Can a Landlord Change a Yearly Lease to a 6-Month Term? Philippines Tenancy Law

Short answer

  • During an ongoing one-year lease: No. A landlord cannot unilaterally shorten a fixed term that’s already in force. Any change (e.g., from 12 months to 6 months) requires the tenant’s consent or a contractual clause that clearly authorizes it.
  • At the end of the one-year term: The landlord may offer a new 6-month lease instead of renewing for a year. The tenant is free to accept, negotiate, or decline; if declined, the lease ends and the landlord may demand turnover—subject to rent-control protections, notice, and proper ejectment procedure.

Governing law & principles

  1. Civil Code on Lease & Contracts

    • Mutuality of contracts (Art. 1308): A contract’s validity and compliance cannot be left to the will of one party. A fixed-term lease binds both lessor and lessee for the agreed duration.
    • Lease of things (Arts. 1642–1688): These provisions cover duties, remedies, and term rules (including tacit renewals).
  2. Statute of Frauds (Art. 1403[2]): Leases beyond one year must be in writing to be enforceable. (Executed contracts are generally taken out of the Statute, but best practice is a written, signed lease.)

  3. Land Registration rules: Leases exceeding one year may be registered to bind third persons (e.g., a buyer of the property).

  4. Rent Control framework (Republic Act No. 9653, as extended by periodic issuances):

    • Applies only to covered units within price thresholds identified by the government.
    • Caps annual rent increases; limits eviction to specific grounds (e.g., default, need of owner or immediate family to occupy, authorized repairs, etc.).
    • Requires advance written notice for rent increases and certain evictions.
    • Changing a lease term does not override these protections if the unit is covered.

Practical takeaway: Start with the written lease. Then check whether the unit is rent-control covered; if yes, overlay those protections.


Mid-term changes vs. end-of-term changes

1) While the one-year lease is still running

  • General rule: The landlord cannot cut the term to 6 months on their own.

  • Exceptions (narrow):

    • A clear contract clause allowing mid-term modification at the lessor’s option (rare and may be scrutinized; clauses that give one party unilateral power over validity/fulfillment can be void under Art. 1308).
    • Mutual agreement: Parties sign a written amendment converting the remaining term to a 6-month arrangement (or ending early and replacing with a new 6-month lease).
    • Rescission for breach: If the tenant seriously violates obligations (e.g., non-payment, illicit use), the lessor may terminate for cause under the lease/Civil Code. That is not a “change of term”; it’s a termination for breach and must follow notice and, if needed, court action.

2) At the natural expiration of the one-year term

  • Landlord options:

    • Offer a new 6-month lease (with new rent and terms, within rent-control limits if applicable).
    • Decline renewal and require move-out upon expiry (lawful if done properly and not barred by rent-control rules).
  • Tenant options: Accept, negotiate, or vacate at expiry.

  • If the tenant stays and the landlord silently consents:

    • Tacit renewal (tacita reconducción): An implied new lease arises. Its period follows the rent period (e.g., month-to-month if rent is paid monthly), not another fixed year, and prior restrictions apply. The landlord can later end a month-to-month lease with proper prior notice.

Notices, timing, and documentation

A. Ending or not renewing a fixed term

  • Provide clear written notice before the last day of the term if you won’t renew or if you’ll renew only on a 6-month basis. While the Civil Code focuses on consent rather than specific notice days for fixed-term expiry, reasonable lead time (30 days is common practice; check your lease) reduces disputes.
  • Under rent control, separate notice rules may apply (e.g., months-ahead notice for increases or certain evictions). Follow the stricter rule where both apply.

B. Month-to-month situations (implied renewals or no fixed term)

  • If rent is monthly, the lease is typically from month to month. Ending it usually requires prior written notice before the next period begins (30 days is common practice).
  • Keep proof of service (personal delivery with acknowledgment, registered mail, or reputable courier).

C. Form & signatures

  • Use a written, signed document for any amendment or new 6-month lease.
  • If the total term exceeds one year, keep it in writing and consider notarization and registration to bind third persons.

Interplay with rent control (if applicable)

  • Changing from 12 months to 6 months is not a loophole to avoid caps or eviction limits.
  • Rent increases between the expired yearly lease and the offered 6-month lease must respect annual caps and notice under rent control.
  • Eviction limits still apply; a refusal to accept a proposed 6-month term after expiry is typically resolved by simply ending the lease at term (lawful non-renewal), not by ejectment “for cause,” unless other grounds exist.
  • If the landlord seeks to recover the unit for owner’s or immediate family’s use, or to perform authorized repairs/renovations, rent-control rules set specific procedures and notice—follow them exactly.

