Ryokan License (hotel/ryokan business license)

The hotel and ryokan business law covers hotels, ryokan, and the simple-lodging (kani shukusho) category most residential STR investors actually pursue. The prize is no operating-day cap, so you can run 365 nights a year. The price is real: minimum floor area and ceiling height, fire alarms, emergency lighting, sanitation and ventilation standards, and a public health center (hokenjo) inspection that gates everything. Above all, the property must sit in a zone where commercial lodging is permitted, which excludes many quiet residential neighborhoods and almost all condo units. The building decides eligibility more than your preference does. Budget 6-12 months and often several million yen in renovation, a Japanese entity to hold the license, and 20-25 percent of gross to a manager if you run remotely.