Renting Out a House or Room: What to Put in Writing

Put It in Writing

A lease can be oral, but writing it down avoids "he said, she said". Under the Civil Code's Statute of Frauds (Article 1403), a court will not enforce a lease of more than one year unless it is in writing.

A good lease states:

• the names and addresses of the landlord and tenant;
• the exact property (address, unit number, what furniture is included);
• how long it runs (the term: start and end dates) and how it is renewed;
• the monthly rent, when it is due, and how it is paid;
• the advance and deposit, and when and how the deposit is returned;
• who pays utilities, association dues and repairs;
• whether pets, subleasing (renting it out to someone else) or business use are allowed;
• how either side can end the lease early, and the notice needed.

Use the Contract of Lease template as a starting point.

Should the Lease Be Notarized?

Not to make it valid. A signed lease binds the landlord and tenant even without a notary. But notarizing helps:

• A notarized lease is a public document. Courts assume it was properly signed, so it is harder to deny later.
• Only a notarized lease can be registered and noted on the land title (annotated). Under the Civil Code (Article 1648), an unregistered lease of land or buildings is not binding in the same way on other people (third persons), such as a later buyer.
• Many businesses, banks and government offices ask for a notarized lease as proof of address.

See getting a document notarized, and what notaries charge for a lease.

The Rent Control Act (RA 9653)

Republic Act No. 9653, the Rent Control Act of 2009, protects tenants of lower-rent homes. It covers houses, apartments, rooms, bedspaces and boarding houses used as homes, but not hotels or motels.

Which homes are covered now. The law lets the government extend rent control. The National Human Settlements Board, under the DHSUD, extended it through 31 December 2026 (Resolution No. 2024-01) for residential units renting for ₱10,000 a month or less.

Rent increases for the same tenant. Up to 2.3% in 2025 and up to 1% in 2026. When a unit becomes vacant, the landlord may set a new rent for the next tenant. Rooms and bedspaces rented to students may be increased only once a year. Newly built units offered for lease are not covered.

Advance and deposit (Section 7). For covered units, the landlord:

• cannot demand more than one month advance rent;
• cannot demand more than two months deposit, which must be kept in a bank under the landlord's name for the whole lease, with the interest returned to the tenant at the end.

The deposit can be applied to unpaid rent, unpaid utility bills, or damage the tenant caused. Rent is paid in advance within the first five days of the month unless the lease says otherwise.

Eviction. For covered units, Section 9 lists the grounds for eviction (ejectment), including subleasing without written consent, three months' unpaid rent, the owner's need to use the unit for their family, necessary repairs under a condemnation order (an order that the building is unsafe), and the end of the lease. A sale or mortgage of the property is not a ground to evict a tenant (Section 10). Eviction goes through the barangay and then the court; a landlord cannot lock out a tenant on their own.

For Units Not Covered by Rent Control

For rents above ₱10,000, the Civil Code and your contract apply. The parties are free to agree on the rent, increases, advance and deposit. Write them down clearly, because the contract is what a court will look at.

Taxes on a Lease

• Documentary stamp tax. Under Section 194 of the Tax Code, a written lease pays documentary stamp tax based on the rent for each year of the term. The documentary stamp tax calculator works it out. The Registry of Deeds needs it paid before noting a lease on a title.
• Income tax. Rent is income for the landlord and is reported to the BIR. Ask the BIR about registering as a lessor (someone who rents out property).
• Real property tax. The amilyar on the property stays with the owner unless the lease says the tenant reimburses it. See real property tax.