Settings and Tips for Hosting Long-Term Guests on Airbnb

Benefits and Basic Mechanics of Accepting Long-Term Stay Guests on Airbnb

Accepting long-term stay guests on Airbnb is a powerful operational strategy for hosts looking to secure stable income. However, there are numerous considerations that differ from short-term stays, and starting out without the right knowledge beforehand can often lead to trouble. This article comprehensively covers practical information—from the settings needed to accept long-term guests to pricing, contracts, and legal considerations.

On Airbnb, a long-term stay generally refers to a continuous booking of 28 nights or more. The platform allows hosts to set up a “monthly discount,” which is automatically applied to bookings of 28 nights or longer. Long-term guests span a diverse range of people, including remote workers, employees on relocation, and international students, and their numbers have been on the rise in recent years alongside growing demand for workations.

The biggest advantage of long-term stays is that operating costs can be significantly reduced due to fewer cleanings and less frequent guest interactions. With short-term stays, cleaning fees are incurred after every checkout, typically costing between 3,000 and 8,000 yen per session. If you host 10 groups of guests per month, cleaning costs alone can reach 30,000 to 80,000 yen—whereas with long-term stays, only one or two cleanings per month are needed, translating into hundreds of thousands of yen in savings annually. Another advantage worth noting is reduced vacancy risk, offering greater stability without being as affected by fluctuations in occupancy rates.

Key Considerations and Pricing Tips for Long-Term Stays on Airbnb

When accepting long-term guests, setting the right price is critically important. Airbnb allows hosts to configure two types of discounts: a “weekly discount” and a “monthly discount.” The weekly discount applies to bookings of 7 nights or more, with a typical discount rate ranging from 10% to 15%. The monthly discount applies to bookings of 28 nights or more, and many hosts tend to set this between 20% and 30%.

That said, setting the discount rate too high can significantly reduce profitability, so it’s essential to clearly calculate your break-even point. For example, if a listing normally priced at 10,000 yen per night has a 30% monthly discount applied, the monthly rate comes to approximately 210,000 yen. Be sure to simulate in advance how much profit remains after subtracting rent, utilities, Wi-Fi fees, consumable supplies, and Airbnb service fees (3% host fee) from this amount. Specifically, after subtracting 80,000 yen in rent, 15,000 yen in utilities, 5,000 yen for Wi-Fi, 5,000 yen for consumables, and roughly 6,300 yen in fees, the remaining profit comes to about 98,700 yen. Adjust your discount rate based on whether this amount meets your desired profit level.

How to Set Up a Listing for Long-Term Stays

Setting Minimum and Maximum Stay Lengths

By setting the minimum stay length to 28 nights or more in Airbnb’s calendar settings, you can exclude short-term bookings and operate a listing dedicated solely to long-term guests. On the other hand, it’s also recommended to set an upper limit on the maximum stay length. Under Japan’s Act on Land and Building Leases, there is a risk that guests who continue staying for six months or longer may be deemed to have acquired tenant rights, making it difficult to request that they vacate the property. For this reason, many hosts set the maximum stay length at around 90 to 150 days, extending stays through rebooking as needed.

Steps for Setting Up Monthly and Weekly Discounts

From the Airbnb host dashboard, go to “Listings” → “Pricing,” where you’ll find fields for entering “weekly discount” and “monthly discount” percentages. Once entered, the discount is automatically applied to bookings that meet the required length of stay. Setting a discount also displays a “Monthly discount available” badge in search results, which offers the added benefit of catching the eye of guests seeking long-term accommodations. If you’re unsure what rate to set, a practical approach is to start at 20% and adjust based on how bookings come in.

Establishing Clear House Rules

For long-term stays, clearly defined house rules are even more important than for short-term stays. Items that should be explicitly specified include garbage sorting and disposal procedures (including designated collection days), noise rules (such as volume restrictions after 10 PM), rules for using shared spaces, whether pets are allowed, whether guests may have visitors and any time restrictions, and whether smoking is permitted. In addition to listing these on your Airbnb page, printing them out and displaying them inside the unit for guests to review after check-in helps prevent misunderstandings and disputes.

Key Legal Points to Keep in Mind

Annual Operating Day Limit Under the Private Lodging Business Act

When operating a vacation rental under Japan’s Private Lodging Business Act (Minpaku Shinpo), the annual number of operating days is capped at 180. Accepting even a single long-term guest can consume roughly three months’ (about 90 days) worth of your annual operating allowance. This means you’ll need to either generate additional revenue during the remaining 90 days or plan your strategy on a seasonal basis. Operating beyond the 180-day annual limit constitutes a legal violation and can result in business suspension orders or fines, so calendar management must be handled with strict precision.

If you operate under a license from the Hotel Business Act, the 180-day restriction does not apply. If your goal is year-round operation centered on long-term stays, it may be worth considering obtaining a Simple Lodging license. Obtaining this license requires meeting fire safety equipment and sanitation standards, with initial costs typically ranging from 500,000 to 1,500,000 yen—but the ability to operate without a day limit is a significant advantage.

