Japan's short-term home rental market shows promise
Growing tourism industry, cheaper yen and plenty of vacant homes boost sentiment but the sector faces strict regulatory controls
Japan seems to have the right mix for developing a vibrant short-term home rental market: a rapidly growing tourism industry, a cheap currency and - unlike many countries - eight million vacant homes.
Adding to the attractive business case is a reform-minded national government keen to loosen regulatory curbs and develop the market ahead of the Tokyo Olympics in 2020.
And despite some obstacles from regional governments, home rental website Airbnb has listed thousands of properties in the hope of drawing tourist money, and others hope to follow.
"Tourists coming to Japan are on the rise, and there's definitely the need for this type of service," said Takashi Sagara, a manager at real estate agency Able, which plans to connect homeowners with an Airbnb-style service.
Business hopes have been fuelled in no small measure by Prime Minister Shinzo Abe's push to cut red tape as part of his policies to jump-start the nation's long-stagnant economy.
While renting properties for long-term accommodation is legal, current rules on short-term rentals are strict: owners cannot legally let their homes without a licence, hotel-style reception desks and minimum room sizes.
Abe has proposed to relax these curbs. Along with looser visa rules and a substantially weaker yen, the move promises to add to the explosive growth in tourist arrivals and boost broader economic activity.