In this guide, in less than 10 minutes, you will discover:
- The real pain points of tenants in Colombia today
- Average rent prices in Bogotá, Medellín and Cali
- Savings percentages when comparing neighborhoods and cities
- Practical differences between renting through an agency or directly from the owner
- Concrete strategies to reduce how much rent weighs on your budget
How Much Does It Cost to Rent in Colombia? Comparison Between Cities
By simply moving from the city center to a more peripheral neighborhood, a tenant can save around 25% to 30% on rent in cities like Bogotá, Medellín and Cali.
Below is an approximate snapshot of average prices for a 1-bedroom apartment (1BR) in 2025, based on data from platforms like Numbeo and cost of living comparisons:
1. 1 bedroom in the center vs. outside the center
Bogotá
- 1 bedroom in the center: ~1,830,000 COP/month
- 1 bedroom outside the center: ~1,370,000 COP/month
Approximate savings when moving out of the center:
(1,830,000 – 1,370,000) ÷ 1,830,000 ≈ 25% savings
Medellín
- 1 bedroom in the center: ~2,200,000 COP/month
- 1 bedroom outside the center: ~1,570,000 COP/month
Savings when moving out of the center:
(2,200,000 – 1,570,000) ÷ 2,200,000 ≈ 28% savings
Cali
- 1 bedroom in the center: ~1,100,000 COP/month
- 1 bedroom outside the center: ~775,000 COP/month
Savings when moving out of the center:
(1,100,000 – 775,000) ÷ 1,100,000 ≈ 30% savings
2. Comparing cities: where does it hurt more?
Using average prices for a 1 bedroom in the center:
- Bogotá: ~1.83M COP
- Medellín: ~2.20M COP
- Cali: ~1.10M COP
Examples of differences:
Medellín vs. Bogotá (center)
Medellín is about 20% more expensive than Bogotá for a 1BR in the center.
Bogotá vs. Cali (center)
Bogotá is about 40% more expensive than Cali.
Medellín vs. Cali (center)
Medellín can cost almost twice as much as Cali (around 100% more).
Practical example: A young professional paying 2.2 million COP for a 1 bedroom in the center of Medellín could, in theory, pay something close to 1.1 million in Cali. In other words, up to about 40–50% savings just by changing cities and keeping the same type of property.
The Main Pain Points of Renters in Colombia
1. Informality and “weak” contracts
It is still very common to see:
- Verbal agreements or contracts made “in Word” with no clear legal basis
- Lack of clauses about rent increases, maintenance, terms and move-out rules
- Increases decided “by eye,” without reference to the IPC or Law 820
This leaves tenants vulnerable to:
- Increases above inflation
- Short notice to move out
- Arguments about who pays for repairs and damages
Important point: always ask for a formal contract with clear clauses on rent increases (linked to the IPC) and on each party’s responsibilities.
2. Requirements for guarantor, policy and credit check
In big cities, it is standard to be asked for:
- A Colombian guarantor with high income
- Proof of formal income and credit history
- A tenant screening (paid by the renter)
- A rental insurance policy
In practice, this screening can cost between 50,000 and 150,000 COP, and the policy can represent 1% to 2% of the annual contract value, depending on the agency.
3. Rent weighing too heavily on income
There is a widely accepted rule: spending more than 30% of your income on housing is considered heavy.
In Colombia, OECD data shows that more than half of low-income tenants spend more than 40% of their income only on housing, which is considered a “severe burden.”
In other words, for many people, rent is not just expensive – it swallows the entire budget.
4. Extra costs that blow up the budget
Besides rent, the package usually includes:
- Utilities (water, electricity, gas, garbage collection, internet)
- Administration fee (similar to a condo fee)
- Furniture and small repairs
- Possible additional fees charged by the agency
Many tenants choose an apartment looking only at the rent and only later discover that the administration fee + utilities add 30% to 50% more to the monthly cost.
5. Infrastructure and “estratos”
The “estratos” system (1 to 6) directly affects the cost of services:
- Estratos 1, 2 and 3 receive subsidies – cheaper utility bills
- Estratos 4, 5 and 6 pay full tariffs – much higher bills
Sometimes, rent in estrato 4 looks similar to rent in estrato 3, but when water, electricity and gas bills are added, the total cost shoots up.
Agency vs. Direct Owner: Where Do You Save and Where Do You Lose Money?
1. How much does the agency really cost?
In most Colombian cities, real estate agencies charge between 8% and 12% of the monthly rent as an administration fee.
If the monthly rent (canon) is 2,000,000 COP:
- 8% = 160,000 COP/month
- 12% = 240,000 COP/month
Over a 12-month contract, this means the owner may be paying between 1.9M and 2.9M COP just in commission to the agency.
Although, in theory, this is a cost for the owner, in practice many owners pass this cost on in the rent.
That is, if the owner pays 10% commission to the agency, there is room for direct negotiation that can reduce the rent by something between 5% and 10%, especially in longer contracts and without an intermediary.
2. Advantages and disadvantages for the tenant
Renting through an agency — Advantages:
- More standardized processes
- Greater legal security
- Policies that protect both owner and tenant
- Easier proof of address, payment history, etc.
Disadvantages:
- More bureaucracy (credit check, guarantor requirements)
- Additional costs (screening fee, contract fee, etc.)
