The Hidden Threat of Illegal Short-Term Rentals in Tokyo: A Growing Risk to Communities and Investors
Based on reporting by The Sankei Shimbun (June 24, 2025)
Tokyo is facing a serious and growing problem: illegal short-term rentals operating under the radar of authorities. According to a June 24 article by The Sankei Shimbun, violations of Japan’s lodging laws are rampant in the capital, with properties being used as “minpaku” (private lodgings) without proper registration, or exceeding the legal 180-day cap for annual use.
Many of these units are not only non-compliant but also fail to meet fire safety, building code, or zoning regulations. Despite the legal framework, local authorities struggle to enforce the rules due to limited resources.
Residents have reported increased disturbances—noise, trash, strangers entering and exiting buildings late at night. These are not isolated incidents. In one case cited by The Sankei Shimbun, an elderly resident in Tokyo’s Itabashi Ward was effectively forced out of her apartment after a Chinese landlord stopped the elevator service and raised the rent. Shortly after, the unit was advertised as a short-term rental.
Another notable case involves Harumi Flag, the redeveloped Olympic Village, where entire blocks are reportedly being rented out illegally by groups linked to Chinese operators. In many such cases, the underlying motivation appears to be profit-driven exploitation of Japan’s legal loopholes, often without regard for resident safety or building integrity.
While nationality should not be the primary focus, the article rightly raises concerns that many of these violations involve Chinese property owners or intermediaries. Cultural differences in legal compliance and a profit-first mindset may be contributing to repeated abuses of Japan’s relatively lenient enforcement environment.
This is more than a public nuisance—it is a reputational and financial risk. For investors and property managers, illegal rentals reduce long-term value, increase liability exposure, and threaten the livability of residential assets. Responsible ownership is not only a legal obligation, but a strategic necessity in maintaining asset performance and protecting community trust.
If you suspect an illegal short-term rental in your neighborhood, report it to your local authorities. For building owners and management associations, we recommend revisiting internal bylaws, tightening enforcement procedures, and proactively communicating with residents.
At Yamamoto Property Advisory, we work only with investors who understand the importance of regulatory compliance and long-term stewardship. We believe that preserving neighborhood quality is essential for sustainable real estate investment—and ultimately for the integrity of Tokyo’s housing market.
Tokyo should remain a place where people can live—and invest—with confidence and peace of mind. Let us each do our part in protecting that future.
Whether you are looking to acquire a safe, high-quality property in Tokyo—or sell one with confidence—please feel free to contact us.
We are here to assist you with honest advice, deep market knowledge, and professional execution.
Let us help you invest—and live—with peace of mind in Tokyo’s most trusted neighborhoods.
Source: Sankei Shimbun
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Toshihiko Yamamoto is the founder and principal broker of Yamamoto Property Advisory, a distinguished real estate brokerage in Tokyo that specializes in luxury residential and investment properties for an international clientele. His firm caters to discerning investors seeking premier properties for personal use and income-generating whole buildings for investment purposes.A licensed realestate broker in Japan, Mr. Yamamotoholds an MBA from Bond University in Australiaand a Certified Commercial Investment Member (CCIM) designation from the CCIM Institute in the United States. His extensive international experience, having lived abroad in Australia and the United Kingdom, equips him with a nuanced understanding of global real estate trends and the unique needs of foreign investors.With over two decades of experience in international business, Mr. Yamamoto has successfully conducted business with clients from more than 20 countries. As a seasoned property investor himself, he provides informed guidance to his clients as they navigate the intricacies of the Japanese real estate market to secure optimal investments.Discover more in his book, “The Savvy Foreign Investor’s Guide to Japanese Properties: How to Expertly Buy, Manage, and Sell Real Estate in Japan,” available on Amazon, iBooks, and Google Play.Connect with us through social media on Instagram, WhatsApp, and LINE for further information and expert assistance.
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