The Commercial Rent Demand Letter is a crucial document in Philippine commercial property management and legal practice, used when a commercial tenant has failed to pay rent as specified in their lease agreement. This formal communication is typically issued after informal payment requests have been unsuccessful and before initiating legal proceedings. The document must comply with Philippine Civil Code requirements and commercial property laws, requiring specific information about the lease, detailed accounting of unpaid rent, and clear payment demands. It serves multiple purposes: formally documenting the payment demand, providing the tenant a final opportunity to cure the default, and satisfying legal prerequisites for potential court action. The letter should be professionally drafted to maintain business relationships while protecting the landlord's legal rights under Philippine jurisdiction.
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1. Letterhead and Date: Business letterhead including sender's complete contact information and current date
2. Recipient Details: Full name, title, and complete address of the tenant/debtor
3. Subject Line: Clear indication that this is a formal demand for rent payment
4. Lease Reference: Details of the lease agreement including date, property address, and lease terms
5. Outstanding Amount: Detailed breakdown of all unpaid rent, including specific months and amounts
6. Legal Basis: Reference to relevant lease provisions and Philippine laws regarding payment obligations
7. Demand Statement: Clear and unequivocal demand for payment, including total amount and deadline
8. Consequences: Statement of legal actions that will be taken if payment is not received
9. Payment Instructions: Clear instructions on how and where to make the payment
10. Closing: Professional closing, signature block, and contact information for response
1. Payment History: Include when there's a pattern of late payments or partial payments to establish history of default
2. Previous Notices: Reference to prior communications regarding the unpaid rent, if any
3. Payment Plan Option: Include if willing to offer or negotiate a payment plan
4. Interest and Penalties: Include if lease agreement provides for late payment interest or penalties
5. Covid-19 Considerations: Include if relevant to the timing of payments or if specific arrangements were made during pandemic
6. Alternative Dispute Resolution: Include if proposing mediation or other alternative dispute resolution methods
1. Statement of Account: Detailed breakdown of all outstanding amounts, including original due dates
2. Payment History Record: Record of all payments made and missed during the lease term
3. Copy of Lease Agreement: Relevant pages of the lease agreement showing payment terms
4. Previous Correspondence: Copies of previous reminder letters or notices sent
5. Proof of Default: Any relevant documentation proving the default in payment
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