Sample Lease Contract

Below is a generic copy of lease contract. Feel free to modify (copy and paste) and print to suite your needs.

LEASE CONTRACT

KNOW ALL MEN BY THESE PRESENTS:

This CONTRACT OF LEASE is made and executed at the City of _____, this day of _______________, 20__, by and between:

        _____________________________, of legal age, single/married to (Name of spouse if any),   Filipino, and with residence and postal address at (Address), hereinafter referred to as the LESSOR.

-AND-

        _____________________________, Filipino and with residence and postal address at (Address), hereinafter referred to as the LESSEE.

WITNESSETH; That

WHEREAS, the LESSOR is the owner of THE LEASED PREMISES, a residential property situated at ___________________________________;

WHEREAS, the LESSOR agrees to lease-out the property to the LESSEE and the LESSEE is willing to lease the same;

NOW THEREFORE, for and in consideration of the foregoing premises, the LESSOR leases unto the LESSEE and the LESSEE hereby accepts from the LESSOR the LEASED premises, subject to the following: 

TERMS AND CONDITIONS

1. PURPOSES:   That premises hereby leased shall be used exclusively by the LESSEE for residential purposes only and shall not be diverted to other uses. It is hereby expressly agreed that if at any time the premises are used for other purposes, the LESSOR shall have the right to cancel this contract without discrimination to its other rights under the law.

2. TERM:  This term of lease is for ONE (1) YEAR, from _____________ to __________ inclusive. Upon its expiration, this lease may be renewed under such terms and conditions as my be mutually agreed upon by both parties,  written notice of intention to renew the lease shall be served to the LESSOR not later than seven (7) days prior to the expiry date of the period herein agreed upon.

3. RENTAL RATE:   The monthly rental rate for the leased premises shall be in PESOS: ________________________________________, (________.00), Philippine Currency. All rental payments shall be payable to the LESSOR.

4. DEPOSIT:   That the LESSEE shall deposit to the LESSOR upon signing of this contract and prior to move-in an amount equivalent to ONE (1) MONTH or the sum of  PESOS: _____________________________ (___________.00), Philippine Currency.  wherein the deposit shall be shall answer partially for damages and any other obligations, for utilities such as Water, Electricity, Cable Tv, Telephone, or resulting from violation(s) of any of the provision of this contract.

5. DEFAULT PAYMENT:  In case of default by the LESSEE in the payment of the rent, such as when the checks are dishonored, the LESSOR at its option may terminate this contract and eject the LESSEE. The LESSOR has the right to padlock the premises when the LESSEE is in default of payment for One (1) month and may forfeit whatever rental deposit or advances have been given by the LESSEE.

6. SUB-LEASE:   The LESSEE shall not directly or indirectly sublet, allow or permit the leased premises to be occupied in whole or in part by any person, form or corporation, neither shall the LESSEE assign its rights hereunder to any other person or entity and no right of interest thereto or therein shall be conferred on or vested in anyone by the LESSEE without the LESSOR'S written approval.

7. PUBLIC UTILITIES:   The LESSEE shall pay for its telephone, electric, cable TV, water, Internet, and other public services and utilities during the duration of the lease.

8. FORCE MAJEURE:   If whole or any part of the leased premises shall be destroyed or damaged by fire, flood, lightning, typhoon, earthquake, storm, riot or any other unforeseen disabling cause of acts of God, as to render the leased premises during the term substantially unfit for use and occupation of the LESSEE, then this lease contract may be terminated without compensation by the LESSOR or by the LESSEE by notice in writing to the other.

9. LESSOR'S RIGHT OF ENTRY:   The LESSOR or its authorized agent shall after giving due notice to the LESSEE shall have the right to enter the premises in the presence of the LESSEE or its representative at any reasonable hour to examine the same or make repairs therein or for the operation and maintenance of the building or to exhibit the leased premises to prospective LESSEE, or for any other lawful purposes which it may deem necessary.

