Published on and written by Cyril Jarnias
Moving to Colombia is attracting a growing number of expats, digital nomads, and investors. The cost of living remains competitive, the setting is pleasant, and the residential rental market is dynamic. But renting a property long-term in Colombia is not as simple as signing a lease found online: between fiador requirements, CDT deposits, Law 820 of 2003, taxation, and significant differences between cities, it’s better to arrive prepared.
This article provides a comprehensive guide to long-term property rental in Colombia. It is based on current market data and the legal framework in force, and is aimed at both tenants and landlords.
Understanding the Colombian Rental Market
The long-term rental market in Colombia is based on several underlying trends: rapid urbanization, growth of an urban middle class, rising real estate prices, and an increased need for flexibility.
Recent data shows that the average gross rental yield is around 6.9 to 7% nationwide. Rents are still significantly lower than in comparable cities in Europe or North America, attracting both expat tenants and investors.
Yields, Rents, and Price Trends
Over the last five years, property prices in Colombia have increased by approximately 60%. During the same period, gross rental yields have slightly declined, falling, for example, from about 7.24% in Q1 2024 to 7.03% in Q2 2025. Net yields are typically 1.5 to 2 percentage points below gross yields, once taxes, fees, and maintenance are factored in.
Range of the number of bedrooms for which monthly rent ranges are detailed for major Colombian cities.
Order of Magnitude of Rents by City
The figures below correspond to average monthly rents recorded around September 2025 (in equivalent US dollars) for long-term rentals.
| City | 1 Bedroom (USD/month) | 2 Bedrooms (USD/month) | 3 Bedrooms (USD/month) |
|---|---|---|---|
| Bogotá | 427 – 505 | 617 – 653 | 1,068 – 1,409 |
| Medellín | 510 – 926 | 735 – 1,163 | 926 – 1,424 |
| Cali | ≈ 285 | ≈ 309 | ≈ 688 |
| Barranquilla | ≈ 388 | ≈ 363 | ≈ 593 |
| Cartagena | ≈ 684 | ≈ 664 | ≈ 792 |
| Pereira | ≈ 380 | ≈ 477 | ≈ 570 |
| Santa Marta | ≈ 522 (1 bedroom) | – | – |
The most high-end properties, in premium neighborhoods (penthouses, large houses, serviced residences), can easily reach 2,000 to over 5,000 dollars per month.
For an expat coming from Madrid, Paris, or New York, these rents are generally significantly lower for equivalent quality, while yields for owners (6 to 9% gross depending on the city and property type) are often higher than those seen in major Western markets, where 2 to 4% gross is common.
Where to Rent: Overview of Major Colombian Cities
Each Colombian city has its own rental profile, yields, and practical constraints. Choosing the right city and neighborhood is the first step to a successful long-term rental.
Bogotá: Capital, Formality, and High Demand
Bogotá is not only the political and economic capital but also one of the most formal rental markets in the country. Landlords often demand more guarantees, and agencies strictly apply rental insurance company rules.
Average gross yields in Bogotá hover around 7.8 to over 8% according to sources, with significant variations from one neighborhood to another. A few concrete examples provide clarity.
Gross Yields in Bogotá by Housing Type
| Area / Neighborhood | 1 BR | 2 BR | 3 BR | 4+ BR | Average Yield |
|---|---|---|---|---|---|
| City (average) | 7.34% | 7.05% | 8.97% | 7.78% | ≈ 7.79–8.25% |
| Usaquén | 6.42% | 5.35% | 8.67% | 8.50% | |
| Chapinero | 7.23% | 6.13% | 6.21% | – |
Neighborhoods like Usaquén, Chapinero, or Chico particularly attract expats for their cultural offerings, offices, and level of safety, but they often involve higher rents and heavier administrative requirements (local fiador, mandatory insurance, etc.).
