Residential Tenancy Agreement in the Philippines: What It Must Include
A residential tenancy agreement is the contract between a landlord (lessor) and a tenant (lessee) for a home — apartment, condo, house, or room. Philippine law treats leases as consensual, which means the deal is real even before paper. But the paper is what decides disputes. Here is what a proper Philippine residential tenancy agreement must contain, which rules actually govern it, and the stamp-duty and notarization steps that make it hold up.
New to tenancy paperwork? Start with the tenancy agreement overview for the full legal picture.
The law that actually applies
Residential leases in the Philippines are governed by two main sources. The Civil Code of the Philippines, Articles 1643–1688 (Title VIII, Lease) sets the general rules — what a lease is, each party's obligations, when a lease renews by default, and when it must be in a public document. On top of that, RA 9653 (the Rent Control Act, as extended) covers low-rent residential units: those renting for ₱10,000/month or less in the NCR and other highly urbanized cities (₱5,000 or less in other areas). Covered units get a 7% annual cap on rent increases while the same tenant occupies the unit.
Everything outside those two — deposit size, utilities, repairs, entry notices, penalties — is whatever you write in the contract. That is the point: the agreement is the law between the parties, and silence is where disputes grow.
What the agreement must include
- Parties, identified. Full legal names as they appear on government IDs, plus ID details annexed. For a condo, confirm the signer is the registered unit owner (or has written owner authority).
- The property. Complete address, unit/floor number, and a simple inventory of what comes with it (appliances, parking, key count).
- Term. Exact start and end dates. If no period is agreed, Article 1687 steps in and the lease is deemed to run in the manner the rent is paid (monthly rent = month-to-month).
- Rent, amount, and mechanics. Monthly amount in pesos, due date, payment channel, and to whom. State exactly what is included — association dues, water, electricity, internet.
- Deposit and advance. How much, what it secures, what deductions are allowed, and the deadline for refund after move-out. Standard practice is one month deposit plus one month advance for a 1-year lease.
- Repairs and maintenance. Structural to the landlord, day-to-day upkeep to the tenant — define the line, or the deposit becomes the battleground.
- Termination and notice. How much notice each side gives, what breach justifies early termination, and what penalty applies. The Civil Code default requires notice before the lease simply lapses.
- Use rules. Residential use only, occupants named, pets, subletting — including whether the unit is booked through platforms.
Condo and subdivision rules to check first
Unlike countries with a national housing authority that governs public housing rentals, the Philippines has no central agency approving residential subletting. The gatekeepers are private: the condo corporation (master deed and by-laws) or the homeowners association of the subdivision. These can require board approval before you lease, set a minimum lease term (commonly six months or one year), cap occupants, require tenant registration with building administration, or restrict short-term platform rentals. Ask for the rules before signing — a lease that violates the by-laws can be blocked at the security desk on move-in day.
Stamp duty and notarization
Every lease is a taxable document. Under the TRAIN Law (RA 10963), documentary stamp tax on a lease of real property is ₱6 on the first ₱2,000 of total rent stipulated, plus ₱2 for each additional ₱1,000 (or fractional part thereof). The landlord generally pays, filing BIR Form 2080 within five days after the end of the month of signing. Unstamped paper is not void between the parties, but it is inadmissible in court until the stamp is paid — the same trap as any lease document.
Notarization is separate from stamping and optional for validity. But under Article 1648, a lease running more than one year only binds third parties — like a buyer who acquires the property mid-lease — if it appears in a public document with its date insinuated on the registry. For a 1–2 year residential lease where the tenant wants to stay even if the property is sold, notarization is cheap insurance.
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Frequently asked questions
Is a written tenancy agreement required in the Philippines?
Not strictly. Under the Civil Code, a lease is consensual — it is valid once the parties agree on the thing and the price. But an oral lease is almost impossible to enforce: rent terms, deposit refunds, and termination rights all become he-said-she-said. A written agreement protects both sides and is also required if you want the lease to be admissible in court as evidence without additional proof of its terms.
Does a tenancy agreement need to be notarized?
Notarization is optional for validity. What matters more: under Article 1648 of the Civil Code, a lease of real property for more than one (1) year only binds third parties (for example, a new buyer of the property) if it appears in a public document with its date insinuated on the same register as donations — practically, that means a notarized agreement recorded at the Registry of Deeds. If your lease runs past a year and you want it to survive a sale of the property, notarize and insinuate it.
How much is documentary stamp tax on a residential lease?
Under the TRAIN Law (RA 10963), documentary stamp tax on a lease of real property is ₱6 on the first ₱2,000 of the total rent stipulated, plus ₱2 for each additional ₱1,000 (or fractional part thereof). It is a one-time tax on the contract — for example, a 1-year lease at ₱20,000/month (₱240,000 total rent) bears roughly ₱486. The landlord generally pays, filed on BIR Form 2080 within five days after the end of the month of signing.
Can a condo owner rent out their unit without asking anyone?
Check the condo corporation first. Philippine condominium law gives the corporation (through the master deed and by-laws) power to restrict or condition leases — some require board approval, a minimum lease term, or tenant registration with building administration. There is no national housing authority that approves residential subletting in the Philippines; the restrictions, if any, come from your condo corporation or homeowners association.
Is there a legal cap on rent or on how much deposit a landlord can ask?
There is no statutory cap on the deposit amount — it is whatever the parties agree. One month deposit plus one month advance for a 1-year lease is standard market practice. Rent itself is regulated only for covered units: under RA 9653 (the Rent Control Act, as extended), units renting at ₱10,000/month or below in the NCR and other highly urbanized cities (₱5,000 in other areas) get a 7% annual cap on rent increases while the same tenant stays.
Who pays utilities and repairs?
Whatever the agreement says. The default under the Civil Code is that the lessor must keep the property fit for its intended use (structural repairs), while ordinary maintenance caused by the tenant's use falls on the lessee. Utilities are on the tenant unless stated otherwise. Spell both out clause by clause — the most common disputes in Philippine rentals are deposit deductions for "damage" that nobody defined.
What makes a residential tenancy agreement enforceable in court?
Signature by both parties on every page, clear identification (full names, IDs annexed), an unambiguous description of the property, definite term and rent, and a lawful purpose. Documentary stamp tax compliance strengthens admissibility. If you want it to bind future owners of the property (leases of one year or more), notarize it so it becomes a public document.