10. EXPIRATION OF LEASE:   At the expiration of the term of this lease or cancellation thereof, as herein provided, the LESSEE will promptly deliver to the LESSOR the leased premises with all corresponding keys and in as good and tenable condition as the same is now, ordinary wear and tear expected devoid of all occupants, movable furniture, articles and effects of any kind. Non-compliance with the terms of this clause by the LESSEE will give the LESSOR the right, at the latter's option, to refuse to accept the delivery of the premises and compel the LESSEE to pay rent there from at the same rate plus Twenty Five (25) % thereof as penalty until the LESSEE shall have complied with the terms hereof.  The same penalty shall be imposed in case the LESSEE fails to leave the premises after the expiration of this Contract of Lease or termination for any reason whatsoever.

11. JUDICIAL RELIEF:   Should any one of the parties herein be compelled to seek judicial relief against the other, the losing party shall pay an amount of One Hundred (100) % of the amount clamed in the complaint as attorney's fees which shall in no case be less than P50,000.00 pesos in addition to other cost and damages which the said party may be entitled to under the law.

12. This CONTRACT OF LEASE shall be valid and binding between the parties, their successors-in-interest and assigns.

IN WITNESS WHEREOF, Parties herein affixed their signatures on the date and place above written.

(Name of Lessor)                               (Name of Lessee)

LESSOR                                                LESSEE

Signed in the presence of:

_____________________________                  ______________________________

ACKNOWLEDGEMENT

Republic of the Philippines)

_________________________) S.S

BEFORE ME, personally appeared:

   Name                                 CTC Number             Date/Place Issued

      (Name of Lessor)                             10000000           February 24, 20__ / Cavite City

(Name of Lessee)                            10000000           January 07, 20__ / Makati

Known to me and to me known to be the same persons who executed the foregoing instrument and acknowledged to me that the same is their free and voluntary act and deed.

This instrument consisting of ____ page/s, including the page on which this acknowledgement is written, has been signed on each and every page thereof by the concerned parties and their witnesses, and sealed with my notarial seal.

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

                                                                    

                                                                                                    Notary Public

Doc. No.______;

Page No. ______;

Book No.______;

Series of 20___.

Three Things

Three things in life that, once gone, never com back:

Time
Words
Opportunity

Three things in life that are most valuable:

Love
Self-confidence
Friends

Three things in life that are never certain:

Dreams
Success
Fortune

Three things in life that make a man/woman:

Hard work
Sincerity
Commitment

Three things in life that can destroy a man/woman:

Alcohol
Pride
Anger

Three things in life that once lost, hard to build-up:

Respect
Trust
Friendship

P---pray
U---until
S---something
H---happen

Saving Money in the Shower

I am sure majority of us never thought that morning shower as another way to save money. But, there are a lot of little things we can do to reduce the cost of keeping clean and neat. Even if we’re still half asleep, that won’t mean we want money needlessly running down the drain. Here are a few ideas I found out on how we can save money in a shower:

Take shorter showers - It may feel good to stay in water, but it costs money (plus warm water dries our skin, anyway). Use a timer to control shower time.

Do a Navy shower - My husband used to say this. In a Navy shower, you just get yourself wet then turn off the water while you soap up and wash. You turn the water on again to rinse yourself.

Use a pail and dipper (tabo) - I’m getting used to this new habit of turning faucet’s both cold and warm to get to my right temperature and using the right amount of water.

Install low-flow shower heads - These reduce the amount of water that flows out and they’ve come a long way. They no longer condemn you to a trickle of water. Many offer a comfortable flow of water.

Shower less often - If you shower twice a day, can you get by with only once?

Shower, don’t bathe - Baths use far more water than showers. The occasional bath is a nice treat, but a bath every day is a big water waster.

Keep those razors in good condition - Avoid leaving razor in the shower. Blades that are constantly wet usually get rust and will not last as long as those that are stored in dry cabinets. Wipe it dry and put it away. If you use an electric razor, follow the care and cleaning instructions to make certain it lasts a long time.

Use towels/washcloths more than once - Unless you are really filthy, you can use your towels and cloths more than once. You can easily get by with changing them once or twice per week. Hang them up to dry when you’re done showering to keep them from mildewing or stinking. This will make them last longer and reduce your laundry bill.

