Quick answer

Yes—but not automatically.

For a residential unit covered by Philippine rent-control rules, a landlord may generally require no more than:

One month’s advance rent, and
Two months’ rental deposit.

If the landlord already holds the full two-month deposit, demanding another compulsory “security,” “utility,” “damage,” or similarly functioning deposit may exceed the statutory ceiling. If the existing deposit is below the ceiling, a top-up may be proper only when the lease authorizes it or the tenant freely agrees, and the total remains within the legal limit.

For units outside rent control—such as many higher-rent residences and commercial properties—the lease contract generally governs. Even then, a landlord ordinarily cannot add a new deposit unilaterally during a fixed lease unless the agreement permits it. Different terms may be proposed for a renewal or new lease, subject to law and genuine agreement.

When the two-month limit applies

Section 7 of the Rent Control Act of 2009 (Republic Act No. 9653) prohibits the lessor or the lessor’s agent from demanding more than one month’s advance rent and more than two months’ deposit for covered residential units.

The law’s definition of a residential unit includes houses, apartments, dormitories, boarding houses, rooms, and bedspaces. It may also cover a place used partly for a home industry, retail store, or other business if the owner and family actually live there and use it principally as their dwelling. Hotels, hotel rooms, motels, and motel rooms are excluded.

For 2026, National Human Settlements Board Resolution No. 2024-01 regulates covered residential units from January 1, 2025 through December 31, 2026. Its 2026 rent-increase cap applies to units:

Occupied by the same tenant in 2025;
Renting for ₱10,000 or less per month in 2025; and
Continuously occupied, or renewed by that tenant, in 2026.

The maximum 2026 increase for those units is 1%. A vacant unit rented to a new tenant may generally be priced anew, while boarding houses, dormitories, rooms, and bedspaces remain subject to the applicable restriction on the frequency of increases. The DHSUD’s official explanation of the 2025–2026 regulation provides the current coverage details.

Because coverage can depend on the property’s use, rent, occupancy history, and identity of the tenant, examine the actual facts rather than relying only on labels in the lease.

What counts as an “additional deposit”?

The clearest case is a demand expressly called an additional security deposit. Other charges require closer examination, including:

A damage or repair bond;
A utility, electricity, water, key, or access-card deposit;
A “good-faith,” “move-in,” or “guarantee” deposit;
A new deposit imposed because the rent increased;
A replacement deposit demanded while the landlord still holds the original; or
A fresh deposit collected upon renewal without crediting or returning the old one.

A charge for a specific item or service is not necessarily a rental deposit. However, changing the name does not by itself change what the payment does. If the money is held to secure rent, utilities, damage, or the tenant’s general performance, it may function as part of the rental deposit. The contract, receipts, purpose, refund conditions, and the landlord’s treatment of the money will matter.

A truly separate charge—such as reimbursement for an agreed replacement access card—may be treated differently if it reflects an identifiable expense rather than money held as security.

Can the landlord require a top-up after the rent increases?

Possibly, but the lease wording is crucial.

If the lease states that the deposit must always equal a specified number of months’ rent, a landlord may have a contractual basis to request a proportional top-up after a lawful rent increase. For a rent-controlled unit, the total rental deposit still cannot exceed two months’ rent.

If the contract instead states a fixed peso amount and contains no adjustment provision, the landlord cannot ordinarily rewrite that term alone during the lease. Under Articles 1159, 1306, and 1308 of the Civil Code, contracts must be performed in good faith, lawful terms bind the parties, and compliance cannot be left solely to one party’s will.

Example: A lease states that the deposit is ₱16,000, equivalent to two months of an ₱8,000 rent. After a lawful increase, whether the landlord can require a top-up depends on whether the agreement fixes the deposit at ₱16,000 or requires it to remain equal to two months’ rent. In either case, the statutory ceiling must be observed if rent control applies.

What if the landlord asks for another deposit at renewal?

Renewal deserves separate treatment from a mid-lease demand.

At the end of a fixed term, the parties may negotiate a new lease, including a lawful deposit. But the landlord should account for the deposit already being held. The parties may agree in writing that it will:

Be carried over to the renewed lease;
Be topped up to a lawful amount;
Be applied to authorized deductions, with the balance carried over; or
Be returned before a new deposit is collected.

A landlord should not keep the old deposit and collect another full deposit without a clear, lawful accounting. For covered units, the total amount held as rental security should remain within the two-month ceiling.

