Deposit Alternatives: CDT, Póliza & Prepay for Medellín Rentals

The Fiador Problem for Foreigners

The standard Colombian lease requires a fiador — a co-signer who owns property in Colombia and guarantees your rent. Obviously, most foreigners don't know anyone who fits this description. Here are the four alternatives that actually work.

Option 1: CDT (Certificado de Depósito a Término)

A CDT is a fixed-term bank deposit — essentially, you deposit 5–6 months' rent in a Colombian bank account that's frozen for the lease duration. The money earns interest, and the landlord has it as security. At lease end, you get the full amount plus interest back.

• Pros: You keep ownership of the money. Earns interest. Most landlord-trusted option.
• Cons: Requires a Colombian bank account (needs visa + cédula). Ties up significant capital (5–6 months = $3,500–$7,200).
• Best for: Nomads with digital nomad visas who plan to stay 6+ months.

Option 2: Póliza de Arrendamiento (Rental Insurance)

A póliza is an insurance policy that guarantees your rent payments. Companies like SURA, Seguros Mundial, and MAPFRE offer them. The landlord is the beneficiary — if you don't pay, the insurance company covers it.

• Pros: No large upfront deposit. Professional, landlord-trusted.
• Cons: Requires documentation (visa, cédula, proof of income). Annual premium typically 3–5% of annual rent. Some companies won't insure foreigners on tourist visas.
• Best for: Visa holders signing formal 12-month leases.

Option 3: Prepay 3–6 Months Upfront

The simplest and most common solution for nomads. Offer to pay 3–6 months' rent upfront in exchange for no fiador requirement. Most landlords accept this immediately — guaranteed cash flow is hard to turn down.

• Pros: No bank account needed. No insurance paperwork. Works on tourist visas. Fastest to arrange.
• Cons: Ties up cash. Higher risk if the landlord is dishonest. No formal protection beyond your contract.
• Best for: Short-to-medium term stays (3–6 months) by nomads without Colombian visas.

Option 4: Standard Deposit (1–3 Months)

Many furnished rental operators simply charge a deposit of 1–3 months' rent. This is technically unenforceable under Law 820, but it's standard practice in the furnished/short-term market. Get the terms in writing and photograph the apartment's condition at move-in.

Protecting Yourself

• Always get a written contract — even for informal arrangements. Include deposit amount, return conditions, and timeline.
• Photograph everything at move-in. Document existing damage, appliance conditions, furniture state.
• Keep payment receipts — screenshots of transfers, signed acknowledgments.
• Use Nequi or bank transfer — never pay large sums in cash without documentation.