The rental sector is witnessing, as a rule, one of the highest increases in the country’s history after annual inflation in 2022 reached 13.12%the maximum allowed to increase this item.
(Read: Used housing will have a greater role in the market).
However, IThe owners have responded prudently. Despite the fact that landlords always have the possibility of raising the rent of the properties in line with inflation, the rents in recent years have increased less due to the fact that owners and tenants have reached agreements due to the difficult economic situation resulting from of the pandemic.
In an interview with EL TIEMPO, Karina Reyes, president of Fedelonjas, said that there is a lag in the increase due to the pandemic.
(In addition: No co-signer?: Options to show solvency to lease property).
By 2021, the Owners could raise it 1.51 percent but the actual increase was 1.51 percent. And for 2022 the maximum allowed was 5.62 percent; however, the average increase in residential rental fees was 2.94 percent.
«This means that, even in the post-pandemic, owners and tenants reached agreements to increase the fees in accordance with regional economic conditions and within the home and the needs of the owner himself.Reyes explains.
In years past, tenants have taken into account the economic conditions of the home. as well as the profitability needs of the investor. This implied agreements in which a lower increase was established compared to what was allowed and even in several cases freezing the increases or the cancellation of some months of rent.
(See: How it was before and how it is now the lease law in the country).
«As is evident, these agreements reduced the growth of rental fees with respect to the expected (limit allowed Article 20 of Law 820 of 2003) reducing the growth of the sector. The fees have risen but well below inflation since they barely are beginning to recover,» points out Reyes.