- Less flexibility to negotiate terms and rent increases
Renting directly with the owner — Advantages:
- More room to negotiate the price (especially if the owner does not want to pay 8–12% to an agency)
- Possibility to be flexible with payment dates, small repairs, move-in terms, etc.
- Direct communication to solve property issues
Disadvantages:
- Greater risk of weak or informal contracts
- Owners who do not follow Law 820 (asking for deposits, cutting off services, etc.)
- Difficulty using formal mechanisms if a conflict arises
Important: Even when renting directly from the owner, the tenant should demand a written contract, with no illegal cash deposits and rent increases linked to the IPC.
Law 820 of 2003 prohibits cash deposits as a guarantee in housing rental contracts and limits the annual rent increase to the inflation index.
Practical Strategies to Reduce the Total Cost of Rent
1. Calculate the total cost, not just the rent
Suggested checklist to keep this guide grounded in reality:
For each property, the reader should add:
- Rent (canon)
- Administration fee
- Estimated utilities (average for the area)
- Internet
- Any parking space (parqueadero) fee
- Rental insurance, if applicable
Then compare Property A vs. Property B by total cost, not just the monthly rent.
2. Use the 30% income limit as a “handbrake”
As a practical rule, try to keep the total housing cost (rent + utilities + administration fee) below 30% of household income.
Above that, the budget starts to get tight, and any unexpected expense becomes a crisis.
3. Longer contracts in exchange for a discount
Possible negotiation:
- 12-month contract: standard price
- 24-month contract: try to negotiate a 3% to 5% discount on the rent in exchange for stability for the owner
This is not a fixed rule, but it is an argument that makes sense for the owner (less vacancy, fewer costs with new tenants).
4. Avoid “trendy” neighborhoods and look for areas in transformation
Suggested approach:
- Show that neighborhoods in the process of development still have lower prices than fully consolidated zones
- For example: in Bogotá, moving from a very expensive estrato 5 to a good estrato 4 can mean 15% to 25% savings on rent while maintaining quality of life (the exact percentage varies by neighborhood, so you can keep it as “on average”).
5. Share housing strategically
For young people and students:
- Share a 2- or 3-bedroom apartment in a better neighborhood
Typical outcome: living in a safer area and still paying less than they would alone in a worse area.
Updated Step-by-Step Guide to Renting Safely
- Define a realistic budget (up to 30% of income)
- Choose target cities and neighborhoods, looking at:
- Estrato
- Access to public transport
- Infrastructure
- Research average prices by city
- Bogotá, Medellín, Cali and others, using cost of living sites and real estate portals
- Create a simple spreadsheet with 3 to 5 property options, comparing:
- Rent (canon)
- Administration fee
- Estimated utilities
- Total cost
- Decide whether to use an agency or negotiate directly
- If using an agency: check commission policy, screening fees, insurance, additional charges
- If dealing directly with the owner: demand a formal contract, with no illegal deposits
- Read the contract line by line
- Rent increase linked to the IPC
- Minimum term and notice period to move out
- Responsibility for repairs
- Keep copies of everything
- Contract
- Payment receipts
- Important conversations (email, WhatsApp)
Ideally, the total cost of housing (rent + administration fee + basic utilities + internet + parking, if any) should not exceed 30% of the household’s monthly income. Above that, the budget becomes very tight, and any financial setback can turn into a bigger problem.
In general, living in the city center is more expensive. In cities like Bogotá, Medellín and Cali, moving from the center to neighborhoods outside the central zone can bring average savings of 25% to 30% on the rent of a 1-bedroom apartment, without necessarily losing quality of life, depending on the neighborhood chosen.
Considering a 1-bedroom apartment in the central area: Medellín tends to be more expensive than Bogotá for this type of property. Bogotá is usually significantly more expensive than Cali. In practice, living in a 1-bedroom in the center of Medellín can cost up to about 50% more than in some areas of Cali with a similar profile, depending on the neighborhood and the condition of the property.
Not necessarily always, but: agencies usually charge between 8% and 12% of the rent as a fee from the owner. Many owners end up including this cost in the rent. That is why, in direct contracts, there is room to negotiate discounts of 5% to 10% on the rent, especially for longer contracts. On the other hand, agencies offer more standardization, legal security and clear processes.
Some common advantages are: More room to negotiate the rent amount; Possibility to adjust payment dates and small repairs more flexibly; Direct communication to solve problems with the property. But it is essential to demand a formal contract with clear clauses on rent increases and responsibilities, to reduce the risk of future conflicts.
The main advantages of an agency are: More standardized and professional processes; Greater legal security for both parties; Use of policies and credit checks that help reduce default and risk; Easier proof of residence and payment history. On the other hand, this can bring more bureaucracy and additional costs (screening fees, insurance, etc.).
Yes. The estrato directly affects the cost of utilities: • Estratos 1, 2 and 3 usually receive subsidies, making bills cheaper • Estratos 4, 5 and 6 pay higher tariffs, which increases the total cost of housing Sometimes, two properties have similar rent, but the one in a higher estrato generates much higher utility bills and, month by month, that weighs heavily on your budget.
Important precautions include: Demanding a written contract with all clauses clearly defined; Avoiding verbal agreements, especially about rent increases and how long you can stay; Being wary of informal cash deposits; Recording the condition of the property when you move in (photos + checklist); Keeping receipts for rent and utilities. Negotiating directly can bring savings, but the tenant’s protection depends a lot on the quality of the contract and the documentation.
