Navigating Long-Term Stays: A Comprehensive Guide for Arequipa Airbnb Owners

As a licensed Peruvian real estate broker and technical writer for ArequipaRealEstate.com, I observe a growing trend: property owners initially set up for short-term tourist rentals are increasingly receiving requests for extended stays. This shift, often driven by digital nomads, relocating expats, or those exploring Arequipa before a permanent move, presents both opportunities and significant legal complexities. Transitioning from short-term hospitality to a long-term landlord-tenant dynamic in Peru requires a robust understanding of local law, diligent screening, and meticulous contract formalization. This guide will equip you with the knowledge to manage these requests effectively and legally.

Understanding the Legal Shift: Short-Term vs. Long-Term in Peru

In Peru, the distinction between a tourist stay and a residential tenancy becomes critical once a guest expresses interest in staying beyond a typical vacation period. While Airbnb bookings might handle the initial payment and platform-level communication, Peruvian law generally views a continuous stay exceeding 30 to 60 days as potentially establishing a different legal relationship – one governed by the Código Civil (Civil Code) and specific rental legislation. This means the guest transitions from being a "guest" to a "tenant," acquiring specific rights and obligations under Peruvian law.

Benefits of Long-Term Stays:

Stable Income: Reduced vacancy rates and consistent cash flow.
Lower Turnover: Less frequent cleaning, marketing, and guest check-ins/outs.
Reduced Wear and Tear: Guests often treat a longer-term rental more like their own home.
Potential for Direct Booking: After an initial Airbnb stay, guests might transition to a direct rental agreement, saving on platform fees.

Risks and Challenges:

Tenant Rights: Once a formal tenancy is established, tenants acquire specific rights under Peruvian law, which are more extensive than those of short-term tourists. These rights are designed to protect residents and supersede many informal agreements.
Eviction Complexities: Removing a tenant who defaults on payments or breaches the contract requires adherence to specific legal procedures, which can be time-consuming if not properly prepared for with a legally sound contract.
Property Damage: While less frequent, significant damage or neglect can lead to disputes over security deposits, necessitating clear contractual clauses and photographic evidence.
Payment Defaults: Non-payment of rent is a serious concern, necessitating a clear contractual framework for resolution, including penalties and swift legal recourse.
Tax Implications: Different tax obligations arise for long-term rental income compared to short-term tourist income, requiring proper declaration to SUNAT.

Step-by-Step Guide to Handling Long-Term Stay Requests

Step 1: Enhanced Pre-Screening and Due Diligence

Your initial Airbnb profile review is insufficient for a long-term commitment. You must elevate your due diligence.

Direct Communication: Move beyond the platform's messaging. Request a video call (e.g., via Zoom, WhatsApp) to discuss their purpose of stay, expected duration, and lifestyle. This personal interaction provides invaluable insights into their personality and intentions.
Financial Verification:
- Proof of Income: Request recent bank statements (3-6 months), letters of employment, or pension statements (for retirees). For digital nomads, request client contracts, invoices, or a professional online portfolio demonstrating consistent income. A prudent investor always verifies the capacity to pay.
- Security Deposit: For long-term stays, it is standard practice to request a security deposit, typically equivalent to two or even three months' rent, to mitigate potential risks. This deposit should be clearly defined in the contract for its purpose and conditions of return.
Identity Verification:
- Passport/DNI: Request clear copies of their passport (for foreigners) or DNI (Documento Nacional de Identidad for Peruvians). Verify the identity matches the booking. This is a legal requirement for all guests/tenants in Peru.
References: Request professional or previous landlord references. While harder to verify for international guests, it's a worthwhile step. For local residents, a criminal background check (Certificado de Antecedentes Penales) can be requested, but this is less common for foreign guests.
Purpose of Stay: Understand their reason for staying. Are they working remotely, studying, exploring, or awaiting a property purchase? This context helps assess compatibility and potential issues.

Step 2: The Formalization Process: From Airbnb to Peruvian Rental Contract

For any stay exceeding 30-60 days, it is a legal imperative to transition from an informal Airbnb booking to a formal, legally binding Contrato de Arrendamiento (Rental Agreement) under Peruvian law. This protects both landlord and tenant.

