What to Check Before Signing a Lease: A Renter’s Guide for the Philippines

Introduction

Signing a lease agreement is one of the most important steps in securing a rental property—yet it’s also one of the most overlooked. Many tenants, especially first-timers or expats, rush into lease contracts without carefully reviewing the terms. The consequences can include hidden charges, limited protection, or even eviction.

Whether you’re renting a studio condo in Cebu, a townhouse in Manila, or a serviced apartment in Davao, this guide will walk you through everything you need to check before signing a lease in the Philippines. Avoid costly mistakes by knowing what to ask, what to inspect, and what to include in writing.

1. Verify the Identity and Authority of the Landlord or Agent

✅ Ask for Valid Identification

• Government-issued ID (passport, driver’s license, national ID)

• Full name must match the one in the lease

✅ Confirm Ownership or Legal Right to Lease

• Land title or condominium certificate

• Tax Declaration or real property tax receipt (RPT)

• If an agent or broker is involved: ask for PRC license and authorization letter

Why this matters: Many scams involve fake landlords or unauthorized agents. Protect yourself by confirming legal authority.

2. Inspect the Property Thoroughly

Before signing, do a complete physical inspection. If you’re overseas, request a live video tour or have a trusted representative inspect for you.

Checklist:

• Plumbing: check for leaks, water pressure, and drainage

• Electrical: test light switches, outlets, circuit breakers

• Appliances: confirm they’re working (refrigerator, aircon, washing machine)

• Internet/cable readiness

• Pest control: look for cockroach droppings, rat holes, termites

• Door locks and window security

• Mold or water damage

• Furniture condition (for furnished units)

Take photos or videos during the inspection and attach them as documentation with your lease.

3. Review the Monthly Rent and Other Charges

️ Ask Specifically:

• Is the rent inclusive of condo dues or HOA fees?

• Are utilities (electricity, water) separate?

• Are there charges for parking?

• Is the internet already installed or must I apply separately?

Be cautious of low advertised rent that excludes substantial monthly fees.

4. Understand the Security Deposit and Advance Payment Terms

Standard Practice in the Philippines:

• 1 month advance + 2 months deposit (1/2/0 format)

• Deposit is refundable only if no damages or violations occur

• Must be refunded within 30–60 days after move-out

Always ask:

• Where is the deposit held?

• Will it accrue interest?

• What counts as damage?

• What deductions can be made?

Ensure these are written into the lease contract.

5. Check the Lease Duration and Renewal Clauses

• Is the lease 6 months, 12 months, or more?

• Is early termination allowed?

• What’s the penalty for breaking the lease?

• Can you renew automatically? At what rate?

• Is a written notice required before move-out (typically 30–60 days)?

Avoid open-ended or verbal agreements that may not protect your rights.

6. Check Move-in and Move-out Conditions

Ask for:

• Written list of inventory (furniture, appliances, keys)

• Move-in date and time (some condos require scheduling)

• Clearance process for move-out

• Who is responsible for repainting or minor repairs?

Clarify if cleaning fees or repainting costs are deducted from the deposit.

7. Confirm Who Handles Repairs and Maintenance

Clearly define:

• What repairs are the landlord’s responsibility (e.g., plumbing, electrical)?

• Who handles appliance repair?

• How are emergency repairs handled?

• How quickly must issues be resolved?

Include specific wording like:

“All structural, plumbing, and major appliance repairs shall be the landlord’s responsibility unless damage is due to tenant misuse.”

8. Ask About Restrictions: Pets, Subletting, Airbnb

• Are pets allowed? What type, size, number?

• Can you host guests long-term?

• Is subletting or Airbnb permitted?

• Can you use the space for home business?

Violating building rules can result in eviction or deposit forfeiture.

9. Read the Fine Print: Hidden Fees and Penalties

Some contracts include:

• Late payment fees (e.g., 3% per month)

• Charges for lost keys, damaged furniture

• Association fines passed to tenant

• Admin charges for repairs

Ask for a complete fee schedule and keep a copy.

10. Make Sure There’s a Written Lease Contract

Never rely on verbal agreements. A proper lease should include:

• Full names and IDs of both parties

• Unit address and description

• Monthly rent, due date, payment method

• Deposit and advance payment details

• Lease period and termination clause

• Inclusions (appliances, furniture)

• Rules and restrictions

• Signatures and date

• Notarization (recommended for long-term leases)

11. Double-Check Payment Terms

Ask:

• How is rent paid? (Bank transfer, GCash, cash?)

• Who receives payment? Must match landlord’s name.

• Are receipts issued monthly?

• Is rent due on the 1st, 15th, or another date?

• Is there a grace period for late payment?

Avoid sending money to unnamed individuals or untraceable payment methods.

12. Condo or Subdivision Rules and Regulations

If renting a condo or townhouse inside a gated community:

• Request a copy of the building or HOA rules

• Are there curfews, parking restrictions, noise rules?

• Are deliveries or movers allowed freely?

• Is there a tenants’ registry with the admin?

You’re subject to these rules—even if not in the lease.

13. Clarify Rights to Modify or Personalize the Unit

Can you:

• Repaint walls?

• Install shelves or wall hangers?

• Mount a TV?

• Change locks?

If yes, do you need to restore the unit to original condition before moving out?

14. Internet and Utility Providers

Ask:

• Is internet already installed? Which provider (PLDT, Globe, Converge)?

• How fast is the connection? (Ask for screenshot of speed test)

• Who pays for installation or monthly fee?

• Are electricity and water meters separate or shared?

Utility access is vital—don’t assume it’s ready.

15. Ensure the Lease Includes a Force Majeure Clause

In the Philippines, natural disasters like typhoons, earthquakes, and flooding can disrupt living conditions.

Make sure there’s a clause like:

“In the event of a natural disaster or force majeure, both parties shall mutually agree on termination, rent suspension, or relocation.”

16. Legal Considerations and Disputes

Who handles legal disputes?

• Is there an arbitration clause?

• Is it governed by Philippine law?

• Where will legal issues be resolved (city, barangay)?

Even if you never go to court, it’s best to have clear terms.

17. Ask for Notarization

A notarized lease is stronger in court and accepted by government agencies (e.g., for visas, business permits, bank applications).

The landlord usually bears the cost, but this can be negotiated.

18. Have Everything in Writing

Whether it’s:

• Verbal promises (“I’ll include Wi-Fi”)

• Agreements to repaint

• Approval to bring pets

Get it in writing. Add it as an annex to the contract or via signed addendum.

19. Review Before Signing

Don’t rush. Take the lease home and review it, ideally with:

• A lawyer

• A real estate agent

• A friend who understands rental law

Ask questions. Clarify vague terms. Sign only when everything is clear.

20. Summary Checklist Before Signing

✅ Landlord identity and property ownership verified
✅ Unit inspected with photos/video
✅ Rent and fees clarified (written in contract)
✅ Deposit and advance terms confirmed
✅ Repairs, maintenance, rules understood
✅ Lease contract written, reviewed, and signed
✅ Receipts or payment proof secured
✅ Lease notarized (if long-term)

Conclusion

Signing a lease in the Philippines, especially in cities like Cebu, is more than a formality—it’s a legal commitment that requires due diligence. By thoroughly checking every aspect of the lease, from rent details to condo rules, you protect yourself from disputes, hidden charges, and unpleasant surprises.

Take your time. Ask questions. And most importantly, don’t sign anything you don’t understand.

A good lease leads to a smooth tenancy—and peace of mind.