Lease contract is a legal form made and executed by the lessor and the lessee. In preparing a contract of lease it should clearly state the place where the contract was executed and date when it was executed. It should also state the complete name of both the lessor and the lessee, age, status, the name of spouse if married, the citizenship and the residence address in separate paragraph, and clearly indicating therein who is the lessor and the lessee between the contracting parties.
On the succeeding paragraph, it should be stated therein the type of structure and/or property being leased and its location, and also the terms and conditions both the lessor and lessee had agreed upon. Usually, landlord has proforma landlord forms ready and all they need to do is just filling in the blanks for the vital information. Terms and conditions that should be included in the agreement is the purpose for which the premises is being leased, and thereby prohibiting lessee to use the property other that what is expressly agreed. Violation of said agreement would mean automatic revocation and/or cancellation of the contract without prejudice to its other rights under the law.
Initially, lease contract is good for one year. Upon its expiration, if the lessee still desires to continue leasing the premises, a written notice of intent to renew the lease contract should be sent to the lessor prior to the expiration of the lease period agreed upon. The lessor will be the one to decide whether to allow renewal of the lease contract or eventually terminate upon its expiration. The lessor may agree to renew the lease contracts under same terms and conditions that had been mutually agreed upon. Monthly rate for the leased premises shall also be indicated in the lease contract. All rental payments in the form of check should be made payable to the lessor, who in return should issue a corresponding for all the payments made by the lessee may it be check or cash.
The lessor upon signing of the lease contract would require the lessor to pay for the deposit as agreed upon. Most lessor requires three months deposit, wherein the 2 months deposit shall be applied as rent for the 11th and 12th months and the remaining one month deposit for other obligations for utilities such as water, electricity, telephone, association dues which should be paid by the lessee during the duration of the lease and for the damages resulting from violations of any of the provision of the lease contract.
The lessee cannot be held liable for the whole or any part of the leased premises which had been destroyed or damaged by fortuitous event such as fire, flood, lightning, typhoon, earthquake, storm and other unforeseen event. In case the occurrence of the above mentioned event rendered the leased premises during the term substantially unfit for use and occupation, then the lease contract may be terminated without compensation by the lessor or by the lessee.