Authored by the expert who managed and guided the team behind the Peru Property Pack
Yes, the analysis of Lima's property market is included in our pack
Lima has become one of the most attractive rental markets in South America for foreign investors, thanks to relatively high gross yields and a growing expat tenant base.
However, most foreigners underestimate how much Peru's unique tax structure and building-level rules affect actual returns.
We constantly update this blog post to reflect the latest regulations, market data, and rental trends in Lima.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Lima.
Insights
- Lima's average gross rental yield of 5.5% is attractive, but after Peru's 5% rental income tax and typical holding costs, net yields drop to around 3.5% for most foreign landlords.
- Short-term rentals in Lima achieve roughly 51% occupancy at $59 per night, which means a well-located Airbnb can outperform long-term renting only if you operate in premium pockets like Miraflores or Barranco.
- Building-level restrictions are the real Airbnb risk in Lima because many residential towers in Lima Moderna actively prohibit or limit short-term guests, regardless of city-level legality.
- Foreigners do not need Peruvian residency to own and rent out property in Lima, but they do need to register with SUNAT for tax compliance and typically use a local property manager for smooth operations.
- The best rental yields in Lima (6% to 7%) are found in districts like Surquillo, Lince, and Jesus Maria, where purchase prices are lower but tenant demand remains strong.
- Humidity and mold resistance are among the top rent-boosting features in Lima because the coastal climate causes real damage in poorly ventilated buildings, and tenants actively pay more to avoid this problem.
- Lima landlords should budget about 25% to 35% of gross rent for all-in operating costs, including the predial property tax, arbitrios municipal fees, building maintenance, and a repairs reserve for older coastal buildings.
- Vacancy in Lima runs about one month per year on average, but demand surges around work and university cycles, so timing turnovers correctly can significantly reduce lost income.
Can I legally rent out a property in Lima as a foreigner right now?
Can a foreigner own-and-rent a residential property in Lima in 2026?
As of early 2026, foreigners can legally buy and rent out residential property in Lima without needing special permits or local partners, and the rental income is taxed the same way as for Peruvian landlords.
Most foreign investors hold Lima rental property directly in their own name, though some use Peruvian corporations for larger portfolios or estate planning purposes.
The main practical limitation is not about ownership itself but about contract enforcement, because Peru places significant weight on how you structure your lease and which eviction pathway you choose if a tenant stops paying.
If you're not a local, you might want to read our guide to foreign property ownership in Lima.
Do I need residency to rent out in Lima right now?
You do not need Peruvian residency to own and rent out a property in Lima, and most foreign landlords manage their rentals remotely through a local property manager or trusted representative.
However, you will need to register with SUNAT (Peru's tax authority) to comply with rental income tax obligations, which are typically calculated as 5% of gross rent for straightforward first-category rental income.
A local Peruvian bank account is not strictly required to collect rent, but it makes operations much simpler, and Peru's banking regulator (SBS) has expanded the IDs accepted for foreigners opening basic accounts.
Remote management is entirely feasible and common in Lima's expat-heavy districts like Miraflores, San Isidro, and Barranco, where property managers handle tenant screening, rent collection, and maintenance coordination.
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What rental strategy makes the most money in Lima in 2026?
Is long-term renting more profitable than short-term in Lima in 2026?
As of early 2026, long-term renting is the more predictable and often more profitable choice for most remote foreign landlords in Lima, while short-term rentals can outperform only in very specific locations with professional management.
A well-managed long-term rental in Miraflores might generate around S/ 2,400 per month (about $710 or €650), while a comparable short-term rental at 51% occupancy and $59 per night would gross roughly S/ 3,000 per month (about $890 or €815), but operating costs for short-term are nearly double.
Short-term renting tends to favor properties in walkable Miraflores near parks, Barranco's arts and restaurant core, or premium San Isidro zones where expats and tourists concentrate and are willing to pay for move-in-ready, furnished units.
What's the average gross rental yield in Lima in 2026?
As of early 2026, the average gross rental yield for residential apartments in Lima sits around 5.5%, which is competitive by Latin American standards.
The realistic range runs from about 4.5% in premium high-price districts like San Isidro to 7% in value-demand areas like Lince, Jesus Maria, or Surquillo where purchase prices are lower but rental demand stays strong.
Smaller units like studios and one-bedroom apartments typically achieve the highest gross yields in Lima because they attract a deep pool of young professionals and students who prioritize location over space.
By the way, we have much more granular data about rental yields in our property pack about Lima.
What's the realistic net rental yield after costs in Lima in 2026?