Draft a Comprehensive Contrato de Arrendamiento:
- Language: The primary, legally binding document must be in Spanish. While providing a certified English translation for your tenant is highly recommended for clarity, the Spanish version will govern any legal proceedings.
- Essential Clauses:
  - Parties Identification: Full legal names, passport/DNI numbers, and current addresses for both landlord and tenant(s).
  - Property Description: Detailed address, SUNARP (Superintendencia Nacional de los Registros Públicos) registration data, and property area.
  - Duration: Clearly state the fixed term of the lease (e.g., six months, one year). Crucially, include a non-renewal clause to prevent automatic conversion into an indefinite tenancy. Peruvian law (specifically Ley N° 30933) facilitates expedited eviction processes only for fixed-term contracts that are properly notarized.
  - Rent: Specify the monthly rent amount in Peruvian Soles (PEN) and provide clear bank transfer details for a Peruvian account. Define the exact payment due date and any grace period. For example, if rent is agreed in US$1,000, the contract should specify conversion to PEN at the prevailing exchange rate on the payment date (e.g., S/ 3.75 per USD, totaling S/ 3,750).
  - Security Deposit: Detail the amount (e.g., two months' rent), the conditions for its return, and allowable deductions (e.g., damages beyond normal wear and tear, unpaid utilities, penalties).
  - Utilities: Clearly delineate who is responsible for specific utilities (electricity, water, internet, piped gas or balones de gas). It is best practice for the tenant to assume responsibility for usage, potentially putting services in their name for longer terms, or have a clear system for reimbursement with initial and final meter readings.
  - Maintenance: Define tenant responsibilities for minor repairs (e.g., lightbulbs, cleaning) and landlord responsibilities for major structural or appliance repairs.
  - Property Usage: Specify that the property is for residential purposes only. Include restrictions on sub-letting without explicit consent, pet policies, and smoking rules.
  - Inventory and Condition Report: Attach a detailed inventory of all furnishings, appliances, and their condition upon entry. Include photographic evidence. This is vital for security deposit disputes.
  - Penalties: Outline penalties for late rent payments or other breaches of contract.
  - Eviction Clause: Explicitly state the grounds for eviction in strict accordance with Peruvian law (e.g., non-payment, unauthorized sub-letting, end of fixed term). Referencing Ley N° 30933 directly is advised.
  - Legal Domicile: Both parties should establish a legal domicile for formal notifications.
  - Governing Law: Explicitly state that the contract is governed by the laws of Peru.
  - Dispute Resolution: Consider an arbitration clause as an alternative to lengthy court processes, though this might add complexity.
Notarization of the Contract (Mandatory for Expedited Eviction):
- This is a critical step for any prudent landlord. For your fixed-term rental contract to be eligible for the expedited eviction process under Ley N° 30933 (Ley que regula el procedimiento especial de desalojo con intervención notarial), it must be notarized by a Peruvian Public Notary (Notario Público).
- Process: Both the landlord and tenant(s) must sign the contract in the physical presence of a Notario Público. The Notary verifies the identities of all parties and attests to the authenticity of their signatures and the date of the agreement.
- Cost: Notary fees (gastos notariales) are typically borne by the landlord but can be negotiated. Expect costs ranging from S/ 200 to S/ 500, depending on the Notary and contract complexity.
Registration with SUNARP (Recommended for Enhanced Security):
- While not strictly mandatory for the validity of the lease agreement itself, registering the notarized lease agreement with SUNARP provides an additional layer of public notice and protection. This makes the lease enforceable against third parties (e.g., if you were to sell the property, the new owner would be bound by the registered lease).
- Process: The Notary who notarized your contract can typically handle the registration process with SUNARP for an additional fee.

Step 3: Tax Compliance for Rental Income

Rental income derived from properties in Peru is subject to Peruvian income tax.

SUNAT Registration: You must declare this income to SUNAT (Superintendencia Nacional de Aduanas y de Administración Tributaria). As an individual (persona natural), you generally need to register your RUC (Registro Único de Contribuyentes) if you haven't already.
Tax Rate: For individuals, rental income from properties (rentas de primera categoría) is typically taxed at 5% of the monthly rent after a 20% deduction for maintenance. For example, for S/ 1,000 monthly rent, you declare S/ 800 (1000 - 20% deduction) and pay 5% of that, which is S/ 40. This is typically paid monthly via Formulario 1683. If you operate as a registered business entity, your tax obligations will align with corporate tax structures.
Receipts: You must issue official Recibos de Arrendamiento (Rental Receipts) or Facturas Electrónicas (Electronic Invoices) to your tenant. This is a legal requirement and good practice for your own records and for the tenant if they need proof of residency or expenses.

