The Rental Agency Agreement serves as a crucial legal instrument in the Philippine real estate market, establishing a formal relationship between property owners and professional rental agencies. This document becomes necessary when property owners wish to delegate the management and leasing of their properties to professional agents, ensuring proper handling of tenant relationships, property maintenance, and rental income collection. The agreement must comply with Philippine legal requirements, including the Real Estate Service Act (RESA), the Civil Code of the Philippines, and relevant property laws. It typically includes comprehensive details about service scope, commission structures, property management procedures, and compliance requirements. The document is particularly important for protecting both parties' interests and establishing clear operational guidelines in the Philippine property management context.
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1. Parties: Identifies and provides full details of the Property Owner and the Rental Agency, including registration numbers and addresses
2. Background: Explains the context of the agreement, including the property owner's intention to rent out the property and the agency's expertise in property management
3. Definitions: Defines key terms used throughout the agreement for clarity and legal certainty
4. Appointment and Scope of Authority: Details the formal appointment of the agency and specifies the extent of their authority to act on behalf of the property owner
5. Term of Agreement: Specifies the duration of the agreement, including start date and any renewal provisions
6. Agency Services: Comprehensively lists all services to be provided by the rental agency
7. Agency Fees and Commissions: Details all fees, commissions, and payment terms for the agency's services
8. Property Owner's Obligations: Lists all responsibilities and obligations of the property owner
9. Agency's Obligations: Specifies all duties and responsibilities of the rental agency
10. Marketing and Advertising: Outlines the agreed marketing approach and advertising responsibilities
11. Tenant Selection Process: Details the procedures for screening and selecting tenants
12. Financial Management: Explains how rental payments and expenses will be handled and reported
13. Termination: States conditions and procedures for terminating the agreement
14. Liability and Indemnification: Defines the extent of liability and indemnification obligations of both parties
15. Governing Law: Specifies that the agreement is governed by Philippine law and relevant regulations
16. Dispute Resolution: Outlines the process for resolving disputes between parties
1. Multiple Property Management: Include when the agreement covers multiple properties owned by the same owner
2. Special Property Requirements: Include for properties with unique features or requirements needing specific management approaches
3. Insurance Requirements: Include when specific insurance arrangements need to be detailed beyond standard coverage
4. Maintenance Fund: Include when establishing a separate fund for property maintenance is required
5. Emergency Protocols: Include for properties requiring specific emergency response procedures
6. Staff Assignment: Include when dedicated staff members will be assigned to the property
7. Online Listing Provisions: Include when specific online platforms or digital marketing strategies are agreed upon
8. Anti-Money Laundering Compliance: Include for high-value properties requiring enhanced due diligence procedures
1. Schedule A - Property Details: Detailed description of the property/properties covered by the agreement
2. Schedule B - Fee Structure: Comprehensive breakdown of all fees, commissions, and charges
3. Schedule C - Authorized Maintenance Expenditure Limits: Specified limits for maintenance expenses that can be incurred without owner approval
4. Schedule D - Marketing Plan: Detailed marketing strategy and budget allocation
5. Schedule E - Standard Operating Procedures: Day-to-day property management procedures and protocols
6. Appendix 1 - Required Documentation: List of required documents from property owner and future tenants
7. Appendix 2 - Reporting Templates: Standard templates for periodic reports and financial statements
8. Appendix 3 - Agency's Professional Credentials: Copies of licenses, certifications, and professional insurance policies
Relevant legal definitions
Clauses
Relevant Industries
Real Estate
Property Management
Residential Property
Commercial Property
Property Development
Property Investment
Professional Services
Real Estate Brokerage
Property Leasing
Hospitality
Relevant Teams
Legal
Real Estate
Property Management
Operations
Compliance
Business Development
Contract Administration
Asset Management
Finance
Customer Service
Relevant Roles
Real Estate Broker
Property Manager
Legal Counsel
Real Estate Agent
Property Owner
Business Development Manager
Compliance Officer
Operations Manager
Contract Administrator
Leasing Manager
Asset Manager
Property Administrator
Real Estate Director
Managing Director
Chief Executive Officer
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