Quick answer

A tenant is generally liable for damage caused by misuse, negligence, unauthorized alterations, household members, guests, or visitors. A tenant is not ordinarily liable for deterioration caused by ordinary wear and tear, the passage of time, an inevitable event, or a defect or repair that was the landlord’s responsibility.

The landlord may deduct only properly chargeable amounts from the security deposit and should be able to explain and prove each deduction. The tenant may dispute deductions that are unsupported, inflated, unrelated to the tenancy, or merely the cost of restoring an aging property to brand-new condition.

The outcome usually depends on the lease, move-in and move-out evidence, the cause of the damage, timely repair notices, and reliable proof of the actual loss.

What Philippine law requires

The lease agreement is the starting point. Contractual obligations have the force of law between the parties, provided the terms are not contrary to law, morals, public order, or public policy.

The Civil Code of the Philippines supplies the principal rules:

Under Article 1654, the landlord must deliver the property in a condition fit for its intended use, make necessary repairs during the lease unless the parties validly agreed otherwise, and maintain the tenant’s peaceful and adequate enjoyment.
Under Article 1657, the tenant must use the property with the diligence of a prudent person and only for the agreed or reasonably intended purpose.
Under Article 1663, the tenant must promptly notify the owner about necessary repairs. A tenant who negligently delays notice may be liable for resulting additional damage. If the landlord fails to perform an urgent repair, the tenant may arrange it at the landlord’s cost when necessary to avoid imminent danger.
Under Article 1665, the tenant must return the property substantially as received, except for loss or impairment caused by time, ordinary wear and tear, or an inevitable cause.
If the lease contains no statement of the property’s initial condition, Article 1666 presumes that the tenant received it in good condition, unless contrary proof is presented.
Under Article 1667, the tenant is responsible for deterioration or loss unless the tenant proves that it happened without fault. The special burden stated in that article does not apply when destruction resulted from an earthquake, flood, storm, or other natural calamity.
Under Article 1668, the tenant may also be liable for deterioration caused by household members, guests, and visitors.

These rules must be read together. For example, a tenant may not be liable for a leaking roof caused by age or a structural defect, but may become liable for the additional damage caused by ignoring the leak and failing to notify the landlord promptly.

Damage versus ordinary wear and tear

There is no single statutory checklist covering every apartment, house, condominium, boarding unit, or commercial space. The distinction is factual.

Ordinary wear and tear usually means gradual deterioration resulting from normal, careful use. Possible examples include:

Light fading or minor scuffing consistent with the length of occupancy
Gradual wear on flooring, hinges, handles, or paint
Aging of fixtures or appliances without misuse
Minor marks reasonably expected from ordinary residential use

Chargeable damage may include:

Broken doors, windows, tiles, fixtures, or appliances caused by misuse
Large holes, burns, deep scratches, or severe stains
Water damage caused by leaving a tap running or ignoring a known leak
Damage from unauthorized construction, drilling, rewiring, or removal of fixtures
Pet damage where the tenant is responsible under the lease and the facts
Missing keys, furnishings, appliances, or accessories included in the inventory
Damage caused by occupants or visitors for whom the tenant is legally responsible

Labels are not decisive. A “repainting charge,” for example, may be justified if unusual damage requires repainting, but questionable if the paint merely faded through normal use or had already reached the end of its useful condition. The property’s age, prior condition, tenancy length, expected durability, and repair actually required all matter.

Who must pay for repairs?

Repairs normally chargeable to the landlord

Subject to a valid lease provision and the particular facts, the landlord is generally responsible for necessary repairs that keep the property suitable for its intended use. These may include repairs arising from:

Structural deterioration
Defective plumbing or electrical systems not damaged by the tenant
Roof leaks caused by age or construction defects
Pre-existing defects
Ordinary aging of supplied fixtures
Fortuitous or inevitable events for which the tenant was not at fault

A landlord cannot automatically convert maintenance, renovation, or an upgrade into tenant-caused damage.

