Long Term Lease Contract

Below are the items contained in the “Terms and Conditions” section of our lease contract with long-term tenants. Please note however, that the final lease agreement may be a little different than the one shown here, depending on the tenant’s counter-offer, requests and/or other matters approved by the property owner.

(Last updated: 04 June, 2018)

1. PURPOSES

   The Property hereby leased shall be used exclusively by the LESSEE for residential purposes only and shall not be diverted to other uses. It is hereby expressly agreed that if at any time the Property is used for other purposes or used for illegal activities such as but not limited to the following: use or possession or sale of illegal substance(s), consumption or distribution of alcohol to minors, pornography, the LESSOR shall have the right to rescind this contract without prejudice to its other rights under the law.

2. OCCUPANTS

   The person(s) who will be authorized to stay in the Leased Property, and to be registered with the building/subdivision administration as the occupants therein, are the following:

   [ list of occupants here. ]

3. TERM

   The term of lease is for _____ MONTHS, from _____ to _____ 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 by LESSEE to the LESSOR not later than SIXTY (60) days prior to the expiry date of the period herein agreed upon, via traditional mail, courier or personal delivery, or via electronic mail provided an acknowledgment reply is made.

   If, after signing this Agreement, LESSEE fails to take possession of the Property, LESSEE will still be responsible for paying rent and complying with all other terms of this agreement.

   Further, in case of failure to complete the abovementioned rental period due to reasons not attributable to LESSOR nor to fortuitous events, LESSEE agrees to immediately settle and pay the entire due for all the remaining months in one payment, without need of demand by the LESSOR.

4. RENTAL RATE

   The monthly rental rate for the leased Property shall be PESOS: _____, Philippine Currency.

5. SECURITY BOND

   The LESSEE shall settle the security bond with the LESSOR upon signing of this contract and prior to move-in, an amount equivalent to the rent for TWO (2) MONTHS or the sum of PESOS: _____, Philippine Currency. This security bond shall cover partially for damages and any other obligations, such as unpaid utilities like water, electricity, CATV and telephone, if there will be any, either at the end of the term of this contract or as resulting from violation(s) of any of the provisions of this contract. This shall however, be released back to LESSEE, less the damages incurred and/or any unpaid bills due for the leased Property, if there are any, in seven (7) working days after moving out at the end of this contract, or as soon as all the liabilities are cleared.

6. ADVANCE RENT

   The LESSEE shall settle an advance one (1) month rent prior to move in and upon signing this contract, the sum of PESOS: _____, Philippine Currency; and every month on the same date thereafter, for the duration of this contract.

7. REQUIREMENTS FOR MOVE-IN

   LESSEE and/or the occupants enumerated in Article 2 above, may start tenancy only after submitting to LESSOR all the following requirements:

   1. 1 month advance rent;

   2. 2 months’ rent equivalent security deposit;

   3. Post-dated checks covering the rental payments for each month of the entire lease period, OR duly set up auto-debit account;

   4. Completely filled out Client’s Information Sheet;

   5. Copies of two (2) government-issued IDs. Provided that in the case of foreigners, one of the IDs should be his Passport. This applies to all registered occupants in this Agreement.

   6. All requirements stipulated in the Building/Subdivision Administration’s policy

   In case any of the above requirements cannot be satisfied during the signing of contract, LESSEE should provide a promissory note containing the reason for the failure to provide such required items and the exact date when the lacking requirements can be provided.

   Further, if the post-dated checks cannot be provided within 7 days after the execution of this contract, LESSEE will have to provide an additional security deposit equivalent to 1 month’s rent. Provided that, when LESSEE is finally able to provide the post-dated checks, this additional 1 month security deposit shall be returned to him.

8. DEFAULT IN 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 or impose a surcharge of 3% per day on the unpaid amount, without prejudice to the provisions of the third paragraph of Article Three (3) above.

   The LESSEE hereby grants LESSOR the right to padlock or change the doorlocks in the Property or otherwise revoke LESSEE’s access to the Property and to cut off or cause the cutting off of utilities such as, but not limited to, water and electricity, when the LESSEE is in default of payment for one (1) month; and when two (2) months have passed since the default, LESSOR may sell whatever valuables left inside the Property to recover the unpaid obligation incurred by the LESSEE to the LESSOR; and forfeit in favor of the LESSOR the security deposits and advances that have been given by the LESSEE.

