Want to rent out your property but don’t want to go through the hassle of creating a contract of lease from scratch? In this post, I’ll show you a contract of lease sample and a template that you can use for your rental properties.
Creating a solid lease contract can safeguard your rental deals, ensuring smooth landlord-tenant relations and protecting your rights. Many real estate owners have streamlined this once mundane task by using a straightforward, customizable template.
Contract of Lease Sample
I created a sample contract of lease that you can use as a reference. This is composed of 4 pages. You can also download this document by clicking the button below.
To make a copy, simply click “File” and “Make a copy.”
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REPUBLIC OF THE PHILIPPINES )
CITY OF CEBU) S.S
CONTRACT OF LEASE
KNOW ALL MEN BY THESE PRESENTS:
This CONTRACT OF LEASE is made and executed at the City of Laguna, on the 26th day of May, 2024, by and between:
ROSS GELLER, of legal age, Married to Rachel Green, Filipino, and with residence and postal address at Maria Luisa Village, Banilad, Cebu City, hereinafter referred to as the LESSOR.
-AND-
PHOEBE BUFFAY, Filipino, and with residence and postal address at Pristina North, Bacayan, Cebu City, hereinafter referred to as the LESSEE.
WITNESSETH; That
WHEREAS, the LESSOR is the owner of THE LEASED PREMISES, a residential property situated at Unit 150, Central Perk, AS Fortuna St., Banilad, Cebu City;
WHEREAS, the LESSOR agrees to lease out the property to the LESSEE and the LESSEE is willing to lease the same;
NOW THEREFORE, for and in consideration of the foregoing premises, the LESSOR leases unto the LESSEE, and the LESSEE hereby accepts from the LESSOR the LEASED premises, subject to the following:
TERMS AND CONDITIONS
- PURPOSES: That premises hereby leased shall be used exclusively by the LESSEE for Commercial purposes only and shall not be diverted to other uses. It is hereby expressly agreed that if at any time the premises are used for other purposes, the LESSOR shall have the right to rescind this contract without prejudice to its other rights under the law.
- TERM: This term of lease is for ONE (1) YEAR from June 1, 2024 to May 31, 2025 inclusive. Upon its expiration, this lease may be renewed under such terms and conditions as may be mutually agreed upon by both parties, written notice of intention to renew the lease shall be served to the LESSOR not later than seven (7) days before the expiry date of the period herein agreed upon.
- RENTAL RATE: The monthly rental rate for the leased premises shall be in THIRTY THOUSAND PESOS (P30,000), Philippine Currency. All rental payments shall be payable to the LESSOR.
- DEPOSIT: That the LESSEE shall deposit to the LESSOR upon signing of this contract and prior to move-in an amount equivalent to the rent for THREE (3) MONTHS or the sum of NINETY THOUSAND PESOS (P90,000), Philippine Currency, wherein the two (2) months deposit shall be applied as rent for the 11th and 12th months and the remaining one (1) month deposit shall answer partially for damages and any other obligations, for utilities such as Water, Electricity, CATV, Telephone, Association Dues or resulting from violation(s) of any of the provision of this contract.
- DEFAULT PAYMENT: In case of default by the LESSEE in the payment of the rent, such as when the checks are dishonored, the LESSOR at its option may terminate this contract and eject the LESSEE. The LESSOR has the right to padlock the premises when the LESSEE is in default of payment for TWO (2) months and may forfeit whatever rental deposit or advances have been given by the LESSEE.
- SUB-LEASE: The LESSEE shall not directly or indirectly sublease, allow, or permit the leased premises to be occupied in whole or in part by any person, form, or corporation, neither shall the LESSEE assign its rights hereunder to any other person or entity and no right of interest thereto or therein shall be conferred on or vested in anyone by the LESSEE without the LESSOR’S written approval.
- PUBLIC UTILITIES: The LESSEE shall pay for its telephone, electric, cable TV, water, Internet, association dues, and other public services and utilities during the duration of the lease.
