Quick answer

A landlord may require an additional rental deposit only if the law and the lease allow it.

For a residential unit covered by the Rent Control Act, the landlord cannot demand more than:

One month’s advance rent; and
Two months’ rent as deposit.

The limit applies to the total deposit, not separately to each label the landlord uses. An added “security,” “damage,” or similar refundable deposit may therefore be unlawful if it pushes the total deposit above two months’ rent.

As of September 15, 2026, rent control covers qualifying residential units renting for ₱10,000 or less per month. The current regulation runs through December 31, 2026. A 1% rent-increase ceiling applies during 2026 when the covered unit remains occupied by the same tenant, subject to the terms and exceptions in the current resolution.

For a unit outside rent-control coverage, there is no equivalent statutory two-month ceiling under Republic Act No. 9653. The written lease and the Civil Code generally govern. Even then, a landlord normally cannot impose a new deposit in the middle of a fixed lease unless the existing contract authorizes it or the tenant agrees to amend the contract.

The rule for rent-controlled residential units

Section 7 of the Rent Control Act of 2009, Republic Act No. 9653, provides that a lessor cannot demand more than one month’s advance rent or more than two months’ deposit.

The Act also requires the deposit to be:

Kept in a bank under the landlord’s account name for the duration of the lease; and
Returned with the interest earned when the lease expires, less deductions lawfully attributable to the tenant.

The landlord may apply the deposit and its interest, in an amount proportionate to the actual financial loss, to:

Unpaid rent;
Unpaid electricity, water, telephone, or other utility bills; or
Damage to house components or accessories caused by the tenant.

The law does not make the entire deposit automatically forfeitable whenever there is a minor breach or some damage. Any deduction should correspond to an actual unpaid amount or pecuniary damage.

Which rentals are covered in 2026?

NHSB Resolution No. 2024-01, adopted by the National Human Settlements Board, continues rent regulation from January 1, 2025 to December 31, 2026.

For 2026, it covers a residential unit that:

Had a monthly rent of ₱10,000 or less;
Remains occupied by the same tenant; and
Is not excluded under the resolution.

The resolution limits the 2026 rent increase for a covered continuing tenancy to 1%.

Residential units include houses, apartments, rooms, dormitories, boarding houses, and bedspaces used as dwellings. Motels and hotels are excluded. A place used partly for a home industry, retail store, or another business may still qualify when the owner and family actually live there and principally use it as a dwelling.

The current regulation does not apply in the same way when:

The monthly rent is above ₱10,000;
A vacant unit is leased to a new tenant, for whom the landlord may set an initial rent;
The unit is a new residential unit constructed after the resolution’s approval and offered for lease; or
The arrangement is not a covered residential lease.

For boarding houses, dormitories, rooms, and bedspaces offered to students, rent may not be increased more than once a year even when tenant turnover occurs.

Can the landlord collect another deposit during the lease?

If the total would exceed two months’ rent

For a covered unit, generally no. A landlord cannot evade the limit by dividing the security into multiple refundable charges. For example, if the tenant has already paid a deposit equal to two months’ rent, demanding another refundable “damage deposit” would conflict with the statutory ceiling if it is substantively part of the rental deposit.

If the original deposit was less than two months’ rent

The two-month figure is a maximum, not an automatic entitlement. A landlord who initially accepted a one-month deposit cannot necessarily increase it during the existing lease merely because the law would have allowed two months at the beginning.

Check the contract. Under Articles 1159 and 1306 of the Civil Code, valid contractual obligations bind the parties, while parties may establish terms that are not contrary to law, morals, good customs, public order, or public policy. If the lease fixes a one-month deposit and contains no adjustment clause, the landlord generally needs the tenant’s consent to change that term before the lease expires.

At renewal, the parties may negotiate a different deposit, but a rent-controlled tenancy still cannot exceed the statutory maximum.

If rent increased

A lawful rent increase does not automatically answer whether the landlord may require the tenant to “top up” the deposit. The result depends on the wording of the lease—for example, whether the deposit is stated as a fixed peso amount or as an amount equivalent to a specified number of months’ rent.

For a covered unit:

The revised rent must comply with the applicable rent-increase ceiling;
The resulting total deposit must not exceed two months’ rent; and
Any adjustment must have a contractual basis or be accepted through a valid amendment or renewal.

If the landlord already deducted from the deposit

Whether the tenant must replenish a deposit after a lawful deduction during the lease depends on the contract and the circumstances. Republic Act No. 9653 authorizes deductions corresponding to unpaid obligations or damage but does not expressly create a general, automatic mid-lease replenishment procedure.

Ask for:

The contractual clause authorizing the deduction and replenishment;
An itemized computation;
Copies of bills, receipts, photographs, or repair estimates; and
Written confirmation of the remaining deposit balance.

