The Rent To Rent Contract is a specialized agreement used in the Philippine real estate market when a tenant (typically a business operator) wishes to rent a property with the specific intention of sub-letting it to other tenants. This arrangement is particularly common in urban areas where property operators seek to generate profit from the differential between the guaranteed rent paid to the landlord and the higher rent collected from sub-tenants. The document encompasses all necessary provisions required under Philippine law, including compliance with the Rent Control Act, local government regulations, and the Civil Code of the Philippines. It's specifically designed to protect both the property owner's interests through guaranteed rental income and the operator's business model through explicit sub-letting rights. The contract includes detailed terms about property management, maintenance responsibilities, insurance requirements, and regulatory compliance, making it suitable for both residential and commercial properties.
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1. Parties: Identification of the head landlord and the tenant (future sub-landlord), including complete legal names, addresses, and contact details
2. Background: Context of the agreement, explaining the rent-to-rent business model and the parties' intentions
3. Definitions: Key terms used throughout the agreement, including 'Property', 'Head Lease', 'Sub-tenants', 'Guaranteed Rent', etc.
4. Grant of Lease: Terms of the head lease, including the property description, duration, and permitted use
5. Rent and Payment Terms: Details of rent payable to head landlord, payment schedule, guaranteed rent amount, and payment methods
6. Sub-letting Rights and Obligations: Terms governing the tenant's right to sub-let, including requirements for sub-tenant screening and management
7. Property Management Responsibilities: Detailed breakdown of maintenance, repair, and management responsibilities between parties
8. Compliance Requirements: Obligations regarding licenses, permits, safety regulations, and other legal requirements
9. Insurance Requirements: Mandatory insurance coverage for both parties, including public liability and contents insurance
10. Deposit and Security: Terms regarding security deposits, their management, and return conditions
11. Termination and Default: Circumstances and procedures for ending the agreement, including notice periods and breach remedies
12. Representations and Warranties: Legal statements and guarantees made by both parties
13. Governing Law and Jurisdiction: Specification of Philippine law governance and dispute resolution procedures
1. Furniture and Fittings: Detailed terms regarding furnished properties, including inventory and maintenance responsibilities
2. Property Improvements: Terms for allowing and managing property improvements or modifications
3. Utility Management: Specific arrangements for utility accounts and bill management
4. Marketing Rights: Terms regarding property marketing and advertising rights
5. Property Access: Specific arrangements for property viewings and inspections
6. Special Property Features: Terms relating to unique property features like parking, common areas, or facilities
7. Sub-tenant Standards: Specific requirements or restrictions for potential sub-tenants
8. Force Majeure: Provisions for extraordinary circumstances affecting the agreement
1. Schedule 1 - Property Details: Comprehensive description of the property, including address, boundaries, and included areas
2. Schedule 2 - Inventory: Detailed list of furniture, appliances, and fittings included in the lease
3. Schedule 3 - Rent Schedule: Detailed breakdown of rent payments, including guaranteed rent amounts and payment dates
4. Schedule 4 - Maintenance Requirements: Specific maintenance standards and schedules to be followed
5. Schedule 5 - Compliance Certificates: Copies or details of required safety certificates and permits
6. Appendix A - Property Photos: Dated photographs documenting the property's condition at lease start
7. Appendix B - Sub-letting Guidelines: Detailed procedures and requirements for sub-letting
8. Appendix C - Emergency Procedures: Contact information and procedures for various emergency situations
Relevant legal definitions
Clauses
Relevant Industries
Real Estate
Property Management
Hospitality
Short-term Rentals
Residential Property
Commercial Property
Property Investment
Serviced Accommodation
Relevant Teams
Legal
Operations
Property Management
Real Estate
Compliance
Risk Management
Business Development
Asset Management
Facilities Management
Contract Administration
Relevant Roles
Property Manager
Real Estate Investor
Property Investment Manager
Legal Counsel
Compliance Officer
Operations Manager
Asset Manager
Business Development Manager
Property Operator
Facilities Manager
Real Estate Agent
Contract Administrator
Risk Manager
Property Developer
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