Local Context and Warnings Specific to Arequipa

Historic Property Regulations

If your property is situated within Arequipa's Historic Center, designated a UNESCO World Heritage Site (Patrimonio de la Humanidad), be aware of strict regulations. Significant restrictions apply to renovations, alterations, and even minor modifications to facades or internal structures. Inform your tenants of these limitations, as even hanging pictures might require specific care to avoid damaging protected sillar (white volcanic stone) walls. There may also be unique noise ordinances or cultural preservation rules impacting daily living.

Utility Providers and Considerations

Arequipa's infrastructure is generally reliable, but some considerations are crucial:

Electricity (EDEANAP): The main electricity provider in Arequipa is Empresa de Distribución Eléctrica de Arequipa S.A.A. (EDEANAP). While power outages are infrequent, occasional power surges can occur, especially during the rainy season (December to March) due to lightning or grid instability. Advise tenants to use surge protectors (supresores de pico) for sensitive electronics.
Water (SEDAPAR): The local water and sewage service is SEDAPAR (Servicio de Agua Potable y Alcantarillado de Arequipa S.A.). Occasional planned or unplanned water cuts or reduced pressure can occur, particularly in certain zones or during dry spells. Advise guests on water conservation and provide advance notice if you are informed of scheduled cuts.
Gas: Many properties, especially older ones or those outside modern developments, use balones de gas (gas cylinders, typically LPG) for cooking and water heating instead of piped natural gas. Ensure proper safety instructions are provided, and offer contacts for reliable gas delivery services. New constructions might feature piped natural gas by Contugas or other providers.
Internet: Arequipa has reliable internet providers like Movistar, Claro, and Win. Clarify whether internet is included in the rent or if the tenant is responsible for setting up their own service.

Neighborhood Considerations for Long-Term Stays

Certain Arequipa neighborhoods are particularly well-suited for long-term expat and foreign investor residents due to their amenities, safety, and community feel:

Yanahuara: Renowned for its colonial architecture, safety, and proximity to services and green spaces. It's highly desirable and typically commands higher rental values. Many international restaurants and cafes can be found here.
Cayma: Another popular choice, offering a mix of residential and commercial areas, reputable schools, shopping centers (Mall Plaza Arequipa), and a generally peaceful environment. It's well-connected to the city center.
Selva Alegre: Offers a quieter, more residential atmosphere, often with larger homes and green spaces, while remaining accessible to the city center. It's known for its parks and family-friendly vibe.
Miraflores & Cercado (Historic Center): While vibrant and culturally rich, offering immediate access to attractions, museums, and restaurants, areas within Miraflores and the Historic Center can vary in terms of safety and noise levels, especially at night. Conduct thorough reconnaissance of specific streets and blocks. The Cercado is also prone to more traffic and urban hustle.

Ongoing Management and Exit Strategy

Regular Communication: Maintain clear, respectful communication channels with your long-term tenants. Provide them with emergency contacts and clear procedures for reporting issues.
Property Inspections: Schedule periodic property inspections (e.g., quarterly or bi-annually) with proper prior notice as outlined in your contract. This allows you to identify minor issues before they become major problems and ensure the property is being maintained.
Addressing Issues: Respond promptly and professionally to maintenance requests. Document all communication and repair work, including dates and costs.
End of Tenancy:
- Notice Period: Ensure your contract specifies the required notice period for non-renewal (typically 30-60 days). Initiate this communication well in advance of the contract end date.
- Walk-Through Inspection: Conduct a joint walk-through inspection with the tenant upon departure. Compare the property's condition against the initial inventory and photos. Document any damages using a clear Acta de Entrega y Recepción.
- Security Deposit Return: Process the return of the security deposit promptly (within the timeframe specified in the contract), deducting only for damages beyond normal wear and tear or unpaid utilities. Provide a detailed itemized list of any deductions.

Conclusion

Embracing long-term rental opportunities in Arequipa offers significant financial stability and reduces management overhead compared to high-turnover short-term rentals. However, this transition necessitates a deep understanding of Peruvian legal frameworks, meticulous due diligence in tenant selection, and the formalization of a robust, notarized rental contract. By following these guidelines, you can transform a simple Airbnb request into a secure, profitable, and legally compliant long-term investment in La Ciudad Blanca.

⚠️ Legal Notice: Consult a Local Lawyer. This article provides general information and does not constitute legal advice. Peruvian real estate law is complex and subject to change. Always consult with a licensed Peruvian attorney and a registered Peruvian accountant for specific legal and tax guidance pertaining to your individual circumstances and property.

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