Peer-to-peer accommodation rentals (Minpaku in Japanese) have expanded exponentially in Japan in recent years. This type of accommodation is expected to ease the shortage of accommodations in Japan, which has resulted from a sharp increase in the number of inbound tourists. In 2018, the Japanese government officially acknowledged the legal right of peer-to-peer accommodation rentals, subject to certain conditions, with the aim to encourage the sound development of this sector; however, its ensuing expansion is also generating conflict in Japan because a substantial number of the accommodation units are located in local residential areas. This chapter first provides an overview of the current peer-to-peer accommodation rental market in Japan and then discusses the issues and challenges facing contemporary Japanese society with a particular focus on Kyoto.