Short-Term Rentals in Condominiums (Propiedad Horizontal): Colombia's Tourism Law


Note: this article was originally published in 2021 and is kept here as a historical reference on short-term rental rules in condominium properties.

Buildings once conceived as condominiums or residential complexes have increasingly turned into temporary or tourist lodging, similar to hotels or hostels.

Renting out your vacation home or apartment to third parties for less than 30 days could put you in breach of the condominium's bylaws (Reglamento de Propiedad Horizontal, or RPH), with resulting financial penalties, subject to the due-process procedure the bylaws themselves must set out — and it could even be sanctioned financially by the Ministry of Industry and Commerce.

Here's what the regulations say:

Article 1 of Decree 2590 of 2009: "On providers of tourist lodging services. Any individual or legal entity that hands over possession of a property for use and enjoyment to one or more people, for payment, for periods of less than thirty (30) calendar days, on a habitual basis, is considered a tourist service provider."

That same regulation, however, states in article 3: "In the bylaws of buildings and residential complexes where a property or several properties are used, in whole or in part, for the permanent or occasional provision of tourist lodging services, the possibility of using them for that purpose must be expressly established, subject to meeting the legal requirements set for that purpose."

That said, it's important to keep in mind that express authorization in the bylaws is one thing, and the obligation to register in accordance with the tourism law and its implementing decrees is another.

Indeed, the first paragraph of that same article 3, as amended by Decree 4933 of 2009, requires proving this status to the Ministry of Commerce, Industry and Tourism, in the following terms:

"Paragraph 1. The use of properties under the condominium regime for the permanent or occasional provision of tourist lodging services must be authorized in the condominium bylaws. This must be proven to the Ministry of Commerce, Industry and Tourism no later than April 30, 2010."

Additionally, article 34 of Law 1558 of 2012, as amended by article 144 of Decree 2106 of 2019, requires the condominium administrator to report to the Superintendency of Industry and Commerce whenever tourist lodging services are provided in any of the private housing units in the building or complex, when this isn't authorized by the bylaws, or when the provider isn't registered with the National Tourism Registry — in line with Circular DVT 003 of December 13, 2017, from the Office of the Vice Minister of Tourism. Let's look at it:

"Administrators of properties under the condominium regime where tourist lodging services are provided are required to report to the Superintendency of Industry and Commerce the provision of such services in the units of the condominium they manage, when these units are not authorized by the bylaws for that use, or are not registered with the National Tourism Registry. Failure to comply with this obligation will result in the administrator being fined by the Superintendency of Industry and Commerce up to 3 current monthly minimum wages at the time of payment, allocated to the Tourism Promotion Fund."

Finally, that same regulation also states:

"A tourist lodging service provider operating without prior authorization in the condominium bylaws, duly recorded with the Public Instruments Registry Office, will be subject to the penalties set out in clause 2 of article 59 of Law 675 of 2001, following the procedure that law establishes. This is without prejudice to the penalties resulting from failing to register with the National Tourism Registry."

In other words, beyond the penalties against the administrator and the unregistered owner, the condominium can also impose on the owner who uses their unit for tourist lodging without authorization in the bylaws the fines the condominium law sets for failing to meet non-financial obligations under the law or the bylaws — obligations that owners, occupants, or third parties they are responsible for under the law must meet. These include publishing, in places widely seen throughout the building or complex, a list of offenders along with the specific act or conduct that triggered the sanction; imposing successive fines for as long as the violation continues, each capped at twice the monthly maintenance fees owed by the offender at the time the fine is imposed (with the total of all fines capped at ten times the monthly maintenance fee owed by the offender); and restricting use and enjoyment of non-essential common areas, such as community rooms and recreational and sports facilities.

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Source: Law 1558 of 2012. Decrees 2590 of 2009 and 4933 of 2009 – 2106 of 2019. Circular 003 of 2017 from the Ministry of Commerce, Industry and Tourism.

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