rent lease property management

8/17/2019 Rent Lease Property Management

http://slidepdf.com/reader/full/rent-lease-property-management 1/6

Rent / Lease and Property Management laws

Lease – A contract where , one of the parties binds himself to give to another the enjoyment or use of a thing

for a price certain, and for a period which may be definite or indefinite. However, no lease for more than ninety-nine years

shall be valid.

Characteristic of Contract of lease

The consent of the parties is needed

1. Bilateral – There must e at least two person in the contract!. "nerous #$. %ommutati&e'. (ominate). Principal*. Purpose is to allow en+oyment or use of a thing,. -u+ect matter must e within the commerce of man. Purpose to which the thing will e de&oted should not e immoral. Period is temporary10. Period is denite

2. Rent of Residential units

This is co&ered y R.A. *)$ or The Rent %ontrol Act of !00

This law co&ers the following residential units nationwide3 whose monthly

rent is elow P10,000 and below4

A. Apartments5

B. 6ouses and/or land on which another7s dwelling is located andused for residential purposes5 and

%. Buildings or parts thereof3 which are eing used solely as dwelling

units3 oarding houses3 dormitories3 rooms and ed space

This law does not co&er3 rented units3 which are used as

a. motels3 motel rooms3 hotels3 and hotel rooms

. home industries3 retail stores or other usiness purposes if the owner

thereof and his or her family actually li&e therein and use it principally

for dwelling purposes

The increase in the monthly rental rate of any residential unit shall not e

more than

8our percent 9':; annually for those paying a monthly rent/ranging from

P1.00 to P$3.005



-e&en percent 9,:; for those paying a monthly rent of P'3000.00 up to

P103000.00 for as long as the unit is occupied y the same lessee

These rates were e<tended y the 6ousing and =ran >e&elopment

%oordinating %ouncil 96=>%%; until >ecemer !01,. The power of the

6=>%% to e<tend the rental regulation is ased on -ection * R.A. *)! which

pro&ides that

?Section 6. Authority to Continue Rental Regulation. # (otwithstanding he lapse of

the period pro&ided in -ection ' of this Act. the 6ousing and =ran >e&elopment

%oordinating %ouncil 96=>%%; is herey granted the authority to continue the regulation of

the rental of certain residential units3 to determine the period of regulation and its

suse@uent e<tensions if warranted3 to determine the residential units co&ered and to ad+ust

the allowale limit on rental increases per annum3 taing into consideration3 among others3

(ational -tatistics "ce 9(-"; census on rental units3 pre&ailing rental rates3 the monthly

inCation rate on rentals of the immediately preceding year3 and rental price inde<.D

E&ery lessor is allowed to impose not more than one (1) month advance

rent and not more than two (2) months deposit, which shall e

deposited in a an under the lessor7s account name during the entire

duration of the lease agreement. Any interest that shall accrue therein shall

e returned to the lessee at the e<piration of the contract.

The lessor has the right to forfeit a portion or all of the one month

deposit including the interest earned in the e&ent the lessee is unale to

settle rent3 electric3 telephone3 water or such other utility ills or destroys

any house components and accessories.

Tae note that there may still a one month deposit that cannot e used to

settle rent3 utilities3 and destroyed house components and accessories.

Frounds for Gudicial E+ectment

The lessor has the right to e+ect the lessee on the following grounds4

A. The lessee assigns the lease or su#leases the unit3 without the written

consent of the owner/lessor5

B. The renter has accumulated arrears in rental e@ui&alent to three 9$;

months5



%. After the e<piration of the lease period3 the lessor/owner has a legitimate

need to repossess the property for his/her

own use or that of his/her family as a residential unit3 pro&ided that the

renter was notied three months in ad&ance5

>. The lessor/owner needs to mae necessary repairs on the leased

premises3 which is the su+ect of an e<isting order

of condemnation y appropriate authorities concerned in order to mae

the premises safe and haitale5 and

E. The lease contract has e<pired.

The lessee cannot e e+ected on the ground that the leased premises

ha&e een sold or mortgaged to a third

person regardless of whether the lease or mortgage is registered or not.

http4//www.congress.go&.ph/download/asicH1*/6B0*$*!.pdf

Lease of Rural Land

Article 1680. The lessee shall have no right to a reduction of the rent on account of the sterility of the land leased, or by

reason of the loss of fruits due to ordinary fortuitous events; but he shall have such right in case of the loss of more than

one-half of the fruits through extraordinary and unforeseen fortuitous events, save always when there is a specific stipulation

to the contrary.

xtraordinary fortuitous events are understood to be! fire, war, pestilence, unusual flood, locusts, earth"ua#e, or others

which are uncommon, and which the contracting parties could not have reasonably foreseen.

