Quick answer

A tenant is generally liable for damage caused by misuse, negligence, unauthorized alterations, or the acts of household members, guests, and visitors. A tenant is not ordinarily liable for deterioration caused by the passage of time, ordinary wear and tear, an inevitable event, structural defects, or repairs that the landlord was legally or contractually required to make.

The landlord may deduct a properly proved amount from the security deposit, but should not treat the entire deposit as automatically forfeited. The amount claimed should correspond to the actual loss, considering the property’s condition at move-in, its age, prior defects, ordinary depreciation, and the reasonable cost of repair—not the cost of upgrading old fixtures into brand-new ones.

The outcome usually depends on the lease, move-in and move-out records, photographs, repair reports, receipts, communications, and proof of what caused the damage.

The basic legal rules

The lease contract comes first. Under Article 1159 of the Civil Code of the Philippines, contractual obligations have the force of law between the parties and must be performed in good faith. Clauses allocating responsibility for repairs, maintenance, alterations, insurance, inspections, and the security deposit therefore matter, unless they violate law or public policy.

The Civil Code also supplies rules that apply even when the contract is incomplete:

The landlord must deliver the property in a condition fit for its intended use, make necessary repairs during the lease unless validly stipulated otherwise, and maintain the tenant’s peaceful and adequate enjoyment of the property.
The tenant must use the property diligently and only for the agreed or reasonably intended purpose.
The tenant must promptly notify the owner when necessary repairs arise. A tenant who negligently fails to report a problem may become liable for the additional damage caused by that delay.
At the end of the lease, the tenant must return the property substantially as received, except for loss or impairment caused by the passage of time, ordinary wear and tear, or an inevitable cause.
If the lease contains no statement describing the property’s initial condition, the law presumes that the tenant received it in good condition, unless contrary evidence is presented.
The tenant is responsible for deterioration or loss unless the tenant proves that it occurred without the tenant’s fault. This special burden does not apply when destruction resulted from an earthquake, flood, storm, or another natural calamity.
The tenant is also liable for deterioration caused by household members, guests, and visitors.

These rules appear principally in Articles 1654, 1657, and 1663 to 1668 of the Civil Code.

Damage versus ordinary wear and tear

There is no universal checklist that resolves every case. The same condition may be ordinary wear in one property but compensable damage in another, depending on its cause, severity, age, material, duration of occupancy, and prior condition.

Ordinary wear and tear commonly refers to deterioration expected from normal residential use over time. Possible examples include:

gradual fading of paint from age or sunlight;
minor scuffing consistent with ordinary foot traffic;
loosening of an old hinge through normal use;
aging sealant, grout, or fixtures that have reached the end of their useful life; and
deterioration caused by an underlying building defect rather than tenant misuse.

Potentially chargeable damage may include:

broken doors, windows, tiles, cabinets, or fixtures caused by impact or misuse;
large holes, burns, unauthorized repainting, or substantial alterations;
water damage that became worse because the tenant failed to report a known leak promptly;
missing appliances, keys, furnishings, or accessories included in the inventory;
damage caused by an unauthorized pet, occupant, guest, or commercial activity; and
negligent damage to plumbing, electrical systems, appliances, or common areas.

These are only practical illustrations. The lease, evidence, and actual cause remain controlling.

Who must prove what happened?

A landlord demanding payment should be able to identify:

the exact damaged item or portion of the property;
its condition when the tenant took possession;
its condition when the tenant surrendered the property;
why the condition exceeds ordinary wear and tear;
how the tenant, household member, guest, or visitor caused or allowed the damage; and
the reasonable amount needed to repair the loss.

Articles 1666 and 1667 create important presumptions and burdens. If there was no written condition report, the tenant is presumed to have received the property in good condition, subject to proof to the contrary. Once deterioration or loss is established, the tenant may need to show that it occurred without the tenant’s fault.

