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The Operating Agreement For Rental Property LLC serves as the foundational document for limited liability companies engaged in rental property operations in the Philippines. This document becomes necessary when two or more parties wish to establish a formal business structure for managing rental properties while limiting their personal liability. It comprehensively addresses Philippine legal requirements under the Revised Corporation Code, Real Estate Service Act, and related property laws. The agreement typically includes detailed provisions for capital contributions, property acquisition and management, profit distribution, member voting rights, and operational procedures. It's particularly crucial for foreign investors due to Philippine foreign ownership restrictions in real estate. The document should be customized based on the specific needs of the LLC members while ensuring compliance with local regulations regarding property management, tenant relations, and corporate governance.

1. Parties: Identifies all members of the LLC and their contact information

2. Background: Describes the purpose of forming the LLC and its intended rental property operations

3. Definitions: Defines key terms used throughout the agreement

4. Formation and Name: Details of LLC formation, registered name, and compliance with Philippine registration requirements

5. Principal Office and Registered Agent: Location of business operations and registered agent details

6. Purpose and Powers: Specific scope of rental property operations and general powers of the LLC

7. Capital Contributions: Initial and ongoing capital contributions of members, particularly for property acquisition and maintenance

8. Membership Interests: Allocation of ownership interests and voting rights among members

9. Management Structure: Management responsibilities, decision-making processes, and authority levels

10. Property Management: Procedures for acquiring, managing, and disposing of rental properties

11. Financial Affairs: Accounting practices, banking, fiscal year, and financial reporting requirements

12. Distributions: Process for distributing rental income and other profits to members

13. Transfer Restrictions: Limitations on transferring membership interests and property ownership

14. Meetings and Voting: Procedures for member meetings and voting requirements

15. Records and Reporting: Required business records and member reporting obligations

16. Dissolution and Liquidation: Processes for dissolving the LLC and liquidating rental properties

17. General Provisions: Miscellaneous legal provisions including governing law, amendments, and notices