Transforming Akiya(unused house) into a Hotel?: Navigating the Legal Maze for a Successful Investment

 

Contemplating Purchasing

Akiya and Turning It into a Hotel?

Uncover the Legal Considerations

for Change of Use

 

If you’re mulling over the idea of buying an Akiya (unused house) in Japan

 

and converting it into a hotel, it’s crucial to familiarize yourself

 

with the legal considerations involved in modifying the property’s purpose.

 

In this blog post, we’ll highlight the primary aspects you need to

 

keep in mind before diving into this thrilling endeavor.

 

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First and foremost, if you’re planning to start a hotel business in Japan,

 

you must obtain a hotel license from the government.

 

While the process of acquiring a hotel license can be quite complex,

 

in this article, we will primarily focus on the construction law aspects

 

of getting your property licensed.

 

 

Even if the current business has a hotel permit,

 

a new one must be obtained when the operator changes.

 

Previously, business permits were granted solely by the health center’s discretion,

 

but now, they are subject to inquiries from the architectural review department and the fire department,

 

ensuring compliance with building and fire codes.

 

In other words, permits were previously granted to illegal buildings, but not anymore.

 

 

 

If the change of use involves an area exceeding 200 square meters, a confirmation application,

 

similar to new construction, is required.

 

In older buildings, it is common for the confirmation application to

 

be submitted but not followed by a completion inspection.

 

The completion inspection results in the issuance of

 

a “construction completion inspection certificate,” also known as “Kensa-zumi.” (検済み）

 

Without this, changing the building’s use becomes difficult.

 

If you are unsure whether a completion inspection has been done,

 

you can request a “ledger entry certificate” from your local municipal building department

 

or inquire about the completion inspection status.

 

There are precautions to be taken when changing the building’s use

 

with a completed inspection certificate.

 

 

Changing the Use of Detached Houses and Apartment Buildings:

 

Until now, hotel use on the third floor required fire-resistant construction.

 

However, with the revision and enforcement of the Building Standards Act in June 2019,

 

it became possible for semi-fire-resistant buildings as well.

 

 

This opened up the possibility for many three-story wooden houses to change their use to inns.

 

 

Apartment buildings can be built in educational districts, but accommodation facilities cannot.

 

The same applies to residential-only areas.　(zoning)

 

Although the floor area ratio for shared spaces in apartment buildings is relaxed,

 

it does not apply to accommodation facilities, which can result in an increased floor area ratio

 

and prevent changes in use due to exceeding the limit.

 

 

Under current regulations, the floor area of elevator shafts is relaxed,

 

so a combined floor area ratio check is necessary.

 

When changing a part of a building into an accommodation facility,

 

the entire building becomes a mixed-use facility under

 

the Fire Service Act if the floor area exceeds 10% or 300 square meters.

 

This may require the installation of fire protection equipment,

 

such as automatic fire alarms, in areas not subject to the change of use.

 

Stair dimensions vary depending on the building’s use.

 

Detached houses and row houses have the most relaxed requirements,

 

while hotels have stricter ones. If the stairs do not meet hotel standards,

 

a confirmation application may be required when more than half of the stairs are altered.

 

For those considering changing the use of a detached house to special-purpose buildings

 

* such as accommodation facilities or child welfare facilities, please pay attention to the following points

 

and carry out necessary procedures and renovations:

 

(Otherwise, you can not obtain a hotel license and if you register such property on Airbnb, it is an illegal act)

 

Due to the amendment of the Building Standards Act in 2018,

 

the process of obtaining building confirmation is no longer required

 

when changing the use of small-scale buildings

 

under 200 square meters to special-purpose buildings

 

*. However, even if the building confirmation process is not required,

 

compliance with the Building Standards Act and Fire Service Act is still necessary.

 

As different regulations apply to residential buildings and special-purpose buildings

 

*, depending on the situation, renovations to comply with the law may be necessary.

 

If you use a building that does not comply with the law, it may be treated

 

as an illegal building and subject to administrative guidance.

 

 

Please refer to the main newly applied regulations and renovation

 

examples on the back of this document,

 

and cooperate in efforts to prevent the occurrence of illegal buildings

 

by making necessary renovations as needed.

 

 

For more information, please consult an architect.

 

Special-purpose buildings

 

*: Buildings specified in Appendix 1 of the Building Standards Act

 

(such schools, hospitals, theaters, inns, hotels, dormitories, automobile repair shops, etc.).