Lease agreements for management rentals property in Colombia can be made orally or in writing and rents can be set freely by agreement between landlord and tenant, though the monthly rent cannot exceed 1% of the commercial value of the dwelling or of the part of the dwelling subject to the lease. Such commercial value cannot exceed two times the cadastre value of the dwelling at the time of the contract.

The rent can be fixed in any currency but, if fixed in a foreign currency, it has to be paid in Colombian pesos at the market exchange rate in force at the time of the contract, unless otherwise agreed by the parties.

There can be increases in the rent every 12 months of execution of the lease agreement. The increase cannot exceed 100% of the Consumer Price Index for the immediately preceding calendar year. In any case, the new rent has to conform to the parameters set forth above as to the limits of the initial rent.

If the tenant believes that the increase made by the landlord exceeds market prices, he has 6 months to request a revision before the Mayor’s Office of the city where the dwelling is located.

Deposits
Deposits for lease agreements are prohibited in Colombia. The law also forbids landlords from requesting liens to secure payment of tenant’s contractual obligations.

What rights do landlords and tenants have in Colombia, especially as to duration of contract, and eviction?
Landlord and tenant can freely agree on the duration of the lease. If no specific duration is mentioned, the contract is understood to be for one year. Unless a notice of termination is duly sent, the contract will be renewed for successive equal terms if both parties have complied with their contractual obligations and the tenant accepts the increases in the rent authorized by law.