Medellín: Expats, Digital Nomads, and Co‑living
Medellín has become the Colombian icon for digital nomads. Pleasant climate, reasonable costs, developed nightlife, numerous Spanish schools, and a very active expat network attract an international clientele that is driving the rental market upward.
The average gross real estate yields in this area are around 7.4%.
Gross Yields in Medellín by Neighborhood
| Area / Neighborhood | 1 BR | 2 BR | 3 BR | 4+ BR | Average Yield |
|---|---|---|---|---|---|
| City (average) | 6.60% | 7.09% | 6.57% | 8.10% | ≈ 7.09–7.78% |
| El Poblado | 7.19% | 7.31% | 7.71% | 7.55% | |
| Laureles | 5.61% | 6.45% | 6.34% | 6.58% |
El Poblado (with its sub-zones Provenza, Manila, Castropol, Lleras, Milla de Oro) concentrates the majority of furnished luxury rentals and offers targeting tourists or stays of a few months. Rents there are significantly higher than in more “local” neighborhoods.
Laureles, Belén, Envigado, or Sabaneta offer an interesting compromise between price, authenticity, and access to services. In these areas, many long-term unfurnished rentals allow for significantly lower rents than in El Poblado.
Caribbean Coast: Cartagena, Barranquilla, Santa Marta
On the coast, the market logic changes. Cartagena, thanks to its historic center (Ciudad Amurallada) and its waterfront neighborhoods like Bocagrande or Laguito, is very oriented towards tourism and short to medium-term rentals. Average gross yields are lower (around 5.4 to 5.7%), purchase prices are high, and regulatory constraints on Airbnb-type rentals are significant.
Average gross yield for small apartments in Barranquilla, among the highest in the country.
Quick Yield Comparison by City
| City | Average Gross Yield (all types) |
|---|---|
| Bogotá | ≈ 7.8% |
| Medellín | ≈ 7.1–7.8% |
| Cali | ≈ 7.3% |
| Barranquilla | ≈ 7.0–7.5% |
| Cartagena | ≈ 5.4–5.7% |
| Pereira | ≈ 7.1–7.3% |
| Bello | ≈ 6.2% |
| Santa Marta | ≈ 6.7–6.8% |
For a tenant, these yields are not the central element, but they partly explain the pressure on rents in certain areas and the tendency of many owners to prefer furnished or medium-term rentals (30 days and more), rather than classic one-year leases.
Legal Framework: Law 820 of 2003 and the Rules of the Game
Urban residential rental in Colombia is governed essentially by Law 820 of 2003, supplemented by the Civil Code and, for procedural matters (including evictions), by the Code of Civil Procedure. The system is considered rather tenant-friendly, while protecting landlords in case of non-payment.
Lease Agreement: Form, Duration, and Renewal
In theory, contracts can be oral or written. In practice, for urban housing, a written contract (contrato de arrendamiento) is the norm and highly recommended, especially for a foreigner. If it does not mention a duration, the law considers it a one-year lease.
Regarding residential rental:
– The “de facto” minimum duration is 12 months, although some players accept shorter periods (6 months);
– There is no absolute maximum duration, but in practice contracts rarely exceed 3 years;
– Unless otherwise notified, the lease automatically renews for an identical period if the parties fulfill their obligations and if the tenant accepts any rent increases allowed by law.
Three months’ written notice is generally required to terminate the lease at the expiry date, whether from the owner or the tenant.
Rent Ceilings and Annual Increases
A little-known principle for foreigners: the monthly rent cannot exceed 1% of the commercial value of the property, a value which itself cannot be more than twice the cadastral value. In other words, the law creates a theoretical ceiling to prevent rents disconnected from real estate market reality.
A rent increase is only possible after 12 months of contract execution (or its renewal) and cannot exceed 100% of the official inflation (IPC) of the previous year. In case of excess, the tenant has six months to contest the increase with the city hall of the relevant city.
