Rent in Colombia: this is how much the fee increases each year is calculated - Personal Finance

Rent in Colombia: this is how much the fee increases each year is calculated – Personal Finance – Economy

Mitchell G. Patton3 years ago

Renting is an increasingly popular alternative for those looking to have a place to live without the long-term commitments of buying a property. In Colombia, the rental market has experienced significant growth in recent years, providing citizens with a variety of options to find the ideal home.But in order to achieve this, several factors must be taken into account, including the cost of the rental fee.

(It may interest you: These are the cities where the rent for premises and housing increased the most in 2023).

In Colombia, the lease is regulated by Law 820 of 2003, which establishes the rights and obligations of both the lessor and the lessee. This law seeks to guarantee the safety and protection of both parties, propose rules on the term of the contract, the payment of public services and other relevant aspects.

Property owners must comply with the law.

Among these is also the rental fee, which rises gradually in accordance with the inflation presented in the year. For example, in 2023 at the end of December 2022, annual inflation in the country reached 13.12%, according to Dane.

Now, to calculate the increase in the fee, it is necessary to take this percentage and the price of the monthly rent the previous year.

(Be sure to read: Do you live for rent in Colombia? Find out what house arrangements are yours and are not adequate).

It should be remembered that this increase cannot be made automatically on January 1st.rather, it becomes effective when the year of the lease expires at the same price.

In other words, if you paid 1,000,000 pesos for rent in 2022, in 2023, you must pay 1,131,200 Colombian pesos.

Although the rent rises according to inflation, the Colombian Federation of Real Estate Markets (Fedelonjas) asked the owners of the rented houses, the tenants, not to exceed the increase in prices.

“We want agreements to actually be carried out because we know about the social problem that some exorbitant increases can become or that suddenly the fees will exceed the values of the reales of a lease”, assured the president of Fedelonjas, Karina Reyes, at the beginning of the year.