A well-drafted lease agreement (Contract of Lease) is the foundation of a stable residential tenancy in the Philippines. While parties enjoy the "freedom to stipulate" under the Civil Code (RA 386, effective 30 August 1950), any provisions in the lease that violate mandatory laws—especially the Rent Control Act of 2009 (RA 9653), which came into effect on 29 July 2009—are void and unenforceable.

This guide explains what must be included in a Philippine residential lease, and what clauses are prohibited.

Written vs. Oral Leases

Under the Statute of Frauds found in the Civil Code (Art. 1403), a lease agreement for a period of longer than one (1) year must be in writing to be enforceable. Oral leases for exactly one year or less are technically valid but heavily discouraged due to the difficulty of proving the agreed-upon terms, particularly regarding security deposits and the right to sublease.

Mandatory Contract Elements

A standard residential lease in the Philippines should explicitly state:

1. Identification of Parties: Full names, contact information, and government-issued IDs of the lessor (landlord) and lessee (tenant).
2. Property Description: The exact address and description of the leased premises.
3. Lease Term: The precise start and end dates of the contract.
4. Rental Amount and Schedule: The monthly rent, the due date (e.g., the 5th of every month), and the acceptable modes of payment (e.g., bank transfer, post-dated checks).
5. Security Deposit and Advance Rent: The exact amounts held, maintaining the RA 9653 (s. 7) limit of maximum 2 months deposit and 1 month advance for covered units.
6. Utility Responsibilities: Confirmation of who pays for electricity, water, internet, and homeowner's association (HOA) dues.
7. Signatures and Notarization: Both parties must sign. Having the contract notarized transforms it into a "public document," making it far easier to enforce in Municipal Trial Courts (MeTC/MTC) during eviction or collection proceedings.

Prohibited Clauses (Void Stipulations)

Any clause in the lease that contradicts mandatory laws is void. Common prohibited clauses include:

• Excessive Deposits: Requiring 3 or more months of security deposit or 2 or more months of advance rent if the unit falls under the RA 9653 thresholds.
• Waiver of Grace Periods: Clauses waiving the requirement for formal Demand to Pay before initiating eviction.
• Mid-Year Increases: Allowing the landlord to increase the rent arbitrarily during a one-year fixed term for units covered by RA 9653.
• Unauthorized Ejectment Methods: Clauses stating the landlord has the right to physically enter the property, throw the tenant's belongings out, or padlock the door in the event of unpaid rent without a court order from the Municipal Trial Court.

See our Eviction ProcessPreview unavailable guide to understand why self-help clauses cannot be legally enforced.

Subleasing Prohibitions

Unless strictly permitted in the contract, RA 9653 (s. 8) dictates that a tenant cannot sublease the property or take in boarders without the written consent of the landlord. This must be highlighted in the lease to easily justify eviction if the rule is broken.

See our Required DisclosuresPreview unavailable guide for other elements to clarify before move-in.

Stay Compliant with Landager

Executing and storing paper contracts is unwieldy. Landager provides digital leasing tools where landlords can use compliant lease templates, collect e-signatures, and securely store notarized contracts to easily prove terms if a dispute arises.

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