Simple Lodging License Under the Ryokan Business Act: Estimated Costs and Timeline

If you’re planning to open a minpaku or lodging business, the cost and timeline for obtaining a “simple lodging” (kan’i shukusho) permit are usually among the very first things you’ll want to understand. Search “simple lodging permit application cost” and you’ll find all sorts of information—application fees that vary by municipality, fees for hiring an administrative scrivener (gyoseishoshi), and more. This article breaks down exactly what you can expect to pay and how long the approval process typically takes.

Unlike the Minpaku Business Act (Private Lodging Business Act), a simple lodging permit under the Ryokan Business Act comes with a major advantage: there’s no cap on the number of days you can operate per year, meaning you can run your property at full capacity year-round. That said, the path to getting licensed is more complex, and costs can add up quickly due to facility standards and fire safety requirements. Building a solid budget plan in advance is the surest way to a smooth launch.

Please note that the costs and timelines outlined in this article are general estimates only—actual figures can vary significantly depending on your property and the municipality where you’re applying. Before submitting any application, we strongly recommend consulting with your local health center (hokenjo) or an administrative scrivener.

Breaking Down the Costs of a Simple Lodging Permit Application

The costs involved in applying for a simple lodging permit generally fall into three categories: government fees, facility renovation costs, and professional service fees. Understanding the typical range for each will make it much easier to put together a solid budget before opening.

Total costs vary widely depending on the size and condition of the property, but even for a small property requiring only minimal renovations, you should budget roughly ¥500,000–¥1,000,000 when all expenses are combined. For larger-scale renovations, it’s not uncommon for costs to exceed ¥2,000,000.

Application Fees Paid to the Health Center

When applying for a simple lodging permit under the Ryokan Business Act, you’ll need to pay an application fee to your local health center. This fee is set by prefectural ordinance, so it’s not standardized nationwide. As a general guideline, expect somewhere between ¥15,000 and ¥22,000. In Tokyo, the fee tends to run around ¥20,000, while in Osaka it’s closer to ¥15,000—so there can be a difference of several thousand yen depending on the municipality.

In most cases, this application fee is non-refundable regardless of whether your permit is approved. That’s why it’s so important to consult with the health center beforehand to confirm your facility meets the required standards—reducing the risk of rejection and avoiding wasted expense is key to protecting your budget.

Fire Safety Equipment Costs

To obtain approval as a simple lodging facility, you’ll need to meet fire safety equipment standards set out under the Fire Service Act. Key requirements typically include automatic fire alarms, emergency exit lighting, fire extinguishers, and clear evacuation routes. If you’re renovating an existing building for this purpose, these systems are often not yet in place, making fire safety installation and renovation one of the bigger expenses you’ll face.

Costs for fire safety equipment vary depending on the size and structure of the property, but for a small standalone house, ¥100,000–¥300,000 is a typical range. For a single unit in an apartment building or an older wooden house, additional wiring work may be needed, which can push costs above ¥500,000. You’ll also need to consult with the fire department in advance (known as “fire department consent”), so it’s important to get this process started early.

Building Standards Act and Change-of-Use Costs

If you’re converting a property that was previously used as a residence into a simple lodging facility, you may need to file a “change of use” under the Building Standards Act. Whether this is required often hinges on whether the total floor area exceeds 200 square meters—properties under this threshold frequently don’t require a confirmation application, though the exact rule can vary by municipality.

If a change-of-use confirmation application is required, hiring an architect typically costs ¥150,000–¥300,000. Depending on the building’s structure, you may also need renovation work to improve fire resistance, which adds further to the cost. We strongly recommend checking with an architect or your local building authority in advance to determine whether a change of use applies to your property.

Fees for Hiring an Administrative Scrivener

If you hire an administrative scrivener (gyoseishoshi) to prepare your application documents and liaise with the health center, expect to pay a fee in the range of ¥100,000–¥200,000. The application requires a substantial number of documents—floor plans, equipment layout diagrams, copies of business licenses, and more—which can be genuinely difficult to prepare on your own, making professional help a practical choice.

Working with an administrative scrivener significantly reduces the risk of your application being sent back due to incomplete or incorrect documentation, which in turn can shorten the time it takes to get approved. In that sense, it’s often well worth the cost. We recommend getting quotes from several scriveners and comparing their track record and service areas before making your choice.

Other Incidental Costs

Beyond the costs above, don’t forget to budget for various additional expenses both before and after getting your permit. These might include a smart lock or key box to serve as a substitute for a front desk (roughly ¥10,000–¥50,000), guest information materials, and setting up your guest registry. You’re also required to draft and display terms and conditions for guests, which may involve purchasing a template or consulting a lawyer or administrative scrivener.

After receiving your permit, you’ll also need to factor in OTA listing fees (commission rates typically run 15–20% depending on the platform) and liability insurance (roughly ¥10,000–¥30,000 per year). When budgeting before launch, be sure to account not just for the cost of obtaining your permit, but also for these initial operating expenses.