If the tenant remains for at least 15 days after expiration with the landlord’s acquiescence and neither party gave contrary notice, Article 1670 of the Civil Code may create an implied new lease, with the other terms of the original contract generally revived. Whether a new deposit can be imposed in that situation depends on the original terms and the parties’ subsequent agreement.

Units outside rent control

The special ceiling may not govern:

Residential units outside the current monetary or occupancy coverage;
Commercial or industrial premises not principally used as the tenant’s dwelling;
Hotels and motels; or
Other arrangements excluded by law or the current regulation.

For these leases, the contract is usually the starting point. Parties may agree on a larger deposit provided the terms do not violate law, public policy, or other mandatory rules.

Still, an existing fixed-term lease cannot normally be modified by one party alone. A landlord may propose an amendment, but the tenant’s consent is ordinarily necessary unless the original agreement already authorizes the adjustment. At renewal, the landlord may offer different terms, and the tenant may accept, negotiate, or decline them.

How the deposit must be handled

For a covered residential lease, Section 7 of Republic Act No. 9653 requires the deposit to be kept in a bank under the lessor’s account name throughout the lease. Interest earned on it must be returned to the tenant when the lease expires.

The landlord may retain only the amount commensurate with the tenant’s unpaid obligations or actual pecuniary damage, including:

Unpaid rent;
Unpaid electricity, water, telephone, or other utility bills; and
Tenant-caused destruction of components or accessories of the premises.

The deposit is not automatically the landlord’s money merely because the lease ended or the tenant moved out. Any deductions should have a factual and contractual basis.

Under Article 1665 of the Civil Code, the tenant must return the property substantially as received, except for loss or deterioration caused by the passage of time, ordinary wear and tear, or an inevitable cause. Routine aging—such as reasonable paint fading from normal use—should not be treated in the same way as tenant-caused destruction.

There is no substitute for checking the lease: it may contain lawful procedures on inspection, notice, documentation, utilities, and the return or application of the deposit.

What tenants should do before paying

Ask for the demand in writing. Request the exact amount, purpose, legal or contractual basis, due date, and refund conditions.
Calculate everything already held. Include the original deposit and any other refundable amount securing rent, utilities, keys, damage, or performance.
Check the lease carefully. Look for the stated peso amount, number of months secured, adjustment clause, renewal provisions, and treatment of the old deposit.
Confirm whether rent control applies. Record the monthly rent, the unit’s actual use, when it was first occupied, whether the tenant remained the same, and whether the demand concerns an existing term or renewal.
Ask for a written accounting. If the landlord says the old deposit has been consumed, request an itemized statement, bills, photographs, repair receipts, and the lease provision authorizing each deduction.
Do not rely on verbal assurances. Any agreed top-up, carry-over, credit, or refund should appear in a signed receipt or lease amendment.
Continue performing undisputed obligations. A deposit dispute does not automatically excuse nonpayment of current rent. Do not treat the deposit as the last month’s rent unless the landlord agrees in writing or the lease clearly permits it.

Evidence to preserve

Keep copies of:

The signed lease and every renewal or amendment;
Receipts, bank transfers, electronic-wallet records, and acknowledgment messages;
Advertisements or move-in terms showing the original required payments;
Written demands for an additional deposit;
Messages explaining the payment’s purpose;
The move-in inventory and dated photographs or videos;
Move-out inspection reports and key-return acknowledgment;
Utility statements and proof of final payment;
Repair estimates, invoices, and receipts;
Written requests for the return or accounting of the deposit; and
Any notice of rent increase, nonrenewal, or threatened eviction.

Photograph the entire unit at move-in and move-out, not just damaged areas. Whenever possible, conduct a joint inspection and obtain a signed record of the meter readings, keys returned, and condition of each room.

Common mistakes

Assuming every residence is rent-controlled

The current monetary and occupancy requirements must be checked. The fact that a property is residential does not, by itself, settle coverage.

Confusing advance rent with a deposit

Advance rent pays for occupancy during an identified period. A deposit is held as security. Their purposes and legal ceilings are different.

Paying a second deposit without dealing with the first

A renewal document should say whether the existing deposit is refunded, credited, carried forward, or topped up.

Treating the deposit as the final rent payment

Doing so without contractual or written authority can create rent arrears and expose the tenant to a demand or ejectment case.

Accepting unexplained deductions

Ask for an itemized computation and supporting evidence. A general allegation that the unit was “damaged” is not the same as proof of actual loss.

