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Parking Rental Agreement in the Philippines: What You Need to Know

If you own a property with a parking space in the Philippines, you might want to consider renting it out. With the increasing demand for parking in urban areas, especially in commercial and residential buildings, renting out your parking space can be a great source of passive income. However, before you go and start advertising your parking spot for rent, you need to have a parking rental agreement in place.

A parking rental agreement is a legal document that outlines the terms and conditions of renting out your parking space. It serves as a contract between the landlord (the owner of the parking space) and the tenant (the person renting the parking space). It is important to have a written agreement to avoid any misunderstandings or disputes between both parties.

Here are the things you need to know about parking rental agreements in the Philippines:

1. The agreement should be in writing

A verbal agreement is not enough to protect your rights as a landlord or a tenant. It is important to have the agreement in writing and signed by both parties. This ensures that the terms and conditions are clear and agreed upon by both parties.

2. Include the details of the parking spot

Make sure to include the specific details of the parking space in the agreement, such as the location, dimensions, and type of parking (covered or uncovered). This helps avoid any confusion or disputes over the space rented out.

3. Define the term of the lease

The agreement should specify the start and end dates of the lease. If it is a long-term lease, you can include a renewal clause or an option to renew at the end of the term.

4. Set the rental rate and payment terms

Specify the rental rate and the payment terms in the agreement. This includes the amount of the monthly rent, the due date, and the penalty for late payments. Make sure to also include the mode of payment (e.g. cash, check, bank transfer), and the security deposit (if any) required.

5. Include provisions on maintenance and repair

As the landlord, you have the responsibility to maintain and repair the parking space. However, you can include provisions in the agreement that outline the tenant’s responsibilities, such as keeping the parking space clean and reporting any damages or repairs needed.

6. Add provisions on termination and eviction

Include provisions that outline the grounds for termination of the agreement and eviction of the tenant. This includes non-payment of rent, breach of the agreement, and illegal activities.

7. Consult a lawyer

It is advisable to consult a lawyer to review the agreement before signing. This ensures that the agreement is legally binding and protects your rights as a landlord or a tenant.

In conclusion, a parking rental agreement is an important document to protect the rights of both parties involved. It ensures that the terms and conditions of renting out a parking space are clear and agreed upon by both parties. Make sure to follow the guidelines above, and consult a lawyer to ensure a smooth and hassle-free leasing experience.


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