Estimated Timeline: From Application to Permit Approval

The time it takes to go from application to approval varies considerably depending on the municipality and the condition of your property, but as a general rule, expect roughly one to three months from submitting your documents to receiving your permit. If there are issues with your paperwork or additional facility renovations are required, the timeline can stretch even further.

When you factor in the entire process—preliminary preparation, facility renovations, document preparation, application submission, and review—it often takes three to six months from selecting a property to actually opening for business. It’s wise to build in a generous buffer in your schedule, and to reach out to the fire department and health center for preliminary consultations as early as possible.

Preparation Time: From Preliminary Consultation to Submitting Your Application

Before applying, you’ll need to have preliminary consultations with the health center and fire department. At this stage, they’ll assess your facility’s current condition and identify what equipment or renovations are needed. From that initial consultation to completing the necessary renovations and paperwork, expect a preparation period of roughly one to three months. If multiple rounds of construction work are involved, you’ll need extra time to arrange contractors and complete the work—so it pays to get moving early.

Preparing the required documents is also time-consuming. Creating floor plans (which may require taking your own measurements if existing drawings aren’t available), equipment layout diagrams, and filling out application forms can feel overwhelming if it’s your first time going through the process. Even if you hire an administrative scrivener, you’ll still need time to provide materials and meet with them to discuss the details.

Review Period: From Application Acceptance to Permit Issuance

Once your application documents are submitted and accepted by the health center, staff will conduct a document review followed by an on-site inspection. Review times vary by municipality, but generally run about two weeks to one month. During busy periods or when application volumes are high, this can take even longer.

During the on-site inspection, a health center official will visit your facility in person to confirm it meets all equipment standards. If any issues are found, you’ll need to make corrections and undergo a follow-up inspection, further extending the timeline. To help your inspection go smoothly, it’s important to thoroughly address any points raised during your preliminary consultation ahead of time.

Tips for Keeping Costs Down

The cost of obtaining a simple lodging permit can vary substantially depending on how you approach your preparations and which property you choose. Selecting a property that already has much of the necessary equipment in place, and thoroughly checking the fire safety systems and building condition in advance, can go a long way toward keeping costs low. In particular, choosing a property that previously held a ryokan business license, or one that already has fire safety equipment installed, can dramatically cut your initial costs.

Thorough preliminary consultation with the health center—to avoid having your application sent back due to errors—also directly translates into cost savings. A rejected application not only means extra work to revise and resubmit, but also lost opportunity from a delayed opening. Working with an administrative scrivener or a minpaku management company does involve upfront costs, but it often makes the overall process smoother while still delivering strong value for money.

Comparing Costs and Effort: Ryokan Business Act vs. the Minpaku New Law

Compared to filing a notification under the Minpaku Business Act (Private Lodging Business Act), obtaining a simple lodging permit under the Ryokan Business Act is more difficult and more expensive—but it offers superior long-term earning potential, since there’s no cap on operating days. Under the Minpaku Business Act, operations are limited to 180 days per year, whereas the Ryokan Business Act allows for unrestricted, year-round operation.

Filing a notification under the Minpaku Business Act is often free or costs only a few thousand yen, and the facility standards tend to be more relaxed. A simple lodging permit under the Ryokan Business Act, on the other hand, comes with higher upfront costs—but if you’re aiming to maximize occupancy and generate stable revenue, it can pay for itself more easily over the medium to long term. It’s worth carefully weighing which system best fits your property and your management style.

Get in Touch with Stay Buddy—Free Consultation

The cost and timeline for a simple lodging permit application can vary enormously depending on your property, the municipality, and how you apply. Questions like “How much will this cost for my specific property?” or “Which licensing option is best for me?” are best answered by consulting directly with the experts. Stay Buddy Co., Ltd. offers end-to-end support—from helping you apply for a simple lodging permit under the Ryokan Business Act, to full minpaku management services once you’re licensed.

Even if you’ve never gone through this process before, we’ll guide you carefully from your very first consultation. We can accompany you to preliminary meetings with the health center, help prepare your documents, and introduce you to renovation contractors—supporting you through the entire journey to obtaining your permit. Even if you’re not sure where to start, feel free to reach out to us at any stage.

Once you’re licensed, we also offer full-service management plans covering everything from OTA listings and reservation management to guest support and cleaning arrangements. We’ll work alongside you to build a system that minimizes your workload as an owner while maximizing stable, reliable income.

Please don’t hesitate to reach out through our contact form. Just tell us about your property and the type of operation you’re envisioning, and we’ll come back to you with a concrete proposal. Stay Buddy Co., Ltd. is fully committed to supporting property owners at every stage—from securing your simple lodging permit to running a stable, successful minpaku business.