9. SUB-LEASE

   The LESSEE shall not directly nor indirectly sublease, allow or permit the leased Property to be occupied in whole or in part by any other person or entity, neither shall the LESSEE assign his 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 prior written approval.

10. LESSEE’S MAINTENANCE RESPONSIBILITIES

    1. LESSEE will: (1) Keep the Property clean, sanitary and in good condition and upon termination of the tenancy, return the Property to LESSOR in a condition identical to that which existed when LESSEE took occupancy, except for ordinary wear and tear; (2) Immediately notify LESSOR of any defect or dangerous condition in and about the Property of which LESSEE becomes aware; and (3) Reimburse LESSOR, on demand by LESSOR, for the cost of any repairs to the Property damaged by LESSEE or LESSEE’s guest(s) or invitees through misuse or neglect.

    2. LESSEE has examined the Property, including appliances, fixtures, drapes and paint, and has found them to be in good, safe and clean condition, except as noted in the LESSOR/LESSEE Checklist, if any, prior to the start of occupying the Property.

    3. The LESSOR/LESSEE Checklist must be completed by LESSEE and returned to LESSOR within 5 days from the start of occupying the Property.

    4. LESSEE hereby agrees and gives permission to the LESSOR to have a professional cleaning service clean the Property upon LESSEE’s vacating of the rental Property. Said cleaning will include the cleaning of all appliances and exhaust hood in the kitchen and/or in the toilet, all floors, wipe-down of the kitchen and bathroom cabinets and drawers inside and out, sinks, tubs, toilets, baseboards, dirty walls/window sills. If the Property is carpeted, LESSEE agrees to Professional Carpet Cleaning at the end of the lease term, or at any renewal or extension thereof. LESSOR will inspect unit upon LESSEE’s vacating and if the above cleaning has obviously been already completed, LESSOR agrees to waive the expenditure of LESSEE’s Security deposit.

    5. Should LESSEE leave damages upon vacating of the Property to the extent that they would prevent the LESSOR from re-renting the unit to a new LESSEE, LESSEE shall be held liable for a daily penalty comparable to the rent amount recently paid within the lease. In the event major damage/repair costs occur at the fault of the LESSEE(s), LESSOR may require compensation to be set aside, separate to the Security Deposit, to cover repair costs.

    6. LESSEE agrees to conform with all policies and procedures of the Subdivision/Building Administration especially in reference to keeping the exterior of the Property in a neat and orderly condition. If the Property is served by the Subdivision/Building Administration with a Warning Notice of Violation, whether it pertains to noise, trash or others, the LESSOR has the right to restore the Property to a condition in keeping with the City’s and/or the Building/Subdivision Administration’s requirements without additional notice to the LESSEE. LESSEE will be charged corresponding fees by the LESSOR for performing said service. Upon receipt of billing, LESSEE will pay as additional rent to LESSOR within 5 days or will stand in violation of this Lease and may be proceeded against in the proper venues.

    7. LESSEE is responsible for maintaining/changing light bulbs, filters, batteries for the smoke detectors and other minor repairs and maintenance whose need arise due to LESSEE’s own use such as but not limited to, repainting of scratched, chipped or stained paint on the walls, replacement of leaky faucets and shower heads, loose doorknobs, cabinet handles and locks, furniture and fixtures damage due to water or other inappropriate substance, and declogging of sinks and toilet bowls. LESSEE is also responsible for the costs of door and window screens if installed, or for any false alarms, whether LESSEE is at home or not, including the cost of repair for the outside lamps and windows whenever they are applicable.

    8. LESSEE is responsible for the maintenance cleaning of air-conditioning units every six (6) months, and for the maintenance cleaning of the grease trap every month, if these appliances/fixtures are installed in the Property.

       LESSEE agrees that LESSOR will conduct regular quarterly inspections to ensure safety and upkeep of the Property.

