Is Minpaku and Ryokan Business Possible in Koto Ward? Summary of the Mandatory Residency from July 2026 and Weekend-only Minpaku Regulations
In Koto Ward, a revised ordinance on ryokan business (simple lodging) will be enforced from July 1, 2026, changing the operational requirements for simple lodging establishments. The previously permitted "system where staff can arrive on foot within 10 minutes + key box" operation will no longer be allowed, and staff residency during business hours will be required.
Regarding the new minpaku law (Residential Accommodation Business Law: 住宅宿泊事業法, minpaku shinpō), the ward’s additional ordinance restricts operations to weekends only. Operating unmanned accommodations to capture weekday demand has thus become difficult under either system in Koto Ward.
Koto Ward is not designated as a National Strategic Special Zone for minpaku, so only two systems can be selected: ryokan business (simple lodging) and the minpaku new law. Below, we organize what changed with the revision, how to proceed with signage and explanatory meetings before application, and how many days of operation the minpaku law allows.
The regulatory information in this article is organized based on confirmation with the public health center and publicly available ward materials (as of July 2026).
Quick Reference Table of Minpaku and Ryokan Business Regulations in Koto Ward
| Category | Item | Details |
|---|---|---|
| Ryokan Business (Simple Lodging) | Front Desk (Entrance Reception) | None |
| On-Call Requirement | Residency (from July 2026) | |
| Notification to Neighbors | Explanatory Meeting | |
| Key Handover | Direct face-to-face | |
| Minpaku New Law (Residential Accommodation Business) | Ward Additional Ordinance | Operation allowed weekends only |
Changes Brought by the Ordinance Revision Effective July 2026
The revised ordinance proposal was submitted to the ward council in March 2026 (Reiwa 8), and came into effect on July 1, 2026. According to confirmation with the public health center, before July 1, a system where staff could arrive on foot within 10 minutes and keys could be handed over via a key box was permitted. After enforcement, this “on-call” operation does not meet permission requirements.
| Item | Until June 2026 | From July 1, 2026 |
|---|---|---|
| Operational System | On-call within 10 minutes on foot | Staff residency |
| Key Handover | Key box allowed | Direct face-to-face with guests |
Installation of a front desk itself is not required. However, since resident staff must hand over keys and verify guests, a waiting and handover location somewhere within the facility is necessary. This reduces the usable room area and adds staff labor costs to fixed monthly expenses, which is not much different from wards that require a mandatory front desk.
Whether a grace period applies to existing permitted facilities is not confirmed in our research. If you purchase or take over operation of an existing simple lodging, please check with the public health center whether residency requirements apply to that facility.
Pre-Application Steps for Ryokan Business (Simple Lodging): Signage and Explanatory Meeting
Ryokan business requires permission, with no limit on the number of operating days per year. Koto Ward requires an explanatory meeting as neighbor notification, and prior to that, signage must be installed on the property site. The signage requirements from ward materials are as follows:
- Size: at least 60 cm tall and 60 cm wide
- Installation height: about 1 m from the ground to the bottom edge of the sign
- Posting period: from 15 days before the date of the business permit application until the permission is granted
- Relation to explanatory meeting: signage must be installed and notification documents delivered to related residents at least 5 days before the meeting
- Signage Installation Report: submit within 7 days after installation, attaching a location map, a map showing the signage location, and distant and close-up photos of each sign
- Change Report: submit if the signage content is changed
In terms of schedule, starting from signage installation and distribution of meeting notifications, allow at least 5 days to hold the explanatory meeting, and then at least 15 days from installation until permission application. Since signage must remain posted until permission is granted, it is best to place it where it is visible from the road and will not interfere with construction or deliveries to avoid having to relocate it.
At the explanatory meeting, residents will ask about concerns such as noise, garbage, and emergency contact information. Preparing documented answers in advance helps keep the explanation consistent on the day.
Minpaku New Law (Residential Accommodation Business) Limited to Weekends
The minpaku new law is notification-based, with a nationwide limit of 180 days per year. Koto Ward’s additional ordinance restricts operation to weekends only. Counting 52 weeks in a year, the number of allowable operating days is about 104 days, which is less than 60% of the nationwide limit.
For owner-absent properties where the host does not live in the property, management must be entrusted to a Residential Accommodation Manager (住宅宿泊管理業者). Given fewer operating days, fixed costs such as management fees and rent become proportionally higher per night.
| System | Allowed Operation Days | Annual Estimate | Operational Premise |
|---|---|---|---|
| Ryokan Business (Simple Lodging) | Every day | 365 days | Residency, key handover face-to-face |
| Minpaku New Law | Weekends only | About 104 days (52 weeks × 2 days) | Owner-absent type requires delegation to management company |
It is unclear from the ordinance wording whether national holidays or year-end/new year days falling on weekdays are included as allowed operation days. Profit and loss should be estimated based on weekends only, and the applicable areas and exact counting of “weekends” should be confirmed with the ward’s responsible department before notification.
