
A handshake is not a lease. Whether you rent out an apartment, a room, or a whole boarding house, putting your agreement in writing protects both you and your tenant, and prevents almost every common dispute. Below is a free sample contract of lease you can copy and adapt, plus what every Philippine rental agreement should cover.
What is a contract of lease?
A contract of lease (also called a lease contract or rental agreement) is a written agreement where one party, the lessor (owner/landlord), gives another party, the lessee (tenant), the right to use a property for a fixed period in exchange for rent. Under the Civil Code of the Philippines, a lease can technically be verbal, but a written contract of lease is what actually protects you: it fixes the rent, the term, the deposit, and each side's responsibilities, so nothing is left to memory or to "usapang lalaki."
It does not transfer ownership, only the right to use the property under agreed terms. That is the whole point: the tenant gets a home, the owner keeps the asset and gets paid, and the document settles in advance what happens if something goes wrong.
What a Philippine lease contract should include
A good contract of lease is clear and complete. At minimum, it should state:
- The parties, full names and addresses of the lessor (landlord) and lessee (tenant).
- The property, the exact unit or room being leased.
- The term, start and end dates, and whether it renews.
- The rent and due date, the monthly amount and when it is due each month.
- Advance and deposit, how much, and the conditions for returning the deposit.
- Utilities, who pays for electricity, water, internet, and association dues.
- Use of the premises and house rules.
- Maintenance and repairs, who is responsible for what.
- Termination and default, what happens if rent is unpaid or the contract ends early.
- Signatures of both parties, and ideally notarization.
Free sample contract of lease (template)
Copy the template below and replace the parts in [brackets] with your own details. This is a general sample, not legal advice, adjust it to your situation and have a lawyer review it for anything significant.
CONTRACT OF LEASE
This Contract of Lease is made and entered into this [day] day of [month], [year], in [city/municipality], Philippines, by and between:
[LESSOR FULL NAME], of legal age, with address at [lessor address], hereinafter referred to as the "LESSOR";
and
[LESSEE FULL NAME], of legal age, with address at [lessee address], hereinafter referred to as the "LESSEE".
1. PREMISES. The LESSOR leases to the LESSEE the property located at [full address of unit/room], hereinafter the "Premises".
2. TERM. This lease shall be for a period of [e.g. one (1) year], beginning [start date] and ending [end date], unless renewed in writing.
3. RENT. The monthly rent is [₱ amount] (PHP), payable on or before the [e.g. 5th] day of each month.
4. ADVANCE AND DEPOSIT. Upon signing, the LESSEE shall pay [e.g. one (1) month] advance and [e.g. two (2) months] security deposit. The deposit, less lawful deductions, shall be returned within [e.g. 30] days after the LESSEE vacates and settles all obligations.
5. UTILITIES. The LESSEE shall pay for [electricity, water, internet, etc.]. [Specify any shared or included utilities.]
6. USE OF PREMISES. The Premises shall be used solely for residential purposes. The LESSEE shall observe the house rules and shall not engage in any unlawful activity.
7. MAINTENANCE. The LESSEE shall keep the Premises in good condition. Major repairs not due to the LESSEE's fault shall be for the account of the LESSOR.
8. SUBLEASE. The LESSEE shall not sublease or assign the Premises without the written consent of the LESSOR.
9. TERMINATION. Failure to pay rent or to comply with this contract shall be ground for termination, subject to the notice required by law. Upon termination, the LESSEE shall peacefully vacate and return the Premises.
10. OTHER TERMS. [Add any other agreed terms here.]
IN WITNESS WHEREOF, the parties have signed this Contract of Lease on the date and place first written above.
_______________________ _______________________
[LESSOR NAME], Lessor [LESSEE NAME], Lessee
Signed in the presence of:
_______________________ _______________________
(Acknowledgment before a Notary Public)
How to use this template
- Fill in every part in [brackets] with your real details.
- Make sure the advance and deposit follow the law. Under the Rent Control Act (RA 9653), for covered units a landlord may collect up to one month advance and two months deposit.
- Both parties sign, ideally with two witnesses.
- Notarize it so it becomes a public document, stronger if you ever need to enforce it.
- Keep a signed copy each, and store a digital copy somewhere safe.
Tips and common mistakes
- Do not skip the written contract. A verbal deal is the number one cause of rental disputes.
- Do not over-collect deposit. Stick to the RA 9653 limits for covered units.
- Spell out utilities clearly, especially for boarding houses and bedspace where bills are shared.
- State the exact due date and your reminder and late-payment policy.
- Keep your records. Track every payment and receipt so the contract is backed by a clear history.
Signing a lease when you are abroad (OFWs)
If you are an OFW landlord, you do not have to fly home to sign a lease. You have two clean options:
- Sign and send. Many simple residential leases can be executed by signing scanned copies, then having both parties keep originals. For higher-value or notarized leases this is weaker, see the next option.
- Authorize someone with an SPA. Grant a trusted person in the Philippines a Special Power of Attorney so they can sign the lease and have it notarized on your behalf. This is the cleaner route if the contract will be notarized or used in any official matter.
Whichever you choose, keep a digital copy of every signed lease so you can produce it instantly from overseas if a dispute ever comes up.
Frequently asked questions
What is a contract of lease?
A written agreement where the owner (lessor) lets a tenant (lessee) use a property for a set period in exchange for rent. It does not transfer ownership, only the right to use the property under the agreed terms.
Does a lease contract need to be notarized in the Philippines?
It is valid between the parties even without notarization, but notarizing it makes it a public document and far easier to enforce. For longer leases, notarization is strongly recommended.
How much advance and deposit can I collect?
For covered units under RA 9653, up to one month advance and two months deposit. Confirm the current rules for your specific case.
Is a verbal lease valid?
It can be, but it is very hard to prove and enforce. Always put it in writing.
Can I use this template for a room or bedspace?
Yes, adjust the premises and add clear house rules and shared-utility terms. ArmaRenta supports per-room and per-bed rentals too.
A clear lease is the foundation of a stress-free paupahan. Use the template above, keep good records, and you will avoid most problems before they start. When you are ready to stop re-typing contracts and chasing rent, you can start free with ArmaRenta and let the app handle the paperwork and the reminders for you.
Sources & further reading
- Republic Act No. 9653 (Rent Control Act of 2009), full text on LawPhil and the Supreme Court E-Library.
- Lease provisions of the Civil Code of the Philippines, Republic Act No. 386.
- Signing and managing a lease from overseas, the OFW landlord guide and Special Power of Attorney for OFW landlords.
This sample and article are general information for Filipino landlords, not legal advice. Have a lawyer review your contract for anything significant.