A practical lease checklist for landlords and tenants

A clear lease reduces disputes by defining money, use, repairs, turnover and exit terms before possession changes hands.

Lease disputes often begin with details that were never discussed: who pays association dues, whether pets are allowed, what counts as normal wear, or when a deposit may be deducted.

State rent, escalation, deposits, advance rent, association dues, utilities, taxes, payment method, penalties and renewal mechanics. Avoid relying on verbal side agreements.

Related reading: Capital asset versus ordinary asset: why the classification changes the tax conversation ↗ · Evaluating a property beyond the asking price ↗

Use a signed inventory and photo record. Identify existing defects, keys, appliances, parking and meter readings. Define who handles ordinary maintenance and major repairs.

Address permitted use, occupants, pets, subleasing, fit-out, signage, smoking, parking and building rules. Commercial tenants should verify that the intended use is permitted.

Cover notice, early termination, restoration, deposit deductions, holdover and inspection. A broker can coordinate offers, documentation and turnover, but material legal provisions should be reviewed where the lease is complex or high-value.

Confirm that the person offering the property has the authority to lease it and that the premises and permitted use are clearly identified. For condominium or subdivision property, check rules on occupants, pets, subleasing, business activity, and access. Review whether parking, storage, furniture, appliances, or shared facilities are included. When premises are occupied, document existing agreements and the date possession can legally be delivered.

Specify monthly rent, due date, method of payment, security deposit, advance rent, escalation provisions, penalties, utility responsibility, association dues, and any applicable taxes or withholding. Distinguish refundable deposits from nonrefundable charges. If repairs or fit-out are agreed, define spending limits and who pays. A lease should also address conditions for deposit return after documented deductions. Unclear money terms are among the most common sources of later disputes.

Before moving in, create a dated condition inventory with photos of rooms, fixtures, furniture, keys, meters, and any defects. Record the handover date and promised repairs in writing. Landlords should likewise preserve evidence of the initial condition to avoid unreasonable deposit claims later. For commercial spaces, confirm permitted use, utility capacity, electrical load, signage restrictions, and required permits before substantial fit-out expenses.

Distinguish ordinary cleaning and minor consumables from structural repairs, appliance maintenance, air-conditioning servicing, pest treatment, and damage caused by misuse. Make reporting requirements explicit and identify who may authorize a repair. A clear maintenance process prevents small issues from becoming expensive disputes. Include emergency contact information and reasonable access rules so the owner can inspect or repair without unnecessarily intruding on the tenant’s occupancy.

State when notices must be delivered, renewal procedures, changes in rent, grounds for termination, early exit consequences, and the method of returning possession. For a commercial lease, discuss fit-out ownership, restoration obligations, and any business-specific licenses. For residential leases, check applicable laws and tenant protections before relying on a contractual clause. Written notice requirements should be achievable and consistent with mandatory legal protections.

At move-out, compare the agreed condition inventory with current condition, record final meter readings, reconcile association charges, return keys and access cards, and itemize documented deductions. The parties should acknowledge turnover and any remaining obligations. If a disagreement arises, preserve correspondence and refer to the written agreement and applicable law. A careful closeout helps avoid disputes about deposits, possession, or alleged property damage long after the tenant leaves.

What should I verify first? Establish the identity and authority of the relevant parties, the actual property being discussed, and the accuracy of key documents. Write down assumptions before discussing final prices or signing binding commitments.

Can I rely on a website listing? Use a listing as an introduction. Prices, availability, ownership, tax treatment and possession can change or require direct confirmation. Get appropriate professional advice before committing funds.

What is the next step? Review current properties for sale, examine applicable buyer requirements, or contact REAL PROPERTY PH with the relevant property code and your specific questions.

This article offers general educational information, not individualized legal, tax, banking, engineering, or investment advice. Philippine requirements and institutional procedures may change; verify them for the actual property and parties involved.