# Renting protection



## Manitoba (Jun 25, 2014)

In signing and prepaying a longer term lease what precautions should I take to ensure that the person I am giving the money to actually has the right to rent the house or apartment?

I am concerned that someone may "rent" the place and disappear with the cash and I may loose out when the actual owner returns.


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## Tiz (Jan 23, 2016)

When I signed up in this condo, I verified with the condo management that the landlord was the actual owner.

I guess this doesn't really protect me if the owner stops paying their bank and the bank repossesses but hopefully that's long odds.


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## Hey_Joe (Sep 13, 2016)

Google Philippine Rental Scams. Plenty of information.

The Rent Control act of 2009 states that a lessor cannot demand from the tenant more than one (1) month advance rent and more than two (2) months deposit.

You may want to ask an Attorney but I would be cautious with advance rent payments exceeding what the law is. Should something go wrong they may only enforce the law on the books to get back beyond what you actually paid.


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## Manitoba (Jun 25, 2014)

Hey_Joe said:


> ....
> 
> The Rent Control act of 2009 states that a lessor cannot demand from the tenant more than one (1) month advance rent and more than two (2) months deposit.
> 
> ....


What about long term rentals? I am thinking of a rental to convert my SRRV deposit.

I am not overly concerned about losing a couple months rent but 25 years or more worth.


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## Hey_Joe (Sep 13, 2016)

Manitoba said:


> What about long term rentals? I am thinking of a rental to convert my SRRV deposit.
> 
> I am not overly concerned about losing a couple months rent but 25 years or more worth.


25 year or more contract or you plan on paying the full 25 years?

After what is being revealed with properties, condo's, etc. on Boracay, one should be very cautious when dealing with Condos and long term rentals, leasehold land. Particularly, who "is the actual owner" of land the structure is built on.

Imagine the Foreigners who thought they bought Condos from good faith builders who illegally built on PI Govt property. I read many structures are being demolished there and converted to farm and forest land.

Perhaps you should consult a PI Real Estate Attorney.


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## Manitoba (Jun 25, 2014)

Hey_Joe said:


> 25 year or more contract or you plan on paying the full 25 years?
> 
> .....


Is that not how the long term leases here work? Basically you "buy" the house for 25 or 50 years and at the end of that time the property reverts to the original owner. 

How else would the PRA allow the SRRV deposit to be converted in a long term lease situation? Do you think that they would give me back my $US20k and allow me to sign a long term lease when was making monthly payments?


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## Hey_Joe (Sep 13, 2016)

Manitoba said:


> Is that not how the long term leases here work? Basically you "buy" the house for 25 or 50 years and at the end of that time the property reverts to the original owner.
> 
> How else would the PRA allow the SRRV deposit to be converted in a long term lease situation? Do you think that they would give me back my $US20k and allow me to sign a long term lease when was making monthly payments?



Over the years, I have contacted The American Chamber of Commerce in Manila AmCham | Philippines , and Numerous Attorneys in Manila and suggested the idea of them holding an annual seminar in Manila or where many Expats reside on how to conduct lawful activity in The Philippines as an Expat for topics such as Life Insurance, Condo Ownership, Leasehold, many of the topics discussed on here, etc. etc. etc. 

The profit of a 1 or 2 day seminar would be enormous for any Philippine Attorney. To date, no replies from anyone, no seminars..............

Why? 

I've learned over the decades of being here that there is no one size/law that fits all. Perhaps that's the reason no one wants to hold a seminar?

Laws seem to be all decentralized here similar as the Dialects from where ever you are that are spoken here. I have no answer for you but to consult an attorney where you plan on doing your transactions and hope for the best.


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## Manitoba (Jun 25, 2014)

It will be a while before I make any long term commitment to one place here.

I have been her since September and only taken short term rentals so far. I have been traveling around looking for an area where I want to stay and will take a 6 month lease there before making a final decision and finding a longer term place to stay.

Even then I may not get a long term lease, just go on a annual lease and be prepared to move should my circumstances change. 

Part of the attraction of the expat lifestyle for me at least is the possibility of being able to move around.


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## JRB__NW (Apr 8, 2015)

Manitoba said:


> It will be a while before I make any long term commitment to one place here.
> 
> Even then I may not get a long term lease, just go on a annual lease and be prepared to move should my circumstances change.
> 
> Part of the attraction of the expat lifestyle for me at least is the possibility of being able to move around.


Absolutely. So many great places, so little time. That said I have mostly rented in the same place, lol. But it's a great base of operations. As for your original question, I first rented from a reputable property management firm, then most recently a private owner known to the condo admin folks. Never felt I was taking a risk.


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## bigpearl (Jan 24, 2016)

Manitoba said:


> Is that not how the long term leases here work? Basically you "buy" the house for 25 or 50 years and at the end of that time the property reverts to the original owner.
> 
> How else would the PRA allow the SRRV deposit to be converted in a long term lease situation? Do you think that they would give me back my $US20k and allow me to sign a long term lease when was making monthly payments?


Finding a 25 + 25 year lease may be difficult to find, in all the years we looked at property we never saw any advertised, may be wrong though.
This is what we did. When we found the property we wanted we negotiated the price obviously, consulted an attorney. 
The land was put in my partners name, the house and improvements were put in my name, a 25 + 25 year lease was drawn up and the purchase price of the land (PHP 5M) was payment in full on the lease for 50 years so in effect paying PHP 100K per year rent. The lease is registered on the title (encumbered) so it can't be sold or borrowed against.
The lease gives me the right over the property for development, improvements, at my discretion as well as lots of other stuff written into it like being able to sell that lease and buildings if I choose to. If I die the lease can be bequeathed etc.

While this works for us it may not suit others, you could simply find a Filipino you trust and give him or her the opportunity to ad the property to his/her portfolio though it can't be touched for 50 years.
You also have to make the decision on where to live based on your needs and whether to put roots down in one place.

I too hope to use this lease to get the US 20K back when I accomplish my SRRV.

Cheers, Steve.


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