Quick answer

A landlord may require an additional rental deposit only in limited circumstances.

For a residential unit covered by the Rent Control Act, the landlord cannot hold more than two months’ rent as deposit in total, regardless of whether the amount is collected at move-in or later. The landlord also cannot demand more than one month’s advance rent. Calling an extra security amount a “pet deposit,” “damage bond,” “key deposit,” or similar charge does not necessarily avoid the limit if the money is really additional security for the tenancy.

Even when the unit is not covered by rent control, a landlord generally cannot impose a new deposit during an existing fixed-term lease unless:

the lease already contains a valid provision authorizing the adjustment;
the tenant agrees to amend the lease; or
another legal basis applies.

At renewal, the parties may negotiate a new or increased deposit. For a rent-controlled unit, however, the total deposit must remain within the statutory two-month ceiling.

The current rule for rent-controlled homes

Section 7 of Republic Act No. 9653, or the Rent Control Act of 2009, provides that a lessor cannot demand:

more than one month’s advance rent; or
more than two months’ deposit.

The deposit must be kept in a bank under the lessor’s account name during the lease. Interest earned must be returned to the tenant when the lease ends, subject to lawful deductions.

The government has continued rental regulation through National Human Settlements Board Resolution No. 2024-01, covering January 1, 2025 through December 31, 2026. The resolution applies nationwide to covered residential units renting for ₱10,000 or less per month, subject to its stated conditions. Because the present issuance expires at the end of 2026, anyone entering or renewing a lease for 2027 should check for a later official resolution.

Apartments, houses, rooms, dormitories, boarding houses and bedspaces used for residential purposes may fall within the law. Hotels, hotel rooms, motels and motel rooms are excluded from the statutory definition. Mixed residential and small-business premises may be covered when the owner and family actually live there and principally use it as a dwelling.

When an additional deposit may be lawful

The original deposit was below the legal maximum

Suppose the monthly rent is ₱8,000 and the tenant originally paid a one-month deposit of ₱8,000. A request for another ₱8,000 would bring the total to two months’ rent, not automatically beyond the statutory ceiling.

That does not mean the landlord can always impose the increase unilaterally. The landlord must still point to the lease provision authorizing the top-up, obtain the tenant’s agreement, or negotiate it as part of a new lease. A legal ceiling is a maximum, not an automatic entitlement.

The written lease has a valid adjustment clause

A lease may state, for example, that the security deposit must remain equivalent to a stated number of months’ rent and must be topped up after a lawful rent increase. Such a clause can support an additional demand if it is clear, applies to the circumstances and does not violate the Rent Control Act.

For a covered unit, the resulting total still cannot exceed two months’ rent. Any increase in the underlying rent must also comply with the applicable rent-control ceiling.

The parties are negotiating a renewal

When a fixed-term lease expires, the landlord may propose new terms for a renewed lease. The tenant is free to accept, reject or negotiate those terms, subject to rent-control rules and other laws.

For a covered unit, a renewal cannot validly require a deposit exceeding the two-month maximum. A landlord also should not disguise a prohibited rent increase as a refundable “deposit.”

The payment is genuinely separate from the rental deposit

Some payments may serve a different purpose—for example, an actual utility-company deposit paid or transferred to the utility provider. Whether a charge is separate depends on its real nature, recipient, refund conditions and supporting documents.

A landlord cannot defeat the law merely by changing the label. If the landlord holds refundable money to answer for unpaid rent, utilities or damage to the premises, it may function as part of the rental deposit.

When the demand is likely improper

An additional deposit is likely unlawful or unenforceable when:

it would bring the total deposit above two months’ rent for a covered unit;
it is an additional advance-rent demand exceeding the one-month limit;
it contradicts the existing lease;
the lease leaves the amount entirely to the landlord’s unilateral choice;
the landlord cannot explain the purpose, accounting or refund terms;
it is imposed retroactively without the tenant’s agreement;
it is used to evade the current rent-increase ceiling; or
it is based on alleged damage that has not been documented or quantified.

Under Articles 1159, 1306 and 1308 of the Civil Code, contracts must be performed in good faith, contractual terms cannot violate law or public policy, and the contract’s validity or performance cannot be left solely to one party’s will.

What if the rent is more than ₱10,000?

