How Rent Adjustments Will Be Calculated in 2025

The National Administrative Department of Statistics (Dane) announced on Thursday, January 9, that Colombia’s inflation rate for 2024 closed at 5.20%. This figure, known as the Consumer Price Index (CPI), is crucial for calculating the increase in services like urban housing rents and homeowners' association fees.

The CPI’s Impact on Rent

According to Dane, 40.3% of households in Colombia rent their homes, representing over 21 million people. The law establishes that rents can increase by up to 5.20% in 2025, but this adjustment is not automatic in January. It is applied only when the rental contract is renewed or extended, and prior written notice is required.

For example:

- If someone paid $1,000,000 in rent in 2024, with a 5.20% increase, they would now pay $1,052,000 in 2025.

The formula to calculate the increase is simple: multiply the previous rent by 0.052 to determine the increase amount.

Requirements to Apply the Increase

1. Written Notification: The landlord must communicate the increase and its effective date through authorized postal mail or the notification channel specified in the contract.

2. Contract Renewal: The increase is valid only at the time of renewal or extension.

What to Do in Case of an Improper Increase

If a landlord applies an increase above the legal limit, the tenant can file a complaint with municipal control agencies. This may result in financial penalties for the landlord.