On a quiet backstreet, this excellent choice combines an old Japanese-style house (where guests have breakfast) and a new build behind it housing fabulous capsule-style beds with paper-screen doors and windows, three private rooms, and a shared kitchen/lounge with Fuji views. The English-speaking owner also has bicycles to rent.
You need to pay in cash for your stay to qualify for the included breakfast (Japanese-style or fresh waffles).