This article covers everything hosts need to know—from the fundamentals of the minpaku 180-day rule, to Hokkaido’s region-specific ordinances, the impact on revenue, and concrete strategies for maximizing profit within these restrictions.
What Is the Minpaku 180-Day Rule? The Legal Basis and Core Regulations
The Annual Cap Set by the Private Lodging Business Act
The 180-day rule stems from Article 2, Paragraph 3 of the Private Lodging Business Act (minpaku law), which took effect in June 2018. “180 days” refers to the maximum number of days that guests can actually be hosted within a single fiscal year, running from April 1 to March 31 of the following year. Each day a guest is hosted counts as one day, with a single night (one day) defined as the period from noon to noon the following day.
This cap exists because the framework is a “special arrangement” allowing homes to be used as lodging facilities without obtaining a license under the Hotel Business Act. The underlying premise is that the property’s primary purpose remains residential, with lodging as a secondary use. As a result, unlike hotels or ryokan, year-round (365-day) operation is not permitted.
How the 180 Days Are Counted, and Reporting Obligations
The number of lodging days is counted based on days guests actually stayed. For example, if a guest stays for 3 nights and 4 days, only the 3 nights (including check-in day) count. Days with reservations but no actual stay are not counted.
Registered minpaku operators are required to report lodging data to their prefectural governor every two months. Specifically, this includes the number of nights hosted, number of guests, and guest nationality breakdowns, submitted to the relevant registration authority. False reporting or failure to report can result in a business suspension order or revocation of registration, so keeping accurate records is essential.
Specific Examples of Supplementary Ordinances in Hokkaido Municipalities
Zone Restrictions and Period Restrictions Under Local Ordinances
Article 18 of the Private Lodging Business Act allows prefectures, designated cities, and core cities to restrict operating days or operating zones through local ordinances. Several municipalities in Hokkaido have exercised this authority, in some cases shortening the 180-day cap even further, and in others prohibiting operation entirely within specific zones or periods.
In Sapporo, for instance, an ordinance restricts minpaku operation in exclusively residential zones during school terms. Specifically, in these zones operation is only permitted during spring, summer, and winter breaks, plus weekends and public holidays—resulting in a maximum annual operating period far shorter than 180 days. Anyone starting a minpaku business in Sapporo must check the zoning classification before submitting their registration.
Regulatory Status by Major Area
Niseko (including the area covering Kutchan Town in Abuta District) is a hugely popular resort destination among international tourists, yet it too has restrictions in exclusively residential zones. Otaru and Hakodate likewise have ordinances restricting operation in residential zones, meaning that failing to research these regulations before selecting a location can undermine your entire business plan from the outset.
By contrast, municipalities such as Asahikawa and Obihiro tend to have comparatively relaxed regulations. That said, ordinances can be revised, so it’s important to make a habit of checking for the latest information with your local municipal office even after operations begin. In principle, registrations are filed with the Hokkaido prefectural government, but Sapporo, Asahikawa, and Hakodate, as core cities, accept registrations independently.
The Revenue Impact of the 180-Day Rule
Annual Occupancy Rate and Revenue Simulation
The 180-day rule has a decisive effect on minpaku revenue structures. Suppose the average nightly rate is ¥15,000 and the occupancy rate is 80%: with a maximum of 180 operating days per year, that’s 180 × 80% = 144 nights, yielding roughly ¥2.16 million in annual revenue. By comparison, if you obtained a hotel business license and operated 365 days a year under the same conditions, revenue would reach approximately ¥4.38 million—a difference of about ¥2.22 million.
Once you subtract fixed costs such as management fees, cleaning fees, utilities, and consumables, the take-home profit under the 180-day restriction shrinks even further. If you’re paying off a property loan, you should verify with concrete numbers, before you start, whether revenue from just 180 days can cover your loan repayments and expenses. Misjudging this can easily result in monthly out-of-pocket losses amounting to tens of thousands of yen.
How You Use the Remaining 185 Days Determines Your Profitability
Since a maximum of only 180 of the year’s 365 days can be used for minpaku, how you utilize the remaining 185 days is the key to maximizing revenue. One popular option is switching to monthly rentals (fixed-term leases of one month or longer). Securing ¥80,000–120,000 in monthly rental income during minpaku off-seasons can significantly reduce your overall annual vacancy risk.
Another approach is using the property for personal use or as a second home. In Hokkaido, it’s reasonable for owners to use the property themselves during the winter ski season or summer retreat season, and rent it out as minpaku during peak tourist demand at other times. Either way, a business plan relying solely on minpaku revenue is inherently fragile—having a diversified utilization strategy is essential for stable operation.
Legal Ways to Avoid or Ease the 180-Day Restriction
Obtaining a License Under the Hotel Business Act
The 180-day cap is unique to the registration system under the Private Lodging Business Act. If you obtain a simple lodging business license under the Hotel Business Act, you can operate 365 days a year. Many properties in Hokkaido’s tourist areas already operate year-round under this type of license.
