In Colombia, more than 7.3 million households, more than 40% of the country, currently live in rent. This figure shows that the country is the leader in Latin America in the proportion of families choosing renting as a housing alternative. In light of this, rental agreements in Colombia have acquired central importance as a tool for regulating the relationship between owners and tenants, and as a mechanism for guaranteeing rights and preventing abuse.
Recent updates to oversight and sanctions for improper claims and the obligation to comply with all payments related to leases have reinforced the need for a thorough understanding of the rules governing these types of contracts.
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And renting has established itself as an important option, both for those seeking independence or without access to a home, and for those finding a stable source of income through rentals. However, the relationship between landlord and tenant is not always transparent. Illegal practices, such as requiring deposits or additional payments to sign contracts, continue to exist, motivating authorities to intervene. The Ministry of Housing and local mayors are monitoring these accusations and taking stricter measures to protect tenants, who now have formal and effective mechanisms to report abuse.
The legal framework regulating urban residential lease contracts in Colombia is defined by Law 820 of 2003. This standard sets out the conditions under which contracts must be entered into, performed and, if necessary, terminated. Among its provisions, the law grants owners legal recourse to ensure compliance with tenants’ financial obligations while protecting the stability of renters.
In response, the Ministry of Housing says: Contracts should be clear and transparent, specifying monthly fees, payment dates and methods, and responsibilities for utility services and maintenance.term and termination conditions.
One of the most common and at the same time prohibited actions is the collection of deposits, excessive advances or withholding taxes, which are not considered by law as a requirement for the delivery of real estate. Current regulations explicitly prohibit owners and real estate agents from demanding additional amounts beyond what was agreed upon in the contract. The purpose is to prevent abuse and protect tenants from irregular situations.
Authorities have increased scrutiny of these charges and announced new mechanisms to allow tenants to formally report unreasonable demands.
The sanctions for false accusations against those who fail to comply with these provisions are strong. Owners and real estate agents who make improper claims could be subject to fines of up to the current legal minimum wage of $100 per month, which equates to more than $142 million in 2025. In addition to financial penalties, authorities can also order the return of funds collected irregularly.
The warning is clear. Not knowing the rules does not absolve you of liability. Real estate law experts recommend carefully reviewing the contract and procedures before formalizing a rental agreement.
Complying with your financial obligations in a lease agreement is about more than just paying your monthly bills on a timely basis. If the property is in an apartment complex, the tenant is also typically responsible for paying for management fees and housing utilities. Although these promises may be considered secondary, non-compliance can have associated legal consequences.
Therefore, Article 22 of Law 820 of 2003 provides that non-payment of these obligations may be grounds for termination of the contract, even if the fees have been paid on time. Bogotá’s Regional Habitat Secretariat said: Complying with the fees does not relieve the tenant of other responsibilities associated with the home. Also, as long as legal procedures are followed, the owner can terminate the contract due to the accumulation of debt or interruption of public services.
Tenants have protection mechanisms in place in the event of improper charges. If you believe that an illegal amount has been demanded, you can lodge a complaint with the mayor’s office of your city or district, or with the Industrial and Industrial Supervisory Board (SIC). If authorities confirm fraud, they will impose appropriate sanctions and order the return of funds. This measure aims to balance the relationship between landlords and tenants, thereby ensuring that access to rental housing takes place under fair conditions and within the legal framework.
To prevent disputes and protect their rights, both landlords and tenants must adopt good practices. It is essential:
- Review the contract before signing,
- Make sure you only include terms that are permitted by law.
- Please retain a signed copy of your contract and all proof of payment.
These documents will serve as support in the event of a claim. Experts advise owners to update their contracts and procedures, as ignorance of the rules does not exempt them from sanctions.
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