Deposits and Guarantees: A Very Colombian Paradox
Law 820 in principle prohibits classic security deposits (cash, promissory note, etc.) intended to secure the performance of lease obligations. It also prevents recourse to certain types of guarantees that are too burdensome for the tenant. In practice, however, the market reality is different.
Landlords and especially agencies frequently request:
To rent a property in Colombia, three main guarantees are commonly required from foreign tenants: the guarantee of a local guarantor (fiador) who owns property in Colombia and/or has a local income at least triple the rent; the subscription of a rental insurance policy (póliza de arrendamiento) with a Colombian company, which assesses the tenant’s creditworthiness; or the deposit of an amount equivalent to 6 to 12 months of rent via a Certificate of Term Deposit (CDT), blocked in a bank for the duration of the lease.
Guarantees covering exclusively public utilities (electricity, water, gas) are expressly permitted, as long as they do not exceed the equivalent of two consecutive bills.
For a foreigner without a local credit history or fiador, several solutions exist: prepare several months’ rent, deposit a significant sum in a CDT, or look for an owner willing to rent directly, without an agency, with more flexible requirements.
Termination and Eviction: Rights and Risks
The law precisely regulates the cases where owner and tenant can unilaterally terminate the contract.
For the owner, termination is possible in case of:
– non-payment of rent or charges (especially public utilities);
– serious breaches of contract (unauthorized subletting, illegal use, significant damage, etc.).
Apart from these fault cases, the owner can terminate during a renewal period (not during the initial period) by giving three months’ notice and paying compensation equivalent to three months’ rent, a deposit they must make through an authorized entity. They can also terminate at the end of the initial or renewal period, with three months’ notice:
A landlord can refuse the renewal of a lease in three specific situations: if the property is needed for personal habitation for at least one year; if the building must be demolished or undergo major renovations; or if the property has been sold and must be transferred to the buyer. In the latter case, eviction compensation is not mandatory provided the notice period is respected.
After four years under contract, it is possible to terminate with compensation reduced to one and a half months’ rent.
For the tenant, unilateral termination is possible:
– at any time in case of the owner’s failure to meet their obligations (lack of essential repairs, interference with peaceful enjoyment, etc.);
– during the initial or renewal period, with three months’ notice and payment of compensation equivalent to three months’ rent through the authorized entity;
– at the end of the initial or renewal period, with three months’ notice, without compensation.
Eviction follows a specific procedure called Proceso de restitución de inmueble arrendado. It goes before civil courts, in a summary but often slow procedure due to court backlogs. In cases based on non-payment, the tenant can only defend themselves if they first deposit the rent arrears with the court. The court decision in case of non-payment is not subject to appeal.
Special Requirements for Foreigners
One of the major obstacles for a foreigner looking to rent in Colombia is the question of “local” creditworthiness. Even if, legally, a tourist with a passport can sign a contract, most serious agencies and owners demand much more.
Visa, Cédula, and Bank: The Practical Trio
For a stay of a few weeks or months in a furnished rental via a platform, a simple tourist visa may suffice. However, for a classic lease (one year, unfurnished housing), many landlords prefer the tenant to:
– have a longer-term visa (Migrant visa – M, rentier visa, work visa, etc.) rather than just a tourist stamp;
– have a cédula de extranjería (foreigner ID card), easier to use daily than a passport, especially for public utilities and banking;
– have a Colombian bank account, as rents are generally paid by local transfer.
Although possible with just a passport, signing a lease is easier if the rental application resembles that of a local resident. It is recommended to provide local identification documents, proof of income, and a banking history to simplify negotiations with the landlord.
Fiador, Rental Insurance, and Alternatives
The fiador remains the most widespread way to secure rent payment. For a foreigner who has just arrived and has no close Colombian property-owning friend, this requirement often proves insurmountable. Insurers also mostly require income in Colombia, which excludes many expats living on foreign income.