That does not eliminate the landlord’s need to prove that the alleged damage exists and that the amount claimed is genuine and reasonable. A vague accusation, an unsupported lump-sum estimate, or photographs with no reliable date may carry little weight.

A tenant can rebut the claim through move-in photographs, inspection reports, messages reporting defects, evidence of the item’s age, contractor findings, proof of natural calamity, or other records showing that the problem was pre-existing or resulted from causes outside the tenant’s control.

Which repairs belong to the landlord?

As a general rule, the landlord must make repairs necessary to keep the property suitable for its intended use, unless the parties validly agreed otherwise. For urban property, Article 1686 states that local custom governs the type of repairs chargeable to the landlord when the contract is silent; in case of doubt, the repairs are understood to be chargeable to the landlord.

The tenant should notify the landlord of necessary repairs within the shortest possible time. If the tenant fails to report a leaking pipe, failing roof, termite infestation, electrical fault, or similar condition and the delay causes greater damage, the tenant may be responsible for the avoidable increase in loss.

When urgent repairs are needed to avoid imminent danger and the landlord fails to act, Article 1663 permits the tenant to order the repairs at the landlord’s cost. The tenant should nevertheless document the emergency, notify the landlord in writing whenever practicable, obtain reasonable quotations, and preserve receipts and photographs.

A tenant should not automatically stop paying rent whenever a repair dispute arises. Although Article 1658 recognizes suspension of rent when the landlord fails to make necessary repairs or maintain peaceful and adequate enjoyment, applying that remedy incorrectly can expose the tenant to a nonpayment or ejectment claim. Legal advice is prudent before withholding rent.

How much may the landlord charge?

The proper claim is generally the proven pecuniary loss caused by the breach—not an arbitrary penalty or an opportunity to renovate at the tenant’s expense.

Under Articles 2199 to 2203 of the Civil Code:

actual or compensatory damages must generally be duly proved;
recoverable contractual damages are normally those that naturally and probably resulted from the breach and were reasonably foreseeable;
broader damages may apply where fraud, bad faith, malice, or a wanton attitude is established; and
the injured party must take reasonable steps to minimize the loss.

A reasonable assessment should consider:

repair rather than replacement when repair will restore the item;
the item’s age, condition, and remaining useful life;
whether part of the deterioration was already present;
whether replacement materially improves the property;
labor, materials, removal, and other necessary costs;
amounts already paid by insurance; and
whether the landlord allowed the loss to worsen unnecessarily.

For example, if an old appliance was already near the end of its serviceable life, charging the tenant the full retail price of a superior new model may overstate the actual loss. Conversely, a tenant who destroyed a recently installed item may face a substantially larger claim.

Quotations can help establish an anticipated cost, but paid invoices, official receipts, contractor reports, and proof of payment are generally stronger evidence of actual expenses.

Can the security deposit be withheld?

The answer depends on the lease and whether the residential unit is covered by the applicable rent-control regulations.

For residential units covered by the Rent Control Act framework, Section 7 of Republic Act No. 9653 provides that the lessor cannot demand more than two months’ deposit. It also allows the deposit and accrued interest to be applied, in an amount commensurate with the pecuniary damage, when the tenant leaves unpaid rent or utilities or destroys house components and accessories.

“Commensurate” is important. A landlord should ordinarily provide an itemized accounting showing:

the deposit and any applicable interest;
unpaid rent or utility charges;
each damaged item;
the basis and amount of each deduction; and
the remaining balance due to either party.

A clause saying that the deposit is “non-refundable” or automatically forfeited does not necessarily permit the landlord to retain money without regard to the governing law, the actual breach, and the loss proved. Whether a particular forfeiture or liquidated-damages clause is enforceable requires examination of its language and circumstances.

If the loss exceeds the deposit, the landlord may demand the balance and, if necessary, pursue an appropriate civil action. If the deductions are smaller than the deposit, the tenant may demand return of the balance.

The statutory rent-control coverage and allowable rent increases have been adjusted through administrative issuances over time. The damage rules discussed here should therefore be applied together with the rent-control issuance in force for the particular unit and rental period.

