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Contract of Lease Template Philippines: Free Sample & Guide

Essential lease contract clauses under Philippine law — Rent Control Act, security deposit rules, ejectment rights, and a free residential/commercial template.

May 5, 2026 · 10 min read

What Is a Contract of Lease?

A Contract of Lease is a bilateral agreement by which the lessor gives the lessee use and enjoyment of a property for a price (rent) and for a fixed period. In the Philippines, it is governed by Articles 1642–1688 of the Civil Code, and for residential units with monthly rents within the covered range, by RA 9653 (Rent Control Act of 2009).

The same document is interchangeably called a Rental Agreement, Lease Agreement, Tenancy Agreement, or Rental Contract — and in Tagalog, a kontrata sa upa. Whatever the label, the clauses below apply equally to room, apartment, house, and commercial leases.

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Essential Clauses in a Philippine Lease Contract

  1. Parties — lessor and lessee names, addresses, civil status
  2. Property description — address and description of the leased premises
  3. Lease term — start date, end date (or month-to-month designation)
  4. Rental rate — monthly rent in pesos, due date, mode of payment
  5. Security deposit — amount (max 2 months for covered residential units), conditions for deduction
  6. Advance rent — amount (max 1 month for covered units)
  7. Permitted use — residential only, commercial, or mixed
  8. Utilities — who pays electricity, water, internet, association dues
  9. Subletting and assignment — whether permitted or prohibited
  10. Maintenance and repairs — distinction between ordinary repairs (lessee) and extraordinary (lessor)
  11. Grounds for termination — non-payment, violation, expiry
  12. Return of premises — condition on which the lessee must return the property

Free Contract of Lease Template

CONTRACT OF LEASE KNOW ALL MEN BY THESE PRESENTS:

This Contract of Lease (the “Contract”) is made and entered into this January 15, 2026 at Pasig City, Philippines, by and between:

Juan Dela Cruz, of legal age, with address at 123 Rizal Street, Barangay San Antonio, Quezon City, hereinafter referred to as the “LESSOR”;

- and -

Maria Santos, of legal age, with address at 456 Mabini Street, Barangay Poblacion, Makati City, hereinafter referred to as the “LESSEE.”

WITNESSETH: That –

WHEREAS, the LESSOR is the lawful owner or authorized lessor of the two-bedroom residential condominium unit located at 789 Bonifacio Avenue, Barangay Kapitolyo, Pasig City (the “Leased Premises”);

WHEREAS, the LESSEE desires to lease the Leased Premises from the LESSOR for residential purposes, under the terms and conditions herein;

WHEREAS, the LESSOR is willing to lease the Leased Premises to the LESSEE under such terms and conditions;

NOW, THEREFORE, for and in consideration of the foregoing, and of the rents, covenants, and agreements herein contained, the parties hereby agree as follows:

ARTICLE I – LEASED PREMISES

1. The LESSOR hereby leases, lets, and delivers unto the LESSEE, and the LESSEE hereby accepts from the LESSOR, the two-bedroom residential condominium unit located at 789 Bonifacio Avenue, Barangay Kapitolyo, Pasig City.

2. Inspection; Acceptance. — The LESSEE has thoroughly inspected the Leased Premises prior to the execution of this Contract and accepts the same in its present condition, subject to the LESSOR’s obligations under this Contract and applicable law, including obligations relating to necessary repairs and the peaceful enjoyment of the lease.

ARTICLE II – TERM OF LEASE

1. Term. — This Contract shall be effective for a period commencing on February 1, 2026 and ending on January 31, 2027, unless sooner terminated pursuant to the provisions hereof or renewed by mutual written agreement of the parties.

2. Renewal. — Any renewal or extension of this Contract shall be made in writing and signed by both parties prior to the expiration of the term hereof.

ARTICLE III – CONSIDERATION

1. Monthly Rent. — The LESSEE shall pay the LESSOR a monthly rental of Twenty-Five Thousand Pesos (₱25,000.00), payable on or before the 5th day of each calendar month, at the LESSOR’s address above or at such other place as the LESSOR may designate in writing. If the due date falls on a Saturday, Sunday, or legal holiday, payment shall be due on the next business day.

