Co-debtor, guarantor and rental insurance in Colombia: differences and which one is best

The first time I looked for an apartment in Medellín, the owner asked me if I had a 'codeudor'. I said yes, without really understanding the difference from the 'fiador' mentioned in another listing in the same area. When I got to the meeting and said I had a family member willing to be a fiador, the landlord frowned: 'No, here they ask for a codeudor with real estate, not a fiador.' I left without understanding what the difference was between one and the other.

The reality is that in Colombia these terms are used almost as synonyms in everyday language, but they have important legal nuances. And there's a third figure — the rental insurance policy — that often ends up being the best option for both parties, but nobody explains it well in listings or real estate agencies. If you want to see real options right now, you can see properties and lots available on Colombia Move — posting is completely free.

This guide clarifies what each figure is, what responsibility it implies, when each one is convenient, and what you can do if you don't have easy access to any of them. Important note: this information is educational and does not replace legal advice. For complex contracts or situations with conflict, consult a professional.

What is a codeudor?

The codeudor is a person who signs the rental contract together with the tenant and assumes exactly the same obligations. It's not a secondary backup — it's a co-obligor. If the tenant stops paying, the landlord can go directly against the codeudor for the full debt, without needing to sue the tenant first.

This is called joint and several liability. In practice it means the landlord has two people to collect from, and can choose which one. Generally they go after whoever has more assets or is easier to locate.

That's why the requirements to be a codeudor are high: they almost always ask that they be the owner of a property free of mortgage (what is known as 'finca raíz') in the same city, with demonstrable income sufficient to cover the obligation. The codeudor is left with a potential debt registered in their name — if the tenant doesn't pay, that debt can affect their credit history. That's why it's so hard to get one: nobody wants to compromise their assets for someone they don't completely trust.

The only tedious thing about a codeudor is that you have to find someone willing to sign with you. And that person has to meet requirements that many family members and friends don't meet. In large cities like Bogotá or Medellín, where job mobility is high, not everyone has a relative with local real estate.

What is a fiador and how does it differ from a codeudor?

Here comes the first source of confusion: in everyday language in Colombia, 'fiador' and 'codeudor' are used as if they were the same thing. Technically, in the Civil Code there is a difference: the fiador has the 'benefit of excussion', which means the landlord should try to collect from the tenant first before going after the fiador. The codeudor, on the other hand, responds directly and immediately.

However, in the real practice of residential rental contracts in Colombia, almost no landlord or real estate agency uses the figure of the 'simple fiador'. What they ask for is a 'solidary fiador' or 'solidary codeudor' — terms that in practice are identical. If the contract says 'solidary codeudor' or 'solidary fiador', you're signing the same responsibility. The theoretical distinction exists in law books, but in the everyday rental market, you won't see it applied.

What is a rental insurance policy?

A rental insurance policy is an insurance that the tenant contracts in favor of the landlord. If the tenant stops paying the rent, the insurance company covers the unpaid rent and eviction process expenses — up to the limits established in the policy.

For the landlord, in many ways it's better than a codeudor: the insurance company has guaranteed solvency, the claims process is faster than a civil lawsuit against an individual, and it doesn't depend on the codeudor 'having the means to pay' when needed. For the tenant, it eliminates the need to convince a family member or friend to compromise their assets.

How much does a rental insurance policy cost?

The cost varies depending on the insurance company and the value of the rent, but in general it ranges between 3% and 5% monthly on the rental value. For a rent of $1,800,000 COP per month, that represents between $54,000 and $90,000 COP monthly. Some insurance companies offer annual payment, which is approximately one month of rent as a total premium — it's worth asking which option is more economical.

The most active insurance companies in Colombia for this service are Seguros Bolívar, Sura, Mapfre and Positiva. Many real estate agencies have an agreement with a specific one, but if you find a better rate with another, it's valid to negotiate that change before signing.

What do they require to approve the policy?

The fundamental criterion is demonstrated payment capacity. The market standard is that your income is at least three times the rental value: if the rent is $1,800,000 COP, you need to prove income of at least $5,400,000 COP. Typical documents are citizenship ID, bank statements from the last three months, and employment letter with salary or tax return if you're self-employed. The approval process usually takes between one and three business days.

A real advantage of the policy over a codeudor is that the qualification process is more objective: if you meet the income requirements and the documents are in order, the insurance company approves. With a codeudor, you depend on someone else being willing to sign, and that sometimes has more to do with willingness than ability.