Repairs normally chargeable to the tenant

The tenant may be responsible when the repair became necessary because of:

Negligent or improper use
A prohibited use of the property
Failure to report a problem promptly, causing the damage to worsen
Unauthorized alterations
Conduct of household members, guests, or visitors
A clear and lawful obligation in the lease

Liability should still correspond to the loss actually attributable to the tenant. If an old item was already heavily worn, charging the full price of a superior brand-new replacement may overstate the landlord’s loss unless the contract or evidence justifies it.

Security-deposit deductions

Read the deposit clause carefully. It may identify permitted deductions, inspection procedures, notice requirements, or a return date.

Section 7 of the Rent Control Act of 2009, Republic Act No. 9653, provides rules for covered residential units, including a limit of two months’ deposit, bank placement, return of accrued interest, and forfeiture only in an amount commensurate with unpaid rent, utilities, or pecuniary damage to house components and accessories. Because rent-control coverage and implementing periods depend on the type of unit, rent level, location, and current government issuances, do not assume that every lease is covered by every provision of that Act.

Even outside special rent-control coverage, the landlord’s right to retain a deposit depends on the lease and ordinary contract and damages law. A deposit is security, not an automatic penalty or windfall.

A sound deposit accounting should identify:

The amount originally received
Any interest or other amount contractually or legally due
Each unpaid rent or utility charge
Each damaged item and the reason the tenant is responsible
The repair or replacement cost
Supporting invoices, receipts, reports, or photographs
The balance being returned or the additional amount claimed

The tenant should challenge a deduction in writing if it is unexplained, duplicated, unrelated to the unit, based only on ordinary wear, or unsupported by credible evidence.

Proving the damage and the amount

Under Article 2199 of the Civil Code, actual or compensatory damages are limited to pecuniary loss duly proved. The Supreme Court has repeatedly held that actual damages cannot rest on speculation or guesswork. In Litonjua v. Eternit Corporation, the Court rejected speculative lost-rental damages and emphasized the need for competent proof. In Lomotan v. Court of Appeals, it explained that repair estimates alone may not prove an amount actually spent.

The best evidence will vary, but commonly includes:

The signed lease and later amendments
A move-in inventory or condition report
Date-stamped move-in and move-out photographs or videos
Messages reporting leaks, defects, accidents, or repair requests
Inspection reports signed by both parties
Building-administration or condominium incident reports
Receipts and invoices for completed repairs
Contractor reports identifying the cause and necessary work
Proof of the damaged item’s age, model, purchase price, and prior condition
Utility records where water or electrical damage is disputed
Witness affidavits based on personal knowledge
Proof of payment, deposit, and turnover of keys

A quotation or estimate may help show the expected scope of work, especially before repairs are performed, but a court may require stronger proof of the actual loss. Preserve the damaged item where practical, or document it thoroughly before disposal or repair.

Practical steps for landlords

Inspect promptly. Invite the tenant to a joint inspection and document the date, meter readings, keys returned, and condition of every disputed area.
Compare conditions. Match move-out evidence against the move-in report, inventory, prior repair records, and photographs.
Identify the cause. Separate normal aging and necessary maintenance from damage attributable to the tenant.
Prevent further loss. Take reasonable measures to stop leaks, secure broken openings, or address electrical and safety risks. A claimant should not allow avoidable losses to grow.
Obtain reliable documentation. Ask the contractor to describe the damage, likely cause, work required, materials, and cost. Keep official receipts and proof of payment.
Account for the deposit. Send an itemized written computation and return any undisputed balance. Avoid unexplained lump-sum deductions.
Make a written demand. If the deposit is insufficient, state the facts, contractual basis, evidence, exact amount sought, payment method, and reasonable deadline.
Use lawful remedies. Do not seize belongings, threaten the tenant, shut off utilities, or use force as a substitute for legal process.