A residential unit renting above the current ₱10,000 coverage ceiling is generally outside NHSB Resolution No. 2024-01. In that situation, the special statutory deposit cap may not govern, and the written lease and the Civil Code become especially important.

The landlord and tenant may agree on a larger deposit, provided the agreement is not contrary to law, public policy, morals or good customs. But an existing contract still cannot ordinarily be rewritten by one party alone. If the lease specifies the deposit and contains no adjustment mechanism, the landlord should obtain the tenant’s consent before increasing it during the term.

The result may differ if the lease has expired, the parties are negotiating a new lease, or the tenant remained for at least 15 days with the landlord’s acquiescence and an implied new lease arose under Article 1670. The documents, notices and parties’ conduct should be reviewed before assuming that the old fixed-term lease simply continued unchanged.

How the deposit may be used

For a covered unit, Section 7 of the Rent Control Act permits the deposit and its interest to be applied, in an amount corresponding to the actual financial loss, when the tenant:

leaves unpaid rent;
fails to settle electricity, telephone, water or other utility bills; or
destroys components or accessories of the house.

This does not authorize automatic forfeiture of the entire deposit for every breach. The amount retained should correspond to the unpaid obligation or proven damage.

Ordinary deterioration from time and normal use should be distinguished from tenant-caused damage. Article 1666 of the Civil Code recognizes ordinary wear and tear, while Articles 1667 and 1668 address deterioration attributable to the tenant, household members, guests or visitors.

A fair turnover process should include an inspection, dated photographs, meter readings, copies of unpaid bills, repair estimates or receipts, and a written itemization of deductions.

What tenants should do when asked for more money

1. Ask for the demand in writing

Request a written notice stating:

the amount requested;
whether it is advance rent, a security deposit or another charge;
the lease provision relied upon;
how the amount was calculated;
where the money will be held;
whether it is refundable; and
the conditions for deductions and return.

Do not rely only on a verbal conversation or chat message that does not explain the charge.

2. Check whether the unit is covered

Confirm:

the residential nature of the premises;
the monthly rent relevant to the current NHSB resolution;
whether the same tenant continues to occupy the unit;
the location and type of accommodation; and
whether an exclusion applies.

Keep the original lease, renewal agreements and rent receipts. The answer may turn on the rent during the specific year covered by the regulation, not simply the amount quoted today.

3. Add all security amounts together

List every refundable amount held by the landlord, including the original security deposit and any later damage, pet, key or utility bond. Examine what each payment actually secures.

For a covered tenancy, compare the aggregate rental-security amount with the two-month ceiling. Separately calculate advance rent, which has its own one-month limit.

4. Respond clearly and calmly

If the demand appears improper, state in writing that you are willing to comply with the lease and continue paying the undisputed rent, but request the legal and contractual basis for the extra deposit.

Do not sign an acknowledgment saying the money is non-refundable or voluntarily paid unless that accurately reflects the agreement and you understand its effect.

5. Continue paying undisputed rent on time

A deposit dispute does not normally excuse nonpayment of regular rent. Pay through the agreed channel and preserve receipts, bank records or electronic confirmations.

If the landlord refuses to accept rent, obtain legal advice promptly. Section 9 of the Rent Control Act contains specific rules on depositing rent after a landlord’s refusal, including deadlines and permitted places of deposit. Improvised withholding or payment to an unauthorized person can create avoidable ejectment risk.

6. Propose a written solution

Depending on the facts, the parties might agree to:

retain the original deposit;
make a lawful top-up in installments;
clarify that a separate amount will be paid directly to a utility provider;
conduct a documented inspection instead of increasing the deposit; or
sign a written renewal stating the total deposit already held.

Any settlement should identify the existing deposit, the additional amount, the total after payment, the bank-account requirement where applicable, and the conditions for its return.

Evidence to preserve

Keep copies of:

the signed lease and every addendum or renewal;
proof of the original deposit and advance rent;
official receipts, acknowledgment receipts and bank-transfer records;
the landlord’s written demand;
emails, text messages and relevant chat conversations;
advertisements or move-in documents describing the required payments;
photographs and videos from move-in and turnover;
inspection reports and property inventories;
utility bills and meter readings;
repair quotations, invoices and receipts;
proof of regular rent payments; and
any notice threatening disconnection, lockout or eviction.

Back up digital records somewhere you can still access if a device or account is lost.