Key differences between codeudor, fiador and policy

To summarize it clearly: the codeudor and solidary fiador are practically the same in Colombian practice — a natural person who assumes the debt if the tenant defaults, with no direct cost to the tenant but with a high barrier to obtaining one. The policy replaces that person with an insurance company, has a monthly cost for the tenant, but is easier to obtain if you qualify by income.

The protection they offer the landlord is comparable. The real difference is in practicality: getting a codeudor with local real estate who is willing to sign can take weeks or be impossible. The policy is processed in days if you have the documents and the required income profile.

Another point that few people mention: the policy also covers the costs of the eviction process, which in Colombia can cost between $800,000 and $2,000,000 COP or more depending on the lawyer and complexity. The co-debtor is responsible for the unpaid rent, but legal expenses are another story — they are not automatically covered by the co-debtor's signature.

Which one should you ask for if you're a property owner?

It depends on the local market and the tenant profile you want to attract. In large, competitive cities like Bogotá, Medellín or Cali, insisting only on a co-debtor with local real estate is going to cost you time and good candidates. Many excellent tenants — young professionals, families with stable incomes, Colombians returning from abroad, foreigners with work contracts — don't have a family member with registered property in the city. If you demand only that option, you're ruling them out without reason.

The policy is an equally solid guarantee from a financial perspective, and sometimes better: the insurance company has guaranteed solvency, while an individual co-debtor may have assets on paper but problems liquidating them when needed. If the tenant has solid income and qualifies for a policy, that in practice is a better indicator of solvency than having a relative with real estate.

A combination that creates unnecessary friction: asking for a co-debtor AND a policy at the same time. It's double coverage for the same risk, and many good tenants are simply going to look for another apartment. If you have doubts, ask for the policy — it's easier to verify and safer in case of collection.

If you don't have a co-debtor or don't qualify for a policy

This is the most difficult situation, but it's not without options either. There are solutions that work, especially when you deal directly with the owner without intermediaries.

Months in advance: offering two or three months of rent in advance (in addition to the normal deposit) can convince an owner who rents directly. The law doesn't require it, but offering it voluntarily is perfectly valid. For the owner it's a concrete signal of solvency and good faith.

Expanded deposit: the legal limit for a rental deposit in Colombia is two months of rent. If the tenant voluntarily proposes a three-month deposit as additional security, many direct owners accept it.

Employment reference letters: for owners who rent without a real estate agency, a letter from the employer with letterhead, stamp and signature can carry more weight than you'd think. It's not a legal guarantee, but it builds trust when the tenant has no local history.

The key in these cases is to find owners who rent directly. Real estate agencies generally have a standard checklist they don't deviate from — if you don't meet the exact requirements, the conversation ends there. Direct owners have more autonomy to evaluate reasonable alternatives. Platforms like Colombia Move let you find owners who list directly, without going through a real estate agency.

Frequently asked questions

❓ What's the real difference between a co-debtor and a guarantor in Colombia?

In legal theory, the guarantor may have the benefit of excussion (the owner must collect from the tenant first before going after the guarantor). In the real practice of the residential rental market, almost always 'joint guarantor' or 'joint co-debtor' is requested, which implies exactly the same responsibility. The technical distinction exists in the Civil Code but is rarely applied in everyday rental contracts.

❓ How much does a rental policy cost in Colombia?

Between 3% and 5% of the monthly rent. For a rental of $1,500,000 COP/month, the cost is around $45,000 to $75,000 COP per month. Some insurance companies offer annual payment equivalent to approximately one month of rent as total premium. The most used in Colombia are Seguros Bolívar, Sura, Mapfre and Positiva.

❓ Can a property owner demand a co-debtor and policy at the same time?

Legally they can ask for it, but it's an unusual practice and in most cases unnecessary — it's double coverage for the same risk. If they demand it, it's completely valid to negotiate. Offering only the policy with a solid income profile is usually enough to convince a reasonable owner.

❓ What do they ask for to approve a rental policy?

The main criterion is that your demonstrable income is at least three times the rental value. Standard documents are ID, bank statements from the last three months, and employment letter or tax return if you're self-employed. The process usually takes between one and three business days.

❓ What happens if the co-debtor can't pay when needed?

The owner would have to start a legal process to collect, which in Colombia can be slow and costly. That's precisely the advantage of the policy: the insurance company has guaranteed solvency and the claims process is more predictable. A co-debtor with assets on paper is not the same as available liquidity.

Do you have questions about rental requirements in your city or want to share your experience with policies or co-debtors? Leave your question in the comments or visit the community at colombiamove.com/comunidad — there are many people who've been through the same situation and can guide you.