Common scenarios

  1. Landlord wants to “convert” a running 12-month lease to 6 months for a sale

    • Not allowed unilaterally. Either negotiate an early termination (possibly with compensation) or wait until expiry. If rent control applies, recovery of premises for sale isn’t generally an ejectment ground; coordinate timing at renewal.
  2. Lease ends; landlord offers only a 6-month renewal; tenant insists on 12 months

    • The landlord may stand by the 6-month offer. If the tenant declines, the lease ends at expiry. If the tenant holds over and the landlord accepts rent, an implied month-to-month may arise—landlord can later end it with proper notice.
  3. Tenant holds over quietly after expiry; landlord keeps accepting rent

    • Implied lease forms based on rent periods (often month-to-month). Either side may terminate on proper prior notice; rent-control protections, if applicable, still overlay rent increase and eviction rules.
  4. There’s a clause allowing the landlord to “modify terms anytime”

    • Such one-sided clauses are suspect and may be void under mutuality principles. Courts look for clear, fair, and mutual modification mechanisms.

Drafting & negotiation tips

  • Be explicit on term & renewal: State the exact dates, whether it auto-renews, and on what terms (e.g., “converts to month-to-month unless a new fixed term is signed”).
  • Lock in notice windows: Specify how many days’ notice each party must give for non-renewal or end of a month-to-month tenancy.
  • Rent-control compliance clause: Affirm that any increases or termination will be subject to applicable rent-control rules.
  • Early termination clause: If either party needs flexibility, draft a mutual early-termination option with notice period and perhaps reasonable pre-termination fees (lawful and proportionate).
  • Registration (for >1-year terms): Consider notarization and annotation to protect against third-party claims.

Procedure if negotiations fail

  1. If the fixed term has not expired:

    • Landlord must honor the term (unless there’s cause for termination under the contract/Civil Code).
    • Attempts to force a mid-term change can expose the landlord to damages or harassment claims.
  2. If the term has expired and tenant refuses to vacate:

    • Send final demand to vacate (and to pay, if applicable).
    • If the tenant still refuses, file unlawful detainer (Rule on Summary Procedure) in the proper court after mandatory barangay conciliation (Katarungang Pambarangay), when applicable (i.e., parties reside in the same city/municipality and no exceptions apply).

Tenant & landlord duties (quick map)

  • Landlord: Deliver peaceful possession; maintain the premises for intended use; respect the fixed term; follow rent-control notice/cap rules (if applicable); provide lawful, written notices; pursue legal eviction only through proper process.
  • Tenant: Pay rent on time; use property as agreed; follow house rules; allow access for necessary repairs on reasonable notice; vacate upon lawful end of lease or agreed termination.

FAQs

Q: My landlord just announced our ongoing 12-month lease is now 6 months. Is that valid? A: No. Mid-term unilateral shortening isn’t valid. Point to the written lease and mutuality rule. You can negotiate an amendment, but you’re not obliged to accept.

Q: The lease is ending next month. Can the landlord insist the renewal is only 6 months? A: Yes. At expiry the landlord can offer new terms (e.g., 6 months). You may accept, negotiate, or decline and vacate on the end date—subject to rent-control rules if applicable.

Q: What if I just stay and keep paying after expiry? A: If the landlord accepts rent without objection, an implied month-to-month lease typically arises. Either party can then end it with proper prior notice.

Q: Does rent control stop a landlord from offering a 6-month term? A: Rent control doesn’t dictate fixed-term lengths, but it limits rent hikes and restricts eviction grounds and notice. The offer of a 6-month renewal must still comply with those rules.

Q: Is oral agreement enough? A: Avoid it. Leases over one year must be in writing to be enforceable; even for shorter terms, a written, signed contract prevents disputes.


Practical checklists

For landlords proposing a 6-month term at renewal

  • ☐ Review lease expiry date and notice clauses
  • ☐ Confirm rent-control coverage and compliance
  • ☐ Serve written offer (term, rent, start/end dates, deposit handling) with reasonable lead time
  • ☐ If declined, prepare turnover plan and, if necessary, lawful ejectment steps

For tenants facing a proposed change

  • ☐ Re-read your existing lease (term, renewal, notice, early-termination clauses)
  • ☐ Check if your unit is rent-control covered
  • ☐ Decide to accept, counter-offer, or vacate; request terms in writing
  • ☐ If landlord insists mid-term, cite mutuality and decline unless you agree to amend

Bottom line

  • A landlord cannot change a running yearly lease into a 6-month term unilaterally.
  • At renewal, the landlord may offer only a 6-month term; the tenant may accept or move out at expiry.
  • Always anchor decisions on the written lease, the Civil Code, and—if applicable—the rent-control rules on increases, notices, and eviction grounds.

Disclaimer: This content is not legal advice and may involve AI assistance. Information may be inaccurate.