Yes, a landlord in the Philippines may deduct from a security deposit for real, provable damage caused by the tenant, but not for “old damage” that already existed before move-in, ordinary wear and tear, aging, or repairs that are really the landlord’s responsibility. The key questions are: What was the condition of the unit when the tenant received it? What damage happened during the lease? Is the claimed deduction supported by photos, receipts, inspection reports, or other evidence? This article explains how Philippine law treats security deposits, old damage, ordinary wear and tear, and what tenants or landlords can do when there is a dispute.

The Short Answer: Old Damage Should Not Be Charged to the Tenant

A landlord generally cannot deduct old damage from a security deposit if the damage:

already existed before the tenant moved in;
was caused by the previous tenant;
resulted from age, normal deterioration, or ordinary wear and tear;
was due to structural defects, roof leaks, plumbing failure, or other matters the landlord had to maintain;
was not proven with proper evidence; or
was already waived, accepted, or documented during move-in.

However, a landlord may deduct if the tenant caused new damage beyond ordinary wear and tear, such as broken fixtures, missing items, unauthorized alterations, unpaid utilities, or repairs made necessary by misuse of the property.

For example:

Situation	Can the landlord deduct?	Why
Wall paint faded after 3 years of normal use	Usually no	Ordinary wear and tear
Broken glass window caused by tenant’s child	Usually yes	Tenant-caused damage
Cracked bathroom tile already visible in move-in photos	Usually no	Pre-existing damage
Water damage from long-unrepaired roof leak reported to landlord	Usually no	Landlord maintenance issue
Missing remote control, keys, or condo access card	Usually yes	Loss attributable to tenant
Deep holes from unauthorized wall mounting	Usually yes	Beyond ordinary wear and tear

Legal Basis: Security Deposits Under Philippine Law

Civil Code Rules on Lease

Most lease disputes in the Philippines are governed by the Civil Code of the Philippines, unless a special law or valid lease clause applies.

Under Article 1654 of the Civil Code, the landlord, or lessor, must deliver the leased property in a condition fit for its intended use, make necessary repairs during the lease unless the contract says otherwise, and maintain the tenant in peaceful and adequate enjoyment of the property. Article 1657 requires the tenant, or lessee, to pay rent and use the property with the care of a “diligent father of a family,” meaning ordinary prudence and care. Civil Code of the Philippines, Articles 1654 and 1657 (Lawphil)

The most important rule for old damage is Article 1665: the tenant must return the leased property as received, except for loss or impairment caused by the lapse of time, ordinary wear and tear, or an inevitable cause. Article 1666 adds that if there is no statement of the property’s condition at the start of the lease, the law presumes the tenant received it in good condition, unless there is proof to the contrary. Civil Code of the Philippines, Articles 1665 and 1666 (Lawphil)

This means evidence matters. If the lease has no move-in checklist and the tenant has no photos, the landlord may argue the unit was delivered in good condition. But the tenant can still rebut that presumption with proof, such as photos, messages, repair requests, witnesses, or inspection notes.

Rent Control Act Rules on Deposits

For covered residential units, Republic Act No. 9653, or the Rent Control Act of 2009, has specific rules on advance rent and security deposits. Section 7 says a landlord cannot demand more than one month advance rent and more than two months deposit for covered units. It also requires the deposit to be kept in a bank under the landlord’s account name, with interest returned to the tenant at the end of the lease. Republic Act No. 9653, Section 7 (Lawphil)

Section 7 also allows forfeiture or deduction from the deposit for unpaid rent, utilities, and destruction of house components or accessories, but only in the amount commensurate to the pecuniary damage caused by the tenant. In simple terms, the landlord may deduct only the reasonable money value of the actual loss, not an arbitrary or inflated amount. (Lawphil)

For 2025 and 2026, rent regulation continues for covered residential units with monthly rent of ₱10,000 or less. Government reports on the current NHSB/DHSUD rent-control rules state that the 2026 increase cap is 1% for covered units occupied by the same tenant, and units above ₱10,000 are excluded from that cap. Philippine News Agency report on NHSB Resolution No. 2024-001 (Philippine News Agency)

Even if the unit is not covered by rent control, such as many condos above ₱10,000 per month or commercial leases, the Civil Code and the lease contract still apply.

