Home   >   Money   >   License now required for people renting out properties to people through an online marketplace.

License now required for people renting out properties to people through an online marketplace.

By on June 1, 2017

When you rent out your property or motor vehicle to visitors through an online marketplace, there is a risk owners have to take in case occupants cause some damage to the rented property. Occupants too can be subjected to unfair rent conditions by unscrupulous property owners.

Well, that’s all going to change and it starts this month.

Japan is introducing a ‘sharing economy’ this month between public and private sectors to protect the interests of  both operators and consumers. Starting this month, Japan will be licensing property owners renting out their properties to visitors known as ‘minpaku’ and such personal transactions will be classified under the business category. The new arrangement will adhere to guidelines from the government and will cover anything from renting out a private room, expensive handbags and jewelries to motor vehicles, among others.

Owners will be required to register with the Sharing Economy Association, Japan (Sharing Economy Kyokai), a group of six companies, in order to do proper business in Japan. They will have to fulfill conditions from creating a help desk for customers to obtaining certifications valid for three years, to avoid an infraction.

Newly licensed operators will take insurance coverage with discounts on premium up to about 60% through Sompo Japan Nipponkoa Insurance, a company specializing in these types of business.

About Ted Tanaka