Quick answer

A tenant is generally responsible for damage caused by the tenant, household members, guests, visitors, misuse, negligence, or failure to report a repair problem promptly. A tenant is not ordinarily responsible for deterioration caused by time, normal use, ordinary wear and tear, an inevitable cause, or repairs that the law or lease assigns to the landlord.

The outcome usually depends on three questions:

What was the property’s condition when the tenant received it?
What caused the deterioration?
What reasonable, documented loss did the landlord actually suffer?

A security deposit is not automatically forfeited whenever damage is alleged. Any deduction should be supported by the lease, photographs or inspection records, and reliable proof of reasonable repair or replacement cost. For residential units covered by the Rent Control Act, a deposit may be applied only in an amount commensurate with unpaid obligations or the pecuniary damage caused by the tenant.

The basic rules under Philippine law

A lease is a contract, and its lawful provisions generally bind both parties. The written lease should therefore be checked first for clauses on inspections, repairs, alterations, pets, maintenance, insurance, security deposits, notice, and turnover. Those terms operate together with the rules in the Civil Code of the Philippines.

The landlord’s responsibilities

Under Article 1654 of the Civil Code, the landlord must:

Deliver the property in a condition fit for its intended use;
Make the necessary repairs needed to keep it suitable for that use, unless the parties validly agreed otherwise; and
Maintain the tenant’s peaceful and adequate enjoyment of the property.

For urban property, Article 1686 adds that, when there is doubt about who must pay for a type of repair, the repair is understood to be chargeable to the landlord.

These rules commonly place deterioration caused by aging, structural defects, defective original installations, or necessary maintenance on the landlord rather than the tenant. The precise result can change if the lease lawfully assigns particular repairs to the tenant.

The tenant’s responsibilities

Under Articles 1657 and 1665–1668, the tenant must:

Use the property with proper care and for the agreed purpose;
Return it substantially as received, except for loss or impairment caused by time, ordinary wear and tear, or an inevitable cause;
Answer for deterioration or loss unless the tenant proves that it occurred without the tenant’s fault; and
Answer for deterioration caused by household members, guests, and visitors.

The tenant must also notify the owner, within the shortest possible time, when necessary repairs arise. A tenant who negligently fails to report a leak, electrical fault, termite infestation, or similar problem may become liable for the additional damage caused by that delay.

If there was no written statement of the property’s move-in condition, Article 1666 creates a rebuttable presumption that the tenant received it in good condition. Move-in photographs, messages reporting existing defects, inspection records, and witness testimony can overcome that presumption.

Natural calamities and other inevitable causes

Article 1667 places responsibility for deterioration on the tenant unless the tenant proves absence of fault. That statutory burden does not apply when destruction is due to an earthquake, flood, storm, or another natural calamity.

This does not make every loss occurring during a typhoon automatically the landlord’s responsibility. The parties may still dispute causation—for example, whether damage came from the storm, a defective roof, an open window, an unauthorized alteration, or a failure to take reasonable steps after the problem became known.

Ordinary wear and tear versus chargeable damage

The Civil Code does not provide a fixed checklist. Age, length of occupancy, quality of the original materials, number of occupants, agreed use, maintenance history, and cause of the condition all matter.

Condition	More likely treatment	Important qualification
Faded paint, minor scuffing, worn finish, or gradual discoloration	Ordinary wear or aging	Severe staining, unauthorized paint, smoke damage, or writing on walls may be chargeable
Worn hinges, aging sealant, or an old fixture that fails through normal use	Landlord repair or ordinary deterioration	Rough handling or ignored warning signs may shift some responsibility
Broken glass, doors, tiles, or fixtures caused by impact or misuse	Tenant-caused damage	The landlord must still prove causation and reasonable loss
Roof leaks, structural cracks, defective wiring, or failed plumbing unrelated to misuse	Usually a necessary landlord repair	A tenant may share liability if prompt notice could have prevented additional damage
Pet scratches, bites, urine damage, or chewed fixtures	Usually tenant-caused	Existing damage and the item’s age still affect the proper amount
Small nail holes from ordinary residential use	Fact-dependent	Numerous or large holes, wall anchors, or prohibited alterations are more likely chargeable
Mold or water damage	Fact-dependent	The cause may be a structural leak, poor ventilation, tenant conduct, delayed notice, or several contributing factors
Typhoon, flood, earthquake, or fire damage	Depends on cause and fault	Insurance, negligence, building defects, and failure to mitigate may affect allocation
Unauthorized partitions, drilling, rewiring, or fixture removal	Usually a lease violation or tenant liability	Written consent and the rules on useful improvements may change the result

The correct measure is ordinarily the reasonable pecuniary loss caused by the breach—not an opportunity to renovate at the former tenant’s expense. Charging the full price of a brand-new replacement for an old or already deteriorated item may overstate the loss. The item’s prior condition, age, remaining usefulness, availability of repair, and any improvement resulting from replacement should be considered.