What Counts as “Old Damage”?

“Old damage” is not a technical phrase in the Civil Code, but in actual lease disputes it usually means damage that did not arise from the tenant’s fault during the lease.

Common examples include:

cracked tiles already present before move-in;
peeling paint caused by age or moisture;
rusted pipes, old faucets, or worn-out plumbing;
termite damage that started before the tenant occupied the unit;
damaged cabinet hinges already loose during turnover;
stains, dents, or scratches listed in the move-in checklist;
weak electrical outlets or fixtures caused by age;
pre-existing air-conditioning defects;
roof, ceiling, or wall damage from old leaks;
furniture defects already documented during inventory.

A landlord should not use a new tenant’s security deposit to renovate an old unit or recover normal ownership costs. A security deposit is not a repainting fund, renovation fund, or “automatic forfeiture” payment.

Ordinary Wear and Tear vs. Tenant-Caused Damage

The phrase ordinary wear and tear refers to normal deterioration from reasonable use over time. It is different from damage caused by negligence, abuse, accident, unauthorized alteration, or failure to report a serious issue.

Ordinary wear and tear	Tenant-caused damage
Slight fading of wall paint	Large holes from mounted TV brackets
Minor floor scuffs from normal walking	Broken tiles from dropping heavy objects
Loose doorknob from age	Broken door from forced entry or misuse
Faded curtains after long use	Burn marks, heavy stains, or torn curtains
Minor nail holes for small frames	Many drilled holes without permission
Appliance wear due to age	Appliance damage from misuse or overloading
Mold from structural leak reported to landlord	Mold from failure to ventilate or clean despite warnings

The line is not always obvious. For example, repainting after a five-year lease may be normal wear and tear, while repainting after a six-month lease because the tenant drew on the walls may be deductible. The useful question is: Would this condition normally happen from ordinary use, or did someone cause it by misuse, neglect, or unauthorized changes?

The Supreme Court’s Practical Approach: Proof and Reasonable Offsetting

A useful Philippine case is Philippine-Japan Active Carbon Corporation v. Borgaily, G.R. No. 197022, January 15, 2020. In that case, the Supreme Court treated a claim for return of a security deposit as a collection suit after the lease ended. The landlord was allowed to offset repair expenses against the security deposit because the leased units were found to need major repairs, the lease required return in good and tenantable condition except ordinary wear and tear, and the repairs were supported by receipts and evidence. The remaining balance still had to be returned to the tenant. Philippine-Japan Active Carbon Corporation v. Borgaily (Lawphil)

The practical lesson is balanced:

A landlord is not helpless if the tenant caused real damage.
A tenant is not automatically stripped of the deposit just because the landlord claims damage.
Courts look for evidence: lease clauses, photos, inspection records, receipts, notices, and whether the claimed repairs are beyond ordinary wear and tear.
If deductions are justified, only the proper amount should be deducted, and the balance should be returned.

Who Has to Prove the Damage?

In practice, both sides should be ready to prove their position.

The landlord should prove:

the condition of the unit at move-in;
the condition of the unit at move-out;
what specific damage was allegedly caused by the tenant;
why the damage is beyond ordinary wear and tear;
actual repair costs through receipts, quotations, invoices, or contractor statements;
that the amount deducted is reasonable and connected to the damage.

The tenant should prove:

the damage was already present before move-in;
the issue was reported to the landlord during the lease;
the damage resulted from age, ordinary use, or a landlord maintenance problem;
the claimed amount is excessive, unsupported, or unrelated;
the landlord accepted the unit without objection during turnover;
the landlord refused to provide an itemized deduction list.

Because Article 1666 presumes good condition if there is no condition statement at the start, tenants should be especially careful to document the property during move-in. But that presumption is not unbeatable. It can be challenged with actual proof.

