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Management Lease Agreement for Philippines

Management Lease Agreement Template for Philippines

A comprehensive legal document governed by Philippine law that combines elements of both a lease agreement and a property management contract. This agreement establishes the terms under which a management company leases and operates a property on behalf of the owner, detailing responsibilities for property maintenance, tenant management, financial operations, and service delivery. The document incorporates relevant provisions from the Philippine Civil Code, Rent Control Act, and other applicable local regulations, while establishing clear performance metrics, compensation structures, and risk allocation between parties.

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Management Lease Agreement

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What is a Management Lease Agreement?

The Management Lease Agreement serves as a crucial document in Philippine real estate operations, combining property leasing and management services in a single comprehensive agreement. This document is typically used when property owners wish to delegate both operational control and management responsibility to a professional management company, while maintaining ownership rights. The agreement must comply with Philippine legislation, including the Civil Code, Rent Control Act, and local government regulations. It details specific terms for property operation, maintenance responsibilities, financial arrangements, and performance standards. The Management Lease Agreement is particularly valuable for commercial properties, mixed-use developments, and large residential complexes where professional management is essential for optimal property performance and value maintenance. The document includes provisions for reporting requirements, insurance obligations, and dispute resolution mechanisms specific to the Philippine jurisdiction.

What sections should be included in a Management Lease Agreement?

1. Parties: Identification of the Property Owner (Lessor) and Management Company (Lessee/Manager), including their complete legal names, addresses, and corporate details

2. Background: Context of the agreement, description of the property, and purpose of the management lease arrangement

3. Definitions: Detailed definitions of terms used throughout the agreement

4. Grant of Lease and Management Rights: Specific rights granted to the management company, including both lease and management authority

5. Term and Renewal: Duration of the agreement, commencement date, and renewal provisions

6. Rent and Management Fees: Financial terms, including base rent, management fees, performance-based compensation, and payment terms

7. Management Company's Obligations: Detailed responsibilities including property maintenance, tenant management, financial reporting, and operational duties

8. Property Owner's Obligations: Responsibilities of the owner, including providing necessary documentation, insurance, and structural maintenance

9. Operating Expenses and Budgets: Allocation of expenses, budget approval process, and financial management procedures

10. Maintenance and Repairs: Responsibilities and procedures for property maintenance, repairs, and improvements

11. Insurance and Liability: Required insurance coverage, indemnification provisions, and allocation of risks

12. Default and Remedies: Events of default, cure periods, and available remedies for both parties

13. Termination: Grounds for termination, notice requirements, and post-termination obligations

14. Governing Law and Dispute Resolution: Applicable law and procedures for resolving disputes

What sections are optional to include in a Management Lease Agreement?

1. Environmental Compliance: Required when the property has specific environmental considerations or requirements

2. Foreign Ownership Provisions: Necessary when either party is a foreign entity, addressing compliance with Philippine foreign ownership restrictions

3. Sub-leasing Rights: Include when the management company is granted rights to sub-lease the property

4. Development Rights: Required when the agreement includes property development or major renovation rights

5. Special Use Provisions: Necessary for properties with specific use restrictions or requirements (e.g., retail, industrial)

6. Force Majeure: Optional but recommended section detailing handling of unforeseen circumstances

7. Marketing and Branding: Include when specific marketing rights or branding requirements are part of the management scope

What schedules should be included in a Management Lease Agreement?

1. Schedule A - Property Description: Detailed description of the property, including legal description, boundaries, and included facilities

2. Schedule B - Inventory List: Comprehensive inventory of furniture, fixtures, and equipment included in the lease

3. Schedule C - Service Level Agreements: Detailed performance metrics and service standards for the management company

4. Schedule D - Fee Structure: Detailed breakdown of all fees, including management fees, performance bonuses, and expense allocations

5. Schedule E - Maintenance Schedule: Required maintenance activities and their frequency

6. Schedule F - Operating Procedures: Standard operating procedures for property management

7. Appendix 1 - Required Insurance: Detailed insurance requirements and minimum coverage levels

8. Appendix 2 - Reporting Templates: Standard formats for required financial and operational reports

9. Appendix 3 - Emergency Procedures: Emergency response protocols and contact information

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Philippines

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions









































Clauses









































Relevant Industries

Commercial Real Estate

Residential Real Estate

Retail

Hospitality

Industrial

Office Space Management

Mixed-Use Development

Shopping Centers

Healthcare Facilities

Educational Institutions

Relevant Teams

Legal

Real Estate

Operations

Finance

Compliance

Risk Management

Facilities Management

Asset Management

Property Services

Business Development

Leasing

Relevant Roles

Property Manager

Real Estate Director

Facilities Manager

Operations Manager

Legal Counsel

Chief Financial Officer

Asset Manager

Building Administrator

Compliance Officer

Risk Manager

Real Estate Investment Manager

Business Development Manager

Property Services Director

Leasing Manager

Regional Property Manager

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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