Rent To Rent Agreement for Philippines

Rent To Rent Agreement Template for Philippines

A comprehensive legal agreement governed by Philippine law that establishes a rent-to-rent arrangement between a property owner (Principal Landlord) and an operator (Middle Landlord) who gains the right to rent and subsequently sub-let the property to other tenants. This document outlines the terms of the head lease, including guaranteed rent payments, maintenance responsibilities, subletting permissions, and operational requirements while ensuring compliance with relevant Philippine legislation including the Civil Code, Rent Control Act, and local property regulations. It provides detailed provisions for property management, financial arrangements, and the respective rights and obligations of all parties involved.

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What is a Rent To Rent Agreement?

The Rent To Rent Agreement is a specialized legal document used in the Philippine real estate market when a property owner wishes to delegate the rental management of their property to an operator who will then sub-let to other tenants. This arrangement has become increasingly popular in both residential and commercial sectors, particularly in urban areas where property management companies seek to maximize rental yields while providing owners with guaranteed income. The document must comply with Philippine property law, including the Civil Code of the Philippines and the Rent Control Act, while addressing specific requirements for subletting arrangements, maintenance responsibilities, and financial obligations. It is particularly useful for property investors, management companies, and operators looking to expand their portfolio without purchasing properties outright. The agreement typically includes comprehensive terms covering guaranteed rent payments, maintenance schedules, subletting permissions, insurance requirements, and specific provisions for property management and tenant relations.

What sections should be included in a Rent To Rent Agreement?

1. Parties: Identifies and provides full details of the Principal Landlord (Owner), the Middle Landlord (Rent to Rent Operator), including complete legal names, addresses, and contact details

2. Background: Explains the context of the agreement, including the intention for the Middle Landlord to rent the property and sub-let it to other tenants

3. Definitions: Defines key terms used throughout the agreement, including 'Property', 'Head Lease', 'Sub-lease', 'Rental Period', 'Guaranteed Rent', etc.

4. Grant of Lease: Details the formal grant of lease from Principal Landlord to Middle Landlord, including the property description and term of lease

5. Permission to Sub-let: Explicit permission and terms for the Middle Landlord to sub-let the property, including any conditions or restrictions

6. Rental Payments: Specifies the rent amount, payment schedule, method of payment, and guaranteed rent arrangements

7. Deposit and Security: Details of security deposits, including amount, holding arrangements, and conditions for return

8. Maintenance and Repairs: Outlines responsibilities for property maintenance, repairs, and improvements between all parties

9. Insurance Requirements: Specifies required insurance coverage for both Principal Landlord and Middle Landlord

10. Utilities and Services: Responsibilities for utility payments, service charges, and other ongoing costs

11. Covenants and Obligations: Detailed responsibilities and obligations of both parties throughout the term

12. Termination: Conditions and procedures for early termination of the agreement

13. Governing Law: Confirms the agreement is governed by Philippine law and relevant jurisdictions

What sections are optional to include in a Rent To Rent Agreement?

1. Guarantor Provisions: Required when there is a guarantor for the Middle Landlord's obligations

2. Property Management: Optional section detailing property management arrangements if the Middle Landlord will provide these services

3. Renovation Rights: Include when the Middle Landlord has permission to make specific alterations or improvements

4. Marketing Rights: Details of permitted marketing activities for sub-letting, if specifically negotiated

5. Option to Purchase: Include if there is an agreed option for the Middle Landlord to purchase the property

6. Force Majeure: Optional provisions for unforeseen circumstances affecting the agreement

7. Environmental Obligations: Include specific environmental responsibilities if property is in an environmentally sensitive area

What schedules should be included in a Rent To Rent Agreement?

1. Schedule 1 - Property Details: Detailed description of the property, including address, boundaries, and included fixtures and fittings

2. Schedule 2 - Inventory and Condition Report: Comprehensive inventory and condition report of the property at commencement

3. Schedule 3 - Rental Payment Schedule: Detailed breakdown of rental payments, including guaranteed rent amounts and payment dates

4. Schedule 4 - Maintenance Schedule: Specific maintenance responsibilities and schedules for both parties

5. Schedule 5 - Permitted Subletting Terms: Terms and conditions that must be included in all sub-letting agreements

6. Appendix A - Property Photos: Photographic evidence of property condition at commencement

7. Appendix B - Required Certificates: Copies of necessary certificates (fire safety, building permits, etc.)

8. Appendix C - Insurance Requirements: Detailed insurance specifications required for both parties

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Philippines

Publisher

Genie AI

Document Type

Rental Agreement

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Real Estate

Property Management

Residential Housing

Commercial Property

Student Accommodation

Serviced Apartments

Holiday Rentals

Corporate Housing

Property Investment

Relevant Teams

Legal

Real Estate Operations

Property Management

Asset Management

Facilities Management

Risk & Compliance

Business Development

Finance

Operations

Maintenance

Relevant Roles

Property Manager

Real Estate Investment Manager

Asset Manager

Facilities Manager

Legal Counsel

Property Investment Director

Operations Manager

Leasing Manager

Real Estate Agent

Property Portfolio Manager

Risk Management Officer

Compliance Officer

Business Development Manager

Property Maintenance Supervisor

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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