The lease can change who handles particular repairs

Article 1159 provides that contractual obligations have the force of law between the parties and must be performed in good faith. A lease may therefore allocate minor repairs, routine servicing, repainting, cleaning, or even broader maintenance duties to the tenant.

That does not justify reading every maintenance clause as an unlimited transfer of all ownership costs. The wording, the nature and cause of the damage, and other Civil Code protections remain important.

For a dwelling that presents an imminent and serious danger to life or health, Article 1660 allows the tenant to terminate the lease immediately by notifying the landlord. This protection applies even if the tenant knew of the dangerous condition when the contract was made or purportedly waived the right to rescind on that ground.

Alterations and improvements require separate analysis. Under Article 1678, certain useful improvements made in good faith may create removal or reimbursement rights, but the rules depend on the lease, the landlord’s consent, the nature of the improvement, and whether removal would damage the property. A tenant should not remove built-in improvements or fixtures without first reviewing the contract and obtaining advice.

Can the landlord deduct repair costs from the deposit?

Usually, yes—if the lease permits it and the deduction corresponds to a real, supportable obligation. The landlord should identify:

The specific damaged item;
Its move-in and move-out condition;
Why the tenant is responsible;
The work reasonably required;
The amount actually spent or reasonably necessary; and
The balance of the deposit, if any.

In Philippine-Japan Active Carbon Corporation v. Borgaily, the Supreme Court allowed documented repair expenses to be offset against a security deposit. The record included the tenant’s acknowledgment of the original condition, photographs showing major damage, notice and an opportunity to inspect, and receipts for labor and materials. The Court nevertheless required the unused balance of the deposit to be returned. The case illustrates why evidence and the exact lease terms matter; it does not authorize automatic or unsupported forfeiture of every deposit. See the Supreme Court decision in G.R. No. 197022.

Special rule for rent-controlled residential units

For a residential unit within the coverage of the Rent Control Act of 2009, Republic Act No. 9653, Section 7 provides that:

The landlord cannot demand more than one month’s advance rent;
The deposit cannot exceed two months’ rent;
The deposit must be kept in a bank under the landlord’s account name;
Accrued interest must be returned to the tenant when the lease expires; and
The deposit and interest may be forfeited for unpaid rent, utilities, or destroyed house components and accessories only in an amount commensurate with the pecuniary damage.

As of 2026, the current rent-control issuance covers qualifying residential units rented at ₱10,000 or less and occupied by the same continuing tenant, subject to the detailed conditions in NHSB Resolution No. 2024-01. The 2026 rent-increase cap is 1% for covered units. The DHSUD’s official explanation should be checked when determining whether a particular unit and tenancy are covered.

For units outside that coverage, the lease and the Civil Code principally govern the deposit. There is no single Civil Code deadline requiring every deposit to be refunded within a fixed number of days. Check the contract for a turnover, accounting, or refund deadline.

What each side should do when damage is discovered

1. Address safety and prevent further loss

Shut off water or electricity if it is safe to do so, contact emergency services when necessary, and take reasonable steps to stop additional damage. Do not undertake major demolition or alteration unless required for immediate safety.

The tenant should notify the landlord promptly in writing. The landlord should respond promptly when necessary repairs fall within the landlord’s responsibility.

2. Document the condition before repairs

Take clear photographs and videos showing:

The entire room or area;
Close-ups of each damaged item;
Serial numbers or identifying details;
The likely source of water, fire, impact, or other damage; and
The date and surrounding circumstances.

Preserve original files and metadata. Avoid relying only on screenshots or images forwarded through messaging applications, which may lose metadata or quality.

3. Compare move-in and current condition

Locate the move-in checklist, inventory, photographs, turnover report, prior repair records, and messages reporting defects. If no formal checklist exists, look for dated photographs, advertisements, broker messages, contractor records, or witnesses who saw the property at the start of the tenancy.

4. Arrange a joint inspection

Invite the other party in writing and propose specific inspection dates. Prepare a signed itemized report recording:

Agreed damage;
Disputed damage;
Suspected cause;
Work needed;
Items requiring expert inspection; and
Meter readings, returned keys, and turnover date.

A refusal or failure to attend should also be documented. Neither side should alter the inspection report after signing without clearly identifying the change.

5. Obtain reliable repair evidence

For significant damage, obtain an assessment from a qualified contractor, electrician, plumber, engineer, appliance technician, or other appropriate professional. Keep detailed quotations, invoices, official receipts, proof of payment, and before-and-after photographs.

