This post was last updated on September 2, 2024.
Looking to Escape U.S. Inflation Insanity and Move to Colombia?
Why the Medellin Rental Market is Booming
Americans have woken up to the ludicrous price increases in the United States. After many retired early or discovered the wonderful idea of living where you are treated best, Americans feel the squeeze at home and flock to Medellin, the city of eternal spring. Locals are complaining about crazy rental prices, but for Americans, it’s a relief relative to the inflation insanity back home.
But why am I telling you? If you are looking at long-term Medellin apartments for rent, you already know why Time Out ranked Provenza as one of the coolest streets in the world, about the 360 mountainside views, the healthcare, the food, the coffee, the people, and of course we can’t overlook the weather. So let’s cut to the chase to not only what the rental rates are like but how to avoid getting scammed, hustled, and just not out there gringo running wild “dando papaya.”
Avoid Jumping From the Frying Pan Into the Fire: Gringo Pricing and Scams
Rental Scams in Medellin: I won’t sugarcoat it—Medellin rental scams are prevalent. Unlike the U.S. market with its efficient MLS, Medellin lacks a streamlined system. Instead, you’ll find a mix of real estate listing sites, and Airbnb, which often features inflated gringo pricing.
Understanding Medellin’s Rental Market: The market is divided into high-end real estate at gringo prices and more affordable local options. There’s a tricky middle ground where the risk of being overcharged is high. Trust me, I’ve been there.
The Murky Middle
To avoid the Godfather of Gringo Pricing, you may venture “off-platform” and into a world of frustrating slow responses, irrelevant offerings, and scammers. Some of the popular places you look for long-term apartments for rent in Medellin are Facebook Medellin, apartment rental groups, and Google. If you are really savvy, you patrol the neighborhood for “se alquila” signs.
You will most likely find yourself in the Facebook groups if you want the closest thing to American-style amenities. There, you will post what you are looking for and, most importantly, a budget. Then, you will get a plethora of offers. Most of them are legitimate, and some are not.
Graduating from The Colombian School of Hard Knocks
As you receive various offers, many will be irrelevant. However, this is probably the most efficient way, after Airbnb, to get a comfortable apartment for rent in Medellin, Colombia with modern amenities. Most will be outdated Abuelita-style apartments as you get closer to local prices. But then there is that too-good-to-be-true offer. Unless you are lucky, that is a scam.
When I was looking for a Medellin apartment for rent in Laureles, the expat’s second favorite neighborhood, I received a too-good-to-be-true offer. I knew it was too good to be true, but I couldn’t help myself. The website looked professional. There were many listings, and they had reviews. I tried to shop their price to a real estate professional I previously worked with who specialized in the Poblado rental market, knowing he would not beat that. The price was too good. But I was interested to hear what he would have to say about the listing. He said he had never heard of the company. Red flag number one.
I had an attorney friend look over the “Camara de Comercio” documents of the property, which is similar to the Secretary of State’s office but encompasses many things, such as the registration of a real estate property. The docs checked out. The real estate company’s location was again listed on Google with reviews. I could not have someone check out the Medellin apartment in person because the current tenants are still there for another week. Red flag number two.
With hindsight, I should have either waited for the property to have been “available” or insisted that someone be allowed to see the inside of the apartment and, at minimum, called the rental property’s front desk to confirm that it was indeed up for rent. Not that the front desk knows it all, but they know a lot. In this case, I took a risk and sent in a third of the requested deposit to hold the property. Unfortunately, upon arrival, I learned from the front desk that it was a scam.
How to Secure Unfurnished Apartments for Rent in Medellin, Colombia
It is mildly embarrassing that I got taken for a ride. But it was a necessary experience that allowed me to share with you all what not to do and how to mitigate this risk from happening to you. Full disclosure: all business entails some level of risk. Business and trust go hand in hand. Technically, I am in the wealth management business. But if you ask me in person, I would tell you I am in the trust business. People do business with me because, for one reason or the other, they trust me. And my job is to build upon that trust.
