How to Choose a Management Company

When outsourcing is required

If either of the following applies, you must outsource to a registered minpaku management company.

• The host will be absent while guests are staying (excluding short absences such as daily shopping)
• The number of guest rooms in a single notified residence exceeds 5

→ Host-resident type and host-absent type

First, check the registration

Minpaku management businesses must be registered with the Minister of Land, Infrastructure, Transport and Tourism (renewed every 5 years). You can check whether a company is registered through the registers of each Regional Development Bureau, accessible from the Ministry of Land, Infrastructure, Transport and Tourism's "Register of Minpaku Management Companies" (住宅宿泊管理業者登録簿).

Note that booking sites such as Airbnb (registered booking platforms (minpaku intermediaries)) must be registered with the Commissioner of the Japan Tourism Agency (観光庁). The Japan Tourism Agency publishes a list of registered companies.

What the law requires

• A management company must provide written documents before and at the time of signing a contract
• Subcontracting all of the duties to another company is prohibited
• For complaints, going on site within 30 minutes as a rule (within 60 minutes depending on traffic conditions) is given as a guideline
• Exaggerated advertising and improper solicitation are also prohibited

Points to compare before signing

1. Scope of services: Whether it covers only the management duties set by law, or also booking management, rate adjustments, cleaning and guest communication
2. Breakdown of fees: How the management fee is calculated (a percentage of sales or a fixed amount), and what is charged separately, such as cleaning and linen fees
3. Support system: Until what time and in which languages they handle inquiries, and where their on-site response base is
4. Reporting: How often they report on sales, occupancy and reviews, and what the reports contain
5. Cleaning quality: Cleaning standards and how cleaning is checked
6. Contract term and cancellation: The notice period for cancellation, penalties, and how booking site accounts and reviews are handled

Check whether these points are written out specifically in the documents provided before signing. If you are dissatisfied with your current management company, we also explain how to review the arrangement on our management services page (Japanese).