Bermuda – Property Rental Prices

What are typical rental prices in Bermuda?

Bermuda consistently ranks as one of the most expensive places to live in the world, and in 2025 the cost of living remains high due to the island’s reliance on imports, limited land for development, and a high standard of living. That reality is felt nowhere more keenly than in the rental market, where prospective tenants face prices that can come as a genuine shock even to those relocating from other high-cost cities.

Rent in Bermuda is, on average, 186% higher than in the United States, placing it in a league of its own globally. Housing is one of the largest expenses for those living in Bermuda, with rental prices varying by location, property type, and amenities.

An average one-bedroom apartment in Hamilton rents for around $3,300 per month, while outside Hamilton the figure drops to around $2,200 per month. A two-bedroom apartment in Hamilton costs about $4,000 per month and around $3,200 per month outside Hamilton, while a three-bedroom apartment in Hamilton can reach approximately $6,300 per month.

Compared to expat hubs such as the Cayman Islands, London, or New York, Bermuda often surpasses them in housing and grocery costs. To put that in context, a two-bedroom apartment in central London typically rents for the equivalent of around $3,000–$3,800 per month — a price that in Hamilton would get you only a modest one-bedroom unit.

With steady demand for both long-term and short-term rentals, particularly in sought-after areas like Hamilton, Southampton, and Tucker’s Town, real estate investors can expect solid rental income. These areas are also the most popular among newly arrived professionals and long-term residents, meaning competition for available units can be fierce.

The rental market offers a diverse range of accommodation that caters to the housing needs of residents and expatriates, from single-family detached homes to high-rise apartment towers, as well as small studio apartments and luxurious waterfront condominiums. Studios and small one-bedroom units at the lower end of the market may be found from around $1,500–$2,000 per month, though these tend to be older, smaller, or located in less central areas.

Due to strict regulations on property ownership, renting is often seen as the most practical and convenient way for newcomers, especially expatriates, to secure suitable living arrangements in Bermuda. The Government’s strict regulations on foreign property ownership mean that many expats and foreign workers have no choice but to rent, further driving up the demand for rental properties.

Most rental properties in Bermuda include a refrigerator, stove, oven, dishwasher, and washer and dryer. Depending on the property, additional appliances such as a microwave, toaster, and coffee maker may also be included. This is a useful consideration when comparing advertised rents, as furnished and well-equipped properties are common at the mid-to-upper end of the market.

The Bermudian dollar is pegged 1:1 to the US dollar, so all rental prices are effectively quoted and paid in US dollars regardless of which currency you use at home. Budget accordingly, and factor in that a typical monthly utility bill for a family may exceed $400, while water is collected via rainwater catchment systems stored in tanks, requiring regular maintenance.

Are there rental caps in Bermuda?

Bermuda does operate a formal rent control system, but it is narrower in scope than many renters might expect. Understanding which properties fall under this system — and which do not — is essential before you sign any lease.

Under Bermuda’s legislative framework, the residential housing market is separated into two different markets: properties falling under the remit of the Landlord and Tenant Act 1974, and properties falling under the Rent Increases (Domestic Premises) Control Act 1978.

Residential properties with an Annual Rental Value (ARV) of $22,800 or less fall under Rent Control, meaning the rent that can be charged, and how it can be increased, is regulated by law under the Rent Increases (Domestic Premises) Control Act 1978. The ARV is a government-assessed figure assigned to every property and is not the same as the monthly rent being advertised. You can find the ARV of any property by visiting www.landvaluation.bm.

Enforced by the office of the Rent Commissioner, the purpose of the rent control system in Bermuda is to “protect the welfare of the community from unreasonable rent increases and unlawful eviction, and to educate the public on the rights and responsibilities of landlords and tenants under the law.”

The office of the Rent Commissioner regulates by how much and how often rent can be increased. It also protects tenants from unlawful eviction, limits how much a landlord can charge for a rental deposit, hears and rules on undesirable tenant cases, institutes court proceedings against anyone who contravenes the law, and adjudicates appeals tribunals.

A property rented for the first time — such as a newly constructed unit — may be rented for any amount, even if it falls under rent control. The landlord must submit the first signed rental lease to the Rent Commissioner. Subsequent rent increases, whether to the same or to a different tenant, are restricted. In those cases, rent should not be higher than the rent charged to the first tenant unless the landlord and tenant have agreed an increase, the landlord has lodged notice with the Rent Commissioner, and the Rent Commissioner’s approval for the increase has been received.