What both parties should do during turnover

A joint inspection is the safest approach.

The landlord and tenant should:

inspect every room, fixture, appliance, meter, and furnished item;
compare the condition with the signed move-in inventory;
take clear, dated photographs and videos;
record meter readings and outstanding utilities;
list every disputed item separately;
identify whether repair, cleaning, or replacement is proposed;
note who retains the keys and the date possession was surrendered; and
sign a turnover report, noting any disagreement rather than leaving it unstated.

A tenant should not sign an unconditional admission of liability merely to complete the turnover. A landlord should likewise avoid signing a full release before discovering concealed damage that could not reasonably have been detected during inspection. Any reservation should be specific and made in good faith.

If one party refuses a joint inspection, the other should document the invitation and conduct the inspection with an independent witness or qualified contractor.

Evidence to preserve

Keep original or complete copies of:

the signed lease and all renewals or amendments;
the move-in inventory and condition report;
pre-occupancy and turnover photographs or videos;
metadata or messages establishing when images were taken;
repair requests and the landlord’s responses;
records of leaks, pests, electrical faults, flooding, storms, or other incidents;
condominium or subdivision incident reports;
contractor assessments and competing quotations;
invoices, official receipts, and proof of payment;
utility bills and meter readings;
deposit receipts and bank-transfer records;
communications about inspections, surrender of keys, and refund demands;
witness names and contact information; and
any insurance claim, adjuster’s report, or payment.

Do not alter the original photographs or discard the allegedly damaged item before the other party has had a reasonable opportunity to inspect it, unless immediate action is necessary for safety or to prevent further loss.

A practical way to resolve the dispute

For the landlord

Send a written demand or accounting that states:

the lease provision and legal basis relied upon;
each item of damage;
why it is beyond ordinary wear and tear;
the evidence connecting it to the tenant;
the repair or replacement cost;
all deductions from the deposit; and
the amount payable or refundable and a reasonable deadline.

Attach photographs, reports, quotations, receipts, and the move-in inventory. Avoid inflated claims, threats, public accusations, or withholding unrelated belongings or documents.

For the tenant

Reply item by item. Admit undisputed charges, dispute unsupported deductions, and attach evidence of pre-existing defects, prior reports, normal aging, repairs already performed, or causes beyond your control. Request a detailed accounting and the return of the undisputed deposit balance.

If the parties agree on an amount, put the settlement in writing. Identify the payment date, method, scope of release, and whether the settlement covers only property damage or also rent, utilities, possession, and other claims.

Barangay conciliation and court remedies

Barangay conciliation may be a required precondition before filing in court when the dispute is between natural persons who actually reside in the same city or municipality, subject to the venue rules and statutory exceptions. It generally does not apply when a party is a corporation or other juridical entity, when the parties reside in different cities or municipalities except in the limited adjoining-barangay situation, or when urgent judicial relief is necessary.

The Supreme Court’s Administrative Circular No. 14-93 summarizes the principal Katarungang Pambarangay requirements and exceptions. Filing prematurely when conciliation is mandatory may lead to dismissal or suspension of the court case.

A claim solely for payment or refund may qualify as a small claim if it falls within the current monetary ceiling and the other requirements of the Rules on Expedited Procedures in the First Level Courts. The present small-claims ceiling is ₱1 million, exclusive of interest and costs. Official forms and guidance are available from the Supreme Court Small Claims page and the Rules on Expedited Procedures.

A case involving recovery of possession, ejectment, injunction, rescission, or another form of non-monetary relief is not converted into a small-claims case merely because damages are also demanded. The correct remedy, court, venue, demand requirements, and filing period depend on the relief sought.

Neither party should resort to self-help measures such as violence, intimidation, unlawful lockout, disconnection of essential services, removal of property, or forcible occupation. Recovery of possession must follow the contract and the proper legal process.

