The National Administrative Statistics Office (Dane) announced that inflation in Colombia closed 2023 at 9.28 percent. This is the key figure that landlords and tenants should keep in mind when defining the relevant increase in pay for 2024.
(Also: LIVE | Colombian Inflation 2023: the CPI value that determines rents today is known).
The increase is based on Article 20 of Law No. 820 of 2003, which states that the determined amount can be increased by the lessor 12 months after the signing of a lease agreement.
Yes definitely, When defining the relevant increase, the lessor must take into account that the amount must not exceed 100% of the Consumer Price Index (CPI) figure.
Until November, this figure was 10.15 percent, which formed the basis for the minimum wage debate.
The landlord will have to increase the rental value of his property according to the CPI index, which is 9.28 percent for 2023. You cannot increase more than this percentage.
Note that it is also possible for the landlord to refrain from increasing the rent, or for some leases to agree on a specific increase from the moment they are signed.
(More: Colombia 2024 Property Tax: batteries, this will be the increase in cadastral assessments).
If you signed a lease in January 2023 for 2,000,000 pesos and the maximum increase the landlord can make is 10 percent (if that is the inflation figure), the increase will be 200,000 pesos, so monthly payments can be made starting in February 2024. for the tenant it will be 2,200,000 pesos.
The fee or rent determined by the tenant, The landlord must be notified of a property’s rent increase along with the date it will take effect. Because some are not waiting for the CPI figure, but for example, the salary adjustment made by companies, so that the homeowner will not feel the effect of the increase before.
Another issue that the landlord should consider before determining the value is how much the monthly rent will be. cannot exceed 1 percent of the commercial value of the property or its leased partAs regulated in Article 18 of Law No. 820 dated 2003.
(Our recommendation: CPI in Colombia: Products that will not increase with inflation in 2024).
Source: Exame
