If renting property anywhere in the world, it is often easy for the owner to cheat the lessee. How often has it happened that the water or other such basic necessity stopped working and all you hear from the landlord is “I will come next week”, “I will come next week”…?
Fortunately I have a fair amount of experience with legal text and I simply asked the landlord for a digital copy of the rental contract so I could add a few clauses to it, namely specifying that if such repairs are not implemented within a set amount of time, I am entitled to find someone to fix it and then deduct the costs from the next rent.
If the owner refuses to sign such a contract then it is up to you to decide if the risk is worth it. So far all landlords I have proposed this to have not had a problem with it.
Furthermore, you should make sure that the contract is signed before a notary, preferably one that you choose and not the cousin of the landlord. You can take a photo of the notary’s credentials when in their office to make sure they are legit.
Generally, Filipinos are law abiding people afraid of the authorities or getting in trouble with them, so if you make your rental agreement official in this matter and protecting yourself in this way, you should get little resistance.
After all, without your rent, the landlord is getting nothing, and if you find someone to fix it, you are doing all the legwork and the landlord is just collecting money from you while you are maintaining their property in good condition.
When I added my clauses, I used Track Changes in Word so that the landlord could easily see my amendments when I sent the contract back to them, then I double checked that everything was intact on the printed version before getting it signed before a notary.
Last month rent
Usually they ask you to pay first and last month’s rent, using the last month’s rent as deposit. In such a case, I simply do not pay them the last month’s rent before I move out, rather than pay it and cross my fingers that they will return to me the deposit after I move out. Good luck with that ever happening. If the land owner objects, they cannot legally throw you out of the place, so you are well protected.
Furnishings
If the property comes with some furnishings, such as a fridge, and you expect to bring some of your own, make sure that all the equipment and furniture that was included in the property is carefully documented in the rental agreement, including the make and its condition, as well as the condition of and any existing faults to the property.
Payment
I stipulated in the contract that payment will be made by bank transfer to a particular account. In this case I always have proof that I paid. If you will be dealing in cash, then to properly protect yourself you should always get an official receipt, if possible one signed before a notary.
Below is the final version of the contract I amended, minus any details of its location or parties concerned.
CONTRACT OF LEASE
KNOW ALL MEN BY THESE PRESENTS:
[NAME OF LESSOR], of legal age, Filipino and a resident of [address of property], hereinafter referred to as the LESSOR and herein represented by her sister and Attorney In Fact, [NAME]
-AND-
[NAME OF LESSEE – you] of legal age, [ID], known as the LESSEE;
WITNESSETH:
1.That the LESSOR is the registered owner of a residential house located at [address];
2. That the LESSOR agrees to lease the above-mentioned residential house, unto the LESSEE with a monthly rental of ten thousand pesos (Php 12,000);
3. That the minimum term of this lease is 6 months starting _____________, 2022 until _______________ 2022, after which it may be terminated with a two month notice.
4. That the LESSEE shall pay the LESSOR one (1) month deposit and one (1) month advance rental prior to moving in on January 7, 2023, always to bank account number ______________ <include bank and any other relevant bank account details>;
5.That the LESSEE shall pay for, and defray at his own expense, the consumption of electricity, telephone and internet, on the leased premises;
6. That the LESSEE hereby expressly acknowledges that the leased premises are in good condition complying with laws, ordinances and regulations of the City Government as regards to the use. Occupation and sanitation of the leased premises and failure to comply shall be at risk and expense of the LESSEE.
7. That the LESSEE expressly allows the LESSOR to occasionally visit the unit and conduct needed repairs and maintenance there in;
8. If anything stops working by itself, such as the water pump or electricity (not including city brownouts), the LESSOR agrees to have such repaired within 48 hours, otherwise the LESSEE is entitled to perform such essential repairs at his own expense and subtract the costs from upcoming rental amounts.
9. That the LESSEE agrees that the security deposit will be refunded within 15 days after the termination of this agreement without interest and less any set off for damages (subject to regular wear and tear) to the leased premises and for
- any unpaid rental,
- cleaning costs,
- key replacement costs,
- costs for repair of damages to the premises and the common areas (subject to regular wear and tear)
- any other amount legally allowed under the terms of this agreement.
IN WITNESS WHEREOF, the parties hereunto set their hands this _______________ in the City of Iloilo, Philippines.
[LESSOR’S NAME AND ID] [LESSEE’S NAME AND ID]
UMID ID NO._________________ Valid Until ____________
SIGNED IN THE PRESENCE OF:
______________________ ______________________
ACKNOWLEDGEMENT
BEFORE ME, this ________________, in the City of Iloilo, Philippines, personally appeared the above-named persons, with their proof of identity/ID, as above described, known to me to be the same persons who executed the foregoing instrument, or identified by me through competent evidence of identity as defined by the 2004 Rules of Notarial Practice pursuant to Supreme Court EN BANC A.M. No. 02-8-13 SC Resolution. That the said persons represented to the Notary Public that the signatures on the instrument were voluntarily affixed by them as their free and voluntary act and deed.
WITNESS MY HAND AND SEAL.
Doc. No. _____.
Page No._____.
Book No._____.
Series of 2022
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