- FORCE MAJEURE: If the whole or any part of the leased premises shall be destroyed or damaged by fire, flood, lightning, typhoon, earthquake, storm, riot, or any other unforeseen disabling cause of acts of God, as to render the leased premises during the term substantially unfit for use and occupation of the LESSEE, then this lease contract may be terminated without compensation by the LESSOR or by the LESSEE by notice in writing to the other.
- LESSOR’S RIGHT OF ENTRY: The LESSOR or its authorized agent shall, after giving due notice to the LESSEE, have the right to enter the premises in the presence of the LESSEE or its representative at any reasonable hour to examine the same or make repairs therein or for the operation and maintenance of the building or to exhibit the leased premises to prospective LESSEE, or for any other lawful purposes which it may deem necessary.
- EXPIRATION OF LEASE: At the expiration of the term of this lease or cancellation thereof, as herein provided, the LESSEE will promptly deliver to the LESSOR the leased premises with all corresponding keys and in as good and tenable condition as the same is now, ordinary wear and tear expected devoid of all occupants, movable furniture, articles and effects of any kind. Non-compliance with the terms of this clause by the LESSEE will give the LESSOR the right, at the latter’s option, to refuse to accept the delivery of the premises and compel the LESSEE to pay rent therefrom at the same rate plus Twenty-Five (25)% thereof as penalty until the LESSEE shall have complied with the terms hereof. The same penalty shall be imposed in case the LESSEE fails to leave the premises after the expiration of this Contract of Lease or termination for any reason whatsoever.
- JUDICIAL RELIEF: Should any one of the parties herein be compelled to seek judicial relief against the other, the losing party shall pay an amount of One Hundred (100)% of the amount claimed in the complaint as attorney’s fees which shall in no case be less than P50,000.00 pesos in addition to other cost and damages which the said party may be entitled to under the law.
- This CONTRACT OF LEASE shall be valid and binding between the parties, their successors-in-interest, and assigns.
IN WITNESS WHEREOF, parties herein affixed their signatures on the date and place above written.
______________________ ________________________
ROSS GELLER PHOEBE BUFFAY
LESSOR LESSEE
Signed in the presence of:
______________________ ________________________
Chandler Bing Joey Tribbiani
ACKNOWLEDGMENT
REPUBLIC OF THE PHILIPPINES )
CITY OF CEBU ) S.S
BEFORE ME, personally appeared:
Name CTC Number Date/Place Issued
Ross Geller 1234567 Mar 1, 2024 / Cebu City
Phoebe Buffay 7654321 Mar 2, 2024 / Cebu City
Known to me and to me known to be the same persons who executed the foregoing instrument and acknowledged to me that the same is their free and voluntary act and deed.
This instrument consisting of FOUR (4) page/s, including the page on which this acknowledgment is written, has been signed on each and every page thereof by the concerned parties and their witnesses, and sealed with my notarial seal.
WITNESS MY HAND AND SEAL, on the date and place first above written.
Notary Public
Doc. No.______;
Page No. ______;
Book No.______;
Series of 2024.
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Contract of Lease Template
Now that you’ve seen the sample lease contract, you can then download the contract of lease template below. This will make your legal document easy and convenient to create. Simply replace the details in orange text and you’re good to go.
You can also download the template that I created in Google Docs. Simply click the button below.
To make a copy, simply click “File” and “Make a copy.”
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REPUBLIC OF THE PHILIPPINES )
CITY OF {{YOUR CITY}} ) S.S
CONTRACT OF LEASE
KNOW ALL MEN BY THESE PRESENTS:
This CONTRACT OF LEASE is made and executed at the City of {{Your City}}, on the {{date}} day of {{month}}, {{year}}, by and between:
{{NAME OF LESSOR}}, of legal age, {{Single or Married}} to {{Name of Spouse, if any}}, Filipino, and with residence and postal address at {{Address}}, hereinafter referred to as the LESSOR.
-AND-
{{NAME OF LESEE}}, Filipino and with residence and postal address at {{Address}}, hereinafter referred to as the LESSEE.