Three arrangements regularly appear on the market:
For expats without a local guarantor in Colombia, three solutions exist. The first is to rent a furnished property on a medium-term lease (30 days or more) in a residence managed by a specialized company. It assesses tenants based on international documents (bank statements, foreign employment contracts) and typically applies a prepayment system. The second option is to prepay six to twelve months’ rent directly to the owner, which often allows bypassing the requirement for a fiador and insurance, although this practice is not accepted by all agencies. Finally, it is possible to set up a blocked Certificate of Term Deposit (CDT) in a bank for the lease duration, with an amount equivalent to 6 to 12 months’ rent. This bank guarantee reassures the agency while keeping the funds in the tenant’s name, where they earn interest.
Some foreigners circumvent difficulties by asking a Colombian friend, spouse, or partner to sign the lease on their behalf. Others look for individual owners through building caretakers, classifieds, or word of mouth, as they are sometimes more flexible than agencies.
Documents Generally Requested
Depending on the city and channel (agency or direct owner), the typical application for a foreign tenant includes:
– a copy of the passport (and the cédula de extranjería if available);
– a valid visa, ideally of a resident or migrant type;
– proof of income (employment contracts, pay stubs, bank statements, pension or annuity certificates);
– sometimes letters of recommendation, local or foreign;
– a local guarantor or a certificate of coverage by rental insurance, when accepted.
The complete process – from search to signature – generally takes between 3 and 10 days, but the longest part often remains the viewing and negotiation of the property.
The Decisive Choice: Furnished or Unfurnished?
The difference between furnished and unfurnished goes far beyond the presence of furniture. In Colombia, this distinction determines the type of lease, the duration, the owner profile, and the search channels.
Furnished: Flexibility, Higher Rent, Simpler Process
Furnished apartments in principle include essential furniture and appliances. They are very popular with people settling for a few months, digital nomads, international students, and some expats on assignment.
The advantages for a tenant are obvious: no furniture to buy or sell, quick setup, abundant offers in neighborhoods frequented by foreigners. But this flexibility comes at a price:
For a furnished property, monthly rents are generally higher than for an equivalent unfurnished one in the same neighborhood. Security deposits and management fees can also be higher. Furthermore, contracts sometimes resemble tourist or ‘mid-term’ rentals (from 30 days) more than a classic residential lease governed by Law 820.
Market analyses show that, for a base rent of $2,500, the furnished premium compared to unfurnished can translate to about $125 extra per month. Furnished properties receive on average fewer applications and stay on the market a bit longer before being rented than unfurnished ones, but they attract an international clientele willing to pay more for simplicity.
Unfurnished: Lower Rents, More Choice… and More Effort
Unfurnished apartments represent the dominant form of classic long-term rental. For a stay of six months to a year or more, this market often offers the best value for money.
The advantages are clear:
Discover the main advantages of opting for an unfurnished rental, often offering more flexibility and savings.
Benefit from generally lower monthly costs compared to furnished rentals, allowing for significant savings.
Access a broader range of properties, especially in residential neighborhoods typically occupied by local residents.
Enjoy the freedom to furnish your interior to your taste and buy furniture you can resell later.
The flip side: it requires investing time and an initial budget in furniture and equipment, opening internet contracts yourself, checking condominium rules, etc. The term “unfurnished” is sometimes literal: some apartments may be delivered with only floors, or even without a stove or refrigerator.
An interesting point for long stays: the relatively low cost of furniture, appliances, and small equipment in Colombia, especially if buying in popular commercial areas. Many expats note that within a few months of rent savings compared to a high-end furnished place, they manage to fully amortize the purchase of their furniture.
How Much Does a Long-Term Rental Really Cost?
To think beyond the base rent, one must include all associated costs borne in a long-term rental, whether as a tenant or owner.
Fees, Administration, Taxes: The Cost Structure
For an owner renting their property, net profitability is calculated after:
Discover the main recurring costs associated with owning real estate in Colombia, in addition to loan repayment.
