Commercial Leases in Colombia: Protections for Commercial Tenants

## Commercial leases have their own rules

Commercial leases in Colombia are mainly governed by the Commercial Code (articles 518 to 524), not by Law 820 like residential leases.

The rules are different and, in several respects, more favorable to the tenant.

The right of renewal

If you've occupied the premises as a tenant for more than 2 years, you have a preferential right to renew the lease on the same or similar terms.

The landlord can only refuse to renew for these specific, exhaustive reasons:

1. Own need: they're going to occupy the premises themselves
2. Demolition or construction: they're going to demolish or carry out work requiring the premises to be vacated
3. Tenant default: if you owe more than 2 months' rent

Compensation when the landlord doesn't renew

If the landlord ends the lease without one of the reasons above, they must compensate you with the equivalent of:

• 6 months' rent if you've been there between 2 and 5 years
• 12 months' rent if you've been there between 5 and 10 years
• 18 months' rent if you've been there more than 10 years

Additionally, if the landlord claims own need or demolition and then leases the premises to someone else, they may owe double the compensation.

Notice period for not renewing

A landlord who doesn't want to renew the lease must notify you 6 months in advance. Without this notice, the right of renewal becomes automatically consolidated.

Increases in commercial rent

Unlike residential rent, increases in commercial rent aren't capped by the CPI. The parties are free to agree on increases.

However, if the landlord wants to unilaterally change the terms of the lease (price, term, conditions), you have the right to refuse them — and in that case, the landlord must pay you the renewal compensation.

Can the landlord sell the property?

Yes. But if the landlord decides to sell it, you have a right of first refusal — you must be given the first opportunity to buy it on the same terms offered to an outside buyer.

If the landlord sells without offering it to you first, you can request that the sale be declared void.

Assignment of the lease and subletting

In commercial leases, unlike residential ones: - Assigning the lease (transferring the premises to someone else) is more flexible - If the business has been operating for more than 2 years, the tenant can assign the lease without the landlord's consent — unless the lease expressly prohibits it

Differences from residential leases

Is your landlord refusing to renew your lease without justified cause, or trying to remove you without paying the compensation you're owed? Our team can guide you on your specific rights.

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