Common mistakes

Having no signed move-in inventory or dated photographs.
Treating every defect found after turnover as tenant-caused damage.
Assuming that all deterioration is ordinary wear and tear.
Replacing an item without first documenting why repair was insufficient.
Charging the full cost of a new item without considering age and prior condition.
Failing to report a minor leak or defect until it causes major damage.
Automatically forfeiting the entire deposit without an itemized accounting.
Using cleaning, repainting, or renovations to disguise an unsupported damage claim.
Discarding damaged materials before inspection.
Making admissions or settlement promises only through unclear verbal conversations.
Filing in court without completing mandatory barangay proceedings.
Mixing a money-only claim with an ejectment dispute without checking the proper procedure.
Assuming attorney’s fees will automatically be recovered. Under Article 2208 of the Civil Code, attorney’s fees are awarded only when authorized by stipulation or by a recognized legal exception, and they must be reasonable.

When legal help is urgent

Consult a lawyer promptly when:

the damage involves fire, flooding, structural failure, serious injury, or an unsafe building;
the claimed amount is substantial or exceeds the deposit;
there are allegations of intentional destruction, fraud, theft, or falsified evidence;
an insurer, condominium corporation, neighbor, contractor, or third party may also be liable;
the landlord threatens lockout, utility disconnection, seizure of belongings, or public shaming;
the tenant remains in possession and an ejectment demand has been issued;
a barangay summons, court summons, subpoena, or demand letter has been received;
evidence may be destroyed or repairs must be undertaken immediately;
the lease contains an arbitration, penalty, acceleration, or unusual forfeiture clause; or
a filing deadline may be approaching.

Claims based on a written contract, oral agreement, injury to rights, and ejectment can have different prescriptive or procedural periods. Do not assume that negotiations indefinitely stop the running of a deadline.

Frequently asked questions

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

No. The absence of a condition statement creates a presumption under Article 1666 that the tenant received the property in good condition, but the tenant may overcome it with contrary evidence such as dated photographs, messages, witnesses, contractor reports, or proof of an old structural defect.

Can the landlord charge for complete repainting?

Only if the lease and evidence justify it. Ordinary fading and minor aging may be wear and tear. Unusual stains, unauthorized colors, excessive holes, or deliberate damage may support a charge. The amount should correspond to the reasonable work needed, not an unrelated renovation.

Is the tenant liable for damage caused by a guest?

Generally, yes. Article 1668 makes the tenant liable for deterioration caused by members of the household and by guests and visitors. The tenant may have a separate claim against the person who actually caused the damage.

Who pays for a leaking roof or old plumbing?

Necessary repairs are generally the landlord’s responsibility unless a valid contract provision or applicable custom places the particular repair elsewhere. The tenant may nevertheless be liable for added damage caused by failure to report the problem promptly or by misuse.

Can the tenant repair the property instead of paying?

The parties may agree to that arrangement. The agreement should specify the scope, materials, contractor, deadline, inspection, and whether successful completion fully settles the claim. A tenant should not perform major alterations without written authority.

Can the landlord keep the deposit until repairs are finished?

A reasonable temporary retention may be defensible when the amount cannot yet be determined, but the landlord should act promptly, obtain reliable costs, give an itemized accounting, and return any undisputed balance. Indefinite or unexplained withholding is vulnerable to challenge.

Can emotional distress or inconvenience be claimed?

Not automatically. A routine breach of lease does not by itself establish moral or exemplary damages. The claimant must show the legal and factual grounds required for those forms of damages, such as fraud, bad faith, or another circumstance recognized by law.

Can the dispute be filed as a small claim?

A money-only claim of up to ₱1 million, exclusive of interest and costs, may qualify if it falls within the coverage of the current rules. Claims seeking possession, injunction, rescission, or other non-monetary relief require a different procedural analysis.

Official sources

This article provides general legal information, not advice for a particular lease or dispute. Liability can change based on the contract, type and location of the property, evidence, rent-control coverage, and relief sought. Current law and official sources were checked as of August 24, 2026.