Rental Terms in Metro Manila: 5 Things to Know Before You Rent

Rental terms are pretty much the same across the Philippines. The words landlords use and the costs you pay upfront do not change much whether you are in Cebu, Davao, or anywhere else. But let’s zoom in on Metro Manila for this guide.

Many people move to the metro from the provinces to work, and renting a place is often their first step to living on their own. Others grew up in the city but are now exploring what it is like to live alone. That second part is still fairly new for a lot of Filipinos. 

Unlike in Western countries, moving out and getting your own place is not the usual path here. Many of us stay with family well into adulthood, so figuring out how renting works can feel unfamiliar.

Wherever you are coming from, understanding the common terms makes the whole process easier. Some of these decide how much you pay before you even move in. Others affect your monthly bills for the entire year. Knowing them early can save you money and a lot of stress.

Here are five common rental terms in Metro Manila.

Quick Takeaways

• Expect to pay an advance plus a deposit before move-in. A common setup is one month advance and two months deposit, though one month advance and one month deposit also exists and is lighter on the wallet.
• The contract of lease lists all your important terms. Read it carefully and ask questions before signing.
• Association dues mostly apply to condos. Always ask if they are included in the rent.
• Own meter usually means cheaper, fairer electricity bills than a submeter controlled by the landlord.
• Furnished, semi-furnished, and non-furnished units differ in what is already inside. Pick based on your needs and budget.

1. Advance and Deposit

This is the amount you hand over to the landlord before you move in. It usually has two parts.

The advance is your rent for the first month, just paid ahead of time. The deposit is a refundable amount the landlord holds. It works like a security fund in case of damage to the unit or unpaid bills. You usually get it back in full when you move out, as long as nothing is damaged and you have no unpaid obligations.

A common setup is one month advance and two months deposit. Here is how that looks if your rent is ₱10,000 a month:

• Advance: ₱10,000
• Deposit: ₱20,000 (two months)
• Total before move-in: ₱30,000

You will also see one month advance and one month deposit, which is easier on the budget. If you can find a unit that offers this, it is worth considering.

One helpful note. Philippine law, through the Rent Control Act, sets limits on these charges for covered units, generally up to one month advance and two months deposit. Coverage depends on the monthly rent and the rules can change, so it is smart to confirm the current limits with the Department of Human Settlements and Urban Development (DHSUD) or by asking your landlord directly.

2. Contract of Lease

This is the agreement between you and the landlord. It lists all the important details of your rental, such as:

• The monthly rent and the due date
• House rules
• The length or duration of the contract
• What happens to your deposit when you leave

Before signing the contract of lease, do not rush. Go through these steps first:

1. Read the entire contract slowly, even the small print.
2. Write down anything that is unclear or confusing.
3. Ask the landlord to explain each point until you fully understand it.
4. Confirm the agreed terms are written down, not just spoken.
5. Get your own signed copy to keep.

A contract protects both sides. So make sure everything you agreed on verbally is also on paper.

3. Association Dues

Association dues, often called “assoc dues,” are monthly fees charged by the building administration. They pay for the upkeep of shared spaces like the lobby, elevators, hallways, and amenities such as the pool or gym.

These dues are more common when you rent a condominium unit than an apartment. The amount varies a lot from one building to another, often reaching a few thousand pesos a month. Since it changes per property, always ask the landlord for the exact figure.

Here is the term to watch for in listings: inclusive of assoc dues. This means the dues are already part of the rent you pay.

For example, if a Facebook marketplace post says “₱10,000 per month, inclusive of assoc dues,” then ₱10,000 is all you pay. Nothing is added on top for the dues.

Units that are inclusive of assoc dues are often easier to manage. You pay one fixed amount, and it does not change throughout your contract.

4. Own Meter vs. Submeter

How you get billed for electricity and water depends on the type of meter. 

There are two setups.

Own meter:

With an own meter, your unit has its own meter and you are billed directly by the utility company, such as Meralco for electricity or Maynilad for water. You pay only what the meter reads, and you settle the bill straight with the company. No middleman, no extra charge.

Submeter:

With a submeter, a secondary meter is connected to the building’s main meter, and the landlord controls the billing. You do not get a bill straight from the utility company. Instead, the landlord gives you a computed bill, you pay them, and they pay the utility company.

The catch with submeters is that some landlords add a markup on the rate per kilowatt-hour or per cubic meter. So you could end up paying more than the official utility rate. As an example, if the utility charges a certain amount per kWh, a landlord using a submeter might charge a higher rate on top of it.

Submeters are more common in apartments. If you want to keep your bills lower and fairer, look for a unit with its own meter. 

5. Furnished, Semi-Furnished, or Non-Furnished

Listings often describe how much furniture and how many appliances come with the unit. There are three levels.

Fully furnished: The unit comes complete with furniture and appliances. Think bed, refrigerator, stove, and aircon. This is ideal if you do not want to buy anything for your space.

Semi-furnished: The unit has some essentials, but not everything. It might include a few appliances like a refrigerator or washing machine, depending on the landlord. You will likely still need to buy a few items yourself.

Non-furnished: The unit is empty, and you provide everything. This suits people who want to fully customize their space.

The right choice depends on your needs, your lifestyle, and how much you are ready to spend upfront.

So, What’s the Takeaway?

Renting in Metro Manila gets a lot easier once you understand the terms. 

Know what your upfront costs cover. Read your contract of lease before you sign. Ask whether assoc dues are included. Check the meter setup so you are not overpaying on utilities. And pick the furnishing level that fits your budget.

When in doubt, ask the landlord to explain. A few clear questions now can save you from surprises later.

Frequently Asked Questions About Rental Terms in Metro Manila

Is the deposit refundable? 

Yes, in most cases. The deposit is meant to cover damage or unpaid bills. If you leave the unit in good condition and have no unpaid obligations, you should get it back in full. Confirm the refund terms in your contract.

How do I know if assoc dues are included in the rent? 

Look for the phrase “inclusive of assoc dues” in the listing, or simply ask the landlord. If it is not included, ask how much it costs so you can budget for it.

Is an own meter really better than a submeter? 

For most renters, yes. An own meter means you pay the utility company directly with no markup. A submeter is controlled by the landlord, who may add a charge on top of the official rate.

Can I negotiate the terms in the contract of lease? 

Often, yes. Many terms are open to discussion before you sign. Just make sure any agreement you reach is written into the contract, not only spoken.