WITNESSETH; That
WHEREAS, the LESSOR is the owner of THE LEASED PREMISES, a residential property situated at {{Address of property to be leased}};
WHEREAS, the LESSOR agrees to lease out the property to the LESSEE and the LESSEE is willing to lease the same;
NOW THEREFORE, for and in consideration of the foregoing premises, the LESSOR leases unto the LESSEE, and the LESSEE hereby accepts from the LESSOR the LEASED premises, subject to the following:
TERMS AND CONDITIONS
- PURPOSES: That premises hereby leased shall be used exclusively by the LESSEE for {{Residential or Commercial}} purposes only and shall not be diverted to other uses. It is hereby expressly agreed that if at any time the premises are used for other purposes, the LESSOR shall have the right to rescind this contract without prejudice to its other rights under the law.
- TERM: This term of lease is for {{NUMBER OF YEARS OR MONTHS}} {{IN FIGURES}} {{UNIT}} from {{Start Date}} to {{End Date}} inclusive. Upon its expiration, this lease may be renewed under such terms and conditions as may be mutually agreed upon by both parties, written notice of intention to renew the lease shall be served to the LESSOR not later than seven (7) days before the expiry date of the period herein agreed upon.
- RENTAL RATE: The monthly rental rate for the leased premises shall be in {{AMOUNT IN WORDS}} {{AMOUNT IN FIGURES}}, Philippine Currency. All rental payments shall be payable to the LESSOR.
- DEPOSIT: That the LESSEE shall deposit to the LESSOR upon signing of this contract and prior to move-in an amount equivalent to the rent for THREE (3) MONTHS or the sum of {{AMOUNT IN WORDS}} {{AMOUNT IN FIGURES}}, Philippine Currency, wherein the two (2) months deposit shall be applied as rent for the 11th and 12th months and the remaining one (1) month deposit shall answer partially for damages and any other obligations, for utilities such as Water, Electricity, CATV, Telephone, Association Dues or resulting from violation(s) of any of the provision of this contract.
- DEFAULT PAYMENT: In case of default by the LESSEE in the payment of the rent, such as when the checks are dishonored, the LESSOR at its option may terminate this contract and eject the LESSEE. The LESSOR has the right to padlock the premises when the LESSEE is in default of payment for {{NUMBER}} {{NUMBER IN FIGURES}} month and may forfeit whatever rental deposit or advances have been given by the LESSEE.
- SUB-LEASE: The LESSEE shall not directly or indirectly sublease, allow, or permit the leased premises to be occupied in whole or in part by any person, form, or corporation, neither shall the LESSEE assign its rights hereunder to any other person or entity and no right of interest thereto or therein shall be conferred on or vested in anyone by the LESSEE without the LESSOR’S written approval.
- PUBLIC UTILITIES: The LESSEE shall pay for its telephone, electric, cable TV, water, Internet, association dues, and other public services and utilities during the duration of the lease.
- FORCE MAJEURE: If the whole or any part of the leased premises shall be destroyed or damaged by fire, flood, lightning, typhoon, earthquake, storm, riot, or any other unforeseen disabling cause of acts of God, as to render the leased premises during the term substantially unfit for use and occupation of the LESSEE, then this lease contract may be terminated without compensation by the LESSOR or by the LESSEE by notice in writing to the other.
- LESSOR’S RIGHT OF ENTRY: The LESSOR or its authorized agent shall, after giving due notice to the LESSEE, have the right to enter the premises in the presence of the LESSEE or its representative at any reasonable hour to examine the same or make repairs therein or for the operation and maintenance of the building or to exhibit the leased premises to prospective LESSEE, or for any other lawful purposes which it may deem necessary.
- EXPIRATION OF LEASE: At the expiration of the term of this lease or cancellation thereof, as herein provided, the LESSEE will promptly deliver to the LESSOR the leased premises with all corresponding keys and in as good and tenable condition as the same is now, ordinary wear and tear expected devoid of all occupants, movable furniture, articles and effects of any kind. Non-compliance with the terms of this clause by the LESSEE will give the LESSOR the right, at the latter’s option, to refuse to accept the delivery of the premises and compel the LESSEE to pay rent therefrom at the same rate plus Twenty-Five (25)% thereof as penalty until the LESSEE shall have complied with the terms hereof. The same penalty shall be imposed in case the LESSEE fails to leave the premises after the expiration of this Contract of Lease or termination for any reason whatsoever.