Step-by-Step Guide for Tenants: What to Do if the Landlord Deducts Old Damage

1. Review your lease contract

Look for clauses on:

security deposit;
advance rent;
repairs and maintenance;
repainting;
utilities;
association dues;
furniture and appliance inventory;
turnover inspection;
refund period;
forfeiture clauses;
penalties for early termination.

Be careful with clauses saying the deposit is “non-refundable.” For residential leases, a landlord still needs a lawful basis to keep money intended as security for obligations. A label in the contract does not automatically make an unfair deduction valid.

2. Gather move-in evidence

Collect anything showing the old condition of the unit:

move-in photos and videos;
signed inventory or checklist;
broker messages;
email or Viber/WhatsApp/Messenger conversations;
repair requests;
receipts for repairs you personally paid;
witness statements from housemates, guards, caretakers, or agents;
screenshots with dates visible;
condo admin work permits or maintenance reports.

Photos are strongest when they show the date, the exact area, and the defect clearly.

3. Ask for an itemized deduction list

Do not argue only in general terms. Ask the landlord to specify:

each item deducted;
the amount for each item;
the basis for saying the tenant caused it;
copies of receipts or quotations;
before-and-after photos;
remaining balance for refund.

A simple message can say:

Please send an itemized breakdown of the deductions from my security deposit, including photos and receipts for each claimed repair. Some of the items appear to be pre-existing damage or ordinary wear and tear, so I would like to review the basis for the deductions.

4. Respond in writing, calmly and specifically

Avoid emotional accusations. Match each deduction with your evidence.

Example:

Landlord’s deduction	Tenant’s response
₱8,000 repainting	Paint fading is ordinary wear after 3 years; no major wall damage shown
₱4,500 cracked tile	Same crack appears in move-in photo dated January 5, 2024
₱3,000 faucet replacement	Faucet leak was reported on March 2 and not repaired by landlord
₱1,500 missing key	Tenant accepts deduction if supported by actual replacement cost

This approach often works better than simply saying, “That is unfair.”

5. Propose a reasonable settlement

If some deductions are valid and others are not, propose a partial deduction and refund.

For example:

I am willing to accept the ₱1,500 key replacement deduction and ₱2,000 cleaning charge, but I dispute the ₱10,000 repainting and ₱4,500 tile repair because these are ordinary wear and tear or pre-existing damage. Please refund the remaining ₱16,500 within seven days.

6. Go to barangay conciliation when required

Many landlord-tenant disputes between individuals must first go through barangay conciliation under the Katarungang Pambarangay system before filing in court, especially if both parties live in the same city or municipality and no exception applies. Supreme Court Circular No. 14-93 states that prior barangay conciliation is generally a pre-condition before filing a complaint in court or government offices, subject to listed exceptions. Supreme Court Circular No. 14-93 (Lawphil)

Bring:

lease contract;
valid ID;
proof of payment of deposit;
screenshots of messages;
move-in and move-out photos;
deduction list;
receipts or lack of receipts;
demand letter or written refund request.

If settlement fails, ask for a Certificate to File Action, which is usually needed before going to court.

7. Consider small claims court for deposit refunds

If the dispute is mainly about recovering money, such as a wrongfully withheld security deposit, it may fall under small claims if the amount is within the threshold. The Supreme Court’s Rules on Expedited Procedures increased the small claims threshold to ₱1,000,000 and covers money owed under contracts of lease. Small claims are handled by first-level courts, such as the Metropolitan Trial Court, Municipal Trial Court in Cities, Municipal Trial Court, or Municipal Circuit Trial Court. Supreme Court announcement on Rules on Expedited Procedures (Supreme Court of the Philippines)

Small claims are designed to be simpler and faster than ordinary civil cases. Lawyers are generally not allowed to appear for parties during the hearing, and the court usually relies heavily on documents, affidavits, and clear proof.

