Long-Term Rental Landlord Rules in Colombia

Renting an apartment to a residential tenant for the long term is governed in Colombia by Ley 820 de 2003, the law on leases of urban housing (vivienda urbana, art. 1). It covers deposits, rent limits, increases, notices and how a lease ends. This guide explains what the law says for an owner abroad who rents out an apartment long term. Stays by tourists are a different regime; see the RNT guide. Income tax on the rent is a separate topic; see rental income tax for foreigners.

What must a long-term lease say, and how long does it last?

Under art. 3, a lease may be verbal or written. At a minimum the parties must agree on their names and IDs, the property (and the part rented, if partial), the price and payment method, any connected or additional services, the term, and who pays the utilities. Art. 12 adds that every lease must state the address where each party receives judicial and extrajudicial notices. A written lease is the practical choice, because it is the document you will need if there is ever a dispute.

If no term is stated, art. 5 sets it at one year. Under art. 6, the lease renews on the same terms and for the same initial term if both parties complied and the tenant accepts the lawful rent increases. At the start, art. 8 requires the landlord to deliver the property in good condition and, if the lease is written, to give the tenant (and any co-signer) a copy with original signatures within 10 days. Failing to deliver that copy can be fined three months' rent. In a propiedad horizontal, the landlord must also give the tenant a copy of the rules (the parte normativa del reglamento).

Can you ask for a deposit, and how much rent can you charge?

Art. 16 says cash deposits or other real guarantees (cauciones reales) cannot be required, directly or indirectly. Ask your lawyer which guarantees are used in practice, for example with co-signers (codeudores) or insurance-based guarantees.

Art. 18 sets a cap: monthly rent may not exceed 1% of the commercial value of the property, and for this purpose the commercial value cannot exceed twice the current avalúo catastral. Under art. 19, rent may be set in a foreign currency, but it is paid in Colombian pesos at the TRM of the date the obligation arose, unless another date or rate was agreed. Under art. 17, the tenant cannot sublet or assign the lease without the landlord's express authorization.

How can you raise the rent?

Under art. 20, every 12 months under the same rent, the landlord may increase it by up to 100% of the prior calendar year's CPI (IPC) increase, still within the art. 18 cap. The landlord must notify the amount and the effective date through the authorized postal service or the personal-notification method set in the contract. Otherwise the increase cannot be enforced against the tenant. If the tenant pays it anyway, lack of notice does not by itself give a right to a refund.

An illustrative example, not a real year's figure: with rent of COP 3,000,000 and a prior-year IPC of 5.10%, the maximum increase is COP 153,000, so the new rent could be up to COP 3,153,000, still subject to the 1% cap. Use the official IPC for your year.

Who pays utilities and common expenses?

Under art. 9, the tenant pays the rent on time, cares for the property, pays the utilities and, where the contract says so, the common expenses, and follows the building rules. For how those fees work, see our cuota de administración guide.

Art. 15 covers the utility companies. When the tenant pays utilities, the landlord can require guarantees for the utility companies (capped at two billing periods of certain charges) and report the lease to each utility company with those guarantees. From the end of the billing period in which that is done, the property is no longer liable for the tenant's utility bills. Under art. 14, money obligations such as rent can be collected in an executive lawsuit based on the lease. Utilities or common expenses the landlord paid for the tenant can be collected that way by attaching the paid bills and stating with the claim that the landlord paid them.

How can a lease end?

Art. 21 allows termination by mutual agreement at any time. For termination by the landlord, art. 22 lists these grounds:

• Non-payment of rent or of rent increases within the term the contract states.
• Non-payment of utilities causing disconnection, or of common expenses when the tenant pays them.
• Unauthorized subletting or assignment, or an unauthorized change of use.
• Repeated conduct that disturbs the neighbors' peace, or use of the property for a crime or a contravention, proven before the police authority.
• Unauthorized works or damage to the property.
• Breach of the building's reglamento.

Two further routes apply to renewals and to the end of a term. Under art. 22 num. 7, during renewals the landlord may terminate with at least 3 months' written notice through the authorized postal service, plus an indemnity of three months' rent; art. 23 sets the procedure, which includes depositing the indemnity, calculated on the rent in force on the notice date, in the tenant's favor and at the order of the competent authority, within the 3 months before the termination date. Under art. 22 num. 8, at the end of the initial term or of a renewal, the landlord may terminate with at least 3 months' written notice through the authorized postal service for these reasons: (a) the owner or possessor needs to live there for at least one year; (b) demolition for new construction, or independent repair works that require vacating; (c) delivery under a sale contract; or (d) plain will, only if the lease has run at least four years, with an indemnity of 1.5 months' rent paid by the art. 23 deposit procedure. For (a) to (c), the notice must come with proof of a cash, bank or insurance guarantee (caución) in the tenant's favor equal to six months' current rent, securing that the stated reason is carried out within six months after the property is returned. Without the written prior notice required for these end-of-term grounds, the lease renews automatically for the initial term.

