Renting out your property can be a great source of passive income, but it requires careful planning and legal compliance. Whether you’re a first-time landlord or a seasoned investor, understanding the essential documents and steps involved in leasing is crucial to avoid future disputes. This guide covers the must-have paperwork and best practices for a seamless leasing process.

Step 1: Prepare Your Property for Lease

Before listing your property, ensure it is in good condition. Conduct necessary repairs, repaint walls, and clean thoroughly to make it appealing to potential tenants.

Step 2: Gather Essential Leasing Documents

As a landlord, you must secure the following documents to ensure a legally binding lease:

• Title Deed (TCT or CCT) – Proof of property ownership.
• Valid Government IDs – Both landlord and tenant should provide identification.
• Lease Agreement – A written contract outlining rental terms, tenant responsibilities, and landlord obligations. Learn more about Leasing Agreements & Contracts.
• Barangay Clearance – Some localities may require this for leasing transactions.
• Tax Declaration & Real Property Tax Clearance – Proof that property taxes are up to date. Visit our Legal Requirements & Compliance section for more details.

Step 3: Screen Potential Tenants

Proper tenant screening helps minimize issues like late payments or property damage. Verify employment records, request references, and perform a background check before finalizing an agreement.

Step 4: Set Rental Terms & Security Deposits

Clearly define lease duration, rental amount, due dates, and security deposits in the agreement. Standard practice in the Philippines includes a security deposit equivalent to two months’ rent and one month advance payment.

Step 5: Register Your Lease Agreement

Lease agreements exceeding one year must be notarized and registered with the Bureau of Internal Revenue (BIR). Landlords must also pay documentary stamp tax (DST) within 30 days of contract signing.

Step 6: Hand Over the Property & Conduct Move-In Inspections

Document the property’s condition through a move-in checklist signed by both parties. This helps prevent disputes regarding damages upon lease termination.

Step 7: Property Management & Rent Collection

Decide whether you will self-manage the property or hire a property manager. Ensure timely rent collection and maintain good landlord-tenant relations.

Final Thoughts

Understanding the essential steps and documents for leasing your property will help you navigate the process with confidence. For more insights, check out our Landlord Guides & Tips section.