How to list a property for rent in Colombia

Renting out a property well starts with a good listing and ends with a clear lease and a tenant who can pay. Here is the whole process for owners.

1. Set the rent

• Compare with similar rentals in your area.
• For urban housing, the law (Ley 820 of 2003) sets a ceiling: the monthly rent may not exceed 1% of the property's market value.
• Decide whether the figure includes the monthly building fee (administración) and say so in the listing. It is the question people ask most.

2. Prepare and publish the listing

Tenants decide quickly, so the listing should answer the basics: rent, building fee, area, bedrooms, bathrooms, parking, estrato, whether pets are allowed and when it is available. Add daylight photos of every room.

On LuxuryHomes.com.co you mark the property as a rental and can say whether pets are allowed; people searching with that condition find it directly. Owners list up to two properties for free: sign up as an owner or read how it works.

3. Choose the tenant carefully

It is normal to ask for:

• An identity document.
• Proof of income: an employment letter, payslips or bank statements. A common rule is that rent should not exceed a third of income.
• A guarantee: one or two co-signers (codeudores), or a rental insurance policy issued by an insurer, which vets the tenant and pays if they stop paying.

For urban housing, the law does not allow cash deposits or similar security to guarantee payment. The guarantee has to be a co-signer or a policy.

4. Sign the lease

A lease can be verbal, but put it in writing. At a minimum it should state:

• Who the landlord, the tenant and the co-signers are.
• The property and what it includes (parking, storage, furniture).
• The rent, the due date and how it is paid.
• The term. One year is usual, renewing for equal periods.
• Who pays utilities and the building fee.

Hand over the property with a signed inventory and photos of each room. It saves arguments at the end.

5. During the tenancy

• Increases: for urban housing, rent can go up only every twelve months, and by no more than the previous year's inflation (IPC).
• Repairs: those needed to keep the property usable are the landlord's; damage from misuse is the tenant's.
• Ending it: to not renew, written notice is required with the advance the law and the lease set, normally three months.

Frequently asked questions

Rent it out myself or through an agency?

On your own you save the commission, but vetting the tenant, collecting rent and arranging repairs are up to you. An agency charges a percentage of the rent and manages all of that. You can find verified agencies on the portal.

What if it's a shop or an office?

Commercial leases are governed by the Commercial Code, not by Ley 820: rent, increases and guarantees are agreed freely in the contract.

What do I do once it's rented?

Mark the property as "Rented" so the listing stops receiving enquiries.