Long-Term or Short-Term Rental in Lima: Which Strategy Should You Choose?

Two models, one market

Lima's rental market is mature enough to accommodate both strategies. The city is simultaneously a dynamic economic capital with strong demand for long-term housing (expatriates, professionals, private university students), and a tourist and business metropolis that generates growing short-term demand in certain districts.

The choice between the two models is not trivial: it determines the level of gross yield, management complexity, risk profile, and even tax obligations. It also depends on the property itself, its location, and your tolerance for operational involvement (even at a distance).

Long-term: stability and predictability

Long-term rental means renting your apartment to a tenant or family for a minimum of one year, with a lease agreement (contrato de arrendamiento) signed before a notary or simply drafted as a private agreement.

Advantages

• Regular, predictable cash flow: a fixed monthly rent, paid (ideally) in USD, without depending on occupancy rates.
• Simple management: few interventions once the tenant is in place. Ideal for remote management from Switzerland.
• Lower wear on the property: a single long-term tenant preserves the apartment better than a weekly rotation of travellers.
• Limited regulatory obligations: no specific requirements relating to tourist accommodation.

Disadvantages

• Capped yield: long-term rents are lower than the potential income from short-term rentals on a well-positioned property.
• Tenant risk: non-payment, damage, difficulties with eviction in the event of a dispute (Peruvian court procedures can be slow).
• Inflexibility: you cannot easily recover the property during the lease period if you wish to sell or use it.

Short-term: yield and intensive management

Short-term rental operates primarily through platforms such as Airbnb, Booking.com or VRBO, for stays of a few nights to a few weeks. It targets tourists, business travellers and expatriates in transition.

Advantages

• Higher gross yield: on a well-positioned property in Miraflores or Barranco, monthly short-term income can exceed equivalent long-term rental income by 30 to 80%.
• Flexibility: you can block periods for personal use or for works.
• Dynamic pricing: platforms allow prices to be adjusted according to demand (events, high season).

Disadvantages

• Intensive management: check-in/check-out, guest communication, cleaning between each stay, review management. It is essential to entrust this to a competent local provider.
• High management fees: a specialist concierge agency typically charges 15 to 25% of gross income.
• Vacancy risk and seasonality: income is not guaranteed and depends on occupancy rates.
• Regulatory risk: Lima has not yet legislated clearly on Airbnb, but some co-ownership buildings prohibit tourist rentals in their internal regulations.

Yield comparison

Rental yields vary by district, floor area, property quality and strategy. As a guide, for a furnished apartment of 50–70 m² in a sought-after Lima district:

Criterion	Long-term	Short-term
Estimated gross yield	5% – 7%	8% – 12%
Management fees	8% – 12% of rents	15% – 25% of income
Income stability	High	Variable
Property wear	Low	Higher
Management complexity	Low	High
Regulatory risk	Low	Moderate to high
SUNAT tax (non-resident)	5% withholding/rent	5% withholding/income
Best-suited districts	Surco, La Molina, Magdalena	Miraflores, Barranco, San Isidro

Indicative gross yields (Source: GlobalPropertyGuide, Lima market data 2025–2026). Net yields depend on charges, vacancy and management.

Remote operational management

From Geneva or Zurich, you cannot manage a Lima apartment without a local relay. Both models require an on-the-ground partner, but at very different levels of intensity.

Long-term

A standard letting agent can handle tenant selection, lease signing, monthly rent monitoring and coordination of minor maintenance work. Interventions are occasional once the tenant is installed. Cost: typically 8 to 12% of the monthly rent.

Short-term

A concierge agency like Havenbnb Peru (Swiss Lima Property's partner) manages listings, reservations, check-in/check-out, cleaning, maintenance and guest communication. It is a full-service offering, but more expensive: 15 to 25% of income. Transparency of reports and trust in the partner are essential for a remote investor.

