Quick answer

A tenant is generally responsible for damage caused by the tenant, household members, guests, or visitors, but not for deterioration caused by ordinary wear and tear, the passage of time, an inevitable cause, or—in appropriate cases—a defect or repair that the landlord was obliged to address.

The lease agreement matters, but it does not end the inquiry. Under the Civil Code:

The landlord generally must deliver and maintain the property in a condition suitable for its intended use and make necessary repairs, unless the parties validly agreed otherwise.
The tenant must use the property with proper care, promptly report needed repairs, and return it substantially as received, except for ordinary wear and tear, age-related deterioration, and inevitable causes.
If there is no written move-in condition report, the property is presumed to have been received in good condition unless the tenant proves otherwise.
A tenant is presumed responsible for deterioration or loss unless the tenant proves it occurred without fault. That special burden does not apply when destruction was caused by an earthquake, flood, storm, or another natural calamity.

A landlord should not simply label every defect “tenant damage” or automatically keep the entire deposit. The amount claimed must correspond to an established loss. Both sides should compare the move-in and move-out condition, identify the cause, examine the lease, and document the reasonable cost of restoring the damaged item.

The legal starting point

Articles 1654 to 1668 of the Civil Code of the Philippines allocate the principal responsibilities between landlord and tenant.

The landlord’s responsibilities

Unless the lease validly provides otherwise, the landlord must:

deliver the premises in a condition fit for their intended use;
make necessary repairs during the lease to keep the premises suitable for that use; and
maintain the tenant’s peaceful and adequate enjoyment of the property.

For urban property, if there is doubt about which party must shoulder a particular repair and the contract and local custom do not settle the question, Article 1686 treats the repair as chargeable to the landlord.

A landlord may therefore be responsible where the damage resulted from an aging roof, defective plumbing, faulty electrical installation, structural deterioration, termite infestation not caused or aggravated by the tenant, or another condition that fell within the landlord’s repair obligation. The result still depends on the lease, the origin of the defect, notice, and the parties’ conduct.

The tenant’s responsibilities

A tenant must use the premises with the care of a reasonably diligent person and for the agreed purpose. At the end of the lease, the tenant must return the property as received, except for loss or impairment caused by:

the passage of time;
ordinary wear and tear; or
an inevitable cause.

The tenant is also answerable for deterioration caused by household members, guests, and visitors.

A tenant must notify the owner, within the shortest possible time, of necessary repairs. If the tenant fails to report a leak, electrical problem, infestation, or similar defect and the delay allows the damage to spread, the tenant may be liable for the additional loss caused by that negligence—even if the original defect was not the tenant’s fault.

Damage versus ordinary wear and tear

There is no statutory checklist that decides every case. The distinction is factual.

Ordinary wear and tear is deterioration reasonably expected from normal residential use and aging. Depending on the property’s age, materials, length of occupancy, and move-in condition, it may include faded paint, minor scuffing, gently worn flooring, loosened fittings from normal use, or age-related appliance decline.

Chargeable damage is deterioration beyond what normal use and age would reasonably produce. Examples may include:

broken doors, windows, tiles, or fixtures caused by impact or misuse;
large holes, unauthorized alterations, or careless installation work;
burns, deep cuts, or serious stains;
damage caused by an unauthorized pet;
water damage that worsened because a known leak was not reported;
missing keys, furnishings, appliances, or accessories included in the lease; or
damage caused by guests or household members.

These examples are not automatic rulings. A cracked tile might result from impact, defective installation, ground movement, or age. Mould might result from tenant practices, a concealed leak, inadequate waterproofing, or several causes together. Evidence of causation is more important than the label attached to the condition.

Who must prove what?

The Civil Code creates rules that can be important when evidence is incomplete.

If the lease contains no statement of the property’s condition at the beginning, Article 1666 presumes that the tenant received it in good condition, unless contrary evidence is presented. Move-in photographs, messages reporting pre-existing defects, prior inspection records, and testimony can rebut that presumption.

Article 1667 generally makes the tenant responsible for deterioration or loss unless the tenant proves that it happened without the tenant’s fault. The Supreme Court applied this rule in a fire-damage dispute but recognized that evidence showing the fire was accidental could overcome the presumption of negligence. See Chavez v. National Housing Authority, G.R. No. 169656, 11 October 2007.

That presumption does not give a landlord a blank cheque. A landlord seeking money must still identify the damage and establish a factual basis for the amount claimed. In AMA Computer College, Inc. v. New World Renaissance Hotel, G.R. No. 187930, 23 February 2015, a claimed amount for damage to leased premises was deleted where no proof other than a statement of account supported it.

How much may properly be charged?

Start with the lease and any valid inventory, inspection, or turnover provisions. Then determine the reasonable loss attributable to the tenant.

Useful proof may include:

dated photographs and videos;
a signed move-in and move-out inspection report;
an inventory of furniture, appliances, keys, and fixtures;
contractor assessments and itemized quotations;
invoices, official receipts, and proof of payment;
reports from plumbers, electricians, engineers, appliance technicians, the Bureau of Fire Protection, or other qualified persons;
records showing the item’s age and prior condition; and
messages showing when the defect was reported and how each party responded.