If the parties cannot agree

Start with a dated written objection or demand for clarification. State the facts, quote the relevant lease provision, identify the amount already held and request a written response.

Barangay conciliation may be a required first step before filing a court action when the parties are natural persons who reside in the same city or municipality, subject to the exceptions in the Katarungang Pambarangay provisions of the Local Government Code. If settlement fails, obtain the appropriate certification before proceeding where the law requires it.

For official policy guidance, a tenant or landlord may contact the appropriate DHSUD regional office. Questions involving recovery of money, enforcement of a lease, damages or ejectment may ultimately require barangay proceedings, court action or advice from a Philippine lawyer. Qualified indigent clients may inquire with the Public Attorney’s Office.

Violating the Rent Control Act can carry the penalties stated in Section 13: a fine of ₱25,000 to ₱50,000, imprisonment of one month and one day to six months, or both, following a finding of guilt. Whether a particular demand constitutes a punishable violation depends on the facts, the unit’s coverage and the evidence.

When legal help is urgent

Seek prompt assistance if the landlord:

changes the locks or physically prevents entry;
removes or threatens to seize belongings;
disconnects essential utilities to force payment or departure;
uses threats, violence or harassment;
serves a barangay, prosecutor’s-office or court document;
gives a demand to vacate or notice of ejectment;
refuses rent and then claims arrears;
insists on an undocumented cash payment; or
withholds a substantial deposit without an itemized basis.

A landlord must use lawful judicial remedies to eject a tenant. Tenants should not ignore formal demands or summonses, because procedural deadlines may be short and failure to respond can seriously affect the case.

Common mistakes to avoid

Assuming every Philippine rental is covered by the current rent-control resolution.
Treating the two-month maximum as permission for an automatic top-up.
Counting advance rent and security deposit as if they were the same thing.
Looking only at the charge’s label instead of its real purpose.
Paying cash without a signed receipt.
Stopping rent payments because of a deposit dispute.
Relying on an oral promise that the additional payment will be refunded.
Signing a renewal without stating how much deposit is already held.
Accepting deductions without asking for photographs, bills or receipts.
Assuming the 2026 rules will automatically remain unchanged in 2027.

Frequently asked questions

Can a landlord ask for three months’ deposit?

Not for a residential unit covered by the Rent Control Act. The maximum deposit is two months’ rent. The one-month advance-rent allowance is separate and should not be relabeled as another deposit.

For a unit outside rent control, the answer depends primarily on the lease and general contract law.

Can the landlord increase the deposit when rent increases?

Only if the lease or a new agreement supports the adjustment. For a covered unit, the total deposit after adjustment cannot exceed two months of the lawful rent.

Is a pet deposit included in the two-month limit?

It may be if the landlord holds it as refundable security against pet-related damage or other tenancy obligations. The substance of the charge matters more than its name. A genuinely separate, documented payment may require a different analysis.

Can the landlord demand an extra deposit after damage occurs?

The landlord may pursue the tenant for proven loss under the lease and the Civil Code. That is different from automatically imposing a new security deposit. Review the inspection evidence, repair cost, lease terms and existing deposit before paying.

Must the landlord return interest on the deposit?

For a tenancy covered by Section 7 of the Rent Control Act, the deposit must be kept in a bank under the lessor’s account name, and accrued interest must be returned at the end of the lease, subject to lawful deductions.

Can the landlord keep the whole deposit because the tenant left early?

Not automatically. The lease’s early-termination clause, unpaid rent, actual damage, mitigation issues and other facts must be examined. For a covered unit, forfeiture under Section 7 should be commensurate with the financial damage or unpaid obligations.

Can a tenant refuse an additional deposit and remain indefinitely?

No. The tenant may contest an unlawful mid-lease demand, but a fixed-term lease can still expire, and other lawful grounds for judicial ejectment may exist. At renewal, the landlord generally need not agree to every proposed term, subject to rent control and other applicable laws.

Does a sale of the property erase the deposit?

Not necessarily. The tenant should notify both the former and new owner in writing, provide proof of payment, and ask who holds and must return the deposit. The sale documents, lease, notice to the tenant and transfer of the deposit should be reviewed before assigning responsibility.

Official legal sources

This article provides general legal information, not advice for a particular dispute. Coverage and remedies can depend on the lease, rental history, type of premises, notices and other documents. Official sources were checked as of September 17, 2026.