It is important to understand what is not covered by rent control. The following residential units are exempted from the Rent Increases (Domestic Premises) Control Act 1978: rental units with an Annual Rental Value higher than $22,800; premises where the tenant is an employee of the landlord and the unit forms part of the employment contract; and premises normally occupied by a landlord who wishes to let them during a temporary absence from Bermuda for less than one year.

In practice, the majority of properties that expats rent — particularly modern apartments in Hamilton and the surrounding parishes — have ARVs above the $22,800 threshold. Lease agreements lasting three years or less are covered by the Landlord and Tenant Act of 1974, which allows landlords and tenants to freely negotiate the rent. This means that for most professionally let properties, there is no legal ceiling on what a landlord can charge.

Contravention of rent control can result in criminal prosecution or in a tenant’s claim for up to two years’ rent paid in excess of the controlled rent. If you believe your rent-controlled property has been overcharged, you should not stop paying rent, but instead can apply to the court to recover the excess.

How much is a deposit and what are the return rules?

Deposit rules in Bermuda differ depending on whether the property falls under rent control or not. The law sets a firm upper limit for rent-controlled units, but for higher-value properties the terms are generally governed by the lease agreement itself.

Bermuda law strictly regulates deposits for rent-controlled properties. The Rent Control Act mandates that security deposits must not exceed two weeks’ worth of rent or $100, whichever is bigger, for rent-controlled units. This is a relatively low cap compared to many jurisdictions — in the UK, for example, deposits are typically capped at five weeks’ rent for most tenancies, making Bermuda’s limit for controlled properties significantly more tenant-friendly by comparison.

The payment of key money or a reservation fee is illegal under Bermuda law. This is worth knowing before you sign anything, as any upfront payment described as a “key fee” or similar non-deposit charge in a rent-controlled context is not lawful and should be queried immediately.

For properties above the rent control threshold — which is where most expat rentals sit — the deposit is negotiated between landlord and tenant and governed by the Landlord and Tenant Act 1974 and the terms of the lease. In practice, landlords of mid-to-upper-range properties commonly request one to two months’ rent as a security deposit, though this is not fixed by law for non-controlled units. Always ensure the deposit amount and return conditions are clearly stated in your written tenancy agreement before handing over any funds.

The deposit shall be returned after deductions for any repairs are made. For rent-controlled units, this process is overseen by the Consumer Affairs Rental Unit. For non-controlled properties, the basis for any deductions should be documented in the lease, and it is strongly advisable to conduct a detailed inventory check — with photographs — both at the beginning and end of the tenancy to avoid disputes.

For short-term and holiday-style rentals, the rules differ again. Damage deposits for these arrangements are typically returned within 30–60 days after the tenancy concludes, less any damages or overages. Always ask your landlord or letting agent to clarify the exact timeline and conditions in writing before you move in.

A written notice is required before either party can unilaterally terminate a lease agreement. For a yearly rental agreement, six months’ notice is required, and yearly agreements cannot be cancelled during the first year. For a monthly rental, one month’s notice is required. These notice periods also have implications for your deposit: make sure you understand when you are entitled to receive it back relative to your departure date.

Does rental availability and pricing change seasonally?

Bermuda’s rental market does experience meaningful seasonal fluctuation, though it operates somewhat differently from a typical holiday-letting market. The island’s dual economy — driven both by tourism and by the international business and finance sector — creates overlapping demand cycles that affect both availability and pricing throughout the year.

Bermuda is a global financial hub, which attracts business professionals, expatriates, and tourists, driving consistent demand for real estate. This underlying base of demand from the finance and insurance sector provides a relatively stable floor for long-term rental prices year-round. However, the tourism cycle creates a second layer of demand that causes clear seasonal shifts, particularly for short-term and vacation-style rentals.

The peak rental season broadly aligns with Bermuda’s tourist high season, which runs from April through September. Performance in the first half of the year is typically strong, and by the end of July 2025, air arrivals were up 1.7% year over year, with visitor days increasing 4.8%. During this period, properties that can legally operate as short-term or vacation rentals are often taken off the long-term market entirely, reducing the supply of units available to prospective long-term tenants and pushing rents upward.

Bermuda’s tourism-driven economy means vacation homes and short-term rental properties are highly sought after, particularly in areas like Hamilton, St. George’s, and Southampton, which provide ideal locations for short-term rentals that capitalise on demand from tourists. When landlords in these areas shift properties to short-term lets during peak season, it can tighten the long-term market noticeably.

The autumn and winter months — roughly October through March — tend to offer more availability and occasionally greater scope for negotiating on price. The opportunity for the tourism sector lies in optimising occupancy during the non-summer months, and efforts have shown a lift in visitor spending throughout the fall and winter periods. While this means tourists are increasingly present year-round, long-term rental stock is generally more accessible in the cooler months, and some landlords are willing to negotiate off-peak leases.