Practical steps for tenants

Request an itemized statement. Ask what was damaged, why you are responsible, how the amount was calculated, and what evidence supports it.
Preserve your own evidence. Save the lease, receipts, inspection records, repair notices, chats, emails, photographs, videos, and proof of key turnover.
Respond item by item. Identify pre-existing defects, ordinary wear, landlord maintenance issues, natural events, or repairs you previously reported.
Ask to inspect the evidence. Request copies of invoices, receipts, contractor findings, and before-and-after photographs.
Pay undisputed amounts carefully. If you agree with part of the claim, state in writing what the payment covers. Do not sign a broad waiver or admission unless you understand it.
Demand the remaining deposit. State the amount sought, the basis for rejecting deductions, a reasonable payment deadline, and where payment may be sent.
Do not ignore formal papers. A barangay summons, court summons, or small-claims notice carries deadlines and should be addressed immediately.

Negotiating a fair settlement

A practical settlement may resolve the dispute faster than litigation. Consider agreeing in writing on:

Which items are tenant-caused damage
Which items are ordinary wear or the landlord’s responsibility
The supported repair cost for each item
Credit for the deposit and any undisputed utilities or rent
A payment schedule or refund date
Whether the agreement fully settles all claims
What happens if either party fails to comply

Read a barangay settlement carefully before signing. Under Sections 416 to 418 of the Local Government Code, a qualifying amicable settlement generally acquires the force and effect of a final court judgment after ten days. Repudiation within that period is limited to consent affected by fraud, violence, or intimidation. The lupon may enforce the settlement within six months; after that, enforcement generally requires an action in the proper court.

Barangay conciliation may be required first

Katarungang Pambarangay is a precondition to court action when the dispute falls within the lupon’s authority. It commonly applies when the parties are natural persons who actually reside in the same city or municipality, subject to statutory exceptions.

It generally does not apply in situations including:

Parties residing in different cities or municipalities, unless their barangays adjoin and they agree to barangay settlement
A party that is a corporation, partnership, or other juridical entity
A dispute falling within another exception under Section 408 of the Local Government Code
A situation requiring urgent legal action within a recognized statutory exception

Venue can depend on the parties’ residences and the nature of the dispute. Disputes involving real property or an interest in it are generally brought in the barangay where the property or its larger portion is situated, but that venue rule does not by itself expand the lupon’s authority.

When conciliation is required, obtain the proper Certification to File Action before going to court. Failure to complete mandatory conciliation can make a complaint premature, although the Supreme Court has explained that the defect is not jurisdictional and may be waived if not raised on time. Parties generally must appear personally at barangay proceedings without lawyers or representatives, except for the limited cases stated in Section 415.

When small claims may be used

A claim seeking only payment of money arising from a lease or other contract may qualify as a small claim if the principal amount is not more than ₱1,000,000, exclusive of interest and costs. The current procedure is governed by the Supreme Court’s Rules on Expedited Procedures in the First Level Courts.

Examples may include:

A landlord’s claim for unpaid, proven repair costs
A tenant’s claim for the return of a wrongfully withheld deposit
A monetary claim combining permitted unpaid rent, utilities, and property damage, provided the total remains within the threshold

The claimant files the prescribed verified Statement of Claim in the proper first-level court and attaches the supporting documents, affidavits, demand evidence, and barangay certification when required. Current forms and guidance are available on the Supreme Court’s Small Claims page.

Lawyers generally may not appear for parties at the small-claims hearing unless the lawyer is personally a party, although a party may consult a lawyer before or after the hearing. The court’s small-claims decision is final, executory, and unappealable, without prejudice to any extraordinary remedy legally available in an exceptional case.

A dispute involving recovery of possession, eviction, an injunction, or relief other than payment of money may require a different procedure. Do not force an ejectment or possession dispute into a small-claims filing merely because money is also involved.

Time limits

Do not delay merely because the parties are negotiating.

Under the Civil Code, an action based on a written contract generally prescribes in ten years, while an action based on an oral contract generally prescribes in six years. An action based on injury to rights or quasi-delict generally prescribes in four years. The correct period and starting date depend on the legal basis and facts.

