Wherever you are in the Philippines today, we can’t deny the fact that some Filipinos do not have a house to call their own. Others either rent a house, apartment, or bedspace with some who are more fortunate in life paying an installment term house in Pag-IBIG or banks.
In this instance, there are few things you need to be aware of before renting in the Philippines. Note that the policy of the landlord and the law of real estate can change at any time. During these times of pandemic, it is important to know that both the tenant and landlord have their own corresponding rights.
In most cases, landlord often ask for advance payments from tenant which basically equal to the 3 months’ rent (two-months deposit and one-month advance).
The cost of two-months advance payment is also known as the “deposit”. In case you didn’t stick to the agreed contract and decided to leave the rental house because of a certain reason, the bill of electric, water, and internet that you will left should be subtracted by the deposit. This also served as the “security deposit” to pay the damage of the house, if there are any.
On the other hand, the cost of the advance payment is also called the “advance rental payment”. Meaning, the first month of your rent is already paid. The rent you will need to pay is only the succeeding months.
Depending on the rules of landlord, the advance payment differs in meaning and refund system. There are times when you should not expect a refund if you leave the rental house earlier than the agreed contract. It is best to comprehend the rules before deciding to move out.
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