The increase applies once the contract reaches 12 months from its signing.
The Colombian Federation of Real Estate Lonjas (Fedelonjas) announced that rental fees for urban housing may increase up to 9.28% in 2024, in accordance with the provisions of Law 820 of 2003. However, the measure It will only apply when 12 months have passed since the signing of the contract.
According to the president of Fedelonjas, Mario Ramírez, rentals are an aspect of high interest for the Colombian population, since 40.2% of Colombians live in rentals and the figure exceeds 47% in the main cities. Furthermore, the increase in the fee affects not only families who live in rent but also the owners of the homes, who 85% belong to strata 1, 2 and 3 and, in the absence of a pension, earn their income from said rentals. .
“The rental market exceeds 27.12 billion pesos annually and the majority of rental homes are concentrated in strata 1, 2 and 3,” added the president of Fedelonjas. Likewise, he recalled that “From this income, owners must also pay their usual obligations and expenses such as taxes and repairs.”
Likewise, the president of Fedelonjas recalled that the increase in the fee is not automatic in January, but is applied when the contract reaches 12 months from its signature or from the last increase. Furthermore, he stressed that the increase is legal as long as “This does not exceed 1% of the commercial value of the property or the part of it that is rented.”
Also, it is essential to keep in mind that this readjustment does not apply to housing contracts signed before 2003 or to rentals of properties intended for commercial use. In these cases, the value and increase must be agreed between the parties or as stipulated in the lease contract.
recommendations
Notification of the increase in the value of the fee must be made in writing and via certified mail and must include the date on which it will begin to be applied. If the landlord (of urban housing) increases the fee above what is established in the Law, the tenant may demand the termination of the contract without being subject to the collection of financial penalties. Always choose a real estate professional with recognized experience who prepares contracts with all legal conditions, protects the rights of the parties and helps you choose the most profitable asset. Do not make verbal contracts, written contracts should always be made to avoid confusion or abuse in the future.
Example of increase:
If you pay one million pesos for the rental of your home + 180,000 pesos for administration and signed the contract on August 1, 2023, the increase would be as follows:
Increase when the year is up, that is, August 1, 2024: $92,800.
$1,000,000 + $92,800 = $1,092,800 that will be paid when the contract year ends, that is, August 1, 2024.
The monthly Administration ($180,000) will increase what is authorized by the assembly of co-owners as of April 1, 2024 or when indicated by the assembly. That is to say, this administration fee in co-ownership is increased at a time other than the lease contract.
If there are doubts for cases such as housing contracts signed before 2003 or for commercial uses or uses other than housing, we recommend seeking advice from a real estate agent with recognized experience since the legislation is different.
GIVEN
40.2% of Colombians live in rent