Even where replenishment is contractually required, the landlord should not hold more than the lawful maximum for a covered unit.

What about pet, key, utility, or association deposits?

The purpose and terms of the charge matter more than its name.

A genuine payment to a utility provider, condominium corporation, or homeowners’ association may be separate from the landlord’s rental deposit if it is independently required, properly documented, and remitted to that entity. A reasonable charge for a separately requested service may also be treated differently.

Be cautious when the landlord:

Keeps the money as security for damage or nonpayment;
Calls the charge nonrefundable without identifying a service or expense;
Cannot show an association, utility, or building rule requiring it;
Collects the charge under the landlord’s own account; or
Uses several labels that all secure the same lease obligations.

A refundable charge retained by the landlord to secure the tenant’s performance may effectively be part of the rental deposit. Whether a particular fee counts toward the two-month ceiling can depend on the lease, receipts, building rules, and the charge’s actual purpose.

What if the monthly rent is above ₱10,000?

The special deposit ceiling in Republic Act No. 9653 applies to units covered by the rent-control regime. For a unit renting above the current coverage threshold, the lease and the Civil Code ordinarily control the amount and handling of the deposit.

This does not mean that a landlord may rewrite an existing lease unilaterally. If the signed contract states a particular deposit, a new or larger deposit generally requires:

A clause already authorizing the adjustment;
A valid written amendment accepted by both parties; or
A new agreement upon renewal or entry into a new lease.

Read any escalation, renewal, utility, pet, condominium-dues, and damage clauses together. A landlord may have a claim for actual damage or unpaid obligations even if the security deposit is insufficient, but that is different from having an automatic right to demand a new deposit during the current term.

What tenants should do

1. Ask for the demand in writing

Request a written notice stating:

The exact amount;
What the payment is called;
Its purpose;
Whether it is refundable;
Who will hold it;
The contract provision relied upon; and
How and when it will be returned or applied.

Avoid relying only on calls or verbal conversations.

2. Check the coverage and the contract

Confirm:

The monthly rent applicable in 2025 and 2026;
Whether the same tenant has continuously occupied the unit;
When the unit was constructed and first offered for lease;
The original deposit and advance rent paid;
Whether the lease is still within a fixed term;
Any deposit-adjustment or replenishment clause; and
Whether the requested amount would push the total above two months’ rent.

Do not confuse advance rent with a security deposit. Advance rent pays for occupancy; a deposit secures specified obligations.

3. Preserve evidence

Keep copies of:

The signed lease and every amendment or renewal;
Official receipts, acknowledgment receipts, bank-transfer records, and screenshots;
The move-in inspection report and inventory;
Dated photographs or videos of the unit at move-in and move-out;
Utility statements and proof of payment;
Repair quotations, invoices, and receipts;
Messages or notices demanding the additional deposit;
Building, condominium, dormitory, or homeowners’ association rules; and
Any bank information or accounting provided for the deposit.

When paying an undisputed amount, identify its purpose in writing. Do not permit an ordinary rent payment to be casually relabeled as an extra deposit.

4. Send a clear written objection or request for clarification

If the charge appears unlawful, state that:

You have already paid a specified deposit;
The requested payment would make the total a specified amount;
The unit appears to be covered by Republic Act No. 9653;
Section 7 limits the deposit to two months’ rent; and
You are requesting withdrawal or correction of the demand.

If only part of the charge is disputed, distinguish the disputed amount from rent and other amounts admittedly due.

5. Continue complying with undisputed lease obligations

Do not simply stop paying rent because of a deposit dispute. Rent arrears can create a separate ejectment issue.

If a landlord refuses to accept the agreed rent, obtain proof of the attempted payment and promptly seek advice on proper consignation. For covered rentals, Section 9 of Republic Act No. 9653 contains specific rules: after refusal, the tenant may deposit the rent in court, with the city or municipal treasurer, with the barangay chairperson, or in a bank in the landlord’s name with notice to the landlord, within one month of the refusal. Subsequent rent must be deposited within the first ten days of each current month. Because defective consignation can have serious consequences, legal assistance is advisable.

6. Try barangay conciliation when applicable

The Katarungang Pambarangay provisions of the Local Government Code generally require covered disputes between individuals who actually reside in the same city or municipality to undergo barangay conciliation before a court case is filed. Territorial and statutory exceptions apply, including certain disputes involving government entities, urgent legal action, or parties residing in different cities or municipalities.

Bring the lease, receipts, written demand, and a concise computation of the disputed amount. If no settlement is reached, obtain the proper certification required for court action.

7. Consider the proper court remedy

A claim for the return of a deposit or recovery of money may qualify as a small claim if it falls within the current monetary ceiling and subject-matter requirements. Under the Supreme Court’s current small-claims rules, money claims of ₱1,000,000 or less, exclusive of interest and costs, may generally be filed in the proper first-level court using the prescribed forms. The rules cover certain claims arising from contracts of lease.

