Are you thinking of renting out your property soon? With so many lots and units available for lease, landlords and lessors should be ready to answer some common questions from potential renters.
Here are some questions you may expect to be asked when they’re looking for a place to live.
How long has the lot or unit been on the market?
It’s a good idea to anticipate such question as a prolonged listing may indicate potential issues, such as an unreasonably high rent, a location susceptible to flooding, or a unit with unresolved defects.
Are utilities and association fees/condo dues included in the rent?
Most leasable spaces do not include utilities in the rent. The tenant is typically responsible for paying for electricity, cable television, and Wi-Fi/internet bills directly with utility providers. However, depending on the project, a renter may be expected to pay the water bill either directly to the water service provider or to the condominium corporation.
In subdivision and condominium projects, homeowners are typically required to pay association or condominium dues. However, there is no prohibition regarding adding that amount to the tenant’s rent, if the lessor wishes to do so. Therefore, it is essential for the parties to clearly agree to such payment responsibility.
What extra has
to be paid and when?
Before closing the lease, it is advisable to disclose additional fees or charges that may be imposed on the tenant. Apart from the association or condo dues, a lessee may be required to pay advance and/or security deposits and subject the lessee to the imposition of charges and penalties for breach of contract obligations. Some also rent out parking slots separately.
Unless provided in the lease contract to the contrary, units covered by the Rent Control Act of 2009 (Republic Act No. 9653) are required to pay their rent in advance within the first five days of every month or the beginning of the lease agreement, and cannot be asked for more than a month’s advance rent nor more than two months’ security deposit. Any interest earned from the deposit should be returned to the tenant at the end of the contract unless there are unpaid bills or the property was damaged by the tenant.
Non-adherence to scheduled rental payment may result in late charges, interest, or worst – termination of the contract. A tenant who fails to return the leased premises on time may also be levied a hold-over penalty by the lessor.
Can a tenant make repairs to the unit?
In the event repairs are required, the lessee is usually obligated to notify the lessor within the shortest possible time. The lessor is required to undertake all necessary repairs unless otherwise agreed upon by the parties.
In the event the lessor fails to make necessary repairs, the lessee may suspend the rent payment. Additionally, if the lessor fails to make such urgent repairs, the lessee may order the repairs at the expense of the lessor.
If the lessor undertakes the repairs, the tenant is constrained to endure the inconvenience, even if the lessee may be temporarily deprived of the use of a portion of the unit. Should the repairs exceed forty days, the rent shall be reduced proportionately to the total repair time, including the initial forty days, and according to the portion of the unit area which the lessee was deprived of.
A lessor who is compelled to undertake repairs due to a condemnation order may repossess the unit. However, as stipulated in RA 9653, the current tenant is entitled to be given first preference in leasing back the unit, provided that the adjusted rent is commensurate with the repairs’ cost. On the contrary, a tenant cannot be accorded any preference if the residential unit is completely demolished.
When the repairs render the unit uninhabitable, the lessee may opt to terminate the contract without incurring any penalty.
Conversely, a lessee shall assume sole responsibility for any damage due to his negligence, and or that of his family members or guests.
Is sub-leasing allowed?
A tenant is not allowed to assign his lease or sublet in whole or in part, including accepting boarders or bed spacers, unless with the consent of the lessor. Without it, the tenant’s action shall be a ground for termination of contract and ejectment.
* * *
Henry L. Yap is an Architect and Fellow of both Environmental Planning and Real Estate Management. He is one of the Undersecretaries of the Department of Human Settlements and Urban Development.
