Fiadores, Codeudores and Pólizas: How Rental Guarantees Work in Colombia

If you have rented in the United States, Canada or Europe, you probably expect to hand over a security deposit and get it back when you leave. Colombia works differently. For housing leases, the law bans cash deposits outright, and landlords protect themselves another way: by asking for someone, or some company, to stand behind your lease. For foreigners, this is often the biggest obstacle to renting a traditional apartment. This guide explains the three main guarantee types in plain English, what the law does and does not allow, and practical paths if you do not have a Colombian co-signer. We also have a shorter explainer focused on why cash deposits are illegal and a guide to deposit alternatives.

The starting point: no cash deposits in housing leases

Article 16 of Ley 820 de 2003 says that in urban housing leases, landlords may not require cash deposits. It goes further: they also may not require them indirectly, through other documents, or under a different name. In July 2026, Bogotá’s Secretaría Distrital del Hábitat issued a concept confirming this reading and noting that landlords who impose prohibited guarantees can face fines under Article 34 of the law.

Under Ley 820, local authorities (in Medellín, the Alcaldía) handle complaints about illegal deposits, and Article 34 allows fines of up to 100 times the monthly minimum wage for violations of the law’s rules.

Codeudor vs fiador: what is the difference?

You will hear both terms, sometimes used as if they meant the same thing. Legally, they are different, and the difference matters to the person who signs for you.

Colombia’s Civil Code defines a fianza as an accessory obligation in which one or more people agree to pay someone else’s debt, in whole or in part, if the main debtor does not (Article 2361). A fiador who is sued generally has the beneficio de excusión: the right to demand that the creditor first go after the main debtor (Article 2383). That benefit is lost if the fiador expressly gives it up or signs on as a joint debtor (Article 2384).

A codeudor solidario is exactly that: a joint debtor. As a lawyer quoted by Metrocuadrado explains, a joint co-signer answers for every one of the tenant’s obligations. That is why landlords and agencies generally prefer it.

Metrocuadrado also notes that agencies and insurers usually require codeudores or fiadores to own real estate, and that a codeudor cannot simply withdraw until the property is handed back or the contract ends with a paz y salvo (a certificate that nothing is owed).

The póliza de arrendamiento (rental insurance)

A póliza de arrendamiento is an insurance or surety product that protects the landlord if the tenant fails to pay. It is the landlord’s protection, not yours. In general it works like this:

1. The insurer studies youYou fill out an application, and the insurer or surety company reviews your ability to pay, credit history and references. Portafolio reported that the study fee is paid by the person applying to rent.
2. Approval or rejectionIf approved, the insurer covers the landlord for agreed risks. Policies typically cover unpaid rent and can add coverage for building fees (administración) and utilities, depending on the insurer.
3. The lease is signedOften on the insurer’s or agency’s own contract form.
4. RenewalCoverage usually runs alongside the lease and renews with it.

Does a póliza replace a co-signer? Not always. Some insurers still ask applicants to provide one or two co-signers as part of their study, especially for applicants without strong local credit or income documentation. Bogotá’s housing authority notes that a póliza is not legally tied to having a codeudor, and that prospective tenants should check requirements directly with insurers.

The one guarantee for utilities that is allowed

There is a narrow, separate guarantee the law permits. If the tenant is responsible for paying utilities, Article 15 of Ley 820 lets the landlord ask for guarantees that the utility bills will be paid. That guarantee cannot exceed the fixed and consumption charges for two consecutive billing periods, and it is meant to secure the utility bills, not the rent.

Bogotá’s Hábitat concept explains that, under the related regulation (Decreto 3130 de 2003), these utility guarantees can take several forms, including a deposit with the utility company, a bank guarantee, an insurance policy or a fiador. Our guide to utilities, EPM and estrato explains how utility billing works in Medellín.

Comparing your options at a glance

Practical options if you do not have a Colombian co-signer

Colombian law does not require a codeudor; according to Bogotá’s housing authority, the landlord can ask for one or waive it. That leaves room for negotiation. Here are realistic paths:

Before you approach landlords, gather your documents: passport and visa or entry stamp, proof of income, bank statements and references. Our guide to documents landlords ask foreigners for has the full list.

Paying rent and guarantees from abroad

Once you sign, you will need a reliable way to pay in Colombian pesos. Ley 820 says rent is paid at the property or the place agreed in the contract, and the landlord must give you a written receipt with the date, amount and period paid (Articles 9 and 11). Whatever method you use, make sure it leaves a clear record and that the receiving account belongs to the landlord or an authorized agent.

For more on transfer methods, see our guide to paying rent from abroad.

What to do if a landlord demands a cash deposit

1. Ask politely about alternativesMany landlords simply do not know the rule. Mention Article 16 of Ley 820 and offer a legal alternative such as a póliza or co-signer.
2. Get everything in writingKeep messages, ads and contract drafts that mention a deposit.
3. Do not hand over cash without a recordIf you choose to proceed anyway, at least insist on a written receipt and a traceable payment.
4. Know where to complainUnder Ley 820, municipal authorities oversee leases and can hear disputes over illegal deposits. In Medellín, that is the Alcaldía.
5. Get legal adviceIf significant money is involved, consult a Colombian lawyer before signing or filing a complaint.

Frequently asked questions

This article is for general information only and is not legal advice. It summarizes Ley 820 de 2003, the Civil Code and related guidance as published at the time of writing; requirements of insurers and agencies vary and can change. Confirm any contract or guarantee with a Colombian lawyer before signing. Affiliate disclosure: the Wise link above is an affiliate link, and RentMedellín may earn a commission if you use it, at no extra cost to you. RentMedellín introduces renters to owners and managers; we do not sign leases or collect payments.