Tips before renting a house, apartment or bedspace in the Philippines

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Wherever you are in the Philippines today, we can’t deny the fact that some Filipinos do not have a house to call their own. Others either rent a house, apartment, or bedspace with some who are more fortunate in life paying an installment term house in Pag-IBIG or banks.

In this instance, there are few things you need to be aware of before renting in the Philippines. Note that the policy of the landlord and the law of real estate can change at any time. During these times of pandemic, it is important to know that both the tenant and landlord have their own corresponding rights.

1. Advance payment.

In most cases, landlord often ask for advance payments from tenant which basically equal to the 3 months’ rent (two-months deposit and one-month advance).


The cost of two-months advance payment is also known as the “deposit”. In case you didn’t stick to the agreed contract and decided to leave the rental house because of a certain reason, the bill of electric, water, and internet that you will left should be subtracted by the deposit. This also served as the “security deposit” to pay the damage of the house, if there are any.

On the other hand, the cost of the advance payment is also called the “advance rental payment”. Meaning, the first month of your rent is already paid. The rent you will need to pay is only the succeeding months.

Depending on the rules of landlord, the advance payment differs in meaning and refund system. There are times when you should not expect a refund if you leave the rental house earlier than the agreed contract. It is best to comprehend the rules before deciding to move out.

2. Utility billing.

There are also different ways of utility billing such as in electric, water and internet. If you are renting a whole house which oftentimes has its own meter of electric and water, the only bill you will pay is the exact reading of your meter. Below are some rules of utility billing in other rental house.

Own rate in sub-meter- There are some landlord who will imposed their own rate in electric if a tenant uses a sub-meter. For example, if one kilowatt of electric costs P10.00, the landlord might imposed an additional P10.00 for the rate giving you a total of P20.00.

Shared payment of bill among the tenants- This is in term of renting a bedspace. For instance, if a rental house has 10-bedspacer, the payment for monthly bill will be shared by the 10 tenants equally. If the monthly electric bill costs P2,000 and the internet subscription is P1,500. You will have to pay an additional P350 aside from your rent as a share for the said monthly bill.


Again, the computation of billing is based on the rules of the landlord. It is recommendable to not just focus on the monthly rental but take note of other aspects too such as electric, water and internet subscription.

3. One-month notice.

Well, one-month notice seems to be the most familiar term in every tenant. As stated above, there are instances that you could not finish your signed contract due to some reason. Maybe, you have been deployed in a different place, lost your job or there’s a sudden emergency you must attend in the province. From this perspective, you will need to give a one-month notice to your landlord which might implicate you with a forfeiture of your deposit.

The same rule must apply with landlord, they also need to give a one-month notice before discharging their tenant.

4. Demand letter.

A demand letter refers to a type of communication a landlord gives to a tenant in case the latter have not yet paid the rent for several months. The landlord can give a second and third letter if the tenant didn’t issue any response. Typically, the third letter also means that the tenant should pay his/her rent and leave the rental house as soon as possible.

If the tenant doesn’t get back for over a month after all the landlord’s attempt of contacting him/her, the latter can file the concern in the barangay. Depending upon the agreed contract, the landlord may open the rental house in order to ensure the safety and order of his/her property.

5. Negotiation in barangay.

Whatever conflicts that might occur between the landlord and tenant, they must be resolved by seeking assistance from the Barangay Captain of the place. The landlord and tenant will properly talk to each other and negotiate in terms of payment. This is to prevent any issue from escalating.

Reminder:

Renting will take a big part of your monthly income. Before you decide on moving out to rent, make sure that you have enough savings for the advance rental payment and deposit as well as other bills including electric, water, internet subscription, food and etc.

If you don’t have sufficient salary, you can begin in renting a bedspace where the payment for electric and water are already included in the rent.

Moreover, make sure to consider the distance of the rental house from your work. Sometimes, cheap rental house is far from the city where most offices are located. Also, calculate the time and money you will use every day. And always be practical.

Read Also: Tips Before Buying a Land in the Philippines To Avoid Problems


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