Documents to Prepare for a Security Deposit Dispute

Document	Why it matters
Lease contract	Shows deposit terms, repair obligations, refund period, inventory clauses
Official receipts or proof of deposit payment	Proves the amount paid
Move-in photos/videos	Shows old damage or initial condition
Move-out photos/videos	Shows final condition
Turnover checklist	Strong evidence if signed by both parties
Repair requests during lease	Shows landlord knew about defects
Utility bills and proof of payment	Prevents improper utility deductions
Messages with landlord, agent, or caretaker	Shows admissions, reports, agreements, and timelines
Itemized deduction list	Identifies what is being disputed
Receipts or quotations for repairs	Tests whether deductions are real and reasonable
Barangay records or Certificate to File Action	Needed if the dispute proceeds beyond barangay

Common Scenarios in the Philippines

The landlord says, “We always repaint after every tenant.”

A landlord may repaint as a business practice, but that does not automatically make the tenant liable. If repainting is due to normal aging, fading, or ordinary use, it is usually part of the landlord’s cost of maintaining the property. Deduction is more defensible if the tenant caused unusual stains, unauthorized paint, deep holes, or damage beyond normal use.

The tenant did not take move-in photos

This makes the case harder, but not hopeless. The tenant may still use:

old messages reporting the defect;
photos from the listing or broker;
repair requests;
condo maintenance records;
witnesses;
evidence that the defect is clearly old, such as rust, long-term water stains, or deteriorated sealant.

The landlord refuses to release the deposit until Meralco or water bills arrive

This is common and often reasonable for a short period, especially when final utility bills are not yet available. But the landlord should not use this as an indefinite excuse. A practical solution is to withhold only a reasonable estimated amount for final utilities and release the undisputed balance.

The lease says the landlord may automatically forfeit the deposit

Automatic forfeiture clauses can still be questioned if they operate as a penalty without proof of actual unpaid obligations or damage. Under RA 9653, deductions from deposits for covered units should correspond to unpaid rent, utilities, or actual damage caused by the tenant. Under general Civil Code principles, courts also look at fairness, proof, and the actual obligation secured by the deposit.

The unit is a condo rented to a foreigner or expat

Foreign tenants have the same basic contract and Civil Code protections in a Philippine lease. Practical issues are usually evidentiary: the tenant may already be abroad when the dispute arises. Foreigners should keep digital copies of the lease, passport/ID page used in the lease, proof of deposit transfer, move-in and move-out videos, and written authorization if a local representative will attend barangay proceedings or handle turnover.

If documents are executed abroad for use in the Philippines, notarization or apostille may be relevant depending on the document and forum. For simple negotiations, email authorization may be accepted by landlords, but formal proceedings may require more formal proof of authority.

Practical Tips for Landlords

A landlord who wants to make lawful deductions should avoid vague claims like “unit damaged” or “for renovation.” Instead:

Conduct a move-in inspection with photos.
Use a signed inventory and condition checklist.
State in the lease what repairs are tenant responsibility.
Conduct a move-out inspection as soon as possible.
Give an itemized deduction list.
Keep receipts and contractor invoices.
Deduct only the reasonable cost connected to tenant-caused damage.
Return the balance promptly.
Do not charge the tenant for old defects, normal aging, or upgrades.
Keep communication civil and documented.

A landlord with good records is far more likely to justify deductions if challenged.

Practical Tips for Tenants Before Moving In

Before paying or moving in:

Take a slow video walkthrough of the entire unit.
Photograph walls, floors, tiles, ceilings, windows, cabinets, appliances, plumbing fixtures, electrical outlets, locks, and furniture.
Send the photos to the landlord or agent by email or message so there is a date record.
Ask for a written inventory of furniture, appliances, keys, access cards, and remotes.
List all visible defects before signing the turnover form.
Clarify who pays for repainting, aircon cleaning, pest control, minor repairs, association dues, and final cleaning.
Keep proof of deposit payment.
Avoid cash payments without receipts.
Report repairs immediately during the lease.
Do not rely only on verbal promises.