Seasonality in Lima

Lima has a very different seasonality profile from classic tourist destinations like Cusco or Machu Picchu. The city is a metropolis of 10 million people with relatively constant economic and tourist activity throughout the year.

• January–March (austral summer): beach high season, Latin American travellers, families on holiday. Strong short-term demand in Miraflores and Barranco (close to the coast).
• April–December: sustained activity driven by business tourism, conferences, expatriates in transit and independent travellers. Lima attracts visitors year-round, unlike purely nature-based destinations.

Practical consequence: short-term rental in Lima has moderate seasonality, with a slight peak in summer and a solid base for the rest of the year. This compares favourably with markets more dependent on a single high season.

Which property for which strategy?

The type of property and its location naturally point towards one strategy or the other.

Miraflores / Barranco / San Isidro → Short-term favoured

These districts concentrate tourist and business demand. Well-located, modern apartments — with sea views or close to the malecón — command high short-term prices. Target clientele: business travellers, expatriates on short assignments, international tourists. Long-term demand also exists (expatriates), but short-term yields are more attractive if the property is well-equipped and well-managed.

Surco / La Molina / Magdalena del Mar → Long-term favoured

These residential districts attract more families, Peruvian executives and expatriates with families looking for stable housing. Short-term tourist demand is lower. Long-term rental yield is solid, with lower regulatory risk and simpler management.

San Miguel / Pueblo Libre → Mixed profile

These developing districts offer more accessible purchase prices and growing rental demand. They suit both strategies depending on the property and the target audience (university students, young professionals).

Rental income taxation

Regardless of the model chosen, the tax framework applicable to a non-resident investor in Peru remains the same:

• SUNAT — 5% withholding tax: for a non-domiciled owner, the tenant (or agency) withholds 5% of gross rents and pays them to SUNAT via Formulario Virtual N° 617. This rate applies equally to long-term and short-term income.
• Swiss side: income must appear in your tax return. Under the Swiss–Peru DTA (in force since 10 March 2014), the exemption method with progression reservation generally applies. For full details, see our guide on Swiss tax after buying property in Peru.

Property management fees are potentially deductible when calculating the Peruvian taxable base: to be confirmed with a qualified contador.

Risks and points to watch

Regulatory risk (short-term)

Lima does not yet have a clear and uniform legal framework governing Airbnb-type tourist rentals. Several co-ownership buildings — particularly in standard residential blocks — have included in their internal regulations (reglamento interno) a prohibition on subletting to unidentified third parties or for very short periods. Before opting for short-term rental, always check the co-ownership rules of the property.

Tenant risk (long-term)

In the event of non-payment or problematic behaviour, the Peruvian court eviction procedure (desalojo) can take several months or more than a year. A well-drafted lease, rigorous tenant selection and a deposit clause (1 to 2 months' rent) are essential. Your local manager must handle this selection.

Operational risk (short-term)

Management quality is decisive in the short-term model. A failing service provider (slow responses, inadequate cleaning, poor photos) translates directly into negative reviews and a drop in occupancy rates. Choose your concierge partner carefully and require detailed monthly reports.

Our recommendation

There is no universal answer, but here is our reading of the market for a Swiss investor:

• If you are looking for simplicity, predictability and minimal management, long-term rental in a well-established residential district (Surco, Magdalena, La Molina) is the natural choice. It is also the most accessible strategy for a first Lima investment.
• If you have a well-positioned apartment in Miraflores or Barranco, carefully furnished, and you trust a competent concierge manager, short-term rental can deliver a gross yield 30 to 50% higher — in exchange for more intensive management and higher risk.
• A mixed strategy (short-term in high season, long-term for the rest of the year) is practised by some investors, but complicates management and is not always compatible with platform commitments.

In all cases, the analysis must be done specifically for the property in question: address, floor, floor area, view, condition, co-ownership rules. Swiss Lima Property can help you assess the rental potential of a property before purchase.