Japan already has strict regulations in place for AirBnB-style vacation rentals by owner (VRBO). None more so than Kyoto City. Now comes word that the city may crank that up to 11 as tourists continue to piss off residents who say they’re tired of loud parties. One of the policy changes on the table includes banning vacation rentals from certain residential areas entirely.
264 complaints across 1,088 properties
Vacation rentals have been strictly regulated since 2018, when Japan revised the lodging law to give cities more power to regulate VRBO. Cities can zone vacation rentals to specific areas and also determine their days of operation.
Kyoto City already has some of the strictest regulations. In general, a VRBO in Japan can’t operate more than 180 days out of the year. (The exception is the seven special “designated rental” areas, such as Tokyo’s Ōta City, where rentals are permitted year-round.)
In dedicated residential neighborhoods of Kyoto City, however, they’re restricted to operating only during a two-month period between January 15th and March 15th. In addition, owners must live at the property or within a 10-minute walk so they can respond to issues quickly.
The strict regulations mean that Kyoto City is home to only around 1,088 of the country’s 25K+ VRBO properties. However, in 2025, the city received 264 complaints from residents about vacation rentals. Most centered around noise and improper disposal of garbage.
That’s led Kyoto City to consider tightening regulations even further. Mayor Matsui Kōji won’t rule out designating certain areas as “zero-day rental” areas, meaning property owners wouldn’t be able to rent out homes or apartments in those zones at all.
Matsui stressed that the city recognizes banning vacation rentals outright would just mean that traffic ends up at other properties, such as bed and breakfasts. In response, Matsui says the city will consider regulating all such businesses uniformly, which might require changes to the city’s zoning laws.
Matsui emphasized he’s not seeking to regulate rentals out of business. He would prefer to see “rental businesses that are accepted by the community.” In other words, he wants to see vacation rental owners keep their deranged guests under control.
Foreigners travel, Japanese stay home
The growth of vacation rentals reflects the changing face of travel within Japan.
The Japan Tourism Agency reported last month that, while inbound traveler stays at lodging facilities were up 8.2%, the number of Japanese staying overnight in hotels shrank by 3.8%. As hotel prices keep rising, Japanese domestic travelers – who are struggling with stagnant wages and a weak yen – are opting to stay home.
The increasing demand makes vacation rentals a lucrative business. Many foreign travelers would rather stay in a residential neighborhood so they can get a taste of daily life in Japan.
However, that’s leading to increasing conflicts between people in Japan who are here to have fun on vacation and residents who have to get up and go to work in the morning. Noise complaints are the number one source of trouble, with some tourists partying well past 10 pm and keeping others from getting a good night’s sleep.
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It’s unclear what steps Kyoto will take next. The city, which is already struggling on multiple fronts with overtourism, can ill afford to create fewer spaces for people to stay. Any regulation will have to balance accommodating a growing number of inbound tourists with residents’ needs.
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京都市、民泊の営業「0日規制」案も 観光公害で「地域が崩壊する」. Asahi Shimbun
特区民泊とは？どんな民泊オーナーが向いているか解説. AirHost
京都市内において、いわゆる「民泊」の実施を検討されている方へ. Kyoto City Official Website
京都市が民泊の規制強化へ、市長「観光と市民生活を両立させる」…立地や営業日数を厳格化. Yomiuri Shimbun
25年宿泊、30都府県で減少 宿泊費高騰、旅行控え響く. Kyodo News
