Lease Renewal Agreement (Philippines)
LEASE RENEWAL AGREEMENT
This Lease Renewal Agreement ("Renewal") is entered into as of [Renewal Start Date], by and between:
LESSOR: [Lessor Name], with address at [Lessor Address] (hereinafter "Lessor");
LESSEE: [Lessee Name], with address at [Lessee Address] (hereinafter "Lessee").
RECITALS
WHEREAS, the Lessor and Lessee entered into a Lease Agreement dated [Original Lease Date] for the premises located at [Unit Address] ("Leased Premises"), at a monthly rent of PHP ₱[Original Monthly Rent], which lease is set to expire on [Original Lease Expiry];
WHEREAS, the Lessor and Lessee mutually agree to renew the lease on the terms set forth herein; NOW, THEREFORE, in consideration of the foregoing, the parties agree as follows:
1. RENEWAL TERM
The lease for the Leased Premises is hereby renewed for a further term commencing on [Renewal Start Date] and expiring on [Renewal End Date], unless earlier terminated in accordance with the terms hereof.
2. NEW MONTHLY RENT
The monthly rent for the renewal period shall be PHP ₱[New Monthly Rent], representing an increase of [Rent Increase Pct] over the previous monthly rent of PHP ₱[Original Monthly Rent]. Rent is payable on or before the [Rent Due Day]th of each month via [Payment Method] to [Payment Details].
For covered residential units under the Rent Control Act of 2009 (Republic Act No. 9653), where the monthly rent is at or below PHP 10,000 in Metro Manila and other highly urbanized cities, or at or below PHP 5,000 in other areas, the rent increase of [Rent Increase Pct] does not exceed the maximum allowable 7% per annum under RA 9653. Additional security deposit: [Additional Security Deposit].
3. CONTINUING TERMS
All other terms and conditions of the original Lease Agreement dated [Original Lease Date] shall remain in full force and effect during the renewal period, except as expressly modified by this Renewal. Changed or additional terms: [Changed Terms].
This Renewal supersedes any prior correspondence or negotiations regarding the renewal of the original lease. Any further modification shall be in writing and signed by both parties.
4. GENERAL PROVISIONS
This Renewal is governed by the Civil Code of the Philippines (RA 386) and the Rent Control Act (RA 9653) as applicable. Any dispute shall be submitted to Barangay conciliation under RA 7160, and if unresolved, to the proper courts.
IN WITNESS WHEREOF, the parties have signed this Lease Renewal Agreement on the date first written above.
Lessor
________________
Signature
Lessee
________________
Signature
Witness
________________
Signature
What Is a Lease Renewal Agreement (Philippines)?
A Lease Renewal Agreement in the Philippines governs the letting of residential or commercial premises, recording the rent, the length of the term and the rights and duties of landlord and tenant.
Under the Civil Code, a lease that has expired but is not formally renewed may be deemed implicitly renewed (tacita reconduccion) under Article 1670: if the lessee continues to occupy the premises after the lease expires and the lessor is aware of this and does not object, the lease is renewed for the same period stipulated in the original contract. However, implicit renewal through tacita reconduccion may not be desirable because it may not accurately reflect the parties' new agreement on rent (which may have increased), deposit adjustments, or other changed conditions. A formal Lease Renewal Agreement avoids this ambiguity.
For residential units covered by the Rent Control Act (RA 9653) — monthly rent at or below PHP 10,000 in Metro Manila and highly urbanized cities — the maximum annual rent increase is 7% even upon renewal. A Lease Renewal Agreement for a covered unit that purports to increase rent by more than 7% is void to the extent of the excess, and the lessee may pay only the legally allowed amount.
The Lease Renewal Agreement is also relevant for commercial tenants who have exercised a renewal option in their original lease agreement. Commercial leases in the Philippines frequently include options to renew for one or more additional terms — typically 1-5 years — at either a negotiated new rent or at a predetermined escalation rate. The renewal option is exercised by written notice within the notice window (usually 90-180 days before expiration), and the Lease Renewal Agreement documents the exercise of the option and the agreed terms for the new period.
The legal framework governing the Lease Renewal Agreement (Philippines) in Philippines draws on several key statutes and regulatory bodies. Under Philippine law, the Civil Code of the Philippines (Republic Act No. 386) governs contractual obligations. The Revised Corporation Code (Republic Act No. 11232) regulates corporate entities through the Securities and Exchange Commission (SEC). The Labor Code of the Philippines (Presidential Decree No. 442) and Department of Labor and Employment (DOLE) govern employment matters. The Data Privacy Act of 2012 (Republic Act No. 10173) and the National Privacy Commission (NPC) protect personal data. The Bureau of Internal Revenue (BIR) administers tax obligations under the National Internal Revenue Code. Parties executing a Lease Renewal Agreement (Philippines) in Philippines should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Rent Control Act (RA 9653) sets the foundational requirements.
When Do You Need a Lease Renewal Agreement (Philippines)?
