How to Manage Room for Rent Business in the Philippines

A room for rent is a type of lodging that provides affordable, convenient, short-term housing for individuals. Among students, young professionals, and individuals who work in urban areas but do not want to commit to a long-term lease, rooms for rent are a popular choice.

Operating a boarding house business in the Philippines requires effective management, customer service, and financial management skills. A rental property owner must ensure that the property is clean and well maintained, that their guests are safe and secure, and that a rent collection and accounting system is in place. They must also be prepared to respond promptly to any complaints made by tenants.

Room for rent basics

Here are some things you should know about boarding houses in the Philippines:

• Rooms for rent are also called “bedspacers”, “dorms” or “boarding house.”
• They are usually found near schools, universities, or business districts.
• Most rooms for rent offer a basic room with a bed, a cabinet, and a study table. Shared bathrooms and common areas such as a living room, kitchen, or dining area are also provided.
• Some rooms for rent offer air conditioning, free Wi-Fi, and laundry services at an additional cost.
• Monthly rent for a room for rent can range from PHP 2,000 to PHP 10,000, depending on the location and amenities.
• The local government regulates boarding houses and rooms for rent; owners must secure necessary permits and comply with safety standards.
• Some boarding houses are exclusive for male or female tenants, while others cater to both genders.
• Rooms for rent can also offer additional services such as meal plans, cleaning services, and transportation services.
• Tenants usually sign a contract with the house owner or manager outlining the terms and conditions of their stay.

In a room-for-rent business, the transaction between landlord and tenant involves the tenant paying rent in exchange for temporary lodging on the landlord’s property.

The landlord is responsible for providing the tenant with a clean, safe, and secure environment and any amenities or services included in the rent.

The tenant must adhere to the rules and regulations set by the landlord, including timely payment of rent and maintaining a respectful and responsible demeanor while on the property.

Sample rules and regulations

To maintain order, tenants must comply with the rules to maintain a harmonious and safe living environment as stated in a written contract. Here are some of the typical house rules that are imposed on rooms for rent in the Philippines:

1. Curfew – Many households with rooms for rent have a curfew, usually around 10 PM or 11 PM, to ensure the safety and security of the tenants.
2. Visiting hours – Some boarding houses restrict visiting hours, particularly for opposite-gender visitors.
3. No pets allowed – Most dorms do not allow tenants to bring pets for other tenants’ overall hygiene and welfare.
4. No smoking – Many rooms for rent prohibit smoking inside the premises.
5. No loud noise – Tenants are expected to decrease the noise level, particularly during sleeping hours.
6. Proper trash disposal- Tenants must dispose of their trash correctly to maintain cleanliness and hygiene.
7. No cooking in rooms – Most boarding houses with rooms for rent have a communal kitchen that tenants can use.
8. Respect for other tenants – Tenants are expected to respect other tenants’ privacy and personal space.
9. No illegal activities – Rental room management prohibits illegal activities such as gambling and drug use.
10. Regular cleaning – Tenants are usually responsible for cleaning their rooms, while the owner or staff of the dormitory is responsible for cleaning the common areas.
11. Payment of rent – Tenants are expected to pay their rent on time and in full, as stated in the rental agreement.
12. Security deposit – Some dormitories may require tenants to provide a security deposit upon move-in, which will be refunded upon move-out if there are no damages or outstanding payments.
13. Entry of visitors – Some rooms for rent landlords may allow guests, but they usually need to be registered with the owner or staff and comply with the house rules.
14. Maintenance and repairs – Tenants should promptly report any maintenance or repair issues to the owner or staff to avoid further damage.
15. Fire safety – Operators of rooms for rent must comply with fire safety regulations, such as fire extinguishers and smoke detectors.
16. Eviction – Tenants who violate the house rules or fail to pay rent may face eviction, as stated in the rental agreement.
17. Termination of rental agreement – Tenants who wish to terminate their agreement must give a notice period as stated.

It’s important to note that specific house rules may vary depending on the boarding house’s policies and regulations, and tenants must comply to maintain a harmonious and safe living environment.

Evicting a tenant

The grounds for eviction as a bed spacer or occupant from a room for rent may vary depending on the owner’s or management’s specific policies and regulations. However, here are some common grounds for eviction that may be stated in the rental agreement or house rules:

1. Failure to pay rent – If tenants fail to pay their rent on time or in full, they may face eviction.
2. Violation of house rules – If a tenant repeatedly violates the house rules, such as creating a disturbance or engaging in illegal activities, they may face eviction.
3. Property damage – If a tenant causes damage to the property or fails to report damages promptly, they may face eviction.
4. Safety concerns – If a tenant poses a safety risk to themselves or other tenants, such as by causing fire hazards or storing hazardous materials, they may face eviction.
5. Noncompliance with regulations – If tenants fail to comply with government regulations, such as fire safety regulations, they may face eviction.