The recoverable figure is not automatically the price of making the property “brand new.” If an old, already worn item is replaced with a substantially better one, the tenant may dispute any portion that represents improvement rather than the proven loss caused by the damage. On the other hand, an invoice is not always indispensable if the damage and a reasonable amount can be established by other competent evidence. Courts decide actual damages from the evidence presented, not from unsupported estimates or a unilateral schedule of charges.

If both parties contributed to the loss—for example, the tenant delayed reporting a leak but the landlord also delayed repairs—liability may depend on the extent to which each act caused or aggravated the damage.

Can the landlord deduct the amount from the security deposit?

The answer ordinarily depends on the lease and any law covering the unit. A clause allowing deductions for unpaid obligations or tenant-caused damage is generally relevant, but the deduction should be itemized and supported.

For residential units covered by the rent-control regime, Section 7 of the Rent Control Act of 2009 provides that a landlord may not demand more than two months’ deposit. The deposit must be kept in a bank under the landlord’s account name, and accrued interest must be returned to the tenant when the lease expires. Amounts corresponding to unpaid rent or utilities, or pecuniary damage from destroyed house components and accessories, may be taken from the deposit.

Coverage is limited. Under the current DHSUD regulation, the rent-control cap for 2025–2026 applies to covered residential units rented at ₱10,000 or less per month, subject to the resolution’s terms. The maximum rent increase is 2.3% for 2025 and 1% for 2026. Units above the coverage ceiling and premises that are not principally residential should not automatically be treated as covered. See NHSB Resolution No. 2024-01.

Even where the special deposit rules do not apply, the lease and general Civil Code rules remain relevant. If the proven loss exceeds the deposit, the landlord may claim the balance. If the deposit exceeds the tenant’s established obligations, the remaining amount should be returned according to the contract and applicable law.

Practical steps for tenants

Ask for an itemized claim. Request the location and description of each damaged item, the alleged cause, photographs, and the amount deducted or demanded.
Compare the beginning and ending condition. Review the lease, inventory, move-in report, photographs, and earlier repair messages.
Respond in writing. Admit items that are genuinely your responsibility and identify disputed items. Explain whether the condition was pre-existing, ordinary wear, caused by a defect, or reported during the tenancy.
Request supporting documents. Ask for quotations, invoices, receipts, technical findings, and proof of the item’s age or prior condition.
Propose a specific settlement. This may involve paying an agreed amount, arranging an acceptable repair, or receiving the undisputed portion of the deposit immediately.
Preserve the evidence. Keep original files, message threads, emails, payment records, inspection documents, and proof that keys were returned. Do not edit photographs in a way that removes their original date or metadata.

Do not ignore a written demand. A calm, documented response is usually more useful than a verbal denial.

Practical steps for landlords

Inspect promptly and fairly. If possible, conduct a joint inspection before turnover and allow the tenant to comment on the report.
Separate damage from maintenance. Do not charge the tenant for aging, ordinary wear, pre-existing defects, or necessary repairs that belong to the landlord.
Document causation and amount. Take clear photographs, preserve damaged items when practical, obtain itemized professional assessments, and retain receipts.
Allow a reasonable opportunity to respond. Send an itemized written demand or deposit accounting rather than merely stating that the deposit is “forfeited.”
Return any undisputed balance. Keeping more than the supportable claim can turn a repair dispute into a claim for return of the deposit and damages.
Use legal process if necessary. Property damage does not by itself authorize threats, seizure of the tenant’s belongings, utility disconnection, forced entry, or physical eviction. Possession and collection remedies must follow the contract and applicable legal procedures.

Resolving the dispute before court

A written settlement should identify:

the damaged items;
the amount accepted by each party;
how and when payment or refund will be made;
whether repairs will be performed and by whom;
the treatment of the deposit; and
whether the agreement fully settles the identified claims.

Barangay conciliation

Prior barangay conciliation may be a mandatory condition before filing in court when the dispute falls within the lupon’s authority—generally, when the individual parties actually reside in the same city or municipality and no statutory exception applies. Venue rules vary depending on the parties’ residences and whether the dispute concerns real property.

If no settlement is reached, obtain the proper Certificate to File Action. Filing prematurely may result in dismissal or suspension of the case. Sections 408–412 of the Local Government Code contain the controlling rules. Corporations and other circumstances may affect whether barangay conciliation is required, so do not assume that every rental dispute must begin there.

A barangay settlement, once properly executed and not timely repudiated on a legally recognized ground, can acquire the force and effect of a final court judgment after the period fixed by law.

Small claims court

A demand for the return of a security deposit or payment for property damage may qualify as a small claim if it is a purely monetary claim of ₱1,000,000 or less, exclusive of interest and costs, and falls within the categories covered by the Rules on Expedited Procedures in the First Level Courts.