Relationship With Lease Agreements

With long-term stays, there’s a common issue where it becomes unclear whether the arrangement legally constitutes a lodging contract or a lease agreement. Under Japanese law, if a property is used continuously for a certain period as someone’s primary residence, it may effectively be deemed a lease agreement in practice. If classified as a lease, the Act on Land and Building Leases would apply, meaning that without justifiable grounds, you would be unable to refuse contract renewal or demand that the tenant vacate. As a countermeasure, it’s effective to draw up terms of stay that clearly establish the arrangement as a lodging contract, and to maintain hotel-like service characteristics—such as regularly providing linen changes and cleaning services.

Preventing Trouble With Long-Term Stay Guests

Pre-Screening and Communication

Because the impact of any potential trouble is greater with long-term guests, screening before approving a booking is especially important. Enable Airbnb’s “require a message before booking” setting, and confirm the purpose of the stay, whether there are any companions, and the arrival and departure dates. It’s also effective to set criteria such as only accepting guests with a past review rating of 4.5 or higher, or limiting bookings to guests with verified identities. Even after a booking is confirmed, holding a detailed discussion via video call or message before check-in helps ensure smoother communication throughout the stay.

Handling Utility Costs

With long-term stays, utility costs frequently end up higher than expected. In particular, when air conditioning use in summer or heating use in winter is combined with continuous occupancy, monthly electricity bills can easily double or triple compared to normal usage. Even for a studio to 1LDK unit, summer electricity bills can reach 15,000 to 25,000 yen per month. As a countermeasure, you can set an upper limit on utility costs within the monthly rate and establish a rule that guests are responsible for any amount exceeding that limit. Clearly stating in your listing description, “Utilities included up to 15,000 yen per month; charges beyond this amount will be billed at actual cost,” can help prevent disputes later on.

Regular Property Checks and Restoring the Unit to Its Original Condition

Since it becomes harder to keep track of the unit’s condition during a long-term stay, it’s recommended to arrange for periodic cleaning or inspections roughly once every two weeks. With the guest’s consent, visit the property to change linens while also checking for any damage or issues with the facilities. Regarding restoring the property to its original condition after checkout, it’s essential to document the unit’s condition with photos or video at check-in. Without such records, claims may be denied due to insufficient evidence, even when using Airbnb’s compensation program. Airbnb’s Host Guarantee program offers property damage coverage of up to 100 million yen, but claims require photos taken before and after the damage occurred, along with repair estimates.

Operational Strategies to Maximize Revenue

Hybrid Operations Combining Short-Term and Long-Term Stays

Focusing exclusively on long-term stays risks missing out on higher rates during peak season, making a hybrid strategy that switches between short-term and long-term stays depending on the season highly effective. For example, you might offer more generous monthly discounts during the off-peak season from April to June to secure long-term guests, then set the minimum stay length to 2–3 nights during the peak season from July to September to capture higher-priced bookings from short-term guests. Some hosts using this approach maintain an annual occupancy rate of over 90% while increasing annual revenue by 20% to 30% compared to operating exclusively as a long-term rental.

Enhancing Listing Value Through Better Furniture and Amenities

Since long-term guests place a high priority on living comfort, the minimal amenities typically offered for short-term stays tend to result in lower satisfaction. Specifically, equipping the unit with a washing machine and dryer (or a bathroom dryer), a full set of cooking equipment such as a microwave, rice cooker, and frying pan, a desk and office chair (suitable for remote work), and stable, high-speed Wi-Fi (ideally 100 Mbps or faster download speed) will improve both booking rates and satisfaction among long-term guests. Listing a specific Wi-Fi speed number also helps build trust with remote workers. While these initial investments typically total between 150,000 and 300,000 yen, they can justify raising your monthly rate by 5,000 to 10,000 yen, allowing you to recoup the cost within just a few months.

For Vacation Rental Management Concerns, Consult Stay Buddy Inc.

Running a long-term stay operation on Airbnb requires practical knowledge spanning a wide range of areas, including pricing, legal compliance, and guest management. Hosts accepting long-term guests for the first time in particular often face many uncertain decisions, and even a single mistake can lead to significant losses.

Stay Buddy Inc. is a specialized vacation rental management company offering one-stop support—from the property planning stage through listing creation, pricing optimization, guest communication, and legal compliance assistance. Backed by extensive operational experience, we can also provide concrete advice on designing pricing suited to long-term stays, establishing house rules, and handling issues that arise during operation.

If you’re wondering “I want to start accepting long-term guests but don’t know where to begin,” or “I’m already operating but my revenue has plateaued,” please feel free to reach out to Stay Buddy Inc. We’ll provide thorough support, from listening to your current situation to proposing improvements.