Countries › Colombia › Guide › 11. Real estate and land › Residential and commercial leases in Colombia: Ley 820 de 2003 terms, renewals and termination indemnities, and the commercial tenant's mandatory renewal right under the Código de Comercio

Residential and commercial leases in Colombia: Ley 820 de 2003 terms, renewals and termination indemnities, and the commercial tenant's mandatory renewal right under the Código de Comercio

Last verified: 2026-10-27 · Status: Stable

Urban home leases may be verbal or written, last one year if no term is agreed and renew automatically on the same terms. Either side may end them early only with three months' written notice and, during the term or a renewal, an indemnity of three months' rent. Rent caps and the ban on cash deposits are on the buying and owning property page. Business tenants who have occupied premises with the same establishment for two years have a mandatory right to renewal that cannot be waived, with limited exceptions and six months' notice.

USD figures use the TRM of COP 3,157.94 per US dollar valid on 27 October 2026, certified by the Superintendencia Financiera and published on the national open data portal (datos.gov.co). UVT amounts use the 2026 UVT of COP 52,374 (DIAN Resolución 000238 de 2025) and minimum wage amounts use the 2026 monthly minimum wage of COP 1,750,905 (Decreto 1469 de 2025). Conversions are for orientation only.

Key facts

Default term of an urban residential lease if none is agreed	1 yearsLey 820 de 2003 art. 5, as of 2026-10-27 · in force
Notice required to end a residential lease (either party)	3 monthsLey 820 de 2003 art. 22 and 24, as of 2026-10-27 · in force
Indemnity for early termination of a residential lease	3 months of rentLey 820 de 2003 art. 22 num. 7 and art. 24 num. 4, as of 2026-10-27 · in force
Occupation needed for the commercial tenant's renewal right	2 yearsCódigo de Comercio art. 518, as of 2026-10-27 · in force
Owner's notice to recover commercial premises for own use or works	6 monthsCódigo de Comercio art. 520, as of 2026-10-27 · in force

The rule

1. A residential urban lease may be verbal or written. The parties must agree at least on the parties, the property, any shared areas, the rent and payment, related services, the term and who pays utilities. If no term is agreed, it is one year. The lease renews for the same term and on the same conditions if both parties have complied and the tenant accepts the legal rent increases.Ley 820 de 2003 (urban residential leases), Art. 3, 5 and 6, 2003-07-10 official text · verified 2026-10-27

2. The landlord may end the lease during renewals with at least three months' written notice by authorized postal service and payment of three months' rent as indemnity, deposited in the tenant's favour before the termination date. At the end of the initial term or a renewal, with three months' notice, the landlord may also end it without indemnity to live in the property for at least a year, to demolish or carry out works, or to deliver it under a sale contract, posting a bond of six months' rent; or by simple will after at least four years, paying 1.5 months' rent. Without written notice, the lease renews automatically.
Cost to do it: Indemnity of 3 months' rent (early termination during renewal) or 1.5 months' rent (after four years); bond of 6 months' rent for the special causes.
Example: At COP 7,000,000 a month: indemnity COP 21,000,000, or COP 10,500,000 after four years; bond COP 42,000,000. / Indemnity about US$6,650 or US$3,325; bond about US$13,300.Ley 820 de 2003, Art. 22 num. 7 and 8, and art. 23, 2003-07-10 official text · verified 2026-10-27

3. The landlord may also end the lease for non payment of rent or utilities, unauthorized subletting, assignment or change of use, repeated disturbance of neighbours, unauthorized works or breach of the condominium rules.Ley 820 de 2003, Art. 22 num. 1 to 6, 2003-07-10 official text · verified 2026-10-27

4. The tenant may end the lease during the initial term or a renewal with three months' written notice and three months' rent as indemnity, or at the end of the term or a renewal with three months' notice and no indemnity.
Example: At COP 7,000,000 a month, leaving early costs COP 21,000,000. / About US$6,650.Ley 820 de 2003, Art. 24 num. 4 and 5, 2003-07-10 official text · verified 2026-10-27

5. Where the tenant pays utilities, the landlord may require guarantees in favour of each utility company, capped at two billing periods of fixed and consumption charges, and notify the utility of the lease so that the property stops being liable for the tenant's utility bills.Ley 820 de 2003, Art. 15, 2003-07-10 official text · verified 2026-10-27

6. A business owner who has occupied the premises under a lease for at least two consecutive years with the same commercial establishment has the right to renew the lease when it expires, unless the tenant breached the contract, the owner needs the premises to live in or for a substantially different business of their own, or the premises must be rebuilt, repaired or demolished. In the second and third cases the owner must give at least six months' notice before the end date, or the lease renews on the same terms. Disputes on renewal terms go to court with experts.Código de Comercio (Decreto 410 de 1971), Art. 518, 519 and 520, 1971-03-27 official text · verified 2026-10-27

7. After rebuilding, the former tenant has a preference to lease the new premises, without paying premiums. If the owner does not use the premises as stated, or does not start works within three months of delivery, or leases them to a similar business, the owner owes damages including lost profit, relocation costs, staff severance and the value of improvements. The tenant may not sublet the whole premises without authorization, but may sublet up to half. These rules cannot be waived by contract.Código de Comercio (Decreto 410 de 1971), Art. 521, 522, 523 and 524, 1971-03-27 official text · verified 2026-10-27

Who and when	Notice	Payment	COP	USD
Landlord, during a renewal	3 months	3 months' rent	21,000,000	6,650
Landlord, end of term, own use, works or sale	3 months	Bond of 6 months' rent	42,000,000	13,300
Landlord, end of term after 4 years, no cause	3 months	1.5 months' rent	10,500,000	3,325
Tenant, during term or renewal	3 months	3 months' rent	21,000,000	6,650
Tenant, end of term	3 months	None	0	0

Ending a residential lease at COP 7,000,000 a month (Ley 820 de 2003). TRM COP 3,157.94.

Worked example

A foreign owner rents a Medellín apartment for COP 7,000,000 (about US$2,217) a month on a one year lease that has renewed twice. To sell with vacant possession at the end of the current year, the owner sends written notice by authorized post at least three months before expiry, invoking delivery under a sale contract, and posts a bond of COP 42,000,000 (about US$13,300) (Ley 820 de 2003 art. 22 num. 8 lit. c)). Ending mid renewal instead would cost three months' rent, COP 21,000,000 (about US$6,650), deposited before the termination date (art. 22 num. 7 and art. 23).

Step by step

1. Put the lease in writing even though verbal leases are valid, covering the points in Ley 820 de 2003 art. 3.
2. Diary three months before each expiry: without written notice the lease renews for the same term (art. 22 and 24).
3. Send notices by authorized postal service, as the law requires.
4. For commercial premises, diary six months before expiry if you will need them back for own use or works (Código de Comercio art. 520).

Common traps

Missing the notice date: the lease renews automatically for the same term (Ley 820 de 2003 art. 22 and 24).
Signing a commercial lease clause waiving renewal: it has no effect (Código de Comercio art. 524).
Recovering commercial premises for own use and then leasing them to a similar business: damages include the tenant's lost profit and staff severance (art. 522).
Asking tenants for cash deposits for a home lease: prohibited (see buying and owning property).

Sources

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