2. Advance Rental. — Upon execution of this Contract, the LESSEE shall remit to the LESSOR 1 month advance rental totaling ₱25,000.00, which shall be applied to the first month of the lease.

3. Security Deposit. — Upon execution of this Contract, the LESSEE shall likewise remit to the LESSOR a security deposit equivalent to 2 months rental totaling ₱50,000.00, to answer for any unpaid rentals, damages to the Leased Premises, and any other obligation of the LESSEE under this Contract. For covered residential units under Republic Act No. 9653, the security deposit shall not exceed two (2) months rent. The security deposit shall not be applied to any monthly rental during the lease term without the LESSOR’s prior written consent. The balance of the security deposit, after lawful deductions and any interest required by applicable law, shall be refunded to the LESSEE within thirty (30) days after the termination of this Contract and the return of the Leased Premises in good condition.

ARTICLE IV – PURPOSE

1. Use. — The LESSEE shall use and occupy the Leased Premises exclusively for residential purposes and for no other purpose without the prior written consent of the LESSOR.

2. Sub-Lease Prohibited. — The LESSEE shall not sublease, mortgage, or in any manner encumber the Leased Premises or any part thereof, nor assign this Contract or any interest therein, without the prior written consent of the LESSOR. Any violation hereof shall be a ground for termination of this Contract.

ARTICLE V – DEFAULT

1. Default. — The LESSEE shall be in default if: (a) rental payments remain unpaid for thirty (30) days after the due date; (b) the LESSEE violates any material term or condition of this Contract; or (c) the LESSEE abandons the Leased Premises. Upon default, the LESSOR shall send written notice to the LESSEE, who shall have fifteen (15) days to cure the default. If the default remains uncured, the LESSOR may terminate this Contract pursuant to Article VI and pursue all remedies available under applicable law.

ARTICLE VI – CANCELLATION

1. Grounds for Termination. — This Contract may be terminated upon the occurrence of any of the following: (a) uncured default by the LESSEE as defined in Article V; (b) material violation by either party of any covenant, condition, or term hereof; or (c) destruction of the Leased Premises rendering it unfit for the purpose for which it is leased.

2. Notice. — Either party desiring to terminate this Contract for any lawful reason other than those enumerated above shall give the other party written notice of at least thirty (30) days prior to the intended date of termination, unless a different period is required by applicable law.

3. Ejectment. — Recovery of possession of the Leased Premises shall be pursued through lawful judicial process as required by applicable law. This Contract shall not be construed to authorize the LESSOR to evict the LESSEE without due process.

4. Effect of Termination. — Upon termination of this Contract for any cause, the LESSEE shall immediately vacate and surrender the Leased Premises to the LESSOR in the same condition as received, reasonable wear and tear excepted.

ARTICLE VII – MISCELLANEOUS

1. Utilities. — The LESSEE shall be solely responsible for the payment of all utility charges incurred in the Leased Premises, including but not limited to electricity, water, telephone, cable, and internet services, from the date of commencement of the lease.

2. Repairs and Maintenance. — The LESSEE shall be responsible for ordinary maintenance, cleanliness, and minor repairs arising from ordinary use or caused by the fault, negligence, or misuse of the LESSEE, members of the household, employees, guests, or invitees. The LESSOR shall be responsible for major structural repairs and necessary repairs not caused by the LESSEE, unless otherwise agreed in writing and permitted by law.

3. Improvements and Alterations. — The LESSEE shall not make any alterations, improvements, additions, or installations on the Leased Premises without the prior written consent of the LESSOR. Unauthorized improvements may be removed or required to be restored at the LESSEE’s expense. Any approved permanent improvements shall become the property of the LESSOR upon termination of this Contract without obligation to reimburse the LESSEE, unless reimbursement is expressly agreed in writing or required by applicable law.

