[AFP]
[AFP]

Luxury high-rise apartment buildings in central Tokyo — known as "tower mansions" — have repeatedly been found operating as unlicensed lodging facilities. Operators recruit tourists through Chinese social media and handle bookings and payments via separate messaging apps. Some units charge more than 100,000 yen ($632) per night, on par with upscale hotels.

According to the Nikkei Shimbun, multiple luxury tower mansions in Tokyo's Minato-ku have been found running what appear to be unlicensed short-term rentals. The buildings are registered as ordinary residential properties, and some have management rules that explicitly prohibit short-term lodging.

Analysts say the surge in foreign tourist demand for accommodation has prompted some owners of high-end city apartments to pursue short-term rental income.

A 38th-floor unit in a 45-story tower mansion in Minato-ku recently appeared on the Chinese social media platform Xiaohongshu as a short-term rental listing.

The post featured interior photos of an approximately 80-square-meter, three-bedroom unit, describing sweeping views and a three-minute walk to the nearest subway station. It also highlighted nearby convenience stores and supermarkets.

When Nikkei reporters contacted the listing's poster, they were initially quoted 90,000 yen per night. As the conversation continued, the rate climbed to 120,000 yen.

The minimum stay was three nights. With an additional 20,000-yen cleaning fee, the total came to 380,000 yen — about 3.2 million won ($2,390).

A check of property registry records showed the unit was owned by a real estate brokerage and short-term rental company based in Tokyo's Chiyoda-ku.

The company said it had purchased the apartment as an investment and planned to sell it in the future. It denied allegations that it was operating a short-term rental in the building.

A similar case was found in a 32-story tower mansion also in Minato-ku.

Nikkei reporters booked a 23rd-floor unit directly through a lodging advertisement on Xiaohongshu. The roughly 60-square-meter space had four beds and two sets of bedding, accommodating up to six guests.

The rate was 104,000 yen for two nights. During the booking process, communication shifted to the Chinese messaging app WeChat, and reporters paid a 50,000-yen deposit followed by a 54,000-yen balance through the Japanese mobile payment service PayPay.

On check-in day, a man waited at the building's front entrance and led the reporters in through a back door. Once inside the unit, he told them to leave the key on the table when they checked out.

The building did not appear on Minato-ku's published list of registered lodging facilities, and the apartment's management rules also prohibited short-term rentals.

Even when guests are clearly coming and going, proving that a commercial operation is taking place is difficult.

Minato-ku's public health office said it had received inquiries from the apartment's management company about suspected unlicensed rentals but had been unable to secure conclusive evidence.

When operators recruit guests through foreign-language social media, take reservations via messaging apps and collect payments through mobile platforms, authorities find it nearly impossible to trace the transactions.

Officials also noted that if guests say they are simply staying at a friend's home when asked about their visit, further investigation becomes difficult.

Proving an unlicensed operation requires obtaining evidence of actual stays, financial transactions, online advertisements and records of booking communications.

Cases where the unit owner and the actual operator are different people add another layer of complexity. The owner of the unit Nikkei stayed in said a tenant may have been running the rental without permission. A person linked to the payment account also denied operating a short-term rental.

Under Japanese law, anyone wishing to operate a home as a lodging facility must either file a notification or obtain a lodging business license.

Rentals registered under the Private Lodging Business Act must be reported to local governments and are capped at 180 operating days per year. If a building's management rules prohibit short-term rentals, operating one there is not permitted.

Minato-ku said it is continuing to investigate and crack down on unlicensed lodging facilities while also reviewing amendments to local ordinances to tighten related regulations.

Complaints about short-term rentals in Tokyo are also rising sharply.

Shinjuku-ku, which has the highest concentration of short-term rental properties in Tokyo, recorded 410 complaints related to unlicensed rentals in fiscal year 2025 — up about 77.5 percent from 231 the previous year.

Complaints about registered rental facilities also rose over the same period, from 561 to 924, with noise, improper waste disposal and smoking cited as the main issues.

In September, Shinjuku-ku announced plans to effectively ban short-term rentals in residential-only zones and areas near schools.

The growth in unlicensed rentals is being driven by strong lodging demand in Tokyo. According to Tokyo Metropolitan Government data, the average nightly rate at short-term and budget lodging facilities in the city reached 9,837 yen in 2024 — about 60 percent higher than five years earlier. Some higher-priced facilities now charge more than ordinary hotels or traditional ryokan inns.

Families and group tourists sometimes prefer renting a single apartment with bedrooms, a living room and a kitchen rather than booking multiple hotel rooms.

Observers also note that the tight security systems and low levels of interaction among residents typical of tower mansions make it harder to detect illegal operations. In July, Tokyo police raided an illegal poker gambling den operating inside a tower mansion unit in Shinjuku-ku and arrested seven people — a case that exploited the buildings' outward appearance as ordinary residences.

Experts warn that enforcement loses its deterrent effect when the profits from illegal operations exceed the fines imposed if caught.

Suzuki Takahiro, a lawyer specializing in short-term rental issues, told Nikkei that penalty caps need to be raised and that tougher punishment is needed for corporations running organized unlicensed operations.

As rising lodging demand in Tokyo collides with the commercial use of residential properties, violations of both apartment management rules and short-term rental laws are multiplying. Local governments are stepping up regulations to protect residents' living environment and shut down unlicensed lodging operations.


rainbow@heraldcorp.com