Renting in Colombia: no cash deposit, rent tied to inflation
Renting a home in a Colombian town falls under Ley 820 of 2003. That law bans a cash deposit, caps the rent at 1% of the market value per month and lets the rent rise once a year, by at most the previous year's inflation. You give notice three months in advance, in writing and by registered post.
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Renting a home in a Colombian town falls under Ley 820 of 2003, the law on arrendamiento de vivienda urbana. That law protects the tenant on three points you need to know in advance: a cash deposit is not allowed, the rent may be at most 1% of the market value per month, and the yearly increase is tied to inflation.
The DANE, the statistics office, measured inflation of 5.10% over 2025. So that is the limit for increases in 2026.
| Rule | What the law says | Article |
|---|---|---|
| Term | what you agree; without agreement one year | 5 |
| Renewal | automatic, for the same term, if both parties kept to the contract | 6 |
| Maximum rent | 1% of the market value per month; that value may be at most twice the cadastral value | 18 |
| Rent increase | after every twelve months, at most the inflation of the previous calendar year | 20 |
| Copy of the contract | within 10 days of signing, for tenant and codeudor | 8 |
| Notice by the tenant, at the end of the term | 3 months in advance, no compensation | 24 |
| Notice by the tenant, early | 3 months in advance, plus 3 months' rent as compensation | 24 |
| Notice by the landlord, during a renewal | 3 months in advance, plus 3 months' rent as compensation | 22 |
| Notice by the landlord after four years, without reason | 3 months in advance, plus 1.5 months' rent | 22 |
May the landlord ask for a deposit?
No, not in money. Article 16 bans depósitos en dinero efectivo u otra clase de cauciones reales: a cash deposit or other collateral for your obligations as a tenant. The ban also applies if the deposit is asked for through another contract or under another name.
The only exception is a guarantee for the utilities, such as water and electricity. It may be at most equal to two consecutive bills from the utility company.
Do not pay a deposit to get a contract. If a landlord asks for one anyway, file a complaint with the municipality, which supervises under article 32. In Bogotá that is the Secretaría Distrital del Hábitat. Claiming money back afterwards takes more time than saying no beforehand.
What is a codeudor?
Besides the tenant, the law mentions a codeudor and a fiador: someone who also vouches for the rent. That is a personal guarantee, not money as collateral. The law itself counts on it, so the ban on deposits does not touch it. If you do not yet know anyone in Colombia who is willing, ask the landlord what other security he accepts, and have that agreement put in the contract.
Does the contract have to be on paper?
No. A rental contract may be oral or written, says article 3. You do have to agree on at least the names, the home, the parts you share with others, and the price and how you pay. Put it on paper anyway. If it is in writing, the landlord must give you a copy with the original signatures within ten days. If he does not, the competent authority can impose a fine of three months' rent.
The rent may be agreed in a foreign currency, such as dollars. You then pay in pesos, at the official rate on the day the obligation arose, unless you agreed on a different date or rate (article 19).
How does a rent increase work?
After every twelve months at the same rent the landlord may increase it, by at most the inflation of the previous calendar year. The new rent may never exceed 1% of the market value. The landlord must tell you the increase and the start date by registered post or as the contract prescribes. If he does not, the increase does not apply against you. If you pay it anyway, you do not get that money back by arguing that you were not informed.
How do you give notice?
Always in writing, through an authorised postal service, at least three months in advance. At the end of the term you need not give a reason or pay compensation. If you want to leave earlier, you pay three months' rent as compensation.
Without written notice the contract is renewed automatically, for the same term as the original. Anyone who does not give notice on a one-year contract in time thus has another year, and pays the compensation of three months' rent if they still want to leave within it.
And if the landlord will not accept payment?
If the landlord refuses your payment, you deposit the rent within five working days of the due date with an institution designated for this, and report it by post (article 10). That way you are not in default. The landlord must give you written proof of every payment.
Where does renting fit in your plan?
Anyone who wants to buy later can rent first and look around at leisure; see buying a house in Colombia. Put the number of your passport or, once you have it, your cédula in the contract; see registration. Where renting falls between visa, arrival and bank is in the route to Colombia.
In Vertrekklaar this is phase 5 of 5 of the journey, step 5.6: the same steps, but for your situation — in your order, tickable, and with the deadlines watched. See the whole journey to Colombia or go straight to step 5.6 in the open plan.
What this rests on
The facts in this article come from these official pages. Rules change. When in doubt, go by the source, not this article.
- Ley 820 de 2003 on renting homes in towns (Función Pública, Gestor Normativo) — funcionpublica.gov.co
- DANE — inflation over 2025 was 5.10% — dane.gov.co
- Secretaría Distrital del Hábitat (Bogotá) — booklet on rental contracts, deposits and complaints — habitatbogota.gov.co
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