This is why Airbnb is such a hard platform to beat. It is a platform built upon your trust over the years and can now charge you a premium for the convenience of making a fast decision based on numbers and emotional variables, with trust not a factor. However, this blog is for the savvy investor looking to avoid “the gringo pricing” and rent like a local.
The next best option, after Airbnb, would be to work with a network compiled by a trusted advisor or individual you know and trust. This is a much safer bet, but you will be limited on their inventory. Remember, there is no public MLS-like listing. Therefore, to expand your chances of finding a Medellin apartment for rent or unfurnished apartments for rent in Medellin, Colombia, you may need to work with a few agents or get a really good one.
Getting a deal on Facebook means a lot of the due diligence falls on you. Here is a short list of things of you want to make sure you cover before moving forward on any private listing you are offered:
- Ask for the name of the building, contact the front desk, and ask if that unit is available for rent.
- Ensure that the photo ID of the owner of the property matches the property’s certificate from the “camera de commercio.”
- Verify the authenticity of the certificate from the “camera de commercio”.
- Request a walkthrough of the property.
- Have an attorney review the lease agreement.
Clearly, doing this in person is much better. If you must do this remotely, then work with a professional, such as an attorney, to help verify the process or someone from a trusted network.
The third method is for the elite savvy savers. This is the door-to-door sales of apartment renting. This requires being in Medellin. Walk through the neighborhoods you like and search for the “se alquila” signs. You will see them posted around the neighborhood.
If you see a building you like but no signs, then cozy up to someone at the front desk. They usually know what owners may have any units available for rent or a contact for a real estate agent working in that building. This method is where you are going to find the best bargains. But it does take some time and energy, which is a luxury many don’t have.
Best Neighborhoods to Find Medellin Apartments for Rent
At the core of Medellin’s organizational structure are the comunas, which refers to administrative divisions. Medellin is carved into 16 such comunas, each a mini-city within the city, pulsing with its rhythm and offering a distinct slice of Medellin life.
But what exactly is a comuna? Think of it as a neighborhood cluster, a way to manage the city’s sprawling urban landscape. Each comuna encompasses several barrios (neighborhoods), ranging from bustling commercial centers and affluent residential areas to more humble, working-class (“popular”) communities. This division isn’t just bureaucratic; it reflects the city’s diverse social fabric, with each comuna having its character, challenges, and community life.
Diving deeper, within these comunas, the city unfolds into over 300 barrios. These are the vibrant threads of the tapestry, where the essence of Medellin’s culture, hospitality, and resilience is found. From the street vendors in El Centro to the artists painting murals in Comuna 13, each barrio offers a unique perspective on life in Medellin.
Poblado (Comuna 14): A Hub for Expats and Trendsetters
I have been traveling around the world as a hybrid digital nomad for several years now, and each time, I gain an increased adoration for Medellin. Few streets in the world match the vibe and vibrant nightlife of Provenza, Poblado. The street is filled with top restaurants competing to one-up each other on succulent international cuisines. Trendy bars and restaurants light up the scene with various vibes, drawing in some of the most beautiful people in the country. And, by extension, the world.
Longterm Rental Prices in Poblado
Poblado is a foreign fave due to its rich architectural designs, modern interior designs, swanky bars, and upscale restaurants. Rents are going to vary greatly. There are some really high-end, well-furnished Medellin apartments for rent and some, evermore more scarce, residential spaces catering to the national Colombians. However, the locals have been getting pushed out due to rising rents and the cost of living. Foreigners now dominate Poblado, and the city now caters to them.
On average, rents for a nicely furnished Medellin apartment for rent will range from $1,400 to $1,800. For example, this monthly rental apartment I took in October of 2023 was $1,700 a month on Airbnb. But if you go directly to the property management company, you can get it for about $1,550. Obviously, this is the price range for a nicely furnished one-bedroom apartment. Swanky penthouses can go for north of $5,000 a month.