Koto Ward Property Market Prices (August 2026)
| Indicator | Koto Ward | Rank Among 23 Wards |
|---|---|---|
| Listed Detached House Price (Median) | 82.3 million yen (67 listings, total floor area 87㎡) | 11th highest / 21 wards |
| Rental Detached House Asking Rent (Median) | 160,000 yen/month (43 listings, 51㎡) | 19th highest / 21 wards |
| Whole Building Income Property Gross Yield (Median) | 4.7% (79 listings) | 13th highest / 23 wards |
Source: Urbalytics Market Report (Koto Ward). Medians of properties listed or for rent as of August 2026. Indicators with fewer than 10 listings are not shown.
Koto Ward’s rental detached house asking rents are on the lower side among the 23 wards, and the listed rental properties tend to be smaller in size. If subleasing for minpaku, rent as a fixed cost is easier to control, but detached houses large enough to accommodate groups are hard to find. Listed detached house prices are mid-range among the 23 wards, so acquisition costs for whole-building rental are less heavy than central wards.
The gross yield on whole-building income properties is also mid-ranked. Whether lodging business offers incremental revenue compared to ordinary rental is important, but the mandatory staff residency for ryokan business and the weekend-only operation for minpaku law both reduce profitability.
Which System to Choose
If the property can accommodate multiple guest rooms, employing a residential staffing system under the ryokan business can spread labor costs across rooms and make balancing profitability easier. For single detached houses rented out whole, absorbing residential staff labor costs is difficult; the minpaku law with weekend-limited demand may be the preferred option.
If choosing ryokan business, first check the zoning. Ryokan and hotels are generally not permitted in exclusively residential zones (First and Second Low-Rise Exclusive Residential Zones, First and Second Medium- to High-Rise Exclusive Residential Zones, Deneen Residential Zone) or industrial zones and exclusive industrial zones; in First-Class Residential Zones, they are limited to 3,000㎡ or less. Converting residential housing requires considering change of use permission and compliance with Building Standards Act and Fire Service Act.
Checkpoints When Considering Properties in Koto Ward
- If acquiring or succeeding an existing simple lodging, confirm with the public health center whether the mandatory residency requirement applies after July 2026
- Check floor plans to ensure space for resident staff waiting and face-to-face key handover
- Confirm there is a place to post signage at least 60 cm by 60 cm, about 1 m above ground, to remain until permission is granted
- Plan a schedule assuming 15 days between signage installation and application, and at least 5 days between signage installation and explanatory meeting, from property handover to business start
- If considering the minpaku law, estimate whether management fees and rent for about 104 weekend days can be covered
- For condominium units, confirm management rules; for rental properties, obtain written landlord consent for subleasing and use
With the new requirement for residency and face-to-face key handover, profitability in Koto Ward’s simple lodging depends greatly on who operates it. Operation systems including staffing arrangements are introduced on our Minpaku Operation Agency page.
Frequently Asked Questions
Can unmanned simple lodging with key boxes be operated in Koto Ward?
After the amended ordinance enforcement on July 1, 2026, residency and direct face-to-face key handover to guests are required, so unmanned operation using key boxes is not allowed. Before enforcement, on-call within 10 minutes and key box handover were permitted.
Do facilities permitted before July also require residency?
Whether a grace period applies to existing facilities is not confirmed in our research. Please check directly with the public health center with the facility’s permission number and date.
Can minpaku new law operations be conducted on weekdays in Koto Ward?
According to our summary, the ward’s additional ordinance restricts operation to weekends only. If you wish to operate on weekdays as well, you will have to consider obtaining permission under ryokan business (simple lodging) with a residential staffing system.
Contact Information and Reference Materials
- Reference: Koto Ward Public Materials
Compare with Other Wards
- List of Minpaku and Ryokan Business Regulations in Tokyo 23 Wards
- Minpaku and Ryokan Business Regulations in Sumida Ward
- Minpaku and Ryokan Business Regulations in Shinagawa Ward
Ordinances and operations may change due to revisions or public health center decisions. Please consult the relevant public health center before acquiring properties or applying.
Featured image: MaedaAkihiko / Wikimedia Commons (CC BY-SA 4.0, cropped)
About this article
- Author
- Xingkai Luo（New Business）
A business development specialist with over 10 years of experience in urban real estate development and infrastructure investment. At Alibaba and Honeywell, he led large-scale redevelopment projects for major Chinese state-owned transportation operators and oversaw the implementation of smart building solutions. He is deeply familiar with the full development value chain, from due diligence, land acquisition, and structuring through post-completion asset management. At TLL, he leads new business development and project formation for overseas investors, advancing hotel, residential, and mixed-use developments.
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- TLL合同会社宅地建物取引業 東京都知事(1)第108202号住宅宿泊管理業 国土交通大臣(01)第F03424号
Data in this article cite their source and as-of date. Market conditions and regulations change, so check the latest information and consult a professional before deciding. Translated from the Japanese original.
