Authored by the expert who managed and guided the team behind the Chile Property Pack
Yes, the analysis of Santiago's property market is included in our pack
Airbnb in Santiago can generate impressive yields of 5-6% net for well-managed properties in prime tourist zones like Lastarria and Bellavista. However, success depends heavily on maintaining high occupancy rates, dynamic pricing strategies, and managing significant operating costs that can consume 25-40% of gross income.
The Chilean capital's short-term rental market offers compelling opportunities for investors willing to take on active property management, with median gross incomes reaching $576 monthly for typical properties and up to $1,928+ for top performers in premium neighborhoods.
If you want to go deeper, you can check our pack of documents related to the real estate market in Chile, based on reliable facts and data, not opinions or rumors.
Airbnb properties in Santiago generate 5-6% net yields in prime areas, significantly outperforming traditional rentals that average 4.5-5.5%.
Success requires strategic location selection, active management, and maintaining occupancy rates above 65% to cover substantial operating costs.
| Property Type | Average Nightly Rate | Monthly Gross Income | Net Yield Range | Occupancy Rate |
|---|---|---|---|---|
| Studio/1BR (Central) | $50-$57 | $576-$1,227 | 5.2-5.5% | 65-75% |
| 2BR (Providencia) | $50-$61 | $800-$1,400 | 4.8-5.2% | 60-70% |
| 3BR+ (Suburban) | $30-$39 | $600-$1,000 | 5.5-6.0% | 50-65% |
| Premium Tourist Areas | $59-$98 | $1,227-$1,928 | 5.5-6.5% | 74-86% |
| Entry-level Properties | $30 | $256 | 2.5-3.5% | 21% |
| Long-term Rental (Comparison) | N/A | $400-$800 | 4.5-5.5% | 95%+ |
What types of properties work best for Airbnb in Santiago?
Entire homes and apartments dominate Santiago's Airbnb landscape, representing 81.8% of all listings as of September 2025.
Studios and one-bedroom apartments perform exceptionally well in central neighborhoods, capturing strong demand from solo travelers, business professionals, and students. These compact units offer excellent entry points for new investors due to lower purchase prices and consistent booking patterns.
Two-bedroom apartments strike an ideal balance for family travelers and small business groups, particularly in areas like Providencia and Las Condes where corporate demand remains strong year-round. Houses are less common but can generate superior yields in suburban zones where tourists seek authentic residential experiences.
Furnished properties consistently outperform unfurnished units by 1-2% in yield regardless of size, making proper furnishing a critical investment for maximizing returns.
It's something we develop in our Chile property pack.
Which Santiago neighborhoods attract the strongest short-term rental demand?
Providencia leads demand due to its central location, vibrant restaurant scene, and excellent cultural attractions that appeal to both business and leisure travelers.
| Neighborhood | Primary Appeal | Target Demographics | Average Nightly Rate |
|---|---|---|---|
| Providencia | Central hub with dining & culture | Business travelers, tourists | $50-$57 |
| Las Condes | Financial district, upscale | Corporate professionals | $52-$61 |
| Bellavista | Nightlife, bohemian atmosphere | Young travelers, artists | $48-$54 |
| Vitacura | Exclusive, quiet, fine dining | Luxury travelers | $55-$65 |
| Lastarria | Historic, artistic quarter | Culture enthusiasts | $45-$52 |
| Santiago Centro | Historic landmarks, museums | Budget-conscious tourists | $35-$45 |
| Ñuñoa | Authentic local experience | Long-stay travelers | $30-$40 |
How does property size impact Airbnb profitability in Santiago?
Studios and one-bedroom units deliver the most competitive yields at 5.2-5.5% in central zones, thanks to lower acquisition costs and strong demand from solo travelers.
Two-bedroom apartments generate slightly lower yields of 4.8-5.2% but attract higher-spending family groups and business travelers willing to pay premium rates for extra space. These properties work particularly well in Providencia where corporate demand justifies higher nightly rates.
Three-bedroom properties and houses achieve the highest yields of up to 6% in suburban areas, though occupancy can be less predictable due to serving broader demographics. Larger properties require more substantial upfront investment in furnishing and maintenance but can command significantly higher rates during peak seasons.
Property size directly correlates with cleaning costs and utilities, making smaller units more profitable on a per-square-meter basis while larger properties offer better absolute returns for investors with higher capital.
What are current nightly rates across Santiago's main areas?
Premium central zones command $50-$61 per night on average, with top-performing properties reaching $59-$98 during peak periods.
Typical properties across Santiago average $39-$40 nightly, representing the median market rate for standard one and two-bedroom units in mixed residential-tourist areas. Entry-level properties in less central locations start around $30 per night but often struggle with occupancy.
Providencia and Las Condes maintain the highest rates at $50-$57 nightly due to strong business travel demand and proximity to corporate centers. Bellavista and Lastarria follow closely at $50-$54, benefiting from tourist appeal and nightlife attractions.
Suburban zones typically achieve $30-$39 nightly but can surprise investors with strong yields due to lower property acquisition costs and growing demand for authentic local experiences.
What occupancy rates can you realistically expect?
The median occupancy rate across Santiago reaches 47%, but successful properties in tourist areas consistently achieve 65-75% year-round occupancy.
Top-performing properties demonstrate that 74-86% occupancy is achievable with proper management, dynamic pricing, and strategic location selection. These best-in-class listings typically invest heavily in professional photography, detailed descriptions, and responsive guest communication.
Entry-level properties struggle significantly with only 21% occupancy, highlighting the importance of proper positioning and competitive pricing strategies. Seasonal variations show peaks in August during Chilean winter holidays and lows in May during shoulder season.
