A Philippine lease agreement should do more than state the rent and term. It should identify the parties and property, define payment and deposit rules, allocate repairs and utilities, control subleasing and occupancy, explain renewal/termination, and document the condition of the unit. For low-rent residential units, current Rent Control rules may override inconsistent lease terms.
Legal framework reviewed: August 18, 2026.
Lease Contract: Minimum Decision Checklist
- Full legal names and verified contact details of landlord and tenant.
- Exact unit/address and included parking, storage, furniture or appliances.
- Lease term, commencement date and renewal mechanism.
- Rent, due date, payment channel and late/default treatment.
- Advance rent and security deposit with refund/deduction rules.
- Utilities, condominium dues, parking and other recurring charges.
- Repair and maintenance responsibilities.
- Occupancy, pets, alterations and subleasing rules.
- Inspection/access procedure with reasonable notice.
- Termination, breach, surrender and move-out condition.
- Inventory and move-in inspection attached when applicable.
1. The Civil Code Sets Basic Lessor and Lessee Duties
Article 1654 of the Civil Code requires the lessor to deliver the property fit for its intended use, make necessary repairs unless otherwise stipulated, and maintain the lessee in peaceful and adequate enjoyment. Article 1657 requires the lessee to pay rent as agreed and use the property properly. A lease should allocate practical responsibilities without pretending it can erase mandatory legal duties.
2. State Every Recurring Cost
Two leases with the same rent can have different true costs. State whether condominium dues, parking, water, electricity, internet, association charges and move-in fees are included or separately paid. See our monthly rental budget guide.
3. Handle Deposits Correctly
For units covered by the current Rent Control framework, statutory limits and deposit rules apply. Higher-rent leases may use different contractual terms subject to general law. Do not present the one-month advance/two-month deposit rule as universal. See our security-deposit guide.
4. Define Repairs Before Something Breaks
Distinguish structural/necessary repairs, ordinary tenant-caused damage, consumables and emergency procedures. Require prompt notice of leaks, electrical faults and other issues that can worsen if ignored.
5. Use an Inventory and Condition Report
For furnished units, attach a signed inventory and dated move-in photos. This is stronger evidence than a vague lease clause saying the tenant received the unit “in good condition.”
6. Explain Default and Lawful Recovery of Possession
The lease should state what constitutes default, but enforcement must still follow applicable law. A landlord should not rely on a clause authorizing lockout or utility disconnection as a substitute for lawful ejectment. See our eviction guide.
Lease Risk-Allocation Test Before Signing
This page owns the lease-clause and risk-allocation checklist. Before signing, both landlord and tenant should be able to answer who pays, who repairs, who can occupy, what happens on default, and what evidence will control at move-out.
| Issue | Lease should state |
|---|---|
| Total recurring cost | Rent plus dues, parking, utilities and other recurring charges, including which items can change. |
| Deposit/advance | Amount, purpose, statutory limits where applicable, permitted deductions and refund/accounting process. |
| Repairs | Emergency notice path, necessary repairs, tenant-caused damage and owner/tenant responsibilities. |
| Occupancy/use | Named occupants, pets, subleasing, commercial use, alterations and house/building rules. |
| Access | Reasonable notice and circumstances for inspection, maintenance or emergency entry. |
| Default/exit | Payment default, breach notices, renewal/nonrenewal, surrender, keys, utilities and move-out inspection. |
| Evidence | Signed inventory, dated condition photos, meter readings and written notices. |
A clause that is broad but unclear is not better than a precise clause. The goal is to reduce disputes by making the operational consequences understandable before possession begins.