Energy Living: A Modern Icon with a Complicated Reputation
Energy Living is an iconic building representing Medellin’s transformation into an architectural hub where modern design meets sustainable living. It also has a darker side. Since it is approved for daily rentals, the building received a bad reputation for sex tourism, and many of the lavish apartments were used for the production of adult entertainment videos. When moving to Medellin, this marks an additional consideration: What kind of neighbors do you want to have?
Laureles (Comuna 11): A Guide to Finding Your Ideal Medellin Apartment for Rent
Favored by expats for its more laid-back atmosphere compared to Poblado, Laureles offers a more residential experience with two main parks, tree-lined avenues, and a less touristy feel. Surrounding the main parks are various cafes and restaurants offering international cuisines. One of my favorite café to work out of is Semilla. After having a healthy lunch at Smash, I like to go for a walk and enjoy a doppio at one of the many cafés in Laureles. Although I like the hills in Poblado, many residents favor Laureles for its flatlands, making walking much more convenient than the steep hills you will find in Poblado.
Exploring Unfurnished Apartments for Rent in Medellin, Colombia
As such, you will find a lot of retirees in Laureles due to the walkability. I had the pleasure of meeting George Saxton, founder of the Medellin Flatlanders ExPat Group. George went full-blown expat a few years back as he was shocked at how much further his retirement income stretched in Medellin versus his hometown in Chicago. With U.S inflation rising, concerns about the Illinois state pension sustainability, and U.S debt exploding, he joined the thousands of financially savvy retirees looking to enjoy the rest of their workfree lives where they were treated best.
Rental Prices for Medellin Apartments: Laureles vs. Poblado
If you look through Airbnb, you will quickly see that Laureles rentals are very similar to Poblado. Maybe a tad bit less, as the buildings in Laureles tend to be older and the apartment interior design is more traditional. While Poblado is flush with modern apartments with high-end finishings, the prices for Medellin apartments for rent are quite comparable for apartments of the same caliber.
After extensive research, visiting and researching dozens of apartments, and getting quotes from several realtors to get accurate, up-to-date pricing,I have found that unfurnished apartments for rent in Medellin, Colombia will rent for about $35,000 COP/ m2 unfurnished to $42,000 COP furnished. At the time of writing, the exchange rate stands at $3,800 COP/ USD. This means $9 /m2 to $11 / m2 ( I am not transferring to feet. If you want to invest outside the U.S., you might as well get used to meters).
Most of these apartments were furnished with outdated traditional style furnishings. Keep in mind these quotes are not for properties made for foreigners. These prices are for locals. This means you will have to go through a whole process, which I will explain later, to attain these apartments. This process, however, is absolutely worth it if you plan to stay in Colombia for at least six months to a year. If you want an incredible stay and be as comfortable as possible, I recommend getting the apartment unfurnished and styling it to your liking.
Strategies for Renting Medellin Apartments for Rent
If you are looking to be boss-level financial savvy, and as long as your landlord permits (or charm your way with the neighbors and front desk), you might even be able to sublease out a second room or the entire apartment for a few months when you are traveling at Airbnb pricing and have others pay off a good portion of your rent. There are ways you can lease or manage third-party apartments for local pricing, renovate or redecorate the property, and sublease at a significant markup to gringo pricing. We’ll save that for another blog.
Step-by-Step Process to Securing Long-Term Rentals at Local Rates
Renting an apartment in Medellin, Colombia involves a process that can vary slightly depending on the landlord or property management company, but there are some common steps and requirements. Here’s a detailed, step-by-step guide to finding Medellin apartments for rent based on general practices:
1. Apartment Search and Viewing
- Start Your Search for Medellin Monthly Rentals: Find a reputable local contact to help you source Medellin apartments for rent based on your preferences and objectives. Alternatively, explore neighborhoods you like and jot down contact numbers from “for rent” signs. Speak with front desk personnel to inquire about available unfurnished apartments for rent in Medellin, Colombia, or get recommendations for real estate contacts.
- Schedule Viewings: Contact landlords or agents to schedule viewings of Medellin apartments for rent that catch your interest.
