Rents in Colombia: what is true and false about the increase for 2023

One of the expenses that yes or yes will rise in this 2023 in Colombia, like every year, it will be the housing rental.

(See: This would be the increase in rents for 2023: this is how you should calculate it).

The increase in the rental fee is stipulated in Article 20 of Law 280 of 2003 and says that it should rise in line with the inflation of the immediately preceding year.

In the absence of inflation data for December 2022, which will be released on Thursday, January 5 by the National Administrative Department of Statistics (Dane), for now, the annual variation, to November, is 12.53%.

So how much should rents go up?

To avoid misunderstandings and inform the public in the best way, the Colombian Federation of Real Estate Exchanges (Fedelonjas) made some clarifications about it.

(See: The best months to rent or sell a home).

– The increase in rental fees for housing will be carried out in accordance with current legal regulations, for which it is necessary to determine the date of execution of the contract, since some are the norms if the contract was entered into prior to Law 820 of 2003 and others if it was entered into after of the issuance of this law.

– The fees of urban property lease contracts for housing will increase in 2023 only after the contract is renewed and on the date of the respective renewal.

(See: Products and services that will rise in price in this 2023).

– The rental fees of contracts that deal with urban real estate intended for housing and that were carried out after July 10, 2003, will be adjusted by a percentage equal to the inflation of the previous year (in this case, 2022).

– Leasing contracts of properties other than urban ones intended for housing (ie premises, offices, consulting rooms, warehouses, etc.) will readjust their fees according to what was agreed by the parties in the respective contract.

– If there are doubts for cases such as housing contracts signed before 2003 or for uses other than housing, we recommend seeking the advice of a real estate agent with a recognized track record since the legislation is different.

(See: What to do if you have a bad tenant or tenant).

“The inflation rate will be high by 2022 and we know that it is a very sensitive issue for the finances of both owners and renters.”, expressed Karina Reyes, president of Fedelonjas.

For this reason, different authorities and entities have called for the landlord and the tenant to reach agreements that do not impact the economy.

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