Minvivienda, Colombia’s ministry of housing announced that maximum rent increases for those residential renters in leases that conform to the official rate when adjusting rents a contract anniversary dates will be limited to 3.66%, a rate equal to the rate of inflation determined for 2014. Colombia faces inflationary pressures due largely to the fall in petroleum prices, and the related fall of the Colombian peso against the US dollar benchmark.
“It’s important to note that this increase will not take effect in leases immediately, rather upon the anniversary renewal date of renters’ leases,” said Guillermo Herrera Castaño, vice minister of the housing ministry.
According to article 20 of Colombia’s law 820 of 2003, the maximum increase in rent may not exceed “the cumulative change in the consumer price index in the immediate preceeding calendar year, not exceeding 1% of the value of the property.” Leases on the books before July 10, 2003 may not increase by more than 3%, corresponding to the target inflation rate set by the Colombian Central Bank (Banco de la República).
Headline Photo of Guillermo Herrera Castaño courtesy Minvivienda – Credit: René Valenzuela. MVCT.