Prices and spending
Rent increase
The most your rent can be at the next renewal, with the IPC, the legal cap and the history of your lease.
The increase applies from that day, if you were told about it.
Those leases rise up to the Banco de la República’s inflation target for the year of the renewal, 3 % since 2010 (Ley 56 de 1985, with Ley 242 de 1995). If inflation strays more than three points from the target, the Government can authorise an extra increase.
The 1 % cap (optional)
The one on the property tax bill. For the cap, the market value cannot exceed twice it.
From Tuesday 1 December 2026 it can rise to at most
COP 1,576,500
5.10 % on COP 1,500,000: COP 76,500 more a month and COP 918,000 more a year. It is the IPC of 2025.
For it to bind you, the landlord must tell you the amount and the date it takes effect, by authorised postal service or by the personal notice the contract sets out. If you have already paid the increase without that notice, you cannot ask for it back on those grounds.
How it is worked out
Work out how much your home’s rent can rise with the previous year’s IPC and the cap of 1 % of the market value, a shop’s agreed increase, and your lease year by year since it began.
On urban housing the landlord can raise the rent every twelve months, and at most by the previous calendar year’s IPC as certified by DANE (Ley 820 de 2003, article 20). For 2026 renewals that is 2025’s IPC, 5.10 %; 2026’s comes out in the first days of January 2027. Besides, the rent can never exceed 1 % of the property’s market value. A commercial lease has no legal cap: the contract rules.
The rules it applies
- Urban housing: every twelve months at the same rent, up to 100 % of the IPC of the calendar year before the renewal (Ley 820 de 2003, article 20).
- The rent cannot exceed 1 % of the market value, which for this cannot be more than twice the cadastral appraisal (article 18).
- Homes leased before 10 July 2003: up to the Banco de la República’s inflation target for the year of the renewal, 3 % since 2010 (Ley 56 de 1985, article 10, as Ley 242 de 1995 left it; article 42 of Ley 820).
- Each increase goes on the rent being paid: one not made is not made up later.
- Commercial premises: whatever the contract says, such as the IPC plus a few points; Ley 820 does not limit it.
new rent = rent × (1 + previous year’s IPC)Is your calculation not here?
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How much a 1,500,000 rent rises in December 2026
If the lease turns one year on 1 December 2026, the most it can rise is 2025’s IPC: 5.10 %. A rent of 1,500,000 pesos can go to 1,576,500, 76,500 pesos more a month and 918,000 more a year.
It is a cap, not an obligation: the landlord can raise it less or not at all, and both sides can agree on it. What they cannot do is raise it more, or before twelve months at the same rent have passed.
A 2020 lease, year by year
A rent of 1,200,000 pesos signed on 1 March 2020 could rise every year with the IPC: to 1,219,320 in 2021, with 2020’s 1.61 %; to 1,287,846 in 2022; to 1,456,811 in 2023, with 2022’s 13.12 %, the biggest jump; to 1,592,003 in 2024, 1,674,787 in 2025 and 1,760,201 in 2026. In six years, 46.7 % more.
On 1 March 2027 it will rise with 2026’s IPC, not known yet: with the 6.29 % annual inflation reached by September 2026, it would come to 1,870,918.
Those figures are the ceiling if it rose by the most every year, not what can be charged today in any case: an increase not made is not made up later, because each renewal rises on the rent being paid. If the rent stayed at 1,287,846 in 2023, the 2026 ceiling is 1,556,049, not 1,760,201.
Without notice, the increase does not bind you
To raise the rent, the landlord must tell you the amount of the increase and the date it takes effect, by authorised postal service or by the personal notice the contract sets out (Ley 820 de 2003, article 20). Otherwise the increase cannot be enforced against you; but if you have already paid it, you cannot ask for it back on the grounds that you were not told.
If the landlord asks for more than the law allows, the excess is not owed. And if they refuse the rent that is due, Ley 820 lets you pay it by depositing it.
The cap of 1 % of the market value
Besides the IPC, a home’s rent cannot exceed 1 % of its market value, and for that sum the market value cannot be more than twice the cadastral appraisal. With a cadastral appraisal of 100 million, the rent cannot exceed 2,000,000 a month, even if the IPC allowed more.
If you are given a market value of 150 million, the cap is 1,500,000: a rent of 1,500,000 is already at the top and cannot rise, even if the IPC would allow it.
Commercial premises and leases from before 2003
A shop is not governed by Ley 820: it rises by what the contract says, usually the IPC plus a few points. At IPC plus 2 points, a 3,000,000 shop renewed in 2026 rises 7.10 % to 3,213,000.
Housing leases signed before 10 July 2003, when Ley 820 came into force, follow Ley 56 de 1985 as Ley 242 de 1995 left it: the increase goes up to the inflation target the Banco de la República sets for the year of the renewal, not to the IPC. Since 2010 that target has been 3 %, so a rent of 1,000,000 can go to 1,030,000 in 2026. If the inflation DANE certifies strays more than three points from the target in a year, the Government can authorise an extra increase.
Frequently asked questions
- How much can rent rise in 2026?
- Up to 5.10 %, 2025’s IPC, on urban housing leases that turn twelve months in 2026. A rent of 1,000,000 can go to 1,051,000.
- How much will rent be able to rise in 2027?
- Up to 2026’s IPC, which DANE publishes in the first days of January 2027. Annual inflation to September 2026 was 6.29 %; until the figure is out, the calculator uses the one you enter.
- Can my rent go up before the year is over?
- Not on urban housing. The increase only applies every twelve months of the lease at the same rent, and the landlord must tell you the amount and the date beforehand.
- Is the rent increase compulsory?
- No. The IPC is the maximum: the landlord can raise it less or not at all, and both sides can agree on it. On a commercial lease, the contract rules.