A Lease Renewal Agreement in the Philippines is needed whenever a lessor and lessee agree to continue an existing tenancy beyond the original expiration date.
A Lease Renewal Agreement is required when a residential tenant whose one-year lease is expiring wishes to stay for another year, and the landlord agrees — often with an adjustment to the monthly rent. Instead of executing an entirely new lease, the parties sign a renewal agreement that incorporates the original terms and states the new rent and renewal period.
A Lease Renewal Agreement is needed when a commercial tenant exercises a renewal option written into the original lease agreement. Office tenants in Makati CBD, BGC, and Ortigas Center commonly have 1+1 or 3+1 year leases with renewal options, and the renewal agreement documents the formal exercise of the option and confirms the rent for the new period.
A Lease Renewal Agreement is required when a month-to-month tenancy has been operating informally and the parties decide to formalize the arrangement by converting it to a fixed-term renewal agreement with a specific end date and defined terms.
A Lease Renewal Agreement is needed to update the security deposit when rent has increased at renewal and the existing deposit no longer covers the required number of months at the new rent level.
A Lease Renewal Agreement is required for PEZA-registered enterprises (IT-BPO, manufacturing exporters) leasing space in PEZA-accredited buildings when their lease terms expire and they renew — PEZA registration renewal and fiscal incentive maintenance require a valid lease agreement covering the renewed period.
A Lease Renewal Agreement is needed when the landlord wants to add new terms — such as pet restrictions, parking allocation changes, or updated house rules — upon renewal, without renegotiating the entire original lease from scratch.
Under Philippine law, the Civil Code of the Philippines (Republic Act No. 386) governs contractual obligations. The Revised Corporation Code (Republic Act No. 11232) regulates corporate entities through the Securities and Exchange Commission (SEC). The Labor Code of the Philippines (Presidential Decree No. 442) and Department of Labor and Employment (DOLE) govern employment matters. The Data Privacy Act of 2012 (Republic Act No. 10173) and the National Privacy Commission (NPC) protect personal data. The Bureau of Internal Revenue (BIR) administers tax obligations under the National Internal Revenue Code.
What to Include in Your Lease Renewal Agreement (Philippines)
A valid Lease Renewal Agreement in the Philippines must contain the following elements.
Reference to Original Lease: Identification of the original lease agreement by date, parties, and leased premises, which is incorporated by reference. The Renewal Agreement need not repeat all original terms, only state which terms are amended and which continue unchanged.
Parties: Full legal names of lessor and lessee, confirming the same parties from the original lease. If either party has changed (e.g., the property was sold to a new owner, or the lessee entity changed name), the renewal should reflect the current parties and provide the authority for any changes.
Renewal Term: The specific start date (day after the original lease expires) and end date of the renewed lease, expressed as specific calendar dates. The renewal term must be clearly distinguished from the original term to avoid confusion.
New Monthly Rent: The monthly rent for the renewal period in Philippine Pesos (PHP ₱). For residential units covered by the Rent Control Act (RA 9653), the increase must not exceed 7% of the previous rent. For commercial leases, the new rent is freely negotiated.
Updated Security Deposit: The adjusted security deposit amount for the renewal period, if the increased rent requires a top-up. State the deadline for the lessee to pay any additional deposit needed to bring the total deposit to the agreed level for the new rent.
Amended Terms: Any changes to the original lease — updated house rules, changes to included utilities, modifications to the permitted use, new restrictions — must be expressly stated. All other terms of the original lease not specifically amended continue in force.
Rent Control Compliance: A statement of whether RA 9653 applies, and confirmation that any rent increase complies with the 7% cap for covered units.
Notarization: Notarization is recommended for the same reasons as the original lease, and is required if the renewal term, when added to the original term, exceeds one year in total for a lease that was not originally notarized.
Additional compliance elements for a Lease Renewal Agreement (Philippines) used in Philippines include: Under Philippine law, the Civil Code of the Philippines (Republic Act No. 386) governs contractual obligations. The Revised Corporation Code (Republic Act No. 11232) regulates corporate entities through the Securities and Exchange Commission (SEC). The Labor Code of the Philippines (Presidential Decree No. 442) and Department of Labor and Employment (DOLE) govern employment matters. The Data Privacy Act of 2012 (Republic Act No. 10173) and the National Privacy Commission (NPC) protect personal data. The Bureau of Internal Revenue (BIR) administers tax obligations under the National Internal Revenue Code. Forms-legal.com provides this template as a starting point for Philippines-compliant documentation.
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Reference this free template in an article, syllabus, or research note:
Forms Legal. (2026). Lease Renewal Agreement (Philippines) (Philippines) [Legal document template]. Forms Legal. https://forms-legal.com/philippines/real-estate/leases/lease-renewal-agreement-philippines
"Lease Renewal Agreement (Philippines) (Philippines)." Forms Legal, 2026, https://forms-legal.com/philippines/real-estate/leases/lease-renewal-agreement-philippines.
