Residential Sublease Agreement

A Residential Sublease Agreement is used when one person (the "Sublessor") is also renting the property as a lessee from another (the "Lessor"), and said Sublessor surrenders the control and possession of the whole or part of the property for residential purposes in favor of another person (the "Sublessee") for a fee. It is a legally binding contract between both parties.

A Residential Lease Agreement should be used if the Sublessor is not leasing the property from the Lessor, such as if the Sublessor is the owner or authorized representative of the owner of the property.

A written consent from the Lessor is necessary before the Sublessor can sublease the property if:

1. The property is located in the National Capital Region or highly urbanized cities and the total monthly rent that the Sublessor is paying to the Lessor 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 that the Sublessor is paying to the Lessor ranges from One Peso (P1.00) to Five Thousand Pesos (P5,000.00).

If the original lease agreement does not fall under the situations described above, the Sublessor should still check the lease contract to determine whether a written consent from the Lessor is necessary to sublease the property.

Provisions included in the template

A Residential Sublease Agreement identifies basic information about the sublease such as the property to be rented, the period of the sublease, the security deposits, and the monthly rental payments. It outlines the obligations of both the Sublessor and the Sublessee during the period of the sublease. The terms of the Residential Sublease Agreement cannot be more than the terms of the original lease.

A Residential Sublease Agreement contains the following information:

• Description of the Property - The description of the property should indicate the type of property that will be rented and the address of the property.
• Period of the Sublease - The period of the sublease is the amount of time that the Sublessee can take possession of the property. The period of the sublease cannot be more than the period of the original lease (the period when the Sublessor is allowed possession of the property by the original lease agreement).
• Parties Involved - The parties are the Sublessor and the Sublessee. The Sublessor is the lessee in the original contract. He is the person who will sublease the property to the Sublessee. The Sublessee is the person who will take possession of the property under the Residential Sublease Agreement. Both parties must be of legal age to enter into a contract.
• Representatives - A representative of either of the parties must have either a General Power of Attorney or a Special Power of Attorney that authorizes them to enter into the sublease agreement on behalf of the Sublessor or the Sublessee. If the period of the rent is for more than one year, a Special Power of Attorney is needed.

Rent - The parties may set the amount of monthly rent to be paid by the Sublessee for the sublease of the property. The parties may also agree on the manner and time of payment of the monthly rent. Advanced Rent and Security Deposit - The Sublessor 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 sublease 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 Sublessor cannot demand more than one (1) 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 Sublessor cannot demand more than two (2) months security deposit which must be kept in a bank under the Sublessor's account name during the entire duration of the sublease. Any and all interests earned shall be returned to the Sublease at the expiration of the sublease contract.

Terms and Conditions - The parties can also set out the terms and conditions for the sublease of the property. Some terms and conditions that may be included are:

• the use and purpose of the property
• overnight guests
• number of residents in the property; and
• pet ownership within the property.

How to use this document

Once the document is completed, the user should print at least three (3) copies of the document and attach all the Annexes described in the document. The Sublessor and the Sublessee, or their authorized representatives, should read then sign all the copies of the document.

Once signed, the Sublessor and the Sublessee should each keep at least one (1) copy of the document.

If the parties would want to notarize the Sublease 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 need of further proof of its authenticity. To notarize the document, the parties must go to a notary public to acknowledge that they have signed the Sublease 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 licence or a passport, among others. The notary public will usually require one original copy of the document to be left with the notary public.

Once notarized, the Sublessor and the Sublessee should each keep at least one (1) copy of the notarized document.

Applicable law

The Civil Code of the Philippines governs the law on contracts and sublease. Additionally, other laws such as Republic Act No. 9653 (the "Rent Control Act") as extended by the National Human Settlements Board Resolution No. 2021-02 governs sublease 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.