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Lease Escalation Schedule
GLRA Realty — Licensed Real Estate Broker, Metro Manila & Luzon, Philippines
glrarealty.com · 0917 177 4572 · glrarealty@gmail.com
For Tenants And Lessors

Lease Escalation Calculator

A lease is quoted as one number and signed as six. See what the escalation clause, the common area dues and the rent-free period really add up to across the whole term.

The Lease

Straight off the term sheet

Square metres
A month
Years
Per cent a year
Both are in common use and they part company fast. Read the clause carefully: "escalating by 5% per annum" almost always means compounding, but "5% of the original rent each year" does not.
Common area dues
A month. Zero if none.
Per cent a year
Terms at signing
Months, for fit-out
Usually they are not
Months of rent
Months of rent
Commercial leases are vatable
Per cent, for present value

What It Really Costs

The number that compares two offers

Effective Rent ₱0
 
 
 
Cash At Signing ₱0
Total Over The Term ₱0
Rent in month one ₱0
Rent in the final year ₱0
Rent over the term ₱0
Common area dues over the term ₱0
Value of the rent-free period ₱0
VAT at 12% ₱0
Everything payable ₱0
Effective rent per sqm a month ₱0
Against the headline rate 0%
Present value at 8% ₱0
Ask Catherine Units For Lease

Year By Year

What falls due in each year of the term

YearRent a monthDues a monthTotal a monthFor the yearRunning total

 

What the deposit is and is not. The security deposit is your money held against damage and unpaid bills, returnable at the end less deductions — it is not rent, and it should not be applied to the last months unless the contract says so. Advance rent is rent, paid early. Ask which is which in writing before you hand over anything, and get the deposit's return conditions in the contract rather than on a handshake. Letting a residential unit instead? The tax side is on the rental income tax calculator.

An estimate from the terms you typed in. Real leases carry things this cannot know: percentage rent, utilities and air-conditioning charged separately, escalation on the dues at the building's discretion, renewal options at market rate, and restoration obligations at the end. Documentary stamp tax is payable on the lease itself. Have the contract read properly before you sign it — the escalation clause and the deposit-return clause are where the money is.