A good lease starts before the first tenant viewing. Preparing the paperwork, the property and your terms early can save you from long vacancies and disputes later.
1. Confirm that you can lease it
Have the title or proof of ownership on hand, along with updated real property tax receipts. If there are co-owners, get their agreement in writing. For condos and gated communities, ask the administrator about leasing rules, tenant registration and move-in fees. If the property is mortgaged, check your loan terms too.
2. Get the property ready
- Fix leaks, wiring, locks and appliances before viewings.
- Decide whether it will be bare, semi-furnished or fully furnished.
- Check that electricity and water accounts are updated, and decide how bills will be handled.
- Take dated photos of the condition of each room.
3. Set a realistic rent
Compare similar properties in the same city or barangay, with the same size and furnishing. Actual closed rents are more useful than asking prices if you can find them. Rent in Angeles or Clark can behave very differently from other parts of Pampanga, so compare locally.
4. Decide your lease terms
- Length of the lease and how renewal works
- Monthly rent, due date and accepted payment methods
- Advance rent and security deposit, and when the deposit is returned
- Rent increases on renewal
- Who pays for utilities, association dues and repairs
- Rules on pets, subleasing and occupants
- How either side can end the lease early
Put everything in a written lease and sign it with an inventory of furnishings. Notarization is commonly recommended, and a lawyer can review the contract if the terms are unusual.
5. Check if rent control applies
The Rent Control Act (RA 9653) covers lower-rent residential units, generally those at or below ₱10,000 a month, with a lower ceiling in some areas under the law. For covered units it limits yearly increases, and advance rent and deposit are limited to one month and two months respectively. The current extension is set to run through December 31, 2026, so check with the Department of Human Settlements and Urban Development (DHSUD) for the rules in force when you sign.
6. Screen tenants carefully
Ask for a valid ID, proof of income or employment, and references from a previous landlord if there is one. Only collect what you need, and keep it secure, since the Data Privacy Act applies to personal information.
7. Know your tax obligations
Rental income is generally taxable. Ask the BIR or an accountant what registration and filing apply to you, ideally before your first tenant moves in.
Ready to find a tenant? Read more about renting out property in Pampanga, including what happens after you submit.