Glossary

Real estate and legal glossary

The terms of leasing in Colombia, in plain language.

Property administration

The service of managing a property's lease under a mandate contract: collection, maintenance, accounts and compliance.

Appraisal

An estimate of a property's value made by a registered appraiser (Law 1673). Andavo's estimates are indicative and are not appraisals.

Rent

The monthly rent agreed in the lease.

Deposit

For urban housing the law forbids requiring a cash deposit as a guarantee (Law 820, art. 16). A policy, co-signer or guarantor is used instead.

CPI

Consumer Price Index; it measures inflation. For urban housing, the annual rent increase is capped at the prior year's CPI (Law 820, art. 20).

Law 820 of 2003

The law governing urban residential leasing in Colombia.

Mandate

The contract by which you task Andavo with managing your property on your behalf.

Withholding tax

An income-tax advance withheld from certain payments. The accountant sets the applicable rate.

Rental-guarantee insurance

A policy that backs the rent payment and, depending on coverage, other leasing risks.