- JUDICIAL RELIEF: Should any one of the parties herein be compelled to seek judicial relief against the other, the losing party shall pay an amount of One Hundred (100)% of the amount claimed in the complaint as attorney’s fees which shall in no case be less than P50,000.00 pesos in addition to other cost and damages which the said party may be entitled to under the law.
- This CONTRACT OF LEASE shall be valid and binding between the parties, their successors-in-interest, and assigns.
IN WITNESS WHEREOF, parties herein affixed their signatures on the date and place above written.
__________ ____________
{{Name of Lessor}} {{Name of Lessee}}
LESSOR LESSEE
Signed in the presence of:
__________ ____________
{{Name of 1st Witness}} {{Name of 2nd Witness}}
ACKNOWLEDGMENT
REPUBLIC OF THE PHILIPPINES )
CITY OF {{YOUR CITY}} ) S.S
BEFORE ME, personally appeared:
Name CTC Number Date/Place Issued
{{Name of Lessor}} {{Cedulla number}} {{Date issued}} / {{City issued}}
{{Name of Lessee}} {{Cedulla number}} {{Date issued}} / {{City issued}}
Known to me and to me known to be the same persons who executed the foregoing instrument and acknowledged to me that the same is their free and voluntary act and deed.
This instrument consisting of {{number of pages}} page/s, including the page on which this acknowledgment is written, has been signed on each and every page thereof by the concerned parties and their witnesses, and sealed with my notarial seal.
WITNESS MY HAND AND SEAL, on the date and place first above written.
Notary Public
Doc. No.;
Page No. ;
Book No.;
Series of {{year}}.
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Step-by-Step Process of Contract of Lease in the Philippines
Processing a contract of lease in the Philippines involves several detailed steps to ensure that the agreement is legally binding and conforms to local laws. Here’s a step-by-step guide tailored for rental property owners for their first lease agreements:
1. Draft the Contract
Start by drafting the lease agreement. This document should include terms such as the duration of the lease, monthly rental rate, security deposit amount, description of the property, and any other specific conditions agreed upon by both parties.
2. Review Legal Requirements
Familiarize yourself with the legal requirements under the Philippine Rental Law (Republic Act No. 9653) and other local ordinances that might apply to your area. This ensures the contract complies with local laws regarding rental increases, deposits, and tenant and landlord rights.
3. Include Necessary Details
Make sure all necessary details are included in the contract, such as full names and contact information of the landlord and tenant, a detailed description of the property, payment terms, conditions for renewal and termination, responsibilities of each party, and clauses on maintenance and repairs.
4. Have the Contract Reviewed
It’s wise to have the contract reviewed by a lawyer, especially if this is your first time drafting one. They can provide insights and identify any potential issues before the contract is finalized.
5. Sign the Contract
Once the contract meets the satisfaction of both parties and is legally vetted, both the landlord and tenant should sign the document. It’s common to have two original copies with both parties signing both copies. Each party keeps one.
6. Witnesses and Notarization
While notarization is not mandatory for lease agreements in the Philippines, it can add an extra layer of legal protection. If you choose to notarize the contract, it must be signed in the presence of a lawyer. Witnesses can also be present during the signing for additional validation.
7. Exchange Copies and Payments
After signing, exchange the copies so that each party holds one. The tenant should then pay the agreed-upon security deposit and possibly the three months’ rent, as stipulated in the contract.
8. Register the Lease (if necessary)
For leases that are longer than one year, Philippine law requires that the agreement be registered with the local Registry of Deeds. This is not commonly done for shorter leases but can be considered for additional legal security.
9. Comply with Tax Obligations
Ensure that all tax obligations related to the lease are fulfilled. In the Philippines, the landlord is typically responsible for declaring rental income and remitting any necessary taxes.
10. Move-In
After the administrative aspects are settled, the tenant can move into the property on the date agreed upon in the lease.
By following these steps, you can create a legally sound contract of lease in the Philippines, protecting both landlord and tenant throughout the rental period.
