Quick answer

Sometimes—but not automatically.

For a residential unit covered by the Rent Control Act of 2009, a landlord cannot require more than two months’ rent as deposit in total, in addition to no more than one month’s advance rent. A landlord therefore cannot collect an “additional deposit” that would push the tenant’s total security deposit above the two-month ceiling.

An additional deposit may be permissible when:

the existing deposit is below the legal ceiling;
the lease expressly requires a lawful adjustment, such as maintaining the deposit at a stated number of months after a valid rent increase; or
the tenant freely agrees to a written amendment supported by a legitimate purpose.

Even then, the landlord cannot disregard the Rent Control Act, unilaterally rewrite a fixed lease, or disguise an excessive deposit as a “pet deposit,” “utility deposit,” “damage bond,” or similar charge. For premises outside the Act’s coverage—such as many higher-rent or commercial leases—the written contract generally controls, subject to the Civil Code and other applicable laws.

The two-month limit for covered residential units

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 for the duration of the lease. Any interest earned must be returned to the tenant when the lease ends, subject to lawful deductions.

The deposit and its interest may be applied only in an amount corresponding to the tenant’s actual unpaid rent, utility bills, or damage to components and accessories of the premises. The law does not authorize the landlord to keep the entire deposit automatically whenever there is a minor deficiency or dispute.

“Advance rent” and “deposit” are different:

Advance rent pays rent that is already due or will become due for an identified rental period.
Security deposit secures obligations such as unpaid rent, utilities, or compensable property damage.

Changing the label does not necessarily change the nature of the payment. A refundable amount held to secure the tenant’s obligations may still be treated as part of the deposit.

Which rentals are currently regulated?

For 2026, National Human Settlements Board Resolution No. 2024-01 continues rent regulation for residential units with monthly rent of ₱10,000 or less, provided the same tenant remains in possession. The maximum rent increase for those units in 2026 is 1%.

The resolution also states that:

when a unit becomes vacant, the landlord may set the initial rent for the next tenant;
student boarding houses, dormitories, rooms, and bedspaces cannot have rent increased more than once a year; and
the regulation does not apply to new residential units constructed after the resolution’s approval.

The statutory definition of a residential unit includes houses, apartments, boarding houses, dormitories, rooms, and bedspaces. Hotels, motels, and their rooms are excluded. A mixed residential-business property may qualify when the owner and family actually live there and use it principally as a dwelling.

Coverage can depend on the amount and timing of the rent, continued occupancy by the same tenant, the date the unit was constructed or first offered for lease, and the property’s actual use. Tenants and landlords should therefore examine both the lease and the facts before assuming that the statutory ceiling applies.

Can the landlord top up the deposit after a rent increase?

Possibly, but only under the lease and within the applicable legal ceiling.

Suppose the written lease states that the security deposit must always equal two months’ rent. If a lawful rent increase takes effect, the landlord may have a contractual basis to request a corresponding top-up. For a covered unit, however, the total deposit still cannot exceed two months’ rent.

If the lease states only a fixed peso amount and contains no adjustment clause, the landlord ordinarily cannot change that obligation during the fixed lease term without the tenant’s agreement. Under Articles 1159 and 1306 of the Civil Code, lawful contractual obligations bind the parties, while their agreed terms cannot conflict with law, morals, public order, or public policy.

A landlord also should not use an unlawful rent increase as the basis for increasing the deposit. For a covered unit occupied by the same tenant, the 2026 rent increase is capped at 1%.

What about deposits for pets, keys, utilities, or furnishings?

The answer depends on what the charge actually does.

A separately identified payment for a specific, nonrefundable service may not be a security deposit. But a refundable amount held against possible damage, unpaid bills, missing keys, or other tenant obligations functions like security. For a covered rental, collecting several separately named security amounts that together exceed two months’ rent may violate the statutory ceiling.

Before paying, ask the landlord to state in writing:

whether the payment is refundable;
the particular obligation it secures;
where it will be held;
when and how it will be returned;
what deductions may be made; and
whether it forms part of the existing security deposit.

A charge should not be accepted merely because the landlord calls it a “bond” or “fee.”

Damage does not automatically justify a new deposit

If damage has already occurred, the first questions are whether the tenant caused it, whether it exceeds ordinary wear and tear, and what the reasonable repair cost is.

The landlord should document the condition, obtain a reasonable estimate or receipt, and follow the lease. The landlord may demand payment for proven tenant-caused damage or, when legally and contractually proper, apply the existing deposit. That does not automatically create a right to impose a fresh or recurring deposit.

Tenants are generally not responsible for deterioration caused by ordinary use, age, hidden defects, structural problems, or repairs that are the landlord’s responsibility. Liability will depend on the lease, inspection records, photographs, repair evidence, and the cause of the damage.

What tenants should do when asked for an additional deposit

Ask for the demand in writing. Request the amount, reason, deadline, computation, and exact lease provision relied upon.
Check the total already paid. Add all refundable security amounts, even if they have different labels.
Confirm whether the unit is covered. Check the current monthly rent, continued occupancy, residential use, construction status, and applicable NHSB issuance.
Review the lease. Look for provisions on deposit adjustments, rent increases, pets, utilities, damage, renewal, and amendments.
Request proof of any claimed loss. Ask for photographs, inspection reports, bills, quotations, receipts, and an itemized computation.
Respond in writing. If disputing the demand, identify the payment already made, quote the relevant lease provision, and ask the landlord to withdraw or revise the request.
Do not casually deduct the disputed amount from rent. Failure to pay rent can create a separate and more serious issue. Keep paying undisputed rent on time and retain proof.
If an agreement is reached, document it. State the amount, purpose, refund conditions, and whether the payment changes or replaces the existing deposit.

