Rental Properties in Cartagena, Colombia
Yesterday, I was able to spend the day with my friend Carlos Bustamante with Inmobiliaria Bustamante & Cia. in Cartagena Colombia. He has a general brokerage operation, with emphasis on property management. We discussed rental properties in Cartagena.
The rent on commercial properties there is normally 1% of the value of the property per month. The rent on residential properties is from .3% to .5% of the value of the property. Rent increases are usually annual and are based on the Colombian equivalent of the Consumer Price Index. Because it is generally believed that the government manipulates these figures, the increase is usually the index plus a premium.
As in many countries, once a residential tenant is established in a home, removal of the tenant is quite difficult. For this reason there is a “tenant insurance” system. The landlord pays 2% of the rent to the insurance company. The insurance company screens the tenant and either approves or denies them. If the tenant fails to pay the rent by the “late payment” date, the landlord calls the insurance company and the insurance company pays the rent. The landlord may not accept payments from the tenant after this. The tenant must pay directly to the insurance company. The insurance company will collect the rent or evict the tenant. They pay the rent to the landlord for up to 36 months while the eviction process is going on.
If the eviction process takes over 36 months the insurance company no longer pays the rent. They will finish the eviction process. Does it seem frightful that the eviction process could take over 36 months?
David Segrest is a REALTOR in Charlotte, NC
David S. Segrest, CIPS, CCIM, TRC, CEA
david@segrestrealty.com
http://www.segrestrealty.com
Serving the world in the Carolinas, Serving the Carolinas in the World
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