Considering shared rentals or negotiating off-peak leases is one way to lower housing costs in Bermuda. If your work start date allows for flexibility, beginning your property search in October or November rather than May or June could give you a wider selection and more room to negotiate.

The Atlantic hurricane season, which runs from June through November, also plays a role. In 2025, Bermuda’s tourism industry navigated significant storm disruptions during the Atlantic hurricane season, with cancellations from August to early November as a result of unusually high storm activity during the period. For long-term tenants, the hurricane season is less a deterrent than a practical planning consideration: check that your lease is clear on responsibilities for storm damage, and ensure your contents insurance covers hurricane-related events.

Bermuda’s rental market is characterised by a housing shortage, a steadily rising demand for rentals, and a limited housing supply — conditions that mean even in quieter months, competition for quality properties remains real. The fundamental constraint of the island’s small geographic size means that unlike larger markets, Bermuda cannot simply build its way out of scarcity. Any prospective renter should therefore start their search well in advance of their planned move date, ideally three to six months ahead, and be prepared to act quickly when a suitable property becomes available.

It is also worth noting that major sailing and sporting events — such as the Newport Bermuda Yacht Race and PGA TOUR events — bring concentrated bursts of visitors and well-resourced temporary workers to the island. Looking ahead, 2026 is expected to be a strong year with the return of pinnacle events including Apex SailGP, the PGA TOUR event, and the Newport Bermuda Yacht Race, further supporting demand and global exposure for the island. Around these events, short-term rental prices in particular can spike sharply, so timing a long-term rental search to avoid major event windows is advisable.

Frequently asked questions

Is it cheaper to rent outside Hamilton?

Yes, noticeably so. A one-bedroom apartment in Hamilton averages around $3,300 per month, while the same property type outside Hamilton averages around $2,200 per month. Parishes such as Warwick, Devonshire, and Sandys offer lower rents, though you will likely need to factor in the cost of a moped or transport to commute into the capital.

Can a landlord charge whatever they like for a deposit?

For rent-controlled units, the Rent Control Act mandates that security deposits must not exceed two weeks’ worth of rent or $100, whichever is bigger. For properties above the ARV threshold of $22,800, the deposit amount is not capped by law and is negotiated between the parties, so review your lease carefully before agreeing to any amount.

What is an Annual Rental Value (ARV) and why does it matter?

Every five years, the Department of Land Valuation determines the value of every property in Bermuda, and that valuation is a snapshot of the rental market. The ARV is used to determine both land tax obligations and whether a property falls under rent control. Properties with an ARV of $22,800 or less are subject to rent control legislation, which limits rent increases and deposit amounts.

Is key money legal in Bermuda?

The payment of key money or a reservation fee is illegal under Bermuda’s rental laws for rent-controlled properties. If any landlord or agent asks for a fee described as “key money” in connection with a rent-controlled tenancy, you should report this to the Department of Consumer Affairs, which enforces compliance with the Rent Control Act.

How much notice does a landlord need to give to end a tenancy?

A written notice is required before either party can unilaterally terminate a lease. For a yearly rental agreement, six months’ notice is required, and yearly agreements cannot be cancelled during the first year. For a monthly rental, one month’s notice is required.

When is the best time of year to search for a long-term rental?

The autumn and winter months — October through March — typically see greater rental availability as the tourist season winds down and fewer properties are being held back for short-term holiday lets. Negotiating an off-peak lease can also give you more leverage on price. That said, given Bermuda’s persistently tight supply, beginning your search as early as possible — regardless of the season — is always recommended.

Are utilities usually included in the rent?

In most long-term rental arrangements in Bermuda, utilities such as electricity and water are not included in the rent and are paid separately by the tenant. Utilities such as electricity and water are costly, with electricity rates higher than the global average due to Bermuda’s reliance on imported fuel. A typical monthly utility bill for a family may exceed $400, while water is collected via rainwater catchment systems stored in tanks, requiring regular maintenance. Always confirm with the landlord what is and is not included before signing.

Where can I find official information on rent control and tenant rights?

The Government of Bermuda’s Department of Consumer Affairs is the main regulatory body for landlord and tenant matters. You can access guidance on rent control, deposit rules, and tenant rights at www.consumeraffairs.bm. Property ARV information can be checked at www.landvaluation.bm. The full text of relevant legislation, including the Landlord and Tenant Act 1974 and the Rent Increases (Domestic Premises) Control Act 1978, is available via the Government of Bermuda’s official website at www.gov.bm.