Evidence to preserve

Keep copies of:

the signed lease and every renewal or amendment;
official receipts, bank transfers, and payment acknowledgments;
the move-in inventory and inspection report;
dated photographs and videos of the unit;
messages, emails, and letters about the additional deposit;
notices of rent increases;
utility bills and meter readings;
repair quotations, invoices, and receipts;
bank-deposit information supplied by the landlord; and
any barangay complaint, summons, or settlement.

When paying an agreed amount, use a traceable method and obtain a receipt stating its exact purpose. Avoid handing over cash without written acknowledgment.

If the landlord refuses rent or threatens eviction

A disputed additional deposit does not give a landlord a free hand to padlock the unit, remove possessions, cut utilities, or physically force the tenant out. Lawful eviction ordinarily requires a recognized ground and proper judicial process.

If the landlord refuses to accept the agreed rent, Section 9 of Republic Act No. 9653 provides specific options for covered rentals. The tenant may deposit the rent through judicial consignation or, with notice to the landlord, with the city or municipal treasurer, barangay chairperson, or a bank in the landlord’s name. The initial deposit must be made within one month after the refusal, followed by deposits within the first 10 days of each current month. Because incorrect consignation can fail legally, obtain advice promptly before relying on this procedure.

Seek urgent help if the landlord:

changes the locks or removes the tenant’s belongings;
disconnects water or electricity to force payment or departure;
uses threats, violence, or harassment;
serves a summons, complaint, or formal demand to vacate;
refuses rent while arrears are accumulating; or
retains a substantial deposit without an itemized basis.

Immediate safety threats should be reported to the barangay or police. A tenant who qualifies may also ask the Public Attorney’s Office about legal assistance.

Resolving the dispute

Start with a concise written request for correction or clarification. Attach proof of the existing deposit and propose a reasonable response date.

When the parties reside in the same city or municipality and no statutory exception applies, barangay conciliation may be a required step before filing an action in court. A settlement reached through the Katarungang Pambarangay process can have binding legal consequences, so read it carefully before signing.

Claims for the return of money may qualify for the Supreme Court’s small-claims procedure, depending on the nature and amount of the claim. Eviction cases follow different rules. Court jurisdiction, prior barangay proceedings, and the correct remedy depend on the particular dispute.

A violation of Republic Act No. 9653 may, upon conviction, carry a fine of ₱25,000 to ₱50,000, imprisonment of one month and one day to six months, or both. This penalty is imposed by a court; it is not an automatic consequence of every disagreement over a deposit.

Common mistakes

Treating advance rent and a security deposit as the same payment.
Looking only at the charge’s label instead of its real purpose.
Assuming every residential lease is covered by the Rent Control Act.
Paying cash without a receipt or written explanation.
Signing a lease amendment under pressure without checking the new total deposit.
Withholding rent to offset a disputed deposit without legal advice.
Assuming the landlord may keep the full deposit for any breach.
Failing to photograph the unit at move-in and move-out.
Ignoring a barangay summons, formal demand, or court document.
Relying on an old rent-control percentage instead of the current NHSB resolution.

Frequently asked questions

Can a landlord ask for three months’ deposit?

Not for a residential unit covered by Republic Act No. 9653. The statutory maximum is two months’ deposit, separate from no more than one month’s advance rent. For an excluded rental, the written contract and general contract law must be examined.

Can the landlord demand another deposit in the middle of the lease?

Only if there is a valid legal and contractual basis or the tenant freely agrees. A landlord ordinarily cannot add a new material obligation unilaterally during a fixed lease. The statutory ceiling continues to apply when the rental is covered.

Can a pet deposit be charged on top of two months’ security deposit?

For a covered unit, a refundable pet deposit intended to secure possible damage may be counted as part of the total deposit. Calling it a pet deposit does not necessarily permit the landlord to exceed the two-month maximum.

Must the landlord return interest earned on the deposit?

For rentals governed by Section 7 of Republic Act No. 9653, yes. The deposit is to be kept in a bank under the landlord’s account name, and accrued interest must be returned when the lease expires, less lawful and properly measured deductions.

May the entire deposit be forfeited because of one unpaid bill or damaged item?

Not automatically. The Act permits forfeiture only in an amount commensurate with the unpaid obligation or pecuniary damage. The deduction should be itemized and supported by evidence.

Is the security deposit automatically the last two months’ rent?

No. Unless the landlord agrees or the lease expressly permits it, a tenant should not stop paying rent and assume that the deposit will cover the final months. The deposit secures obligations and is normally accounted for after the lease ends.

Does the 1% limit apply to every rental in 2026?

No. Under NHSB Resolution No. 2024-01, it applies to covered residential units renting for ₱10,000 or less that remain occupied by the same tenant. Vacant units, higher-rent premises, qualifying newly constructed units, and nonresidential leases may be treated differently.

Where can the current rules be checked?

Consult the official text of Republic Act No. 9653, NHSB Resolution No. 2024-01, and the DHSUD list of NHSB policies.

This article provides general Philippine legal information, not legal advice for a specific dispute. Coverage and remedies may change based on the lease, rental amount, property use, construction date, location, and parties’ conduct. Official sources were checked as of September 17, 2026.