Frequently Asked Questions
NOTE: These questions are geared specifically for residential property lessees who are interested to make Cebu City their temporary or even permanent homes.
1) IS IT NECESSARY TO GET A REAL ESTATE BROKER?
Yes. For your protection. A licensed broker can get you a house from her reliable listings without going through the hassle of scouring newspaper classifieds, inspecting properties that may not be to your liking as they have not been profiled for you ahead. Thus, you save on money and time. A licensed broker can negotiate the price advantageous to you. Many foreigners are often mistaken to be rich therefore, rental rates may be increased beyond the reasonable. Also, a good broker can give you the history of the house and a background of its owner.
2) WHAT QUALITIES OF A BROKER DO I LOOK FOR?
First, he or she must be licensed. You can check with the Department of Trade & Industry (032 ) if he or she is licensed to do business with you. You must also check out experience and the specialty of your broker. Ms. Beth C. Mendoza has had over ten (10) years experience in the real estate business and specializes in renting out properties to the A & B market.
3) WHAT IF I FOUND A PROPERTY I LIKE, WHAT’S NEXT?
Price and the terms and conditions are often the issue. You with your broker of choice negotiate all of the above until you reached a satisfactory agreement. Then a contract of Lease is drawn (Check our Legal Corner for details). Your happy occupancy is expected soon after.
4) LET’S BACK-TRACK A BIT. PLEASE DEFINED FULLY FURNISHED, SEMI-FURNISHED AND UNFURNISHED FOR ME.
Furnished means complete furnishing set for living room, dining room, kitchen and bedrooms. Appliances such as gas range, refrigerator, air-conditioners and water heaters are also provided. Semi-furnished would mean the lack of any one of the appliances or furnishings set mentioned above. Unfurn, of course, doesn’t have any appliances or furnishings inside the leased premises. If you’re in luck, as this seldom is available, a fully furnished house comes in the market. It has everything a fully furnished home plus kitchen utensils, flatware, home décor & such personal item as television sets and washing machines.
5) BY THE WAY, ARE HOUSES THE ONLY AVAILABLE PROPERTY FOR TENANCY?
No. Although the term house usually connotes a single detached real property, it can also apply to townhouses and condominium units.
6) WHAT IS THE USUAL MINIMUM LEASE CONTRACT PERIOD?
One year. Those who desire for a fraction of the year may have to enter into a special negotiation with house owner.
7) WHERE IS THE BEST PLACE TO LIVE?
Generally, it depends on your needs. But for the security conscious expatriate or Filipino family who want to get top value for their money tend to gravitate towards the gated residential communities that may be found in the Banilad, Talamban area These communities are near international schools and shopping malls. It is also relatively near to the International Airport in Mactan.
8) HOW ARE UTILITY BILLS COMPUTED?
Electric bills are computed as P8.00 per kilowatt hour. Residential telephone bills depends on your telephone service provider. Usually a flat rate is charged every month for the normal use of the phone. Of course, the bill is charged up when long distance calls and such are made. The telephone service providers are Philippine Long Distance Telephone (PLDT), the other is Globelines. Average bill for residential line without long distance charges would be P750.00. DSL connection is also available in selected areas. One telephone company charges a flat rate of P999 a month for residential use. Water bills varies from one subdivision to another except for a few residential community provided for by the local water district. Currently, as we write, it averages at P12.00 per cubic meter A television cable company charge a flat rate of P700.00 per month. Most if not all of these gated communities are serviced by cable this cable company. Regarding the use of gas ranges, these are most commonly used appliances for cooking. A LPG (Liquified Petroleum Gas) tank is used to fuel these gas ranges. These tanks may be bought at 25 kgs. At P 650.
9) ARE THERE COMMUNITY DUES?
Yes. These are like common fees that are usually charged every month from the household within the community. The fund collected is used to maintain the street lights, garbage collection, security guards and even roads. Community dues are usually referred to as “association dues” as these are paid to the homeowners association operating in the community. Dues can go as low as P550.00 a month at Sto. Niño Village to as high as P5,000.00 (in Philippine currency) a month at Northtown Residences.
10) HOW ARE COMPLAINTS ABOUT THE LEASED PROPERTY COURSED?
For problems pertaining to the house, you may call on your broker or talk directly to the house owner depending on the pre-arranged agreement. Problems regarding the residential community such as garbage, water supply, etc. have to be addressed to the homeowner’s association officers.
11) WHAT ABOUT MY CAR, DOES ONE REGISTER IT WITH THE HOMEOWNER’S ASSOCIATION?
As standard practice, yes. They require you to submit a photocopy of the following: Contract of Lease, car registration, official receipt of the car and a fee for car sticker.
12) AFTER GETTING ALL THAT GOOD SERVICE FROM MY BROKER, HOW MUCH DO I PAY HIM/HER?
Nothing, absolutely! The broker gets a commission from the house owner. In this case, your lessor. This is generally equivalent to a month’s rent.
13) TELL ME ABOUT SECURITY DEPOSIT AND ADVANCE RENTAL?
Advance rental is the money placed upfront usually equivalent to two months rent. In other cases, it cab go up to twelve (12) months or equivalent to 1 year. The security deposit is equivalent to either two (2) or three (3) months(Click Legal Corner for more details)