Famous for its tropical lifestyle, relatively low cost of living, and proximity to the rest of Asia, the Philippines can be an exciting place to live. You will find a variety of accommodation styles, from condominiums, gated houses and furnished apartments. 

Regions in brief
Manila is the capital of the Philippines, home to almost 2 million people. The city is located on the eastern side of Manila Bay and has a long history, having been settled by the Spanish in the late 1500s. There are 16 urban districts within Metropolitan Manila. Many expats choose to live in Makati, the CBD and financial district, where they can be close to the headquarters of major banks and financial companies, country clubs and high-end malls. 

If you’re seeking tropical beaches rather than urban areas, Boracay Island is one of the Philippines most popular destinations, yet has a population of only around 33,000. 

Cebu is an island province of the Philippines as well as the name of the capitol Cebu City, the oldest city in the country. Expats may find the amenities of Manila with a more laidback lifestyle, and less traffic!  

Bohol, to the east of Cebu, is the tenth largest island of the Philippines in area. The capital is Tagbilaran. The amenities in here are similar to Cebu, with a more rural feel.

What are the typical lease terms in the Philippines?
Rent-free period: Typically there is a rent-free period ranging from one to two months, wherein the lessee is allowed to occupy the space and any required fit-out occurs.
Rent: rental levels are quoted as gross figures per sq m per month.
Deposits: deposits are usually the equivalent of three months’ rent with advance payments for three months, the basis of which could either be the rental rate in the first or last year. Escalation: rental escalation is usually incorporated in the lease, often pegged at 5% per annum, which may vary according to market conditions.
Frequency of payments: rental payments are usually made on a monthly or quarterly basis.
Security of tenure: tenure is secured only for the tenure of the original lease and there is no guarantee beyond the original lease term, however the landlord may agree to give the tenant statutory rights to renewal at their discretion.
Car parking: Allocation is usually one parking slot per 75–100 sqm leased

What are the typical fees for rental properties in the Philippines?
The brokerage or agency fees on residential property rentals usually range from 3 per cent to 5 per cent of the total price, but may depend on the lease period. Usually, the fee for a one-year lease is the amount equivalent to one month’s rent. For a lease period exceeding one year, the increase in broker’s fees is usually subject to negotiation. 

Service charges, operating costs, repairs and insurance
The landlord subscribes directly to the utilities and distributes these to tenants. However, electricity, telecommunication and water consumption are separately metered and payable by each tenant. Metro Manila’s power requirements are fulfilled by Meralco. Apply for service here. Water is supplied by Manila Water Corporation. New applications for water service or transfers should be done at the local Business Area office, with locations available here. There are around 18 telecommunications companies operating in the Philippines; the largest is Philippines Long Distance Telephone Company (PLDT). Landline services can be found here.

Tenants bear responsibility for any internal repairs required, while responsibility for repairs of common areas (reception, lifts, stairs, etc) fall to the landlord though are usually charged back via a service charge. According to JLL, other costs covered by the landlord via a service charge would include external/structural repairs and building insurance. 

Lease disposal 
Subleasing is generally prohibited, unless it is to a subsidiary company of the tenant (subject to the landlord’s approval). Check your agreement for a break clause allowing early termination (subject to penalty notice period). Unless otherwise agreed with the landlord, leased premises need to be reinstated to original condition by the tenant, though it is possible for the tenant to negotiate the waiver of this provision.

Are there any short-term rental options available in the Philippines?
Short-term rentals are easily found throughout the Philippines, with options from subletting a room via airbnb to serviced apartments, such as Frasers, Ascott and Somerset. Longer stays (beyond 30 days) are also possible.

Where can foreigners find help moving to the Philippines?
English is widely spoken in the Philippines. However, if you can’t readily find the information you need, there are companies, like Cebu Expat Services for example, which can provide all kinds of services that expats may find useful, from help with visas to planning a wedding. It is worth also checking with your international bank – HSBC, for example, has a worldwide assistance program for expats moving to the Philippines where you can find information and assistance with financial services, loans, planning and children’s education.

Source: KMC MAG Group Savills Investment & Country Guide Philippines 2016 
Jones Lang Lasalle Philippines Property Investment Guide 2015

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Introduction to Philippines real estate

Buying Property in the Philippines

Property taxes in the Philippines

Obtaining finance in the Philippines

Philippines real estate glossary