Cover security, cleaning, pool, gym, etc. In Bogotá: 3,000 – 8,000 COP/m²/month. Other cities: 2,000 – 5,000 COP/m²/month. For a standard apartment: 200,000 – 800,000 COP/month (can exceed 1.5 million COP for a luxury property).
Annual tax generally between 0.3% and 1% of the property’s cadastral value.
Typical annual cost between 500,000 and 1,500,000 Colombian pesos.
Added to this are income tax on rental income (taxable as ordinary income, with progressive rates up to 39% for residents, and a flat rate of 35% for non-residents), a 3.5% withholding tax, and possible management fees if the property is entrusted to an agency (8 to 10% of rent for typical long-term management; 20 to 35% for short-term management like Airbnb).
For a tenant, the monthly budget must include:
Public utilities (electricity, water, gas) typically represent a monthly cost between 200,000 and 400,000 COP.
Mortgage and Investment: The Trap of High Rates
For a foreign investor considering buying to rent, an essential element is the very high level of mortgage rates in Colombia. In 2025, fixed-rate 20-year real estate loans were in the range of 14 to 16% per year, with an observed average of 12.68% in mid-2025 according to some statistics.
Such rates, among the highest in Latin America, heavily eat into cash flow if the purchase is financed with credit. Analyses indicate that for a loan-financed investment to be truly profitable, one must aim for gross yields of 16 to 18%, well above the average yields of 6 to 9% observed in major Colombian cities.
In this context, cash purchases, without recourse to local credit, often remain the most prudent for an international investor.
How to Find a Property: Methods and Platforms
Search channels vary depending on whether one is looking for a furnished rental for a few months, a classic one-year or longer lease, or a property to buy for rental.
Online Platforms and Social Media
Several major generalist portals dominate property searches:
– Finca Raíz and Metrocuadrado aggregate a large volume of listings across the country, mainly from agencies;
– other sites like Locanto, CompartoApto, Encuentra24 complement the landscape;
– specialized platforms like Flatio or certain international agency sites offer medium-term rentals, often geared towards foreigners.
Expat Facebook groups in Medellín and Bogotá are a source of listings, but their reliability varies greatly and the risk of scams is present. It is strongly advised not to send money before having visited the property in person and signed a written contract.
Walking Neighborhoods and Talking to Doormen
One of the most effective local methods is to physically go to targeted neighborhoods, spot the “Arriendo” or “Se arrienda” signs, and speak directly to building caretakers or doormen (porteros, vigilantes). They often know owners who want to rent without an agency or those who accept dealing with foreigners.
This approach requires time, patience, and a basic level of Spanish. It often allows obtaining fairer rents by avoiding “gringo pricing” (surcharge for foreigners) and negotiating more flexible conditions, such as prepayment instead of a local guarantor (fiador).
Real Estate Agencies and Managers
In major cities, many properties go through inmobiliarias that work hand in hand with insurers. These agencies manage both long-term unfurnished rentals and furnished medium and short-term rentals.
Many of these agencies are not used to working with foreigners, or strictly apply insurer criteria (local income, fiador). Some structures, on the contrary, have specialized in managing properties for foreign clients, especially in Medellín (in neighborhoods like El Poblado and Laureles) and Cartagena.
Tenant Profiles and Occupancy Dynamics
Colombian cities do not all have the same tenant typology.
Overview of rental markets by property type and tenant profile in major Colombian cities.
Mainly attract young professionals, students, digital nomads, and expats on assignment in major cities (Bogotá, Medellín, Cali, Barranquilla).
More sought after by local families for long-term leases, often located on the outskirts or in residential complexes.
Penthouses, large houses with pools, or high-end apartments targeting executives, diplomats, expats from international companies, and affluent local professionals.
Vacancy rates for standard apartments in Bogotá and Medellín are generally between 6 and 10%, with occupancy rates above 85% in the best neighborhoods. Practical cases show that a well-managed apartment in medium-term rental (stays of at least 30 days) can achieve occupancy rates around 90 to 92% annually.