Use less and fewer products - Try using less of your current soaps and shampoos. Instead of a big squirt, try a teaspoonful. Experiment to see if you can get the same results with less. Experiment with how often you use products, as well. Do you really have to shampoo your hair every day, or will every other day do? You can also try using fewer products in general. Do you need shaving cream, or can you get by with just water? Does your hair require conditioner or do you use it just because you think you’re supposed to? Do you need three different kinds of shampoo? See if you can do with fewer products. And don’t forget to use up all of your products. Turn bottles upside down to get the last bits out and mold left over soaps to the new bar so it all gets used up.

Recycle the water - Catch the grey water into a bucket, then use it to fill the toilet… I know it’s yak sometimes!

A shower doesn’t seem like much in the everyday scheme of your spending. However, a few small changes can add up to big money saved over time.

A Humor With A Message

Great humor not only tickle the funny bone, but also delivers a punch line that makes us think about our lives, our relationships and the way we interact.

Here’s humor that is a subtle dig on married life.

Knowing the parts for the school play were supposed to be posted today, a father asked his son if he got a part.

The son enthusiastically announced that he’d gotten one. ” I play a man who’s been married for 20 years.”

” That’s great, son. Keep up the good work, and before you know it, they’ll be giving you a speaking part soon.”

In business, sometimes, we have confilcts. While conflicts are inevitable, conflicts not properly managed can be among the biggest drain on motivation, and can result in wasted money and time. Before we spend another time to argue and fight, especially when it involves getting expensive lawyers, let us remember this joke:

Two farmers were fighting over a cow. while one was pulling the head and the other was pulling the tail, the lawyer was seen milking the cow…

Myths Of Owning Rental Property

Most of us think that having a rental property is one of the easiest businesses to make money. You found an income property by the commercial are, collect the rent every month, and enjoy the income. Most of us believed that once you buy a property and rent it out you are settled to it for years to come. This is what I thought before I bought a rental property.
Many people think that it is easy to become a landlord - you know, you buy a property, collect rent every month and enjoy the income. The popular belief is that once you buy a property and rent it out, you are all set for the next 5 years or so. At least that’s what I was told before I bought my rental property in Metro Manila.

When the real estate market was booming, many aspiring investors rushed to the suburban to look for properties that were believed to be undervalued. The rumor then was to buy a property before the real estate market prices skyrockets in that main city. I knew some of my parents’ friends had bought properties when the average single-family houses were in the hundred thousand ranges, and had double their initial investment in less than 5 years.

I also had several friends who participated in this real estate mania. One friend told me, “Buy the property now. Sit back and collect rent.” It turns out that many people I know had joined the real estate craze and bought a property. They all buy a house and rent it out. It seemed like a great opportunity for the people from the province who could not afford suburban real estate prices. I was one of those people. Thus, I traveled to Metro Manila and bought a property there.

At first, I was getting the good tenants. I collected rent every month on time. It was like a dream come true. The rent checks kept coming and I kept smiling. No complains from me. I almost thought I could just sit back and collect rent for the next 10 years.

Just when I thought it was easy to be a landlord, my luck struck out in 2010. I realized I had terrible tenants, who would not pay rent and would not want to leave. They also caused a lot of problems. I tried to evict them in court but they took exploited loop holes in the legal system to postpone court dates until I could no longer deal with them.

Owning a rental property is like owning a business. It requires time and energy. Even if you have good tenants, you need to be ready for any problems that may arise. Most of us do not start a business and think we can make money by doing nothing. Instead, we would expect that starting and running a business take time and hard work. The same mindset should go for owning a rental property.

Owning a rental property can be hard work and time consuming. Below are some myths about owning rental property.

Myth #1: I just need enough money for the down payment to buy a rental property
There are many costs associated with a rental property apart from the initial down payment. You would definitely need extra money for the rainy days. The house may be in need of sudden repairs and you would need to have some cash to back yourself up. Also, it’s no guarantee that you can always rent out the property. Some times it may take months before you can find a new tenant after the old one leaves. In events like that, you should have adequate savings to help you ride through tough periods for the time being.
In my situation with the bad tenant, I did not receive rent payment for 5 months. I had to dig into my personal savings and pay mortgages and other costs associated with the house. My cash flow was negative for many months. Therefore, I would suggest landlords to have approximately 12 months of rent money for backup.