The best time to win a security deposit dispute is at move-in, before there is any dispute.

Frequently Asked Questions

Can a landlord deduct old damage from my security deposit in the Philippines?

Usually no. A landlord should not deduct for damage that existed before you moved in, ordinary wear and tear, aging, or landlord maintenance issues. The landlord should prove that the damage was caused by you during the lease and that the amount deducted is reasonable.

What is considered ordinary wear and tear in a rental unit?

Ordinary wear and tear is normal deterioration from reasonable use, such as faded paint, minor scuffs, loose fixtures from age, or worn flooring after long occupancy. It does not include broken items, missing keys, unauthorized alterations, heavy stains, or damage caused by negligence.

What if my lease says the deposit is non-refundable?

A “non-refundable” label does not automatically make every deduction valid, especially if the payment is really a security deposit. The landlord should still have a lawful and factual basis for keeping the money. For covered residential units, RA 9653 specifically regulates deposits and allows deductions for unpaid rent, utilities, and tenant-caused damage.

How long does the landlord have to return the security deposit?

Philippine law does not give one universal refund period for all leases. Check the contract first. In practice, many leases use 30 to 60 days after turnover to allow checking of final utility bills and inspection. Even then, the landlord should return the undisputed balance and explain any deductions.

Can the landlord deduct repainting costs?

It depends. Repainting due to normal fading or age is usually ordinary wear and tear. Repainting because the tenant caused unusual stains, drawings, unauthorized paint, heavy dirt, or many wall holes may be deductible if supported by evidence and reasonable costs.

Can the landlord deduct repairs without receipts?

A landlord can claim deductions, but unsupported deductions are easier to dispute. Receipts, invoices, photos, and itemized estimates help prove that the cost was real and reasonable. Without documentation, the tenant can ask for proof and challenge the deduction in barangay conciliation or small claims court.

What if the damage was caused by a previous tenant?

The current tenant should not be charged for previous-tenant damage. The best proof is a move-in checklist, photos, videos, or messages showing the defect existed before occupancy. If the landlord had possession and control before turnover, it is unfair to shift old damage to the new tenant without proof.

Can I use my security deposit as my last month’s rent?

Not automatically. Many leases state that the deposit cannot be applied to rent without the landlord’s consent. Under RA 9653, deposits secure unpaid rent, utilities, and tenant-caused damage, but tenants should not assume they can skip the last rental payment unless the lease or landlord clearly allows it in writing.

Where do I complain if my landlord refuses to return my deposit?

Start with a written demand and request for an itemized deduction list. If unresolved and barangay conciliation applies, file at the barangay for mediation. If no settlement is reached, you may pursue a money claim in the proper first-level court, often through small claims if the amount qualifies.

Do foreigners renting in the Philippines have the same deposit rights?

Generally yes. A foreign tenant’s rights come from the lease contract, the Civil Code, and applicable Philippine rental laws. The main practical issue is documentation, especially if the tenant leaves the Philippines before the deposit is refunded. Foreign tenants should keep complete digital records and arrange a trusted local representative if needed.

Key Takeaways

A landlord may deduct from a security deposit only for lawful, provable obligations such as unpaid rent, utilities, or tenant-caused damage.
Old damage, ordinary wear and tear, aging, and landlord maintenance issues should not be charged to the tenant.
Article 1665 of the Civil Code protects tenants from being liable for deterioration caused by time, ordinary wear and tear, or inevitable causes.
Article 1666 makes move-in documentation very important because, without a condition statement, the unit is presumed received in good condition unless proven otherwise.
Under RA 9653, covered residential leases have specific rules on advance rent, deposits, interest, and deductions.
The landlord should provide an itemized breakdown, proof of damage, and receipts for repair costs.
Tenants should keep photos, videos, repair requests, utility payment proof, and written communications.
If negotiation fails, barangay conciliation is often the first formal step before court.
Deposit refund disputes may be handled as small claims when the case is mainly for recovery of money within the small claims threshold.