Consult the Supreme Court’s Small Claims information and forms before filing. Venue, barangay conciliation, supporting documents, filing fees, and the precise nature of the claim must still be checked.

Administrative guidance may also be requested from the Department of Human Settlements and Urban Development, although a binding order for payment, eviction, or damages may require the proper adjudicative body or court.

Common mistakes to avoid

Assuming every Philippine residential lease is rent-controlled;
Treating the ₱10,000 threshold as a nationwide cap on all rental terms;
Looking only at the charge’s label instead of its real purpose;
Paying cash without a dated, specific receipt;
Signing an amendment without checking whether it changes the lease term, rent, deposit, or termination rights;
Withholding rent as leverage in a deposit dispute;
Treating the full deposit as automatically forfeited because some damage exists;
Accepting unexplained deductions without an itemized computation;
Ignoring barangay conciliation when it is a required precondition to suit; or
Moving out without photographs, meter readings, a key-turnover acknowledgment, and a written request for the deposit accounting.

When legal help is urgent

Seek prompt advice from a Philippine lawyer, the Public Attorney’s Office if eligible, or an appropriate legal-aid organization when:

The landlord threatens a lockout, utility disconnection, removal of belongings, or physical harm;
You receive a barangay summons, demand to vacate, or court papers;
The landlord refuses rent and may later claim arrears;
The additional deposit is tied to an immediate threat of eviction;
There is a dispute over serious property damage or a large unpaid balance;
The lease is commercial, mixed-use, rent-to-own, or otherwise outside an ordinary residential tenancy;
Several tenants are being charged under different agreements; or
The unit’s coverage under the current rent-control resolution is unclear.

A landlord should use lawful judicial procedures to recover possession. Tenants should not ignore formal notices or assume that an allegedly unlawful deposit demand excuses all other lease obligations.

Frequently asked questions

Can a landlord ask for three months’ deposit plus one month’s advance?

Not for a residential unit covered by Republic Act No. 9653. The statutory maximum is two months’ deposit and one month’s advance rent.

For an uncovered unit, examine the lease and the Civil Code. The statutory rent-control ceiling should not be presented as applying automatically to a unit outside the current coverage.

Can the landlord increase the deposit every time rent increases?

Not automatically. The lease must be checked, and any rent increase must itself be lawful. For a covered unit, the total deposit may never exceed two months’ rent. A fixed-term contract that states a fixed deposit ordinarily cannot be changed unilaterally without a supporting clause or the tenant’s agreement.

Is a “pet deposit” separate from the two-month limit?

Possibly, but the name alone is not decisive. If the landlord keeps it as refundable security against damage or another lease obligation, it may be treated as part of the total rental deposit. The lease, pet agreement, refund terms, and actual handling of the money should be reviewed.

Must the landlord place the deposit in a separate bank account?

Section 7 states that the deposit for a covered unit must be kept in a bank under the landlord’s account name throughout the lease. It does not expressly require a separate account dedicated only to one tenant, but the landlord must still be able to account for the deposit and the interest attributable to it.

Is the tenant entitled to interest?

For a covered unit, yes. Interest earned on the banked deposit must be returned when the lease expires, subject to lawful, proportionate deductions.

How soon must the deposit be returned?

Republic Act No. 9653 says the deposit and accrued interest are to be returned at the expiration of the lease, subject to valid deductions, but it does not provide a specific number of days for the accounting and payment. The lease may set a definite period. The tenant should make a written demand promptly after turnover and request an itemized statement of deductions.

Can the landlord keep the entire deposit for damage?

Only if the provable unpaid obligations or pecuniary damage equal or exceed the amount retained. For a covered unit, the statute permits forfeiture only in an amount commensurate with the financial damage. Ordinary deterioration from normal use should be distinguished from tenant-caused damage, based on the lease, move-in condition, photographs, and repair evidence.

Can the landlord evict a tenant for refusing an unlawful additional deposit?

Refusal to pay a charge that is not required by law or the contract does not by itself create an automatic right to remove the tenant. However, the landlord may assert another contractual or statutory ground, and the result will depend on the documents and facts. The tenant should continue paying undisputed rent and respond promptly to any formal notice or case.

Does the current rent-control rule continue after December 31, 2026?

NHSB Resolution No. 2024-01 runs only through December 31, 2026. Any rule after that date must be verified from a later official issuance. Do not assume that the same coverage threshold, rent-increase limit, or extensions will continue unchanged.

Official sources

This article provides general legal information, not legal advice for a particular lease or dispute. Coverage and remedies can depend on the rental amount, dates, occupancy history, contract language, property use, and supporting documents. Laws and official issuances were checked as of September 15, 2026.