Apologies if this is in the wrong section, I tried a quick search but couldn't find any pertinent info. Anyhow, my wife will shortly be renting our house in Leyte (basically sound but unoccupied for 20 years) to a German Fellow and his Filipina wife. I've never met the guy or his wife, neither has my wife. From what one of the wife's sisters says they seem an OK couple and they have already provided a couple of months rent upfront to repair the fence surrounding the property and quasi deposit. If I were a 'landlord' in the UK then it would be prudent to do things by the book, and engage in some sort of lanlord/tenant contract to avoid misunderstandings & etc. I presume the Philippines works in a similar fashion, or do most people just 'wing it'. The wife is asking a fair rent, around P15,000 per month for a 3 bed house with water pump & aircon plus fair size plot. My previous dealings with legal paperwork and suchlike in the Philippines have been a bit hit and miss and I'm loathe to spend money on some legal contract which at some point down the line is not worth the paper it's printed on. I'm not really that bothered about the rental income, that's for the wife to 'disperse' as she sees fit. However I wouldn't want to learn in 5 years time that we can't get the tenants out and they have a claim to reside indefinitely in our house due to lack of formal arrangement.......or some other dire scenario!! Any thoughts or experiences from people who've experienced renting out properties in Phils welcome, Cheers, Simon
It's up to you Sir, I have a rental in Bacong Negros Oriental, or rather my wife has. We had to jump through hoops to get a business permit and you need to have a chest x-ray every year and send audits to the town hall bla bla bla. Or you can do what some others do and don't register your property, that way is easier but has it's risk. But if you have problems with the tenants not paying the rent or won't move out you are screwed. Your wife should know someone over here who could look after the business side for you!
I've been renting this place for the last 16 years, my partner or ex-partner (mother of my kids) is signatory to the contract which started out at 9000 a month for the first 10 years or so it went up in 2018 to 10,000 a month and just there in Feb it went up to 11,000, I consider my self lucky this is cheap in Metro Manila. The contract is about 4 pages and fairly loose but likely covers the basic law in the Philippines.
My wife has let a cousin move in to her otherwise empty house--to look after it. How long till the endless requests for money for repairs starts ?
Maybe just write up and ‘agreement in principle’ for both of you to sign. Make sure it stipulates who will be responsible for paying what, like major and minor fixing wear and tear etc. Just both sign it, most reasonable people will stick to that. But if a major dispute arises it would not stand up in court but if it would certainly help and be taken into consideration. You can find loads of these online, I just signed one for a place I'm renting here in Abu Dhabi but its just an understanding between me and rental agency, might help to create an extra area for an impartial witness to sign also but that might be overkill lol
I think Big Blimp's 'agreement in principle' sounds like a good way of proceeding......very much like 'winging it' and relying on most peoples inherent honesty!! What's the worst that could happen? Anyhow, a large part of the wife's extended family live in very close proximity to the property. If they understand that any 'family support' derives from the rental income of said property, then I would imagine that they would do a pretty good job of ensuring that any monies due are paid in a timely fashion.