    9. LESSEE shall be responsible for all pest control such as mice, fleas, roaches, ants, vermin, insects or other pests unless evidence of same is listed in LESSEE’s Inspection Report prior to the start of occupying the Property. It is required for the LESSEE to notify LESSOR of any roach or any mice infestation. At the time the building pest control team or outside servicers will be called, if infestation is due to poor cleanliness, LESSEE will be responsible for monthly services provided by the pest control team. At the end of the lease and upon moving out or shortly prior, LESSEE is required to have the pest control service done at the Property.

    10. Lockout Fee. If during the normal business hours of Mondays to Fridays, from 9am to 5pm, LESSEE is locked out of their unit, a fee of ₱1,000.00 will be charged for unlocking the unit. However, if after those hours and during holidays or weekends, the LESSEE calls, a charge of ₱1,500.00 will be billed to LESSEE in addition to the regular monthly rent. Once a phone call is received, the charge is accessed to the LESSEE. Replacement of lost or damaged keys will be charged ₱1,500.00 on top of the Lockout Fee.

11. EXTENDED ABSENCES and/or ABANDONMENT BY LESSEE.

    LESSEE will notify LESSOR at least three days in advance if LESSEE will be away from the Property for 5 or more consecutive days. During such absence, LESSOR may enter the Property at times reasonably necessary to maintain the Property and inspect for needed repairs, provided that prior notice is given to LESSEE.

    In the event LESSEE abandons the Property or is required to vacate the Property due to LESSOR exercising its rights upon LESSEE’s breach of Contract, the LESSOR shall have the right to enter the Unit for the purpose of making alterations and repairs, and may re-let the Property for a term which may at LESSOR’s options be less than or exceed the period which would otherwise have constituted the balance of the term of this Contract, or any renewal or extension thereof, all without relieving the LESSEE of the Liabilities imposed by applicable law and this Lease Contract. LESSOR shall further have the right without further notice, to sell or otherwise dispose of any personal property left in or about the Property or storage area by the LESSEE after the LESSEE has vacated.

12. REPAIR AND ALTERATIONS MADE BY LESSEE

    Any repair or alteration made by the LESSEE to the Property is prohibited without prior written consent from the LESSOR.

13. PUBLIC UTILITIES

    The LESSEE shall pay for his telephone, electricity, cable TV, water, internet, and/or other public services and utilities during the duration of the lease, excluding the monthly association dues and real property tax for the leased Property.

14. FORTUITOUS EVENTS

    If the whole or any part of the leased Property shall be destroyed or damaged by fire, flood, lightning, typhoon, earthquake, storm, riot or any other unforeseen disabling cause or acts of God, as to render the leased Property 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.

    It is the sole discretion of the LESSEE to purchase insurance to protect his belongings for any damages that may happen or be incurred during his tenancy.

15. LIABILITY

    LESSOR and the LESSOR Parties shall not be personally liable, in any manner whatsoever, for any judgment or deficiency with respect to this Contract.

    LESSOR shall not be liable for any damage to property or person, such as but not limited to theft, vandalism, fire, water, smoke, explosions or other causes unless the same arises solely from the omission, fault, negligence or other misconduct of the LESSOR. Failure or delay in enforcing Lease covenants of other LESSEEs shall not be deemed to be negligence, omission, fault or other misconduct of the LESSOR.

16. WAIVER

    The failure of LESSOR to insist upon a strict compliance with any of the covenants, rules, or regulations of this Contract or to exercise any option here contained, shall not be construed as a waiver of such covenant, rule, regulation or option, but that all covenants, rules, regulations and options shall remain in full force and effect. LESSOR shall not be liable or responsible to LESSEE for the violation of any covenant rule or regulation in any other lease by any other LESSEE.

    Receipt by LESSOR of rent with knowledge of the violation of any term or provision of this Lease or the rules or regulations thereof, shall not be deemed a waiver of the right to action on such breach.

