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Old 09-14-2008, 04:23 AM
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Default Rental Contract problems in the Philippines.

I have noted that some Filipino’s and some Foreigners lease rent and the contracts are not equally agreeable to both owner and tenant. Its become legal accepted that even though the House rental act has not been updated by the government that the normal deposit can be 2 months with 1 month rental in advance.

I tend to only go for a rental agreement and only go for an agreement that has 1 month deposit all though it takes time to find the right place, acceptably quite area, fair enough security and nice garden etc. I never use the internet but drive around and find my new property to rent. When dealing with Filipino’s there is always that problem of the long nose tax, however one can strike deals or just move on and find your requirement. There tends to be more owners that just require 1 months deposit and 1 months rent than those that charge more with special clauses unfavorable to the tenant.

Some owner tries to get you to sign a rental lease that have clauses such as:

1. If you leave early you have to pay the total rent of the period of the lease agreement.
2. If you leave early you lose your deposit.

One must take care in reading the whole document and when signing that you sign each page of the document. As its been known for a owner to swap the top page with one that has a clause such as the ones shown above. This is a regular con so take care, I myself fell into this trap once, but later proved the document un-legal.

For a contract to be totally legal the owner must have a valued up to date business permit from the mayor’s office, this number should be shown on the document. The document has witnessed and to be notarized by a notary.
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