2. Application Process
- Application Form: You may be asked to fill out an application form providing your personal information, rental history, and, sometimes, employment details.
- Documents Required: Be prepared to provide:
- Copy of your passport or cédula (national ID for residents).
- Proof of income or employment. This could be a job contract, pay stubs, or bank statements.
- Reference letters from previous landlords or employers can be helpful but are not always required.
3. Fiador or Insurance Policy (Fianza)
- Fiador (Guarantor): Most landlords require a Colombian guarantor (fiador) who owns property in Medellin. This individual acts as a co-signer on the lease and must prove an income at least double the monthly rental amount.
- Underwriting: To validate your financial capacity to cover the Medellin monthly rentals, you must engage an insurance company to underwrite your ability to pay. The two principal companies in this sector ar Sura and Libertador.
4. Deposit and First Month’s Rent
- Payment: It’s common to pay the first month’s rent and a security deposit upfront. The deposit is usually equivalent to one month’s rent and is refundable at the end of the lease, assuming there’s no damage to the property or any pending debt. The renter may also be responsible for the agent’s commission, which is eight percent of the first payment.
5. Lease Agreement
- Review the Lease for Your Medellin Apartment for Rent: Carefully review the lease agreement. It should detail the rental period, monthly rent, responsibilities of the landlord and tenant, and conditions for terminating the lease.
- Sign the Lease: Both the tenant and the landlord (or agent) will sign the lease agreement. Ensure you get a copy of the signed lease.
6. Utility Set-Up
- Utilities and Services: You must set up your utilities for long-term Medellin rentals. The companies with the most coverage for cable, internet, and cell phones are Claro, Tigo, and Moviestar. For 5G and fiber-optic cable, Moviestar might be your best bet.
7. Inventory Check
- Inspection: Conduct a thorough inspection of the apartment with the landlord or agent. Note any existing damages or issues.
- Inventory List: An inventory list of items and their condition in the apartment may be provided. Verify its accuracy, as this will be used to assess any damages at the end of your lease.
8. Move-In
- Keys: Once everything is settled, you will receive the keys to your Medellin apartment for rent, usually on the day of the inventory check.
- Notify Changes: If you are a foreigner, notify your embassy or consulate about your new address, if required.
Avoid Getting Scammed: Tips for Securing Unfurnished Apartments for Rent in Medellin
- Legal Advice: Consider getting legal advice when reviewing the lease agreement, especially if you’re unfamiliar with Colombian rental laws.
- Language: If you’re not fluent in Spanish, it might be helpful to have a bilingual friend or a professional translator assist you with the process. This will probably be your attorney. But ideally, you have a local bilingual contact helping you with every step of this process and translating for you.
This process can vary, especially in different cities or with different landlords, so it’s important to communicate clearly and ask questions if any part of the process or requirements is unclear.
Becoming a Savvy Global Investor
Finding the perfect long-term apartment rental in Medellín is an exciting step toward embracing a new lifestyle. But ensuring that this move is sustainable requires more than just finding the right place—it demands careful financial planning.
As a Certified Financial Planner™ practitioner with over nine years of experience, I’ve helped many clients achieve financial independence. Whether your goal is retiring early, living abroad, or exploring other lifestyle changes, the key to making a confident decision lies in thorough planning.
Financial planning lets you evaluate all your options. Moving to Medellín might offer lower costs and a rich cultural experience, but how does it compare to staying in the U.S. or another destination? A solid financial plan helps you weigh the pros and cons of each scenario, considering factors like cost of living, healthcare, and potential risks. This approach ensures you’re making an informed decision that aligns with your long-term goals.
A comprehensive financial plan also provides flexibility to adapt to changing circumstances. Whether your priorities shift or challenges arise, having a strong financial foundation allows you to adjust without compromising security.
By starting with a financial plan, you’re setting the stage for success—whether that means retiring abroad, achieving financial independence sooner, or exploring other opportunities. My role is to guide you through these decisions with clarity and confidence.
Learn more about how we help individuals like you at http://www.brickellfin.com.