How it was before and how it is now the lease law in the country

The leases They are a topic that is usually on the lips of the public each year due to the corresponding increase that they may suffer due to inflation the previous year. In this case, a very high increase considering that the annual CPI for 2022 reached 13.12%.

(Read: Who must be responsible for damages and repairs to the rental property).

The leasing sector experienced a before and after the law 820 of 2003 which established some basic conditions and criteria regarding lease contracts.

There were framed Obligations of both lessee and landlord as well as the setting of the rental fee or the causes of termination of the contract by the lessor.

A before and after due to the rules of the game that he put on the table for a sector where most of the time agreements were made verbally that were not followed up on.

(In addition: Pros and cons of renting a property with real estate or directly).

What the law did was agglomerate a series of articles, decrees, laws that were loose and had been issued separately in different instances.

One of the most important changes brought was the increase in the rental fee that can be givenr. “Prior to the law, an increase of up to 90% of the CPI determined in the previous year was allowed. Not so different to what we have today that can be increased up to 100%“, explains Martín Monzón, CEO of the Finca Raíz portal.

Also, the law gave many ways to resolve conflicts with one of the articles that is based on solidarity between the parties. “It regulates conflicts such as non-payment of the canon, where there are new procedures in which the owner can recover the property in up to 6 months,” he points out.

Before, this process of returning the property could take up to 10 years, according to Monzón’s account.

(See: Rental insurance: this is how they work and the prices they have).

Another of the key changes is regarding public services and administration. “This law regulates how the subject of public services that corresponds to the tenant works and that was not clear before“.

Finally, the law clarified that the Lease agreement can be oral or verbal as long as the lessee and lessor agree on the following points:

-Name and identification of the contracting parties (those who lease the property).
-Identification of the part of the property that is leased, and if applicable, of the areas or services shared with the other inhabitants of the property.
-Price and method of payment.
-Relation of the payment of public services.
-Term of duration of the contract.

BRIEFCASE