It’s important to note that eviction is a serious matter, and it should only be done following the law and with proper documentation. The specific eviction process may vary depending on the location and circumstances, so it’s best to seek legal advice if you’re facing eviction from a dormitory.

Why only accept female tenants?

Have you seen signs advertising a room for rent or bed spacer business but accepting only lady bed spacers or tenants? Boarding houses accepting female boarders are uncommon in the Philippines and are usually managed by female owners or managers. There are several reasons why female boarding houses exist and why they cater specifically to female tenants:

1. Safety and security – Female dorms provide female tenants with a safe and secure environment. Female boarders may feel more comfortable sharing living spaces with other women, mainly if they are new to the area or concerned about their safety.
2. Privacy and personal space – Female boarding houses often provide private rooms, which allow female tenants to have their own space while still having access to shared common areas.
3. Shared interests – Female dormitories often cater to female students or professionals with shared interests or lifestyles, such as female students who prefer to study in an all-female environment.
4. Cultural or religious beliefs – Some female tenants may have cultural or religious beliefs that require them to live in a same-sex environment.
5. Management preferences – Some female owners or managers may prefer to manage a boarding house exclusively for female tenants.

It’s important to note that male and female boarding houses may have different rules and regulations, particularly regarding visiting hours or opposite-gender visitors. It’s best to check with the boarding house management for their specific policies and regulations before moving in.

Sample rental agreement

In the Philippines, rental contracts, including those for boarding houses, do not need to be notarized to be considered valid and enforceable. However, it is still recommended to have a written rental contract to protect the rights and interests of both the owner/manager and the tenant.

Both parties should sign the rental contract. It should contain important terms and conditions, such as the rental amount, payment terms, security deposit, house rules, duration of the rental period, and termination provisions.

While notarization is not required, it is still advisable to have the contract notarized as it provides additional evidence of the authenticity and validity of the document. A notarized contract can also be useful in case of disputes or legal action between the parties.

Ultimately, whether or not to have a rental contract notarized is up to the parties’ discretion.

RENTAL AGREEMENT FOR BOARDING HOUSE

This rental agreement (“Agreement”) is made and entered into on [date] by and between [owner or manager of the boarding house], located at [address of the boarding house], and [name of the tenant], located at [address of the tenant].

1. Rental Property. The owner or manager agrees to rent the tenant a room in the boarding house located at [room number and description].
2. Term. The rental period will begin on [start date] and end on [end date]. The tenant may extend the rental period by providing a written notice to the owner or manager at least [notice period] days before the end of the rental period.
3. Rent. The tenant agrees to pay rent in the amount of [rent amount] per month, due on the [rent due date] of each month. The tenant shall pay the rent to the owner or manager in the form of [payment method].
4. Security Deposit. The tenant shall pay a security deposit of [security deposit amount] upon move-in, which shall be refunded upon move-out if there are no damages or outstanding payments.
5. House Rules. The tenant agrees to abide by the house rules of the boarding house, which are attached hereto as Exhibit A and incorporated herein by reference.
6. Termination. Either party may terminate this Agreement upon [notice period] days’ written notice to the other party.
7. Governing Law. This Agreement shall be governed by and construed by the laws of the Philippines.
8. Entire Agreement. This Agreement constitutes the entire agreement between the parties and supersedes all prior negotiations, understandings, and agreements between the parties, whether oral or written.
9. Amendments. This Agreement may not be amended or modified except in writing, signed by both parties.

IN WITNESS WHEREOF, the parties have executed this Agreement on the date and year first above written.

[Signature of the owner or manager] [Name of the owner or manager]

[Signature of the tenant] [Name of the tenant]

Exhibit A House Rules for [Name of the Boarding House]

1. Curfew – The curfew for the boarding house is [curfew time] PM. Tenants are expected to be inside the boarding house by this time.
2. Visiting Hours – Visiting hours for the boarding house are from [visiting hours start time] AM to [visiting hours end time] PM. Visitors of the opposite gender are not allowed in the tenants’ rooms.
3. No Pets Allowed – No pets are allowed inside the boarding house.
4. No Smoking – Smoking is strictly prohibited inside the boarding house.
5. No Loud Noise – Tenants are expected to decrease noise levels, particularly during sleeping hours.
6. Proper Disposal of Trash – Tenants must dispose of their trash properly to maintain cleanliness and hygiene.
7. No Cooking in Rooms – Tenants cannot cook in their rooms. A communal kitchen is provided for all tenants.
8. Respect for Other Tenants – Tenants are expected to respect other tenants’ privacy and personal space.
9. No Illegal Activities – Boarding houses prohibit illegal activities such as gambling and drug use.
10. Regular Cleaning – Tenants are responsible for cleaning their rooms, while the owner or staff of the boarding house is responsible for cleaning the common areas.