A written extrajudicial demand can interrupt prescription under Article 1155, but informal conversation may not have the same effect. Ejectment actions have much shorter and technically calculated periods. Obtain legal advice promptly if possession, lease termination, or a demand to vacate is involved.

Common mistakes

Treating every mark or defect as tenant damage
Assuming the security deposit automatically belongs to the landlord
Charging full replacement cost without considering prior condition or age
Relying only on an unsigned checklist or undated photographs
Repairing or discarding everything before documenting the condition
Presenting estimates as though they were paid invoices
Ignoring the tenant’s earlier repair notices
Failing to give prompt notice of a leak or defect
Withholding an entire deposit for one small disputed item
Claiming moral damages or attorney’s fees as automatic additions
Skipping mandatory barangay conciliation
Filing in the wrong court or using small claims for non-monetary relief
Resorting to lockouts, utility disconnection, threats, or removal of belongings

Attorney’s fees are not automatically recoverable simply because a lawyer was hired. Article 2208 of the Civil Code permits them only under a valid stipulation or recognized legal exception, and any award must be reasonable.

When legal help is urgent

Consult a Philippine lawyer or the Public Attorney’s Office promptly when:

The premises are unsafe or pose an imminent danger to life or health
The dispute involves fire, major flooding, structural failure, or substantial loss
Either side alleges fraud, intentional destruction, theft, or another possible crime
The landlord threatens a lockout, utility disconnection, or seizure of belongings
The tenant receives a demand to vacate, summons, or court order
An insurer, condominium corporation, contractor, or third party may be responsible
The claimed amount exceeds the small-claims limit
The lease contains a penalty, arbitration clause, waiver, or unusual repair provision
Prescription or an ejectment deadline may be approaching
The parties disagree about who owns installed improvements or removed fixtures

Frequently asked questions

Can a landlord charge for repainting?

Only when the lease and evidence support the charge. Repainting made necessary by unusual stains, unauthorized colors, writing, or physical damage may be chargeable. Repainting caused merely by normal fading, age, or routine turnover maintenance may not be.

Is the tenant automatically liable because there was no move-in checklist?

No, but Article 1666 presumes that the property was received in good condition when there is no statement of initial condition. The tenant may overcome that presumption with photographs, messages, witnesses, repair requests, or other credible proof.

Can the landlord keep the entire deposit?

Not merely because some damage exists. The amount retained should correspond to properly chargeable obligations and proven pecuniary loss. Any remaining balance should be accounted for and returned, subject to the lease and applicable law.

Is a contractor’s estimate enough?

An estimate is relevant but may not conclusively prove actual damages. Receipts, paid invoices, proof of payment, photographs, inspection reports, and evidence connecting the work to tenant-caused damage are stronger.

Is the tenant liable for damage caused by a visitor?

Generally, yes. Article 1668 makes the tenant liable for deterioration caused by household members, guests, and visitors.

What if a typhoon or earthquake caused the damage?

The tenant is not automatically liable. The cause, any tenant fault, the lease, insurance, and whether reasonable precautions or prompt notice were required must be examined. A tenant may still be responsible for additional avoidable damage caused by negligence after the event.

Can a tenant deduct repair costs from rent?

Not automatically. Article 1663 allows a tenant to order urgent repairs at the landlord’s cost when the landlord fails to act and the work is necessary to avoid imminent danger. For other repairs, obtain written agreement before deducting anything. An improper deduction may be treated as unpaid rent.

Can either side claim emotional distress?

Moral damages for breach of contract are exceptional and generally require proof that the defendant acted fraudulently or in bad faith, together with proof of the injury claimed. Ordinary disagreement or nonpayment does not automatically justify moral damages.

Where can official court forms be obtained?

Use the Supreme Court’s official Small Claims portal or ask the Office of the Clerk of Court of the proper Metropolitan Trial Court, Municipal Trial Court in Cities, Municipal Trial Court, or Municipal Circuit Trial Court.

Official sources

This article provides general legal information, not legal advice or a prediction of any case. Lease terms, evidence, property type, party status, and local facts may change the result. Official sources and procedures were checked as of 26 August 2026.