Hiring a Property Manager in Colombia

What it is

A property manager (administrador de inmuebles) works for you under a contract, usually a mandate (mandato). The building administration works for all owners. Municipalities of more than 15,000 people require landlord registration (matrícula de arrendador) for certain activities. This includes people whose main activities include renting out urban housing for others. Ask for the number before signing (Ley 820 de 2003, art. 28).

Agree the management duties in writing. This guide does not recommend any manager.

Two different administrators

Type	Rule
The building administration	acts for all owners under the condominium regime (propiedad horizontal). Its duties include assemblies, accounts, budget and common services (Ley 675 de 2001). Owners pay it through the building administration fee; see the building fee guide.
Your property manager	works for you under the contract. Duties can include finding tenants, collecting rent, paying bills, coordinating repairs or running a short-term rental.

Who it applies to

Long-term and short-term rentals

For urban housing leases, the landlord may raise rent once every 12 months. The increase cannot exceed the previous calendar year's consumer price index increase. It must stay within the legal cap. The landlord must notify the tenant as the law requires (Ley 820 de 2003, art. 20). See the landlord rules guide.
Tourist rentals need the national tourism registry (Registro Nacional de Turismo) (RNT) and must follow the building's rules. Building administrators must report tourist housing that the rules do not allow or that lacks registration (Ley 1558 de 2012, art. 34). See the short-term rental guide. Ask whose name the registration will be in.

For foreign guest reports, see the foreign guest reporting steps. For accommodation records, see the guest accommodation record guide.

Steps

Tax questions for your accountant

Ask a Colombian accountant how Colombia taxes the rent. Ask whether the tenant, platform or manager must withhold tax (retención en la fuente). Ask which certificates you should receive. See Colombian tax on rental income. Your home-country tax professional decides how to report the income there. For US filers, see the US reporting guide.

Questions to ask a manager

Ask the professional: What exactly is included, and what costs extra?
Ask the professional: Do you have a landlord registration and, for short-term rentals, a tourism registration? In whose name?
Where is my rent deposited, and when and how will I be paid?
Ask the professional: What will the monthly report show? Will I get an invoice for every expense?
Who approves repairs, and up to what amount?
Ask the professional: How can either of us end the contract, and what happens to deposits and keys?

Costs

Under a commercial mandate, the manager is entitled to the agreed fee or the usual fee for that kind of work (Código de Comercio, arts. 1262 and 1264).
Fees are often a percentage of collected rent. Placing a tenant, renewals or repairs may have separate charges. We do not quote rates. Get every fee in writing and ask whether Colombian VAT applies.

Documents

The contract

A management contract is usually a mandate: you entrust the management of your affairs to the manager (Código Civil, art. 2142). The manager must account for the management. Important items need documents (Código Civil, art. 2181).

Official sources

Next step

Educational information, not legal or tax advice. Ask a Colombian lawyer or accountant about your case.

This guide is educational information, not legal or tax advice. For your case, ask a Colombian real estate lawyer (abogado inmobiliario) and certified public accountant (contador público). Ask a tax professional and lawyer in your home country about the effects there. Finding trusted services shows how to check that a Colombian lawyer is registered.

Take the free quiz to find your next guide.

Colombia Owner Kit · US$79 · instant download

The risk: Renting out urban housing for others as a main activity requires a landlord registration in municipalities of more than 15,000 people (Ley 820 de 2003, art. 28).
One step now: Before you sign with a manager, ask for their landlord registration number and a written list of every fee, and have your lawyer read the contract.
In the kit: The kit’s rental pack starts with whether the RNT applies, and the calendar reminds you of the renewal window. See what’s included

US$79 once. Instant download. Preview the free sample first. Not ready? Join the email list for occasional news.

No spam.

Frequently asked questions

Does a property manager need a licence in Colombia?

Municipalities of more than 15,000 people require landlord registration under Ley 820 de 2003, art. 28. This covers people whose main activities include renting out urban housing for others or connecting landlords and tenants. Ask for the number before you sign.

Is my property manager the same as the building administration?

No. The building administration acts for all owners of the building under Ley 675 de 2001. Your property manager works for you under a contract, usually a mandate, and must account for the management.

How much can my manager raise the rent each year?

For urban housing leases, the landlord may raise rent once every 12 months. The increase cannot exceed the previous calendar year's consumer price index increase. The legal cap also applies (Ley 820 de 2003, art. 20).

Not sure which topics to raise? Take the quiz. The Colombia Owner Kit (US$79, instant download) turns this guide into a checklist, a calendar entry and a question list: see what’s included. Or start with the free sample: Chapter 4, the due-diligence checklist.