As of early 2026, the realistic net rental yield after all costs for Lima apartments averages around 3.5%, which represents what most landlords actually keep after taxes, fees, and vacancy.
The practical range runs from about 2.8% in premium districts with higher holding costs to 4.8% in well-chosen value areas with strong tenant demand.
The three main cost categories that reduce gross to net yield in Lima are: Peru's rental income tax (typically 5% of gross rent), municipal property taxes called predial and arbitrios that are paid to SAT Lima, and building maintenance fees that run higher in older coastal buildings due to humidity and salt air damage.
You might want to check our latest analysis about gross and net rental yields in Lima.
What monthly rent can I get in Lima in 2026?
As of early 2026, typical monthly rents in Lima run around S/ 1,550 ($460 or €420) for a studio, S/ 2,100 ($625 or €570) for a one-bedroom, and S/ 3,050 ($905 or €830) for a two-bedroom apartment.
A decent studio in Lima rents for roughly S/ 1,300 to S/ 1,900 per month ($385 to $565 or €355 to €520), depending on location and building quality.
A typical one-bedroom apartment commands between S/ 1,700 and S/ 2,600 per month ($505 to $770 or €465 to €710), with prime districts like Miraflores sitting at the higher end around S/ 2,400.
A standard two-bedroom ranges from S/ 2,400 to S/ 3,800 per month ($715 to $1,130 or €655 to €1,035), with newer buildings in San Isidro and Miraflores reaching the top of that range.
If you want to know more about this topic, you can read our guide about rents and rental incomes in Lima.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Peru 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.
What are the real numbers I should budget for renting out in Lima in 2026?
What's the total "all-in" monthly cost to hold a rental in Lima in 2026?
As of early 2026, the total all-in monthly cost to hold a typical rental property in Lima runs about S/ 750 to S/ 1,050 ($225 to $310 or €205 to €285) for a standard apartment renting at S/ 3,000 per month.
The realistic range is 25% to 35% of gross rent for long-term rentals, which covers everything from taxes to repairs, while short-term rentals run 45% to 60% of revenue due to higher turnover and operating intensity.
The single largest cost category for Lima landlords is typically the combination of building maintenance fees (called "mantenimiento") and the repairs reserve, because older coastal buildings require constant attention due to Lima's humid, salt-air climate that accelerates wear on facades, plumbing, and ventilation systems.
You want to go into more details? Check our list of property taxes and fees you have to pay when buying a property in Lima.
What's the typical vacancy rate in Lima in 2026?
As of early 2026, the typical vacancy rate for rental apartments in Lima runs around 8%, which translates to roughly one month of vacancy per year for a well-priced unit.
Lima landlords should budget for about one to two months of vacancy annually because tenant turnover clusters around specific times, and even well-located properties experience gaps during lease transitions.
The main factor that pushes vacancy higher or lower across Lima neighborhoods is proximity to employment centers and universities, with districts like Miraflores and San Isidro filling faster due to corporate tenant demand while peripheral areas take longer.
Tenant turnover in Lima peaks around February and March when work contracts renew and university terms begin, so landlords who time their lease endings to avoid these transition periods can minimize vacancy days.
We have a whole part covering the best rental strategies in our pack about buying a property in Lima.
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Where do rentals perform best in Lima in 2026?
Which neighborhoods have the highest long-term demand in Lima in 2026?
As of early 2026, the three neighborhoods with the strongest overall long-term rental demand in Lima are Miraflores, San Isidro, and Santiago de Surco, all of which benefit from walkability, safety, and proximity to corporate offices.
Families with children tend to concentrate in La Molina, the Monterrico area of Surco, and San Borja, where larger apartments, quieter streets, and access to private schools make these districts attractive for multi-year leases.
Students create strong rental demand in San Miguel (near the major university cluster), the Surco-Monterrico corridor (close to private universities), and Pueblo Libre or Jesus Maria (central access with good bus routes).
Expats and international professionals overwhelmingly choose Miraflores, San Isidro, and Barranco, forming what locals call the "expat triangle" where English-speaking services, restaurants, and walkable amenities cluster.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Lima.
Which neighborhoods have the best yield in Lima in 2026?
As of early 2026, the three neighborhoods with the best rental yields in Lima are Surquillo, Lince, and Jesus Maria, all of which sit within the Lima Moderna zone but with significantly lower purchase prices than Miraflores or San Isidro.
These top-yielding Lima neighborhoods typically deliver gross rental yields between 6% and 7%, compared to 4.5% to 5.5% in the premium districts where property prices are inflated.
