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Who Should Pay for Notarization in a House Rental? Plus, What Must Be Included in Your Rental Agreement

Renting a home in the Philippines can be both exciting and overwhelming. For tenants, it means having a new place to build routines and memories. For landlords, it represents an opportunity to earn income while providing a safe living space. But before the move-in, both sides must iron out one critical element: the rental agreement.

A rental agreement is the written document that protects both parties—it sets expectations, rights, and responsibilities. In the Philippines, many of these agreements are notarized, but this leads to an important question: Who should shoulder the cost of notarization?

In this blog, we’ll tackle:

Who typically pays for the notarization of a house rental in the Philippines?

What must be included in a rental agreement to make it valid, clear, and fair?

By the end, you’ll have a guide that helps prevent misunderstandings and ensures smoother landlord-tenant relationships.

 

Who Should Pay for Notarization in a House Rental?

What is notarization, and why is it needed?

Notarization is the process of having a notary public certify a document to ensure it is authentic, binding, and recognized in court. While a rental agreement in the Philippines can be valid even if it isn’t notarized, notarization provides an extra layer of legal protection. It transforms a private document into a public document that can easily be used in legal proceedings, if ever disputes arise.

 

Typical practice in the Philippines

Unlike fixed government fees (like taxes), no law specifically dictates who must pay for the notarization of a house rental contract. Instead, it is usually decided through agreement between the landlord and tenant.

Here are common scenarios:

Tenant shoulders the notarization fee

Landlords often require tenants to pay for notarization as part of move-in costs.

Seen as an additional responsibility since the tenant benefits from securing their rental rights.

The landlord shoulders the notarization fee

Some landlords take on the cost as part of providing a professional and complete rental service.

This makes the property more attractive to potential tenants.

Shared cost between landlord and tenant

 

In some cases, the fee is split 50-50 as a show of fairness.

This is especially common in long-term rentals where both sides want equal accountability.

Average notarization fees

Notarization in the Philippines usually costs ₱500 to ₱1,000 for simple rental agreements, but prices may vary depending on the length of the contract, location, and notary public.

 

Best practice: discuss before signing

The golden rule is: clarity before commitment. Before signing the lease, landlord and tenant should openly discuss who shoulders the notarization fee to avoid surprise costs.

 

What Must Be Included in the Rental Agreement?

Even more important than notarization is the content of the agreement. A notarized but incomplete or vague rental agreement won’t protect either party. Here are the essentials:

1. Details of the Parties

Full names of the landlord and tenant

Government-issued ID numbers

Contact information

This ensures that both parties are properly identified.

 

2. Property Description

Exact address of the rental property

Description of the property (e.g., number of bedrooms, parking availability, inclusions like appliances or furniture)

This prevents confusion about which property or unit is being rented.

 

3. Lease Term

Start and end dates of the rental agreement

Whether it is renewable or not

Example: “The lease will run from January 1, 2025, to December 31, 2025, renewable upon mutual agreement.”

 

4. Rent Amount and Payment Terms

Monthly rent amount (in pesos)

Due date for payments (e.g., every 5th of the month)

Accepted payment methods (cash, bank transfer, GCash, etc.)

Penalties for late payment

This sets clear financial expectations.

 

5. Advance Rent and Security Deposit

How much advance rent is required (commonly 1 month)

How much security deposit is needed (commonly 2 months)

Conditions for refund of the deposit (e.g., property must be free of damages)

 

6. Responsibilities of the Tenant

Payment of utilities (water, electricity, internet)

Maintenance of cleanliness

Restrictions on subleasing or making changes to the property without permission

 

7. Responsibilities of the Landlord

Ensuring the property is livable at the start of the lease

Handling major repairs (roof leaks, structural issues)

Respecting tenant’s right to privacy

 

8. Use of the Property

Agreement on residential use only (not commercial)

Limit on the number of occupants

Restrictions on illegal activities

 

9. Grounds for Termination

Breach of contract (non-payment of rent, illegal activities, property damage)

Early termination rules (with notice period, usually 30-60 days)

 

10. Signatures and Notarization Section

Signature lines for both landlord and tenant

Witnesses, if needed

Notary acknowledgment if the document is to be notarized

 

Why These Details Matter

Without a clear agreement, landlord-tenant relationships can sour quickly. For example:

If the property description is vague, disputes may arise about what appliances or furniture are included.

If advance rent or deposits aren’t written, arguments may occur during move-out.

Without specified grounds for termination, ending the lease may become a messy legal battle.

 

A complete and notarized agreement, however, ensures that both parties are legally protected and fully aware of their responsibilities.

 

Renting a house in the Philippines doesn’t need to be stressful. A notarized rental agreement provides security and peace of mind—but both landlord and tenant must agree on who pays for the notarization.

More importantly, the agreement must include all essential details—from property description to payment terms, responsibilities, and termination rules.

Whether you’re a tenant about to move into your first apartment or a landlord welcoming new renters, remember: a clear, well-documented rental agreement is your best safeguard against misunderstandings.