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Converting a House into an Accommodation Facility – 2

If you plan to purchase a secondhand property in Japan and operate it as an accommodation business, you must, as explained in the previous article, register or submit a notification for the building under one of the permitted frameworks: a license under the Hotel Business Act, registration under the Private Lodging Business Act (minpaku), or approval as a Special Zone Private Lodging (Tokku Minpaku).
At the time of registration or notification, the building is also required to meet certain standards that ensure it is safe and comfortable for guests. As a result, in many cases some level of renovation is unavoidable.

Buildings that can be legally used as accommodation facilities are subject to a complex combination of laws. In addition to laws governing accommodation businesses—such as the Hotel Business Act, the Private Lodging Business Act, and the National Strategic Special Zones Act—other regulations, including the Building Standards Act and the Fire Service Act, also apply.

When renovating an existing building into an accommodation facility, the Building Standards Act is often the most problematic. In Japan, building standards are revised frequently, and as a result, many older properties fall into the category of nonconforming existing buildings—that is, buildings that do not comply with the current Building Standards Act.
Such buildings are not considered illegal as long as they complied with the building regulations in effect at the time they were constructed. However, if renovations or extensions exceeding a certain scale are carried out, a building confirmation application is required. In that case, the building must be upgraded to meet current building standards.

Bringing an older building up to modern standards can be extremely costly. In many cases, structural reinforcement from the foundation level may be necessary, and it is not uncommon for renovation costs to become substantial. If you have a generous budget, upgrading the building to fully comply with current standards—while improving seismic resistance and thermal performance—can be a valid option. However, if your budget is limited, it is often wiser to choose a property that can be renovated without triggering the need for a building confirmation application.

For a more detailed explanation of building confirmation applications, please refer to my previous article: Impact of Japanese Building Code Revisions from April 2025 on Renovation.

When converting an existing property into accommodation, the first step is to determine how much space will be offered for lodging and in what form. Based on this decision, you then choose which type of license to obtain from among the operational categories introduced in the previous article—Hotel/Ryokan operation, Simple Lodging, Boarding House, Private Lodging Business, or Special Zone Private Lodging—and develop your renovation plan accordingly.

While the specific renovation requirements vary depending on the license type, the key considerations generally include:
the floor area of guest rooms; the presence and size of windows, as well as daylighting and ventilation; water-related facilities such as toilets, bathrooms, washbasins, and kitchens; electrical systems; and fire-resistance measures and fire safety equipment such as fire alarms.

Guest Rooms

As discussed in the previous article, the minimum floor area of guest rooms and the size of windows are strictly regulated, and accommodation facilities that fail to meet these standards are not permitted to operate.

Many older Japanese houses are divided by lightweight, movable sliding doors such as fusuma or shoji. Because of this, they often lack fully enclosed private rooms. As a result, it may be necessary to install new partition walls or doors with locks to ensure guest privacy.

One simple approach is to fix existing sliding doors in place with nails or screws and treat them as walls. However, this method provides little sound insulation, allowing noise to pass easily between rooms, and may also give guests a sense of insecurity.

Older Japanese houses generally have poor soundproofing, and noise-related complaints are common. Creating comfortable, private guest rooms therefore often requires substantial investment in proper soundproofing work. For this reason, many operators who convert a detached house into an accommodation facility choose to rent out the entire house to a single group, thereby avoiding issues related to noise leakage and conflicts between guests.

In traditional Japanese houses, rooms were divided as needed using sliding doors such as shoji and fusuma. On occasions when many people gathered—such as weddings, funerals, or local festivals—these sliding doors were removed to create one large, open space. As a result, rooms in Japanese houses are often directly connected without a hallway in between, and it is not uncommon to pass through one room to reach another. When renovating such traditional layouts into modern plans with clearly separated private rooms, while still preserving the distinctive elements and beauty of Japanese architecture, designing an appropriate renovation plan can be particularly challenging.

Water-Related Facilities

Facilities such as toilets, bathrooms, washbasins, and kitchens can often be reused without major modifications. However, some older houses do not have a bathroom at all, in which case a new one must be installed.
In addition, depending on the type of operation and guidance from local authorities, it may be necessary to separate water facilities used by guests from those used by residents. In such cases, existing facilities must be clearly divided, or additional guest-only facilities must be installed.

Problems with water-related facilities are a frequent source of complaints. If the facilities are outdated or unhygienic, or if the number of toilets, showers, or washbasins is insufficient for the number of guests, it is advisable to consider renovation or expansion.

Electrical Systems

In older houses, circuit breakers and wiring may have exceeded their service life, or the electrical capacity may be insufficient to operate multiple high-power appliances—such as air conditioners and hair dryers—at the same time. To avoid trouble, it is important to check in advance whether electrical upgrades are necessary.

If multiple guest rooms are rented out, it is also advisable to separate electrical circuits for each room. Older houses often have poorly located switches and a limited number of outlets, so upgrades in these areas should also be considered when converting the property into accommodation.

As this relates to fire safety systems discussed below, the power supply for fire alarms and emergency lighting must be separated from standard electrical circuits. Depending on the required fire safety equipment, additional electrical work may be needed to provide dedicated power sources.

Please note that if you do not hold a Japanese electrician’s license, you are not permitted to carry out electrical work yourself.

Fire-Resistance Measures and Fire Safety Equipment

The level of fire safety equipment required for an accommodation facility varies depending on its size and operational category. Large-scale facilities such as hotels are subject to strict fire safety requirements, while private lodging businesses may be allowed to operate with relatively simple systems. In some cases, these may even be installable without hiring specialized contractors.

The appropriate level of fire safety equipment depends on factors such as the size of the facility, the number of rooms, the layout, and the scope of renovation. It is therefore advisable to consult the local fire department before starting construction, once these details have been determined.

The placement and type of fire safety equipment also depend on room layouts and usage. If you change the floor plan or room usage after installing fire alarms or emergency lights, you may be required to resubmit applications or redo fire safety work, so careful planning is essential.

In some cases, fire alarms must also be installed in ceiling cavities or attic spaces. During renovation, it is therefore wise to ensure that sufficient space and inspection openings are provided for installing and maintaining such equipment.

In addition, during the final inspection by the fire department, items such as curtains used in guest rooms will be checked to confirm that they meet flame-retardant standards. When consulting with the authorities in advance, be sure to confirm which fixtures and furnishings must be fire-resistant and what kinds of inspections will be conducted.

Other Facilities

If you operate under a Hotel or Ryokan license, front desk facilities are required. If overnight staff are present, a dedicated staff room will also be necessary.
Another point that is often overlooked is the need for operational spaces used by staff rather than guests—such as storage for spare bedding and linens, cleaning equipment, and areas for drying laundry. This is particularly important in urban areas of Japan, where houses tend to be small and storage space is often limited.

Explaining every individual renovation method in detail would require an extensive series of articles, so this piece has focused on a broad overview. When considering the purchase and renovation of an existing property in Japan for use as an accommodation facility, keeping these points in mind will be helpful. For specific requirements, it is strongly recommended to make decisions in consultation with local government offices, fire departments, and construction professionals.

Finally, accommodation businesses are prone to conflicts with neighboring residents. Taking the time to greet neighbors, introduce yourself, and show consideration during both construction and daily operations is essential for building and maintaining good relationships with the local community.