The key characteristic that allows these neighborhoods to achieve higher yields is their location bordering expensive districts, which means tenants get similar commute times and access to amenities while landlords pay much less per square meter to acquire the property.
We cover a lot of neighborhoods and provide a lot of updated data in our pack about real estate in Lima.
Where do tenants pay the highest rents in Lima in 2026?
As of early 2026, the three neighborhoods where tenants pay the highest rents in Lima are San Isidro (especially the financial district), premium Miraflores (near Parque Kennedy and the Malecon), and Barranco's newer high-end buildings.
In these premium Lima neighborhoods, a standard two-bedroom apartment typically rents for S/ 3,500 to S/ 5,000 per month ($1,040 to $1,485 or €955 to €1,365), with luxury units exceeding S/ 6,000.
What makes these neighborhoods command the highest rents is not just safety or location, but the combination of walking-distance services, reliable building infrastructure, and the prestige factor that corporate relocation packages and high-income professionals specifically seek.
The typical tenant profile in these highest-rent Lima neighborhoods includes corporate executives on company-paid housing allowances, embassy staff, and senior expat professionals who prioritize turnkey living and will pay a premium to avoid any friction.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Peru. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
What do tenants actually want in Lima in 2026?
What features increase rent the most in Lima in 2026?
As of early 2026, the three property features that increase monthly rent the most in Lima are humidity and mold resistance with good ventilation, a 24-hour doorman with controlled building access, and dedicated parking ("cochera") in dense districts like Miraflores or San Isidro.
A secure building with a doorman and controlled access can add a rent premium of 10% to 15% in Lima because safety perception is a primary decision factor for tenants, especially those relocating from abroad.
One commonly overrated feature that Lima landlords invest in but tenants rarely pay extra for is a swimming pool, because most Lima buildings already have pools and the coastal climate is cool enough that pools go underused for much of the year.
One affordable upgrade that delivers strong returns for Lima landlords is installing quality bathroom exhaust fans and kitchen ventilation, because tenants actively avoid buildings with visible humidity damage and will pay more for units that stay dry and fresh.
Do furnished rentals rent faster in Lima in 2026?
As of early 2026, furnished apartments in Lima's expat-heavy districts like Miraflores, San Isidro, and Barranco typically rent about two to three weeks faster than unfurnished units because many tenants arrive on fixed-length contracts and want move-in-ready homes.
Furnished apartments in Lima command a rent premium of roughly 15% to 25% over comparable unfurnished units, though this comes with higher setup costs and more wear-and-tear that landlords must factor into their returns.
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How regulated is long-term renting in Lima right now?
Can I freely set rent prices in Lima right now?
Landlords in Lima have essentially full freedom to set initial rent prices at whatever the market will bear, as Peru does not impose rent control or caps on new leases the way some European or North American cities do.
Rent increases during an ongoing tenancy are also not formally capped by law in Peru, though most landlords negotiate increases at lease renewal, and the market reality is that tenants will simply leave if increases are unreasonable.
What's the standard lease length in Lima right now?
The most common lease length for residential rentals in Lima is 12 months with an option to renew, though Peru's Civil Code allows fixed-term leases up to a maximum of 10 years.
Landlords in Lima typically require a security deposit of one to two months' rent (roughly S/ 2,000 to S/ 6,000 or $595 to $1,785 or €545 to €1,640 for a standard apartment), and this is market convention rather than a strict legal cap.
Peru's rules on returning the security deposit require landlords to return the full amount minus documented damages within a reasonable period after the lease ends, and landlords who use formal "actas de entrega" (handover documents) have cleaner enforcement if disputes arise.
We made this infographic to show you how property prices in Peru compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
How does short-term renting really work in Lima in 2026?
Is Airbnb legal in Lima right now?
Airbnb-style short-term rentals operate widely in Lima, and there is no single nationwide license regime that bans or heavily restricts vacation rentals the way some European cities do.
Lima does not currently require a specific short-term rental permit or license at the city level, though hosts are expected to comply with general tax obligations (declaring rental income to SUNAT) and any applicable consumer or safety rules.
Peru has no formal annual night limits or caps on how many days you can rent your property short-term, so the main practical restriction comes from building-level rules rather than city regulations.
The most common consequence for non-compliant short-term rental operators in Lima is trouble with building management or neighbors rather than government fines, because many residential towers in Lima Moderna have HOA rules that prohibit or restrict short-term guests.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Lima.
What's the average short-term occupancy in Lima in 2026?
As of early 2026, the average annual occupancy rate for short-term rentals in Lima is approximately 51%, which translates to roughly 186 booked nights per year for a typical listing.
