Unfair clauses in Colombian home leases: Law 820 of 2003

A residential lease usually arrives already drafted by the owner or the real estate agency, and almost nobody reads it in full. The trouble shows up later: a "one-month deposit" that is never returned, a rent increase above what the law allows, or a huge fine for moving out early.

In Colombia, urban residential leases have their own law, Law 820 of 2003 (Ley 820 de 2003), and several of its rules cannot be changed by contract. This guide explains which common clauses go against that law, which ones are valid, and what to check before you sign.

This guide is general information and is not legal advice. Laws can change and every case has its details: if you have a specific dispute, consult a lawyer or your municipal mayor's office (alcaldía).

Which contracts Law 820 covers

Law 820 governs leases of urban property used as a home (articles 1 and 2). It does not cover commercial premises, which follow the Commercial Code, or rural property.

The lease can be oral or written (article 3). Either way, the parties must agree at least on who they are, the property, the price and how it is paid, the included services, the term, and who pays the utilities. If no term is agreed, it is understood to be one year (article 5).

What an "abusive clause" means in a lease

Law 820 does not use the term "abusive clause". In practice, the label is used for clauses that contradict a rule of the law that the parties cannot change, or that load one party with obligations the law does not impose. The clearest example is a cash deposit: article 16 forbids it even if the tenant agreed in writing.

A clause being written and signed does not make it enforceable if it contradicts such a rule. But disputes are decided by the competent authority or a judge, not by the other party. That is why it pays to spot these clauses before signing and ask for them to be fixed.

Table: common clauses and what the law says

Clause you may find	Is it valid?	Rule
"The tenant pays one month's rent as a deposit or guarantee"	No: cash deposits and real guarantees cannot be required	Law 820, art. 16
Co-signer, guarantor, or lease insurance policy	In principle yes: article 16 bans cash deposits and real guarantees, not personal guarantees	Law 820, art. 16
Guarantee for utilities paid by the tenant	Yes, with a cap: up to two consecutive billing periods	Law 820, art. 15
"Rent will increase each year by CPI plus 3 points"	No: the increase cannot exceed 100% of the previous calendar year's CPI	Law 820, art. 20
Rent increase before 12 months at the same price	No: increases happen every twelve months of the lease	Law 820, art. 20
Monthly rent above 1% of the property's commercial value	No	Law 820, art. 18
Additional services costing more than half the rent	No: their price cannot exceed 50% of the rent	Law 820, art. 2
"The landlord may end the lease at any time" with no notice or compensation	No: a legal ground, three months' notice and, depending on the case, compensation are required	Law 820, art. 22
Ban on subletting or assigning without written consent	Yes: that is what the law says	Law 820, art. 17
"The tenant will pay for all repairs"	Not entirely: the tenant answers for damage beyond normal use; wear from legitimate use is not charged	Law 820, art. 9; Civil Code, art. 2005
Not giving the tenant a signed copy of the lease	No: the landlord must deliver it within ten days	Law 820, art. 8
Automatic renewal if nobody gives notice	Yes: the lease renews for the same initial term	Law 820, art. 6
Fine of several months' rent for leaving early	It depends: it is a penalty clause and the Civil Code limits it	Civil Code, art. 1601

The table sums up the general rule. There are nuances, such as shared housing or boarding contracts (article 4), which have their own rules.

The deposit: the most common charge, and the law forbids it

Article 16 of Law 820 is direct: in urban residential leases, cash deposits or other real guarantees cannot be required to secure the tenant's obligations. It adds that these guarantees cannot be agreed indirectly, in a separate document, or under a different name. Calling it a "guarantee month", "repair fund", or "advance" does not change what it is.

What the law does allow:

Personal guarantees, such as a co-signer or a guarantor, and in practice lease insurance policies. Article 16 speaks of cash deposits and real guarantees, not these.
A guarantee for utilities when the tenant pays them (article 15). It keeps the utility company from charging unpaid bills to the owner, and it cannot exceed two consecutive billing periods.

If you were charged an illegal deposit, Law 820 gives municipal mayor's offices the power to hear cases of illegal deposits and disputes about them (article 33). In Bogotá, the Alcaldía Mayor organizes that function (article 32).

Rent increases and the CPI

Article 20 sets three conditions for raising the rent:

Every twelve months of the lease at the same price, not sooner.
Up to 100% of the CPI of the calendar year before the increase. If last year's CPI was, say, 5%, the rent can rise by 5% at most. The official CPI is published by DANE.
The new rent cannot exceed the article 18 cap: 1% of the property's commercial value, which in turn cannot be estimated at more than twice the current cadastral valuation.

The landlord must also notify the amount and the date of the increase, through the authorized postal service or the personal notification method agreed in the lease. Otherwise the increase cannot be enforced against the tenant. Note: if the tenant pays the increase even though it was not notified, the law says they cannot later ask for a refund on that ground.

A clause setting increases above the CPI, such as "CPI plus two points" or a higher fixed percentage, goes against article 20 in a residential lease.

The penalty clause: how much they can charge

Almost every lease includes a penalty clause (cláusula penal): a sum paid by whoever breaches. The Civil Code defines it in article 1592 as the penalty a person accepts to secure an obligation, if they fail to perform it or perform it late.

