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

The first time I looked for an apartment in Medellín, the landlord asked me if I had a 'co-debtor' (codeudor). I told him yes, not really understanding the difference from the 'guarantor' (fiador) mentioned in another ad in the same area. When I arrived at the meeting and said that I had a family member willing to be a guarantor, the owner frowned: 'No, here they ask for a co-debtor with real estate, not a guarantor.' I left without understanding the difference between the two.

The reality is that in Colombia these terms are used almost as synonyms in everyday language, but they have important legal nuances. And there is a third figure — the rental insurance policy — which often ends up being the best option for both parties, but which no one explains well in ads or at real estate agencies. If you want to see real options right now, you can see farms 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 suitable, and what you can do if you don't have easy access to any. Important note: this information is educational and does not replace legal advice. For complex contracts or conflict situations, consult a professional.

What is a co-debtor?

A co-debtor is a person who signs the lease agreement together with the tenant and assumes exactly the same obligations. It is not a secondary backup — it is a co-obligor. If the tenant stops paying, the landlord can go directly after the co-debtor for the total debt, without needing to sue the tenant first.

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

That is why the requirements to be a co-debtor are high: they almost always ask that the person be an owner of mortgage-free real estate (known as 'finca raíz') in the same city, with sufficient demonstrable income to cover the obligation. The co-debtor is left with a potential debt registered in their name — if the tenant does not pay, that debt can affect their credit history. Hence why it is so difficult to get one: no one wants to compromise their assets for someone who is not completely trusted.

The only tedious thing about the co-debtor is that you have to get someone willing to sign with you. And that person has to meet requirements that many family members and friends do not meet. In large cities like Bogotá or Medellín, where labor mobility is high, not everyone has a relative with local real estate.

What is a guarantor and how does it differ from a co-debtor?

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

However, in the real practice of residential lease contracts in Colombia, almost no landlord or real estate agency uses the 'simple guarantor' figure. What they ask for is a 'joint and several guarantor' (fiador solidario) or 'joint and several co-debtor' (codeudor solidario) — terms that in practice are identical. If the contract says 'joint and several co-debtor' or 'joint and several guarantor', you are 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?

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

For the landlord, in many ways it is better than the co-debtor: the insurance company has guaranteed solvency, the claims process is more agile than a civil lawsuit against an individual, and it does not depend on the co-debtor '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 the rental insurance policy cost?

The cost varies depending on the insurance company and the rent value, but in general it ranges between 3% and 5% monthly on the rent 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 equivalent to one month's rent as a total premium — it is worth asking which modality 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 is valid to negotiate that change before signing.

What do they require to approve the policy?

The fundamental criterion is proven payment capacity. The market standard is that your income be at least three times the rent 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 for the last three months, and a work letter with salary or income tax declaration if you are a freelance worker. The approval process usually takes between one and three business days.

A real advantage of the policy over the co-debtor 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 the co-debtor, you depend on someone else being willing to sign, and that sometimes has more to do with willingness than capacity.

The key differences between co-debtor, guarantor, and policy

To summarize clearly: the co-debtor and the joint and several guarantor 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 obtain. 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 co-debtor with local real estate who is willing to sign can take weeks or prove impossible. The policy is processed in days if you have the documents and the required income profile.

Another point few people mention: the insurance 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 the complexity. The co-debtor is responsible for the owed 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 are an owner?

It depends on the local market and the type of tenant you want to attract. In large, competitive cities like Bogotá, Medellín, or Cali, insisting only on a co-debtor with local real estate will cost you time and good candidates. Many excellent tenants—young professionals, families with stable income, Colombians returning from abroad, foreigners with a work contract—do not have a relative with registered property in the city. If you demand only that option, you are dismissing them for no reason.

The policy is an equally solid guarantee from a financial point of view, and sometimes better: the insurance company has guaranteed solvency, while an individual co-debtor may have assets on paper but trouble 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 is a double guarantee for the same risk, and many good tenants will simply go look for another apartment. If you have doubts, ask for the policy—it is easier to verify and more secure in case of collection.

If you do not have a co-debtor or do not qualify for the policy

This is the most difficult situation, but it is not a dead end either. There are options 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 does not require it, but offering it voluntarily is perfectly valid. For the owner, it is a concrete sign of solvency and good faith.

Extended deposit: the legal cap for a rent deposit in Colombia is two months' rent. If the tenant voluntarily proposes a three-month deposit as an additional guarantee, many direct owners accept it.

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

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

Frequently Asked Questions

❓ What is 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-world residential rental market, 'joint guarantor' (fiador solidario) or 'joint co-debtor' (codeudor solidario) are almost always requested, which imply exactly the same responsibility. The technical distinction exists in the Civil Code but is rarely applied in everyday rental contracts.

❓ How much does rental insurance cost in Colombia?

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

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

Legally they can ask for it, but it is an unusual practice and in most cases unnecessary—it is a double guarantee for the same risk. If it is demanded of you, it is 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. The standard documents are ID card, bank statements from the last three months, and a work letter or tax return if you are self-employed. The process usually takes between one and three business days.

❓ What happens if the co-debtor cannot pay when needed?

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

Do you have questions about the 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 have gone through the same situation and can guide you.