Article 1682. The lease of a piece of rural land, when its duration has not been fixed, is understood to have been for all the

time necessary for the gathering of the fruits which the whole estate leased may yield in one year, or which it may yield

once, although two or more years have to elapse for the purpose.

Lease of =ran Land

Article 1687. $f the period for the lease has not been fixed, it is understood to be from year to year, if the rent agreed upon is

annual; from month to month, if it is monthly; from wee# to wee#, if the rent is wee#ly; and from day to day, if the rent is to be

paid daily. However, even though a monthly rent is paid, and no period for the lease has been set, the courts may fix a

longer term for the lease after the lessee has occupied the premises for over one year. $f the rent is wee#ly, the courts may

li#ewise determine a longer period after the lessee has been in possession for over six months. $n case of daily rent, the

courts may also fix a longer period after the lessee has stayed in the place for over one month.

Commercial and $ndustrial lease

This #ind of lease is subject to the agreement of the parties because contracts of lease are consensual. The parties here are

negotiating each term of the contract.

%ome of the important terms of a contract of lease are the following!



1. &ength of the lease

!. 'ent and escalation clause

$. %ecurity deposit including its forfeiture and return

'. The area of the lease

). (ho bears the costs of the taxes

*. )ssignment of lease

,. %ub-lease

. Termination of the lease

'emedy in case of the tenant refuses to leave the premises after the expiration of the lease

)ction for unlawful detainer*)n action for the recovery of possession of any real property by a landlord, vendor, vendee, orother person against whom the possession of the same was unlawfully withheld after the expiration or termination of the

right to hold possession.

$t must be filed with + year from the date of last demand to vacate. $t is filed in the etropolitan Trial Court where the

property is located

Property management is the administration of residential, commercial and/or industrial real estate.

Property management typically involves the managing of property that is owned by another party or

entity. Theproperty manager acts on behalf of the owner to preserve the value of the property while

generating income. Managed properties include residential and vacation properties, commercial retail

space or industrial warehouse space. Property managers are typically paid a fee and/or a percentage

of the rent brought in for the property while under management.

)gency - y the contract of agency a person binds himself to render some service or to do something in representation

or on behalf of another, with the consent or authority of the latter.

%haracteristic of %ontract of Agency

1. Preparatory!. 8iduciary$. Bilateral

'. "nerous). Representati&e Relation*. (ominate,. %onsensual. Principal

)gency may be express, or implied from the acts of the principal, from his silence or lac# of action, or his failure to repudiate

the agency, #nowing that another person is acting on his behalf without authority. )gency may be oral, unless the law

re"uires a specific form.

http://www.investopedia.com/terms/p/property-manager.asp

http://www.investopedia.com/terms/p/property-manager.asp



+/. ) special power of attorney is necessary in the following cases

To make such payments as are not usually considered as acts of administration;

• To effect novations which put an end to obligations already in existence at the time the agency was constituted;

• To compromise, to submit "uestions to arbitration, to renounce the right to appeal from a judgment, to waiveobjections to the venue of an action or to abandon a prescription already ac"uired;

• To waive any obligation gratuitously;

• To enter into any contract by which the ownership of an immovable is transmitted or ac"uired either gratuitously or

for a valuable consideration;

• To ma#e gifts, except customary ones for charity or those made to employees in the business managed by the

agent;

• To loan or borrow money, unless the latter act be urgent and indispensable for the preservation of the things which

are under administration;

To lease any real property to another person for more than one year;

• To bind the principal to render some service without compensation;

• To bind the principal in a contract of partnership;

• To obligate the principal as a guarantor or surety;

• To create or convey real rights over immovable property;

• To accept or repudiate an inheritance;

• To ratify or recogni0e obligations contracted before the agency;

• )ny other act of strict dominion.

+/1. )cceptance by the agent may also be express, or implied from his acts which carry out the agency, or from his

silence or inaction according to the circumstances

+2+. very agent is bound to render an account of his transactions and to deliver to the principal whatever he may have

received by virtue of the agency, even though it may not be owing to the principal.

very stipulation exempting the agent from the obligation to render an account shall be void.

+23. The agent may appoint a substitute if the principal has not prohibited him from doing so; but he shall be responsible

for the acts of the substitute!

4+5 (hen he was not given the power to appoint one;

435 (hen he was given such power, but without designating the person, and the person appointed was notoriously

incompetent or insolvent.



)ll acts of the substitute appointed against the prohibition of the principal shall be void.

-ustitution is diIerent from ha&ing a su#agent.

• E<tinguishment of agency 9E>JAR>;

•

E<piration of the Period• >eath3 ci&il interdiction3 insanity or insol&ency of the principal or of the

agent• Jithdrawal of the agent

• Accomplishment of the o+ect or the purpose of the agency

• Re&ocation• >issolution of the rm or corporation3 which entrusted or accepted the

agency

rent lease property management

Documents