Residential Lease Agreement

A Residential Lease Agreement is an agreement for one person (the "Lessee") to rent the property of another (the "Lessor") for residential purposes over a specific period of time.

A Residential Lease Agreement identifies basic information about the lease such as the property to be rented, the period of the lease, the security deposits, and the monthly rental payments. It outlines the obligations of both the Lessor and the Lessee during the period of the lease.

Rent

The parties may set the amount of monthly rent to be paid by the Lessee for the lease of the property. The parties may also agree on the manner and time of payment of the monthly rent. The Lessor may also require the payment of advanced rent and security deposit.

• Advanced Rent - The advanced rent is usually paid at the signing of the Agreement. It may be applied as rent for any of the months during the lease period, as agreed upon by the parties. If the property is located in a highly urbanized city and the rent is equal to or less than Ten Thousand Philippine Pesos (P10,000.00) or if the property is not located in a highly urbanized city and the rent is equal to or less than Five Thousand Philippines Pesos (P5,000.00), the Lessor cannot demand more than one month advance rent.
• Security Deposit - The security deposit can be used to settle rent, unpaid electric, telephone, water, or such other utility bills or repair any damage to the property caused by the acts or negligence of the Lessee. If the property is located in a highly urbanized city and the rent is equal to or less than Ten Thousand Philippine Pesos (P10,000.00) or if the property is not located in a highly urbanized city and the rent is equal to or less than Five Thousand Philippines Pesos (P5,000.00), the Lessor cannot demand more than two months security deposit which must be kept in a bank under the Lessor's account name during the entire duration of the lease. Any and all interests earned shall be returned to the Lessee at the expiration of the lease contract.

How to use this document

It contains the following information:

• The details of the property should indicate the type of property that will be rented,
• The period or duration of the lease,
• The details of the lessor and the lessees,
• The rental fee and other fees for the lease,
• The purpose or use of the property other than residential purposes,
• An option to include whether guests can stay overnight, and the number of residents in the leased property,
• An option to include a policy on pets.

Once the document is completed, the user should print at least three copies of the document and attach all the Annexes described in the document. The Lessor and the Lessee, or their authorized representatives, should read and then sign all the copies of the document.

Once signed, the Lessor and the Lessee should each keep at least one copy of the document.

If the parties would want to notarize the Lease Agreement, the document also includes an Acknowledgment portion. Notarization of the document converts the document from a private document to a public document so that it becomes admissible in court without the need for further proof of its authenticity. To notarize the document, the parties must go to a notary public to acknowledge that they have signed the Lease Agreement freely and voluntarily. They should also present a valid I.D. issued by an official agency bearing their photograph and signature such as a driver's license or a passport, among others.

Once notarized, the Lessor and the Lessee should each keep at least one copy of the notarized document.

Applicable Law

The Civil Code of the Philippines governs the law on contracts and leases. Additionally, Republic Act No. 9653 (the "Rent Control Act") as extended by the National Human Settlements Board Resolution No. 2021-02, governs lease contracts that fall under the following conditions:

1. The property is located in the National Capital Region or highly urbanized cities and the total monthly rent ranges from One Peso (P1.00) to Ten Thousand Pesos (P10,000.00)
2. The property is located in other areas and the monthly rent ranges from One Peso (P1.00) to Five Thousand Pesos (P5,000.00).

How to modify the template

You fill out a form. The document is created before your eyes as you respond to the questions.

At the end, you receive it in Word and PDF formats. You can modify it and reuse it.