Peru Rental Laws: Pro-landlord, Neutral or Pro-tenant?

Peru's landlord and tenant laws are judged by the Global Property Guide to be Pro-Landlord between landlord and tenant. Overall, the system protects tenants enough to prevent abuse but gives landlords the upper hand when it comes to control and property rights.

Rents: Can landlord and tenant freely agree rents in Peru?

The initial rent can be freely agreed by the landlord and the tenant. The rent will only be subject to revision (update) if a clause in the tenancy contract expressly provides for such revision, or if both parties expressly and freely agree to a revision, at a certain time. Otherwise, the rent remains the same until the contract expires.

In Peru, legal regulations do not provide for mandatory rent reviews or rent increases. However, it is usual for the parties to agree on annual increases, either through adjustments in accordance with the Consumer Price Index (CPI) or in accordance with percentages agreed by the parties

Deposits

In most cases, renters in Peru are asked to provide a deposit equivalent to about one month’s rent. This deposit should be refundable, but it’s not uncommon for some landlords to try and keep it after the lease ends. To protect yourself, it’s wise to carefully document the condition of the property both when you move in and again when you move out.

What rights do landlords and tenants have in Peru, especially as to duration of contract, and eviction?

In Peru, the duration of a lease can be freely agreed upon by the parties, as long as it is either fixed or clearly definable. However, Peruvian law sets a maximum lease term of 10 years. In practice, lease periods vary depending on the type of property. Residential leases are typically signed on an annual basis. For office spaces, lease terms usually range from 3 to 5 years, with the specific duration depending on whether the space is already fitted out or will be customized by the tenant. Industrial and similar properties often have longer lease terms, commonly between 5 and 10 years, with renewal options generally built into the contract based on mutually agreed conditions.

In Peru, tenants do not have an automatic right to renew a lease, so any extension must be explicitly agreed upon in advance by both parties. That said, if the lease term expires and the tenant continues to occupy the property, the contract does not automatically renew. Instead, the lease remains in effect under the original terms, and the tenant may stay until the landlord formally requests the return of the property—something the landlord is entitled to do at any time.

How effective is the Peruvian legal system?

Tenancy law is enforced before the courts. Proceedings are extremely time-consuming. The courts are saturated and lack effective powers.

Legislation

Tenant and landlord relations in Peru are primarily governed by the Urban Leasing Law (Ley de Arrendamientos Urbanos), Law No. 30201, which was enacted in 2014. This law regulates leases of urban properties for residential, commercial, and industrial purposes. It sets out the rights and obligations of both landlords and tenants, including contract duration, rent adjustments, deposit rules, eviction procedures, and lease renewal terms. Additionally, general provisions from the Civil Code of Peru may also apply to rental agreements not specifically covered by this law.

Brief History: Recent changes in Peruvian landlord and tenant law

There has been no radical de-regulation or re-regulation in the past few decades.