That said, obtaining a hotel business license comes with far higher hurdles than the registration system—including a front-desk staffing requirement (though relaxation measures exist under certain conditions), mandatory fire safety equipment, zoning restrictions, and building-use-change procedures under the Building Standards Act. Licensing costs vary depending on the property’s size and condition, but fire safety equipment alone can cost ¥500,000–1,500,000, so you need to carefully weigh the initial investment against your expected payback period.
Combining Minpaku with Monthly Rentals
As mentioned above, once you’ve reached your annual minpaku operating cap, a promising “dual-cropping” model is switching to monthly rentals. A rental agreement of one month or longer doesn’t fall under either the Hotel Business Act or the Private Lodging Business Act, so those days don’t count toward your lodging total. For a studio apartment in Sapporo, you could expect demand for monthly contracts at roughly ¥70,000–100,000 per month.
Implementing this combined model requires minimal additional investment, since you can reuse the furniture and appliances from your minpaku operation. However, attracting monthly tenants requires a separate marketing channel (such as specialized weekly/monthly rental portal sites), which increases the operational workload. If handling this on your own proves difficult, outsourcing the entire operation to a management company is a practical solution.
Risks and Penalties for Violating the 180-Day Rule
Specific Administrative Penalties
If you operate beyond 180 days, the prefectural governor will issue a business improvement order. Failure to comply can lead to a business suspension order, and ultimately revocation of your registration. Once revoked, you may be barred from re-registering for a certain period, making it practically impossible to continue your business.
In addition, the Private Lodging Business Act includes penal provisions: filing a false registration or failing to meet reporting obligations can result in imprisonment of up to six months or a fine of up to ¥1 million. Operating without registration at all (so-called “illegal minpaku”) is treated as a violation of the Hotel Business Act and carries separate penalties, also up to ¥1 million in fines. It’s important to recognize that casually exceeding the day limit can escalate into criminal penalties.
Neighborhood Complaints Often Trigger Administrative Action
In practice, most violations come to light because of complaints from neighboring residents. A typical scenario involves noise or improper garbage disposal prompting a resident to report the issue to the municipality, and the resulting investigation uncovering that the operator has exceeded the day limit. In Hokkaido’s residential areas, disputes over winter snow-clearing etiquette can also serve as a trigger.
To prevent such trouble before it starts, basic measures like providing house rules in multiple languages, posting a garbage collection calendar, and giving guests clear instructions at check-in are essential. Maintaining good relationships with neighbors ultimately helps protect the stability of your business.
Practical Points for Running a Successful Minpaku Business in Hokkaido
Choosing Your Location and Reading Seasonal Demand Fluctuations
Tourist demand in Hokkaido fluctuates dramatically by season. Niseko and Furano can expect high occupancy from skiers in winter, but tend to be relatively quiet in summer. Sapporo, on the other hand, hosts events year-round—such as the Snow Festival (February) and the Lilac Festival (May–June)—which spreads demand more evenly. How you concentrate your limited 180 operating days can dramatically change your revenue.
In the Niseko area, for example, some properties can command nightly rates of ¥30,000–50,000 during the December–March ski season, meaning that concentrating operations over just about four months (roughly 120 days) can generate over ¥3 million in annual revenue. Allocating the remaining 60 days to the summer outdoor season allows for efficient revenue generation within the 180-day cap.
Preparing Before Registration and Consulting Experts
Registering a minpaku business requires several preparatory steps, including obtaining a fire safety compliance certificate, creating floor plans, and (in the case of an unmanned property) contracting a management company. In Hokkaido, ensuring guest safety may also require snow-related equipment—such as roof snow guards or snow-melting systems—preparations not typically needed in Honshu.
Incomplete paperwork or overlooked ordinances can cause your registration to be returned, delaying your launch by one to two months. Consulting an administrative scrivener (gyoseishoshi) or a minpaku management specialist to check applicable ordinances and streamline the registration process is an effective way to minimize lost opportunity.
For Minpaku Management Consultations, Contact Stay Buddy Inc.
Navigating the 180-day rule, researching local ordinances, running revenue simulations, and developing a combined strategy with monthly rentals all require broad specialist knowledge to manage a minpaku business successfully. Hokkaido in particular presents region-specific challenges, such as seasonal demand swings and snow countermeasures, that make going it alone difficult.
Stay Buddy Inc. is a specialist minpaku management company offering one-stop support—from registration assistance to day-to-day operations management and consulting to maximize revenue. We have the know-how to achieve stable revenue even within the 180-day restriction, and we can tailor proposals to each owner’s property characteristics and investment goals.
If you’re wondering “how much profit can I realistically generate within the 180-day rule,” “whether switching to a hotel business license is feasible for my property,” or “whether combining minpaku with monthly rentals is practical,” please reach out to Stay Buddy Inc. From your initial consultation through to a concrete revenue plan, we’ll provide thorough, dedicated support.