The claim is filed using the prescribed forms in the proper Metropolitan Trial Court, Municipal Trial Court in Cities, Municipal Trial Court, or Municipal Circuit Trial Court. Attach the lease, demand and proof of receipt, photographs, inspection reports, quotations, receipts, payment records, barangay certificate when required, and other supporting documents.

Lawyers may advise parties before the case, but they generally may not appear for or represent a party at the small-claims hearing. Filing fees apply unless the claimant is allowed to litigate as an indigent. Current rules and official forms are available on the Supreme Court’s Small Claims page and in the 2022 Rules on Expedited Procedures.

Claims above the small-claims ceiling, claims seeking non-monetary relief, and cases involving possession, ejectment, or complex relief follow different procedures.

Do not wait indefinitely

The applicable prescriptive period depends on the legal basis of the claim:

an action based on a written contract generally must be brought within 10 years from accrual;
an action based on an oral contract generally must be brought within six years; and
an action based on injury to rights or quasi-delict generally must be brought within four years.

Other rules or shorter periods may apply, particularly when possession or ejectment is involved. A demand letter, negotiation, or barangay proceeding should not be assumed to stop every limitation period. Obtain legal advice early if a deadline may be near.

Common mistakes

Treating all repainting or replacement as tenant damage.
Relying only on undated photographs taken after the tenant left.
Failing to prepare a move-in inventory and condition report.
Throwing away the damaged item before the other party can inspect it.
Repairing everything immediately when there is no emergency, without first documenting the condition.
Ignoring the tenant’s earlier messages about leaks or defects.
Assuming the entire deposit is automatically forfeited.
Withholding rent or using the deposit as the last month’s rent without checking the contract and law.
Making only oral demands and agreements.
Filing in court without completing required barangay conciliation.
Adding attorney’s fees, penalties, or interest without a valid contractual or legal basis and supporting proof.

When legal help is urgent

Consult a Philippine lawyer promptly when:

the property is unsafe, condemned, or presents a serious fire, electrical, structural, or health risk;
the loss is substantial or involves fire, flooding, injury, insurance, or possible criminal conduct;
someone threatens forced eviction, utility disconnection, seizure of belongings, or violence;
the landlord is seeking ejectment as well as damages;
important evidence may be destroyed;
several persons, a corporation, an insurer, a condominium corporation, or a property manager may be liable;
the lease contains arbitration, liquidated-damages, insurance, indemnity, or unusual repair clauses; or
a filing or prescriptive deadline may be approaching.

For an immediate danger, leave the unsafe area and contact the appropriate emergency service, building official, fire authority, police, or local government office.

Frequently asked questions

Can a landlord keep the whole deposit because there is some damage?

Not automatically. The contract and applicable law must be examined, and the amount retained should correspond to established obligations and pecuniary loss. Any balance not properly chargeable should be returned.

Is repainting always chargeable to the tenant?

No. Repainting required by fading, age, or normal occupancy may be ordinary wear or landlord maintenance. Repainting made necessary by excessive stains, unauthorized colors, drawings, smoke damage, or abnormal deterioration may be chargeable, depending on the evidence and lease.

What if there were no move-in photographs?

The lack of photographs does not end the case. The lease, inventory, repair reports, messages, witnesses, receipts, and other records may establish the earlier condition. However, Article 1666 presumes good condition at move-in when there is no condition statement, unless the tenant proves otherwise.

Is the tenant liable for a typhoon or earthquake?

Not merely because the damage occurred during the tenancy. Article 1667’s special burden on the tenant does not apply when destruction is due to an earthquake, flood, storm, or another natural calamity. Liability can still depend on other facts—for example, whether negligent conduct independently caused or aggravated the loss.

What if a guest caused the damage?

The tenant is generally liable to the landlord for deterioration caused by guests or visitors. The tenant may have a separate claim against the person who actually caused it.

May the tenant repair an urgent defect and deduct the cost?

Article 1663 permits a tenant to order urgent repairs at the landlord’s cost when the landlord fails to act and the repair is needed to avoid imminent danger. The tenant should notify the landlord, document the urgency and failure to act, use a qualified provider, and preserve invoices and proof of payment. For non-urgent repairs, obtain written agreement before spending or deducting anything.

Can the deposit be used as the final month’s rent?

Not unless the lease or landlord permits it, or another applicable rule provides a basis. A security deposit and advance rent serve different purposes. Unilaterally treating the deposit as rent can create arrears and weaken the tenant’s position.

Can either side claim attorney’s fees?

Attorney’s fees are not automatically recoverable simply because a lawyer was hired or a case was won. They require a contractual or legal basis and remain subject to the Civil Code and the court’s assessment.

Where can official court forms be obtained?

Use the forms published on the Supreme Court’s official Small Claims page or ask the proper first-level court. Do not rely on an outdated third-party form.

This article provides general legal information, not legal advice or a prediction of any case. The result of a rental-property dispute depends on the lease, evidence, nature and cause of the damage, status of the parties, and applicable local and procedural rules. Primary legal and procedural sources were checked as of 2 August 2026.