Reality: Down payment is usually not enough for buying a rental property. You need about 12 months of rent money in addition to down payment and closing fees.

Myth #2: I can sit back and collect rental payment every month from my tenants
Many people think that once you buy the property, everything else goes on autopilot. You think that you would sit back, cash checks and get fat. More often than not, you would be busy dealing with tenants and making regular repairs to the rental unit. You can hire a real estate agent to take care of it for you, but it will cost you money. And even with an agent, you cannot just sit back and forget everything. Since it is your property and not your agent’s, your agent will not be too concern about your property if you don’t care much about it. Be prepared. Rental property owners should be hands-on with managing the property.
My friend had hired a real estate agent to look after her property. She told me that all they do was collect the rent checks, deduct the service fees and pay the difference to you. If there were problems with the house, the agents would not always react right away. Often they would call you for a decision. In which case, they would suggest calling a third party, recommended by the agent, to make repairs. My friend thought that her real estate agent was useless, because even after hiring the agent, my friend was on the phone several times a day whenever there was an issue in the house. She was doing the same amount of work regardless if she had an agent or not. She canceled the service and save on the monthly service fees.

Reality: A rental property requires your attention and prompts for your actions. You have to be proactive.

Myth #3: I will buy a rental property and get rich 
Many people think that buying a property will help make them rich soon. They may have seen other people get rich from buying property and is always the exceptionally good news that travels down everyone’s ears. For example, your friend tells you that he had purchased a house at some place and made a phenomenal return on his/her money. Hearing that story, you would definitely make as much as him/her and rushes to buy a house.
I confess that I was one of them when I bought my house in Metro Manila. I heard many people made 100% or more returns when they sold their properties. The rumor at that time was that the housing market in the area would increase significantly. The local economy was thought to be booming and the job market seemed to be doing well. My friend told me that real estate prices would most likely double in two years. I thought about it and it seemed like a good investment at the time.
Unfortunately, I got in the real estate market at near the peak. The prices had dropped since then. The current value of my property is probably 30% lower than what I had paid for it.
Now I am in debt with a mortgage that is probably worth more than my house. I also have other monthly expenses associated with the rental property, such as insurance, real estate tax, etc. I have not seen positive cash flow for a very long time.

Reality: Buying a rental property is not a guarantee that you will get rich.

Myth #4: The house will care for itself
People think that if they buy a property and successfully rent it out, then they are all set. It’s easy to forget that the house goes through wear-and-tear each year. The house needs maintenance every year or so. There are many things to be checked. For example, the walls need repainting for a new tenant. The water tank system and sewer system need to be checked regularly. It is in your best interest to detect problems early on. Usually finding out the problems and fixing them soon help save money for you.
For my property, I had repaired and replaced many things. To name a few things, replaced kitchen faucet and a shattered bedroom door, installed a new water pump. I had to shell out a lot of my money in my savings account. This is also where some extra money can help. The rent money alone was not enough.

Reality: The house will need to be checked regularly.

Myth #5: My contractor will fix everything
People rely heavily on their contractors to do the work for them. The contractors will tell you something to make you believe that they are better than you and they will do the job right. And if you do not know any better, you would believe them.
I doubt contractors have your house in their best interest. Most contractors try to get the job done as soon as possible without you bothering them. Often, the quality of the work is mediocre. This is especially true if you are far away from the property, like I am. I learned that it is best to inspect the job after it is done by the contractor. This gives you an opportunity to examine the quality of work that was done by the contractor. And if the work was not done correctly, you would have to tell the contractor. It is your house, so you have to place your high attention to it.

Reality: The contractor does not have your house in his/her best interest at heart. You need to inspect the work and follow up with the contractor.

In conclusion, the myths present owning a rental property seems easy, but in reality, there are many hours of work behind the scenes. As always, do your due diligence before investing in the real estate market. And if you are seriously interested in getting your foot in the real estate market but do not want to get your foot dirty, there is an alternative option - real estate investment trust (REIT). REITs are securities that you can trade in the stock market. You do not have to deal with tenant problems in REITs and you will often receive a nice dividend for holding REITs. REITs are the preferred investment choices for investors who want to participate in the real estate market and do not want to deal with the hassles.