Investment in short-term rental properties in Panama

Why Investment in Short-Term Rental Properties Continues to Grow in Panama?

Why investment in short-term rental properties continues to grow in Panama? I invite you to share why the short rental market continues to grow. Let’s see them!

The owner promotes the property with apps like Airbnb, Vrbo, Expedia, and TripAdvisor. The app verifies the parties, landlord, and tenant, guaranteeing compliance with the agreed terms.

The landlord chooses the client and the lessee the property. The procedure is democratic. Like the rental term is short, the property maintenance is frequent. In addition, the landlord could rent long-term rental of the property.

The return on investment (ROI) is higher. The short-term rental properties are less than staying in a hotel unit but more than traditionally renting an apartment.

After the pandemic, tourists and travelers changed their perception of accommodation. For this reason, the number of tourists who prefer to stay in furnished apartments grew. The reason is to protect their health or family if they travel in a group.

When selecting a property in Panama and thinking of offering it on the short-term rental market, consider the following factors: 


Invest in properties with prime locations or tourist sites that differ from other options offered by the market. Also, research the tourism market during high and low demand periods.

Make sure that the property is possible to rent in the short term. In Panama, buildings have administrative regulations and co-owners (HOA) prohibiting short-term rentals. Example the Article 21 of Law 80 of November 8, 2012.

For this reason, before investing in properties for short-term rentals, consider the following: In the district of Panama, article 21 of Law 80 of November 8, 2012, prohibits rentals lower than 45 days, except those with permission of tourist accommodation.

The same law penalizes people who advertise these services by any means, including electronically. The fines range from USD 5,000 to USD 50,000, depending on the seriousness of the infraction or recidivism.

We recommend that before investing in a property, consult an experienced real estate broker, who will advise you on the appropriate options for your interests and needs!

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