Agreeing to one is legal. How it is charged has limits:

The obligation and the penalty cannot both be claimed, unless the penalty was agreed for mere delay or it was stipulated that paying the penalty does not extinguish the main obligation (article 1594).
The penalty and damages cannot both be claimed, unless expressly agreed (article 1600).
Excessive penalty clause: when the main obligation and the penalty are fixed sums, you can ask for the penalty to be reduced by everything above twice the main obligation, the main obligation included (article 1601). For obligations of undetermined value, the judge may moderate it if it is excessive.

Do not confuse the penalty clause with the compensation set by Law 820 for early termination. A tenant who wants to leave early may do so with three months' written notice sent through the authorized postal service and a payment of three months' rent (article 24, item 4, and article 25). A clause demanding much more than that deserves a careful look before signing.

Termination: when and how the lease can end

By mutual agreement, the lease can end at any time (article 21).

If the tenant wants to end it (article 24):

They can do so for reasons such as utilities being cut off because of the landlord, or the landlord ignoring the tenant's rights.
They can leave during the initial term or any renewal with three months' notice and compensation of three months' rent.
They can leave at the end of the initial term or a renewal without compensation, by giving at least three months' written notice.

If the landlord wants to end it (article 22):

They can do so if the tenant does not pay rent or utilities, sublets without permission, makes unauthorized improvements, or breaks the building's rules, among other grounds.
During renewals, they can end it with three months' notice and compensation of three months' rent.
At the end of a term, with three months' notice, they can invoke special grounds: needing the property to live in for at least a year, demolishing or repairing it, delivering it because of a sale, or, once the lease has run four years, their own will, paying one and a half months' rent. For the first three grounds they must also post a guarantee in the tenant's favor worth six months' rent.

In both cases, without written proof of notice, the lease renews automatically for the same initial term. A clause letting the landlord evict the tenant "at any time" or with a few days' notice does not fit these rules for an urban residential lease.

Handing over the property: at the start and at the end

At the start, the landlord must deliver the home on the agreed date and in good condition of service, safety, and sanitation, with the agreed services (article 8, item 1). They must also give the tenant and the co-signer a copy of the lease with original signatures within ten days; if not, the law provides fines of three months' rent at the request of the affected party (article 8). In condominiums, they must provide a copy of the building's rules.

At the end, the tenant returns the property in the condition in which it was received, allowing for wear from legitimate use (Civil Code, article 2005). If the initial condition was not recorded, it is presumed to have been received in fair condition. Returning it means fully vacating it and handing over the keys (article 2006).

That is why an inventory with photos at signing is your best protection: without it, arguing about which damage already existed is much harder.

On repairs, the tenant answers for damage that does not come from normal use or the passage of time (article 9, item 2). If the tenant had to make essential structural repairs that were the landlord's duty, they can deduct them from the rent, unless otherwise agreed, up to 30% of each payment (article 27).

Who oversees leases and what you can do

Inspection and oversight of residential leases belongs to municipal mayor's offices, the Alcaldía Mayor de Bogotá, and the Government of San Andrés (article 32). They hear, among other things, cases of illegal deposits, missing copies of the lease, and wrongly applied increases (article 33), and they can impose fines of up to one hundred monthly minimum wages (article 34).

How to review your lease in five steps

Search for the word "depósito" and its synonyms: garantía, anticipo, fondo. A cash guarantee goes against article 16.
Read the rent increase clause: every twelve months and no more than last year's CPI.
Check the penalty clause and compare it with the legal compensation of three months' rent.
Look at how the lease ends: three months' notice, in writing, by certified mail.
Ask for the inventory and a signed copy of the lease.

If you would rather not do it by hand, analyze your lease with The Catch: choose Colombia, say whether you are the tenant or the landlord, and the tool flags risky clauses, cites the rule, and proposes corrected wording. For other kinds of contracts, read the 7 red flags to check before signing any contract.

Frequently asked questions

Which clauses can a lease include?

The parties can agree on almost anything the law does not forbid: the rent, the term, who pays utilities, a ban on subletting, a penalty clause, or a co-signer. What they cannot do is contradict rules such as the ban on cash deposits (article 16 of Law 820) or the CPI cap on increases (article 20).

Does Law 820 of 2003 regulate the penalty clause in a lease?

Not directly. Law 820 sets the compensation for early termination (three months' rent, articles 22 and 24), but the penalty clause itself is governed by articles 1592 to 1601 of the Civil Code, which allow asking for a reduction when it is excessive.

Can a landlord charge me a deposit to rent an apartment?

In an urban residential lease, cash deposits and real guarantees cannot be required (article 16 of Law 820). Personal guarantees, such as a co-signer, and a capped guarantee for utilities (article 15) are allowed.

How much can the rent go up each year?

At most 100% of the previous calendar year's CPI, every twelve months of the lease, without exceeding 1% of the property's commercial value (articles 18 and 20 of Law 820). The landlord must notify the increase in writing.

How much notice must a landlord give a tenant to move out?

To end the lease unilaterally, Law 820 requires at least three months' written notice through the authorized postal service, plus the applicable legal ground and compensation (article 22). Without written notice, the lease renews automatically.

What if I already signed a lease with an illegal clause?

Signing it does not make it valid if it goes against a rule the parties cannot change, but it does not disappear on its own either. Keep the lease and your payment records, ask for the correction in writing and, if there is a dispute, go to your municipal mayor's office or a lawyer.

Official sources

Laws checked on October 26, 2026.

This article is general information and is not legal advice. For your specific case, consult a lawyer.