At the end of December 2022 annual inflation in the country reached 13.12%, according to the Dane. A year that was marked by historical figures and the CPI was no exception.
(Read: This is the package of 85 rates deindexed from the minimum wage).
The record was the highest since March since 1999. Effect that will continue to be felt, at least during the first months, in 2023.
According to article 20 of Law 280 of 2003, the rent must rise according to inflation. In other words, the increase in this item should be a maximum of 13.12%, according to the regulations.
The annual inflation figure allows according to the law that this, as well as other services, rise in the country.
It should be noted that this increase can be applied in any sector. Even for landlords in low, medium and high strata. Nevertheless, not all leases have an immediate increase.
The regulations establish that the adjustment in the lease must be made at the moment in which each contract, already concluded, is renewed during 2023.
(In addition: the purchase of combat aircraft falls due to the expiration of the Conpes).
Call not to exceed the rise
Although the rent increases according to inflation, the Colombian Federation of Real Estate Markets (Fedelonjas) asked the owners of the rented houses, the tenants, to Don’t go overboard with the price increase.
For this reason, it suggests that an agreement be reached between the tenant and the landlord so that the increase is not so high and both parties are not harmed.
“We want agreements to actually be carried out because we know of the social problem that exorbitant increases can become or that suddenly the royalties will exceed the real values of a lease”, assured the president of Fedelonjas, Karina Reyes.
(Read: Why economists believe that inflation will start to decline in 2023).
For her part, the Minister of Housing, Catalina Velasco, assured that they are looking for a way to detach the rise in rents from inflation. The idea is to prevent the pockets of Colombians from being strongly affected. Especially vulnerable households.
According to the Federation, about 35% of Colombians live on rent.
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