The tenant has protections too. Under art. 24 num. 1, the tenant may terminate if the landlord deliberately suspends the utilities or falls behind on utility charges the landlord must pay. Under art. 26, where the landlord owes an indemnity, the tenant cannot be deprived of the property without being paid or secured first.

Why does removing a tenant go through the courts?

If the tenant does not leave, the landlord's route is a court process to recover the property. It is called the proceso de restitución de inmueble arrendado, and it is regulated by art. 384 of the Código General del Proceso (Ley 1564 de 2012). The law's route is notice, agreement or court process. If the landlord deliberately suspends the utilities, or falls behind on utility charges the landlord must pay, that is itself a ground for the tenant to terminate the lease.

From art. 384, the claim must be accompanied by documentary proof of the lease signed by the tenant, or the tenant's confession in an out-of-court party examination (interrogatorio de parte extraprocesal), or at least summary witness evidence. For notices, the tenant's address is the rented property unless the parties agreed otherwise. If the claim is based on unpaid rent (or utilities, administración fees or other amounts the tenant owes under the lease), the tenant is not heard until they deposit with the court the full amount owed, as shown by the evidence filed with the claim, or, if they do not, present the landlord's receipts for the last three periods, or the legal consignments for those same periods. Whatever the ground, the tenant must keep depositing the rent that accrues during the process.

A Colombian lawyer runs this process. The lease, the notices you sent and the payment records are the evidence, which is why keeping them in order matters from day one.

Do you need to register as a landlord, and what should you ask your lawyer?

Under art. 28, people whose main activities include renting urban housing (their own or other people's) or intermediating, in municipalities with more than 15,000 inhabitants, must register (matrícula de arrendador). So must owners or sublessors who sign more than five leases, and anyone renting more than ten properties in the same municipality is presumed to carry on that activity. Under arts. 32 and 33 the alcaldías inspect and control, and art. 34 provides fines of up to 100 monthly minimum wages for, among other things, failing to register when required.

Before you sign a lease, take these questions to your lawyer. Our free one-page due-diligence checklist also helps you gather the property documents first.

• Does my situation require the matrícula de arrendador?
• What guarantees are used in practice, given that cash deposits cannot be required?
• Which address for notices and which postal-notice method should the lease state?
• How should I record rent in pesos if the lease is set in a foreign currency?
• What tax applies to rent paid to a non-resident landlord?

This guide is educational, not legal or tax advice. Every lease and every property is different; confirm your case with a Colombian lawyer.

Frequently asked questions

Can I ask for a security deposit in Colombia?

Ley 820 says cash deposits or other real guarantees (cauciones reales) cannot be required, directly or indirectly. Ask your lawyer which guarantees are used in practice.

How much can I raise the rent?

Every 12 months under the same rent, the landlord may increase it by up to 100% of the prior calendar year's IPC increase, still within the cap of 1% of the property's commercial value. The landlord must notify the amount and effective date as the law requires, or the increase cannot be enforced against the tenant.

Can the tenant leave early?

Ley 820 allows termination by mutual agreement at any time. The tenant may terminate if the landlord deliberately suspends the utilities or falls behind on charges the landlord must pay, and may also end the lease during the initial term or a renewal with at least 3 months' written notice through the authorized postal service and an indemnity of three months' rent, calculated on the rent in force on the notice date, deposited in the landlord's favor and at the order of the competent authority within the 3 months before the termination date (art. 24 nums. 1 and 4, and art. 25). Ask your lawyer how that applies to your lease.

How do I remove a tenant who will not leave?

The law's route is notice, agreement or a court process to recover the property, run by a Colombian lawyer. The lease, the notices and the payment records are the evidence.

Do I need to register as a landlord?

Ley 820 requires registration (matrícula de arrendador) for people whose main activities include renting urban housing in municipalities over 15,000 inhabitants, and for owners who sign more than five leases. Ask your lawyer whether it applies to you.

Not sure where you stand? Take the quiz. The Colombia Owner Kit (US$79, pre-order) turns this guide into a checklist, a calendar entry and a question list: see what’s included. Or start with the free sample: K19, the one-page due-diligence checklist.