The realistic range for Lima short-term rental occupancy runs from about 35% for poorly located or unoptimized listings up to 70% or higher for top-performing units in prime Miraflores or Barranco spots with excellent reviews.
The highest occupancy months for Lima short-term rentals are December through March (summer season, holidays, and peak tourism) and July (winter vacation period and Fiestas Patrias celebrations).
The lowest occupancy months typically fall in May, June, and August through October, when Lima's gray "garua" season sets in and tourist arrivals slow before the summer pickup.
Finally, please note that you can find much more granular data about this topic in our property pack about Lima.
What's the average nightly rate in Lima in 2026?
As of early 2026, the average nightly rate for short-term rentals in Lima is approximately $59 (about S/ 200 or €54), based on the citywide average daily rate.
The realistic range for Lima short-term nightly rates spans from about $35 (S/ 120 or €32) for basic studios in secondary locations up to $120 or more (S/ 405 or €110) for premium furnished apartments in Miraflores or Barranco with ocean views.
The typical nightly rate difference between peak season (December to March) and off-season (May to October) in Lima is roughly 20% to 35%, so a unit that commands $65 per night in summer might drop to $45 to $50 during the gray winter months.
Is short-term rental supply saturated in Lima in 2026?
As of early 2026, the short-term rental market in Lima is competitive but not fully saturated, with roughly 51% average occupancy indicating that supply and demand are relatively balanced rather than wildly oversupplied.
The number of active short-term rental listings in Lima has been growing steadily, driven by foreign investors and local owners seeking higher returns, but occupancy has held relatively stable which suggests demand is keeping pace.
The most oversaturated neighborhoods for short-term rentals in Lima are central Miraflores (especially around Parque Kennedy) and parts of Barranco near the main tourist strips, where competition among listings is intense and undifferentiated properties struggle.
Neighborhoods that still have room for new short-term rental supply include the edges of Barranco bordering Chorrillos, parts of San Isidro targeting business travelers, and well-located pockets of Surquillo that border Miraflores but have fewer listings.
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What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Lima, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's reliable | How we used it |
|---|---|---|
| SUNAT - Renta de Primera Categoria | Peru's official tax authority explaining how rental income is taxed. | We used it to confirm that residential rent is "first-category income" in Peru. We relied on it to frame what counts as taxable rental income. |
| SUNAT Orientacion - Rental Tax Calculation | SUNAT's practical guidance for calculating rental income tax. | We used it to confirm the commonly applied 5% effective rate on gross rent. We used it to keep our net yield calculations consistent. |
| BCRP - Nota de Estudios (2025) | Peru's central bank documenting how its rent and price indicator works. | We used it to confirm which Lima districts are covered and that Urbania data underlies the indicator. We used it to justify our rent benchmarks. |
| BCRPData - Exchange Rate Series | The central bank's official historical exchange rate table. | We used the December 2025 average of S/ 3.367 per US$ for all currency conversions. We chose this as the closest hard data point to early 2026. |
| AirDNA - Lima Overview | A widely used short-term rental analytics provider with standardized methodology. | We used it for Lima Airbnb occupancy (51%) and daily rate ($59) benchmarks. We used it to compare short-term versus long-term economics. |
| Properati - Miraflores Listings | A major property portal with district-level listing aggregates. | We used it to anchor what tenants actually pay in a prime Lima district. We used it to calibrate rent levels by bedroom count. |
| La Republica - Urbania Index Report | A major newspaper that explicitly cites Urbania's rental dataset. | We used it for citywide rent benchmarks and to identify high and low rent zones. We only used numbers where it clearly attributes data to Urbania. |
| Congreso del Peru - Ley 30933 | The official text of Peru's key eviction and landlord enforcement law. | We used it to explain how landlords reduce non-payment risk through contract structure. We used it to show why contract formalities matter more than rent caps in Lima. |
| SAT Lima - Predial and Arbitrios | Lima's tax collection authority explaining property tax assessment. | We used it to describe recurring owner costs that landlords must budget for. We used it to justify treating these as non-negotiable holding costs. |
| SBS - Foreign Account Notice | Peru's banking regulator stating which IDs foreigners can use for basic accounts. | We used it to answer whether foreigners need residency to open a local bank account. We used it to propose realistic remote landlord setups. |
| Airbnb - Responsible Hosting in Peru | Airbnb's own compliance overview for Peru hosts. | We used it to frame short-term rental legality as local rules plus building rules plus taxes. We used it as a reality check on host tax obligations. |
We have made this infographic to give you a quick and clear snapshot of the property market in Peru. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
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