Regulations on Short-Term Rentals: Impact for the Long Term
Even though we are talking about long-term rental here, it is difficult to ignore the regulatory context of Airbnb-type rentals, as it influences owner strategies and the availability of certain properties.
At the national level, the law requires registration of tourist accommodations with the National Tourism Registry (RNT). New regulations require platforms to verify the RNT number of each listing upfront and connect their systems to the state. Sanctions for non-compliance can be heavy (fines, listing suspension, or even sanctions against the platform).
In many buildings, the condominium regulations may prohibit short-term rentals (less than 30, 90, or 120 days) or require the use of an approved manager. Furthermore, several major Colombian cities like Medellín, Bogotá, and Cartagena apply additional local zoning and control rules.
Consequence: many owners turn to medium and long-term rentals (stays of at least 30 days, even one year) to remain in a more stable framework and avoid the administrative constraints of very short-term rentals. For a tenant wishing to stay six months or more, this often creates interesting opportunities in buildings initially designed for tourist rental but reassigned to monthly contracts.
Taxation for Landlords, Colombian or Foreign
Renting a property in Colombia generates taxable income. The tax regime varies according to the landlord’s tax residence status.
An individual becomes a Colombian tax resident if they spend more than 183 days in the country over a 365-day period. Residents are taxed on their worldwide income, while non-residents are taxed only on their Colombian-source income.
Income Tax on Rental Income
Rental income is classified as ordinary income. For a resident, it is integrated into a global basket with other income (salaries, capital income, etc.) and subject to a progressive scale that can go up to 39%. For a non-resident, this income is generally taxed at a flat rate of 35%.
A 3.5% withholding tax is applied to rents. It serves as a tax advance and will be credited against your annual income tax return.
The taxable base is calculated after deducting expenses necessary to obtain the income: management fees, insurance, property tax, administration charges, maintenance work, repairs, etc.
Other Taxes: Wealth, Capital Gains, Transactions
Beyond a certain level of net wealth, a wealth tax (impuesto al patrimonio) is added, with thresholds in tax value units (UVT) and progressive rates.
In case of resale, the real estate capital gain is taxed at a specific rate (with distinction depending on whether the property has been held for more or less than two years). Added to this are transaction costs: transfer tax, notary fees, lawyer fees, agency commission, for a total round-trip cost estimated around 5 to 8.5% of the price.
Outlook: Rents, Yields, and Medium-Term Forecasts
Projections up to 2030 suggest that rents and real estate prices in major Colombian cities will continue to increase, with an anticipated rise of 6 to 10% over a one-year horizon in the main urban markets. In the long term, if purchase prices rise faster than rents, gross yields could compress towards 5 to 6% in the most mature neighborhoods.
For landlords, current rental yields in some areas are likely to be higher than those available in a decade. For tenants, the prospect of future increases reinforces the interest in negotiating long-term leases or regulated rent increases, in compliance with current legal ceilings.
In Summary: Renting Long-Term in Colombia Without Getting Lost
Renting a property long-term in Colombia requires combining three dimensions: understanding the local market city by city, mastering the legal framework (Law 820, termination rules, rent ceilings), and anticipating practical requirements (fiador, insurance, CDT, documents).
In practice, an effective approach often involves:
Start by renting a furnished property short or medium-term (one month or more) from abroad to have a search base on the ground. Use this period to explore neighborhoods, talk to caretakers and agencies, and assess real rents to avoid inflated prices for foreigners. Simultaneously, clarify your visa situation, open a Colombian bank account, and prepare a strong financial file (statements, certificates, references). Finally, clearly determine whether you prefer a furnished property (simpler but more expensive) or unfurnished (more economical long-term, requiring some initial effort).
With these elements in mind and accepting the part of informal negotiation inherent to the Colombian market, renting a property long-term in Colombia can become a relatively smooth operation, whether you are a tenant seeking stability or an owner looking for yield.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
