Osaka City Proposes New Restrictions on Special Zone Minpaku: What Investors Need to Know
Osaka City is preparing new rules to limit the rapid increase of minpaku, or short-term private rentals. These changes aim to control the sharp rise in rental properties, especially in areas known as special zones where regulations are more relaxed.
As of summer 2025, there are about 6,300 special zone minpaku properties in Osaka. This represents 95 percent of the national total. With tourism recovering, applications for new rentals have surged. The city’s review system is under pressure, and complaints from residents are increasing.
In response, both the mayor and the governor are now considering a temporary freeze on all new applications. This discussion is taking place at the highest level of city government.
Why Osaka Is Taking Action
The main concern is the impact of minpaku on the daily lives of local residents. Common issues include:
- Loud noise from guests
- Poor handling of trash
- Unlicensed short-term stays
These problems have become more serious over time. In 2021, the city received 88 complaints. By 2024, that number had risen to over 400. City officials now see this not only as a tourism issue but also as a challenge to the quality of life in local communities. Some form of regulation is now considered necessary.
What the City Is Proposing
Several key changes are currently being discussed:
①Temporary Freeze on New Applications
A complete stop to new minpaku applications could be officially announced by September 2025. Once this takes effect, no new applications will be accepted for a certain period.
②Stricter Zoning Rules
The city plans to limit where minpaku businesses can operate. In the past, residential areas were often allowed to host minpaku, but this may soon change.
③Stronger Rules for Operators
New requirements may include:
- Setting up systems to handle guest complaints
- Posting emergency contact details at each property
- Following clearer rules, with stronger penalties for violations
Operators who fail to report closures properly may also face official action.
What This Means for Existing Operators
At first, these changes may seem to only affect new applicants. However, current minpaku operators will also feel the effects. They may face:
- Stricter management responsibilities
- Higher costs to meet new standards
- More oversight from city officials
Those operating in popular tourist areas could be monitored more closely. For investors, simply owning property will no longer be enough. Choosing a strong management company and maintaining a good relationship with the local community will be essential.
For New Investors, Time Is Running Out
If you are planning to enter the minpaku market in Osaka, now may be your last chance. While the freeze is not yet official, many people are already rushing to submit their applications.
Looking ahead, the city is expected to introduce tougher screening rules in the fall. These new rules may raise the cost and complexity of getting started.
To succeed, investors will need to focus on two key things:
- Submitting applications at the right time
- Building a strong and responsible operation for the future
A Trend That Could Spread Nationwide
What happens in Osaka may influence other cities across Japan. Tourism remains an important part of economic growth, but local governments also need to protect the quality of life in their communities.
These new rules should not be seen as a setback. Instead, they represent a shift toward a more stable and well-managed minpaku industry.
Final Thoughts for Investors
Osaka’s proposed changes mark an important moment for the minpaku market. Whether you are already running a rental business or planning to start one, now is the time to take a closer look at your strategy.
You will need to:
- Improve the way your properties are managed
- Strengthen your relationship with the community
- Prepare for a more mature and carefully regulated market
The period of rapid growth is coming to an end. The next phase will reward those who are ready to adapt and operate with care. A solid foundation now will lead to more stable and successful investments in the future.