Withholding rent because the demand appears illegal

Keep paying rent as required unless a lawyer advises otherwise. If the landlord refuses payment, obtain prompt advice on formal tender and consignation; depositing money informally into an account of the tenant’s choosing may not protect the tenant.

Leaving everything until move-out

Disputes are harder to prove without an initial inventory, dated photographs, payment records, and written communications.

If the parties cannot agree

Start with a calm written notice. State:

The amount already held;
The new amount being demanded;
The relevant lease provision;
Why the demand appears inconsistent with the agreement or statutory ceiling;
The resolution requested; and
A reasonable date for a written response.

For rent-control questions or complaints, contact the Department of Human Settlements and Urban Development or the DHSUD regional office with jurisdiction over the property.

Barangay conciliation may be a required step before filing in court when the dispute and parties fall within the Katarungang Pambarangay rules. The precise venue and exceptions depend on the parties’ residences, the nature of the action, and other facts. Failure to complete required conciliation can make a court case premature, as explained in the Supreme Court’s Circular No. 14-93.

A claim seeking only the return of money may qualify for the courts’ small-claims process if it falls within the current jurisdictional and procedural requirements. Ejectment, injunction, title disputes, and claims seeking relief other than payment require different procedures. Confirm the proper remedy with the Office of the Clerk of Court or a lawyer before filing.

When legal help is urgent

Seek prompt legal assistance if:

The landlord threatens to change the locks, remove belongings, cut utilities, or use force;
You receive a barangay summons, formal demand to vacate, court summons, or complaint;
The landlord refuses rent and appears to be preparing an ejectment case;
A deadline in the lease, demand letter, summons, or court order is approaching;
The deposit is substantial or the lease is commercial, mixed-use, or unusually complex;
The landlord claims damage far beyond the deposit;
Fraud, forged documents, harassment, or threats are involved; or
You need to recover possession, stop an unlawful act, or obtain relief other than a simple money judgment.

Do not ignore court papers. The time to respond may be short, and negotiations do not necessarily suspend procedural deadlines.

FAQ

Can a landlord demand three months’ security deposit for a covered unit?

Generally, no. Republic Act No. 9653 limits the rental deposit for a covered residential unit to two months, separate from the permitted one month of advance rent.

Can the landlord collect one month’s advance and two months’ deposit?

Yes, for a covered unit, those are the statutory maximum amounts—not amounts that must always be charged.

Can a “utility deposit” be collected on top of the two-month deposit?

It depends on its real purpose and terms. If it is another refundable security for the tenant’s obligations, collecting it on top of a full two-month deposit may be challenged as exceeding the limit. A payment tied to a distinct, documented expense may be treated differently.

Can the landlord increase the deposit whenever rent increases?

Only if there is a contractual or mutually agreed basis for the adjustment. For a covered unit, the total deposit cannot exceed two months’ rent, and the rent increase itself must be lawful.

Must the tenant pay a fresh deposit upon renewal?

Not necessarily. The existing deposit should first be accounted for. It may be carried over or lawfully topped up by agreement instead of being duplicated.

Can the landlord automatically keep the whole deposit if the tenant leaves early?

Not automatically. The lease and circumstances must be examined. Any retention should correspond to enforceable obligations and proven loss; a forfeiture provision may also be reviewed for legality and fairness.

Can the deposit be deducted for ordinary wear and tear?

Ordinary deterioration from time and normal use is generally not treated as tenant-caused damage. The tenant may be responsible for deterioration caused by the tenant, household members, guests, or visitors.

When should the deposit be returned?

For covered leases, the law contemplates its return at the expiration of the lease, together with accrued interest, after lawful deductions. The parties should complete inspection, utility reconciliation, and an itemized accounting promptly. Check the lease for any specific procedure that is consistent with law.

What if the landlord refuses to provide receipts?

Preserve bank, electronic-wallet, text, email, and witness evidence. Send a written request identifying each payment, its date, amount, and purpose, and ask the landlord to confirm the account.

Is an illegal additional-deposit demand a reason to stop paying rent?

No. Continue paying undisputed rent according to the lease. If the landlord refuses it, seek immediate advice on the legally proper tender and consignation procedure.

This article provides general legal information, not advice for a particular lease or dispute. Coverage and remedies depend on the contract, property use, rent, occupancy history, communications, and evidence. Current law and official guidance were checked on September 21, 2026.