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year = {2026},
howpublished = {\url{https://forms-legal.com/philippines/real-estate/leases/lease-renewal-agreement-philippines}},
note = {Free legal document template. Based on Rent Control Act (RA 9653)}
}Also available for these jurisdictions:
Frequently Asked Questions
In the Philippines, whether to use a new lease agreement or a lease renewal agreement depends on how much has changed from the original lease. A Lease Renewal Agreement is appropriate when the parties, property, and most terms remain the same — only the duration and possibly the rent are changing. The renewal agreement incorporates the original lease by reference and amends only the specific changed terms. A new lease agreement is more appropriate when: multiple terms have changed significantly; a new party is involved (new owner, new tenant entity); the property itself has changed (renovated, expanded, or reduced); or the original lease was poorly drafted and the parties want a fresh start with a better document. For residential tenants covered by the Rent Control Act (RA 9653), a new lease agreement cannot circumvent RA 9653 protections — even a new lease for the same property with the same tenant must comply with the 7% maximum annual rent increase and the eviction ground restrictions. The Civil Code of the Philippines (RA 386) treats both instruments as lease contracts governed by Articles 1642-1688.
For residential units covered by the Rent Control Act of 2009 (Republic Act No. 9653) — monthly rent at or below PHP 10,000 in Metro Manila and other highly urbanized cities, or at or below PHP 5,000 in other areas — the maximum allowable rent increase is 7% per annum, whether at annual renewal or at any other time. This cap applies to the same tenant occupying the same unit — the landlord cannot increase rent by more than 7% even upon lease renewal. A Lease Renewal Agreement that purports to impose a higher increase on a covered unit is void to the extent of the excess under RA 9653. The tenant may pay only the legally allowed amount and file a complaint with the Department of Human Settlements and Urban Development (DHSUD) or the Metropolitan Trial Court (MTC) against the landlord for violations. For residential or commercial units above the RA 9653 rent threshold, there is no statutory limit on rent increases at renewal — the parties freely negotiate the new rent, and market rates in Makati CBD, BGC, and other prime areas typically experience 5%-15% annual escalations.
If a lease expires and neither party signs a renewal agreement in the Philippines but the tenant continues to occupy the premises with the landlord's knowledge and without objection, the Civil Code of the Philippines (RA 386) provides that the lease is impliedly renewed — this doctrine is called tacita reconduccion under Article 1670. The implied renewal is for the same period as the original lease (or for year-to-year if the original was annual, month-to-month if monthly, etc.) under the same original conditions. However, tacita reconduccion has important practical limitations: the landlord's knowledge and non-objection are required; any new conditions the landlord wanted to impose (such as a higher rent) are not automatically incorporated; and either party may terminate the implied renewal with the appropriate notice period. To avoid the uncertainty of tacita reconduccion, landlords and tenants should execute a formal Lease Renewal Agreement before the original lease expires. For units covered by the Rent Control Act (RA 9653), an implied renewal by tacita reconduccion does not allow the landlord to suddenly increase rent beyond the 7% cap or add new eviction grounds.
A Lease Renewal Agreement (Philippines) does not legally require a lawyer in Philippines, and individuals and businesses may draft and execute the document independently. The Rent Control Act (RA 9653) does not mandate legal representation for the creation or signing of this type of document. However, seeking independent legal advice from a qualified Philippines lawyer is recommended for transactions involving substantial financial value, complex regulatory requirements, or cross-border elements where multiple legal jurisdictions may apply. A lawyer can verify that the document complies with all applicable statutory requirements, identify potential risks specific to the transaction, and confirm that the terms adequately protect the interests of all parties involved. The Supreme Court of the Philippines has jurisdiction over disputes arising from this type of document, and Securities and Exchange Commission (SEC Philippines) may impose additional compliance obligations depending on the nature of the underlying transaction. Professional legal review is particularly advisable where the document will be submitted to government agencies or used as evidence in legal proceedings.
A Lease Renewal Agreement (Philippines) does not legally require a lawyer in the Philippines, though legal advice is recommended. Under Philippine law, the Civil Code of the Philippines (Republic Act No. 386) governs contracts. The Securities and Exchange Commission (SEC) regulates corporate documents. The Department of Labor and Employment (DOLE) oversees employment agreements. The Data Privacy Act of 2012 (Republic Act No. 10173) and National Privacy Commission (NPC) impose data protection obligations. The Bureau of Internal Revenue (BIR) requires tax compliance. Forms-legal.com provides this template as a starting point — always review with a qualified Philippine attorney for significant transactions. Under Philippines law, Rent Control Act (RA 9653), parties should seek independent legal advice from a qualified lawyer to confirm compliance with all applicable requirements. Under Philippine law, the Civil Code of the Philippines (Republic Act No. 386) governs contractual obligations. Forms-legal.com provides this template as a starting point for Philippines-compliant documentation.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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