4. Care of Property. — The LESSEE shall maintain the Leased Premises in clean, sanitary, and good condition, and shall not use the same in any manner that is in violation of any applicable law, ordinance, or regulation.

5. Inspection. — The LESSOR or the LESSOR’s authorized representative shall have the right to inspect the Leased Premises at any reasonable time upon prior written notice to the LESSEE.

6. Return of Premises. — Upon the expiration or termination of this Contract, the LESSEE shall immediately return possession of the Leased Premises to the LESSOR, together with all keys and access devices, with the Leased Premises in the same condition as received, reasonable wear and tear excepted.

7. Notices. — All notices, demands, or communications under this Contract shall be in writing and shall be deemed duly given if delivered personally, sent by courier, or sent by registered mail to the addresses of the parties stated in this Contract, or to such other address as either party may designate in writing.

8. Governing Law. — This Contract shall be governed by and construed in accordance with the laws of the Republic of the Philippines, including the Civil Code of the Philippines and, where applicable to the Leased Premises and the parties, Republic Act No. 9653 (Rent Control Act of 2009) and related rent-control issuances. Any dispute arising from this Contract shall be submitted to the proper courts of Pasig City, Philippines.

IN WITNESS WHEREOF, the parties have hereunto affixed their signatures this January 15, 2026 at Pasig City, Philippines.

JUAN DELA CRUZ
LESSOR
MARIA SANTOS
LESSEE
SIGNED IN THE PRESENCE OF:
PEDRO REYES
Witness
ANA LIM
Witness
REPUBLIC OF THE PHILIPPINES)
PASIG CITY) S.S.

BEFORE ME, a Notary Public for and in the above jurisdiction, personally appeared the above-named parties with competent evidence of identity, known to me and to me known to be the same persons who executed the foregoing instrument and acknowledged that the same is their free and voluntary act and deed.

WITNESS MY HAND AND SEAL on the date and at the place first above written.

Doc. No. ;
Page No. ;
Book No. ;
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Frequently Asked Questions

What is a Contract of Lease in the Philippines?
A Contract of Lease is an agreement whereby the lessor (owner) binds themselves to give the lessee (tenant) the enjoyment or use of a property for a price (rent) and for a period of time. It is governed by Articles 1642–1688 of the Civil Code and, for residential units within covered rent ranges, by RA 9653 (Rent Control Act).
Does a lease contract need to be notarized in the Philippines?
For leases of one year or less, a private written contract is valid. For leases exceeding one year, the Civil Code requires a notarized (public) document for enforceability against third parties. In practice, most landlords and tenants notarize even short-term leases for stronger evidentiary value.
What is the maximum security deposit under RA 9653?
Under the Rent Control Act (RA 9653), lessors of covered residential units may collect a maximum advance rent of one month and a security deposit of two months — totaling a maximum of three months' advance rent. The deposit must be returned within one month after the lease ends, less any legitimate deductions.
How can a lessor legally evict a tenant in the Philippines?
Grounds for ejectment (unlawful detainer) under Philippine law include: non-payment of rent, violation of lease conditions, need to repossess for personal use or repairs, and expiration of the lease term. The lessor must first send a written demand to pay or vacate, then file an ejectment case in the MTC if the lessee refuses.
What is the difference between an ejectment case and a recovery of possession case?
Ejectment (forcible entry or unlawful detainer) is the summary remedy filed in the MTC when a lessee unlawfully withholds possession. Recovery of possession (accion publiciana or accion reivindicatoria) is filed in the RTC for longer-term possession disputes. Most tenant-landlord disputes proceed through ejectment.
Is a Contract of Lease the same as a Rental Agreement?
Yes. A Contract of Lease, Rental Agreement, Lease Agreement, Tenancy Agreement, and Rental Contract are all different names for the same document in Philippine practice — an agreement where the lessor gives the lessee the use of a property in exchange for rent. In Tagalog it is often called a kontrata sa upa. Legalia's generator produces a Contract of Lease that works for room, apartment, house, and commercial rentals alike.

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