Popular tourist neighborhoods like Bellavista and Lastarria maintain more consistent occupancy patterns compared to business-focused areas that experience weekday-weekend fluctuations.
Don't lose money on your property in Santiago
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
How much gross rental income should you expect monthly?
Typical properties generate $576 monthly in gross income, while strong performers in the top 25% reach $1,227+ monthly.
Best-in-class properties in premium neighborhoods can achieve $1,928+ monthly, particularly during peak summer months when rates increase substantially. Entry-level properties typically generate around $256 monthly, barely covering operating expenses and debt service.
Peak summer months (December-February) can push monthly income to $1,086 for well-positioned properties, while shoulder seasons may see 30-40% reductions. Annual potential reaches up to $11,600 in prime neighborhoods for properties maintaining high occupancy rates.
Geographic location within Santiago creates dramatic income variations, with central tourist zones generating 2-3 times the income of suburban properties despite higher acquisition costs.
What are the main operating costs for Santiago Airbnb properties?
Operating costs typically consume 25-40% of gross income, making cost management crucial for profitability.
Cleaning fees represent the largest variable cost at $28-$40 per turnover, with high-occupancy listings requiring 4-6 cleanings monthly. Utilities average $100-$150 monthly covering electricity, gas, water, and Wi-Fi essential for guest satisfaction.
Initial furnishing requires $2,500-$7,000 depending on property size and quality standards, while ongoing supply restocking costs $30-$60 monthly for amenities, toiletries, and replacement items. Airbnb fees consume 3% of booking totals, typically $15-$50 monthly for average listings.
Maintenance and repairs should be budgeted at 10-15% of annual gross income, while insurance adds $25-$60 monthly for proper coverage. These costs can be optimized through efficient management but cannot be eliminated.
What gross yields can you achieve before expenses?
Santiago's Airbnb market delivers 4.75-6% gross yields citywide, with location and property type driving significant variations.
Prime neighborhoods including Bellavista, Lastarria, and Santiago Centro consistently generate 6.5%+ gross yields for well-furnished short-term rentals. Central business areas like Providencia and Las Condes typically achieve 5.5-6% gross yields due to consistent corporate demand.
Suburban areas can surprise investors with competitive yields approaching 6% due to lower property acquisition costs, though this requires careful market analysis to ensure sufficient demand exists. Furnished properties universally outperform unfurnished units by 1-2% regardless of location.
These gross figures don't account for the substantial operating costs and management time required to achieve optimal performance in Santiago's competitive market.
What net yields remain after covering all expenses?
Net yields typically range from 3.5-5.5% after accounting for all real operating costs, seasonality factors, and management efficiency.
Well-managed Airbnb properties in prime tourist zones with high occupancy and dynamic pricing strategies approach 5-6% net yields, representing the top performance tier. Most investors should expect 4-4.5% net yields as a realistic target for professionally managed properties in good locations.
Operating efficiency significantly impacts net returns, with experienced hosts achieving better yields through optimized cleaning schedules, bulk purchasing of supplies, and automated pricing tools. Poor management can reduce net yields to 2-3% or even negative returns during low seasons.
It's something we develop in our Chile property pack.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Chile versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
How does Airbnb income compare to traditional long-term rentals?
Short-term rentals in premium Santiago areas outperform long-term strategies by 0.5-1% in net yields when properly managed.
Long-term rentals generate 4.5-5.5% net yields with significantly lower management burden and higher income stability. Traditional rentals offer 95%+ occupancy rates year-round but lack the upside potential of dynamic pricing during peak seasons.
Airbnb properties require active daily management including guest communication, cleaning coordination, and pricing optimization, while long-term rentals need only periodic lease renewals and basic maintenance. The additional management burden must be factored into return calculations.
Risk profiles differ substantially, with short-term rentals exposed to seasonal fluctuations, regulatory changes, and platform dependency, while long-term rentals offer predictable monthly income with tenant stability concerns.
What local regulations affect Airbnb operations in Santiago?
Santiago maintains relatively low regulatory enforcement for short-term rentals as of September 2025, with most properties operating without official licenses.
Only 3% of current Airbnb listings hold official licenses, though some residential buildings and communes, particularly in Las Condes and Santiago Centro, require special permits for short-term rental activity. Building HOA rules often present more immediate compliance challenges than municipal regulations.
The regulatory landscape can change rapidly, potentially adding licensing costs and administrative complexity to future operations. Investors should verify legal requirements with local authorities and confirm building policies before purchasing properties for Airbnb use.
Compliance costs and administrative burden increase when official licensing becomes required, potentially impacting net yields by 0.5-1% through additional fees and management time.
Is Airbnb actually more profitable than other rental strategies in Santiago?
Well-managed Airbnb properties in prime tourist and business areas like Lastarria, Bellavista, and Providencia typically outperform long-term rentals by meaningful margins.
Success requires maintaining high occupancy rates above 65%, implementing dynamic pricing strategies, and efficiently managing substantial operating costs that can consume 40% of gross income. Investors must actively engage in property management or hire professional services to achieve optimal returns.
Long-term rentals offer greater stability and lower regulatory risk but generate inferior net yields in most Santiago neighborhoods. Conservative investors often prefer a mixed strategy combining furnished long-term leases with selective short-term rental properties.
Airbnb profitability remains highly sensitive to regulatory changes, management efficiency, and seasonal demand fluctuations, making it suitable primarily for hands-on investors willing to adapt to market conditions.
It's something we develop in our Chile property pack.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Airbnb in Santiago offers superior returns to traditional rentals for investors willing to manage actively.
Success depends on strategic location selection, maintaining high occupancy, and controlling operating costs that can consume 40% of gross income.