17. INDEMNIFICATION

    a) LESSEE will indemnify and save harmless the LESSOR against all liability, including liability arising from death or injury to person or property during the term of this Lease, and any renewal or extension thereof, caused by any act or omission of the LESSEE, or the family, guests, agents or employees of the LESSEE. b) LESSEE will indemnify and save LESSOR harmless from all liability, damage or expense incurred by LESSOR as a result of death or injury to persons or damage to property (including the Property) where this Lease Agreement required the LESSEE to procure insurance for said liability, damage or expense and LESSEE failed to do so.

18. LESSOR’S RIGHT OF ENTRY

    The LESSOR, through its authorized personnel shall, after giving due notice to the LESSEE, have the right to enter the Property 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 unit or to exhibit the leased Property to prospective LESSEEs, or for any other lawful purposes which it may deem necessary.

    For the purpose of the quarterly regular inspections, LESSOR shall have the right to enter the Property even without the presence of LESSEE or his representative if, after three (3) consecutive notices at least five (5) days apart, LESSEE fails to respond or confirm a schedule for the inspection.

19. EXPIRATION AND/ OR CANCELLATION 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 Property with all corresponding keys and in as good and tenantable condition as the same is now, ordinary wear and tear expected, devoid of all occupants. 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 Property and compel the LESSEE to pay rent therefrom at the same rate plus FIFTY (50) percent 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 Property after the expiration of this Contract of Lease or termination for any reason whatsoever.

    In case of Contract Renewal, LESSOR will require notification from the LESSEE as stipulated in Article 3 above. The approval or disapproval by LESSOR, of the renewal shall be communicated to LESSEE on or before the end of this Contract of Lease. The LESSOR shall have the right via phone, in person or in writing or in any manner convenient, to offer an option to LESSEE of renewing the Lease. If LESSEE does not renew the Lease within two weeks from the date of the offer, the LESSOR may offer the Property to other prospective LESSEEs.

20. GROUNDS FOR TERMINATION OF LEASE

    The failure of LESSEE or LESSEE’s guests or invitees to comply with any term of this Agreement, the misrepresentation of any material fact on LESSEE’s Rental Application, abusive behavior by LESSEE or his co-occupants, guests or invitees towards LESSOR and any of its personnel (including but not limited to verbal abuse, display of aggression and issuing threats), engaging in illegal activities, or endangering others are grounds for termination of this Lease, with appropriate notice to LESSEE.

21. TRANSFER OF OWNERSHIP OR ENCUMBRANCE

    In the event the ownership of the Property is transferred by way of sale or otherwise, or encumbered in any way to any third party during the effectivity of this contract, the stipulations of this contract shall likewise bind the third party. LESSOR hereby undertakes to give LESSEE at least 30 days notice prior to the effectivity of such transfer of ownership.

    In case of sale, LESSEE agrees to allow prospective buyers to view the Property during reasonable hours of the day provided that at least 3 days notice is given on such viewing; Provided further that, LESSEE is notified at least 30 days prior that the Property is being put up for sale.

22. RENTAL PRICE ADJUSTMENT

    The LESSOR has the right to change, modify or adjust the rental price as deemed appropriate or necessary. Such modification will take effect 30 days after LESSEE has been notified. Rental price adjustments shall not be greater than what is allowed by law.

23. PREVENTIVE ACTIONS

    LESSEE agrees that violation of any of the provisions of this Lease Contract which causes or threatens to cause damage to LESSOR or to the Property, will give LESSOR the right to cut off or to cause the cutting off of utilities such as water, electricity and/or phone and internet service; charge commensurate pecuniary penalties; and/or take other practical measures to correct the violation and prevent further damage before seeking judicial relief.

24. JUDICIAL RELIEF

    Should any one of the parties herein be compelled to seek judicial relief against the other, the losing party shall pay one hundred (100) percent of the amount claimed in the complaint as liquidated damages, which shall in no case be less than P201,000.00 pesos in addition to other costs and damages which the prevailing party may be entitled to under the law.

25. ENTIRETY OF AGREEMENT

    This Agreement sets forth the entire agreement of the parties and supersedes any other prior or contemporaneous discussions of the parties not reduced into writing.

26. SEVERABILITY

    Should any part of this Agreement be set aside by a court of competent jurisdiction, the parties agree that the remainder of the Agreement shall be valid and enforceable to the fullest extent possible under the circumstances.