While the Philippines does not have a lengthy, statutory list of hyper-specific disclosures identical to some Western jurisdictions (such as lead paint or mold disclosures), landlords are still bound by the principles of "good faith" and full disclosure under the Civil Code of the Philippines (Republic Act No. 386), which originally took effect on 30 August 1950. Failure to disclose hidden defects can lead to the rescission of the lease contract or a reduction in rent.

This guide covers the essential disclosures landlords must make to tenants prior to signing a residential lease agreement.

Essential Disclosures

1. Hidden Defects (Redhibitory Vices)

Under Article 1653 of the Civil Code, the provisions governing warranty against hidden defects in the Law on Sales (Articles 1561 to 1566) are applicable to lease contracts.

• Article 1561 states that the lessor is responsible for hidden defects which render the property unfit for the use for which it is intended, or which diminish its fitness for such use.
• This applies even if the landlord was unaware of the defects at the time of leasing (Article 1566), unless there is a stipulation to the contrary and the lessor was truly ignorant of the defects.
• If a landlord fails to disclose a significant defect (e.g., severe structural issues, recurring flooding during the rainy season, or faulty electrical wiring), the tenant may demand the rescission of the lease and indemnification for damages, or only the latter, leaving the contract in force (Article 1659). Additionally, the lessee may seek a proportionate reduction in rent (accion quanti minoris) under Article 1567 (as applied via Art. 1653).

2. Identity of Owner and Agent

The landlord must disclose the true identity of the owner or the authorized property manager, including their contact information. This ensures the tenant knows who to contact for necessary repairs or in the event of legal disputes, particularly the issuance of Demand to Pay letters required before filing an unlawful detainer or forcible entry case in the Metropolitan or Municipal Trial Courts.

3. Rent Control Act Status (Recommended)

While the Rent Control Act of 2009 (RA 9653) does not mandate specific disclosures, it is a recommended best practice for landlords to disclose if a unit is covered by the Act.

Under RA 9653 and National Human Settlements Board (NHSB) Resolution No. 2023-03, the Act applies to all residential units in the Philippines with a monthly rent of Ten Thousand Pesos (₱10,000.00) and below.

Attempting to evade the rent threshold or violating the Act can lead to penalties under Section 15 of RA 9653. Any person found guilty shall be fined not less than ₱25,000.00 nor more than ₱50,000.00, or imprisoned for not less than one (1) month and one (1) day to not more than six (6) months, or both.

See our Rent IncreasesPreview unavailable guide for limits on covered units.

Important Information to Include in Leases

Beyond hidden defects, a well-drafted lease should prominently disclose the following functional rules of the property to prevent disputes down the line:

• Subleasing Policy: Under Section 9(a) of RA 9653, the assignment of a lease or subleasing of residential units, including the acceptance of boarders or bedspacers without the written consent of the owner/lessor, is a valid ground for judicial ejectment.
• Utility Responsibilities: Clearly detail whether the rent is inclusive of homeowner's association (HOA) dues, water, electricity, or internet, and who is responsible for transferring the utility accounts.

See our Lease RequirementsPreview unavailable guide for a full breakdown of what must be in a standard lease contract.

Stay Compliant with Landager

Maintaining a transparent relationship from day one helps retain reliable tenants. Landager allows landlords to host clear digital leases, ensuring all property rules and specific defect disclosures are acknowledged and signed securely before move-in.

Back to Philippines Landlord-Tenant Laws OverviewPreview unavailable.