An estimate can help establish likely cost, but proof of an amount actually paid is generally stronger. Actual damages are not presumed; they must be proved with reasonable certainty.

6. Send an itemized written position

The landlord’s notice should state:

Each proposed deduction or claim;
The factual and contractual basis;
Supporting photographs and documents;
The amount attributed to each item;
The deposit and accrued interest being held;
Any balance due to either party; and
A reasonable deadline to respond.

A tenant disputing the claim should answer item by item rather than simply denying everything. Identify pre-existing conditions, ordinary wear, owner-maintenance issues, calamity damage, excessive replacement charges, missing proof, or repairs unrelated to the tenancy.

A seven- or ten-day response period is commonly practical, but it is not a universal statutory deadline.

7. Record any settlement carefully

A settlement should specify:

The final amount;
The payment date and method;
Which repairs each party will perform;
Whether the deposit is being applied;
When any balance will be refunded;
The turnover and key-return date; and
Whether the agreement fully settles only the listed claims or all claims arising from the tenancy.

Do not sign a broad quitclaim unless its effect is understood.

Evidence worth preserving

Keep copies of:

The lease, amendments, house rules, inventory, and condominium rules;
Move-in and move-out inspection reports;
Original photographs and videos;
Emails, text messages, and repair notices;
Proof that notices were sent and received;
Rent and deposit receipts or bank-transfer records;
Contractor assessments, quotations, invoices, and official receipts;
Warranties and records showing the age of appliances or fixtures;
Water, electricity, and other utility records;
Weather bulletins, fire reports, police reports, or building-official findings where relevant;
Insurance notices, policies, adjuster reports, and payments;
Witness names and contact details;
Turnover acknowledgments and proof of key return; and
Any written offer to inspect or settle.

Back up the records in more than one location. Do not edit originals.

Barangay conciliation may be required before court

Under Sections 408–412 of the Local Government Code, Republic Act No. 7160, barangay conciliation is generally a precondition when the dispute is between individuals who actually reside in the same city or municipality and the matter falls within the lupon’s authority.

Important exceptions include:

A complaint by or against a corporation, partnership, or other juridical entity;
Parties who actually reside in different cities or municipalities, unless adjoining-barangay rules and agreement apply;
A case involving the government or an official act of a public officer;
A need for an urgent provisional remedy;
A case that may otherwise become barred by prescription; and
Other exclusions stated in Section 408 or applicable law.

Venue ordinarily depends on the parties’ residences, but a dispute involving real property may need to be brought in the barangay where the property or its larger portion is located.

The punong barangay’s mediation period is 15 days from the parties’ first meeting. If mediation fails, the pangkat generally has 15 days from convening to resolve the dispute, extendible by up to another 15 days in clearly meritorious cases. Filing at the barangay interrupts prescription, but the statutory interruption cannot exceed 60 days.

A barangay settlement generally acquires the force and effect of a final court judgment after 10 days unless properly repudiated on a recognized ground. The lupon may enforce it within six months from the settlement date; after that period, enforcement must be pursued in the appropriate court. The DILG’s Katarungang Pambarangay handbook explains the process and official forms.

When small claims court may be used

Under Rule IV of the Supreme Court’s Rules on Expedited Procedures in the First Level Courts, small claims procedure may be available when:

The relief sought is solely payment or reimbursement of money;
The claim arises from a lease or another covered transaction; and
The total claim does not exceed ₱1,000,000, exclusive of interest and costs.

A landlord may use it to recover documented repair expenses, and a tenant may use it to recover a refundable deposit, if the case is solely a money claim. It is not the correct procedure when the principal relief is eviction, recovery of possession, an injunction, rescission, or an order compelling a party to perform an act.

The claimant generally files the prescribed Statement of Claim with supporting documents, affidavits, and a Certificate to File Action when barangay conciliation was required. The defendant’s verified Response must be filed and served within a non-extendible period of 10 calendar days from receipt of summons, with the supporting evidence attached. Lawyers ordinarily may not represent parties at the small-claims hearing unless the lawyer is personally a party.

The Supreme Court provides current forms and instructions on its official Small Claims page.

Damage and eviction are different remedies

Serious misuse, deterioration caused by an unauthorized use, or violation of a lease condition may support judicial ejectment under Article 1673 of the Civil Code. Damage does not, however, authorize a landlord to change locks, use force or intimidation, seize belongings, or physically remove an objecting occupant without lawful process.

Article 536 requires a person claiming the right to deprive another of possession to seek the aid of the proper court when the occupant refuses to surrender it.

An unlawful-detainer case is not a small claim. It follows Rule 70 and the applicable expedited procedures. Among other requirements, it ordinarily must be filed within one year from the last demand to vacate, as explained by the Supreme Court in G.R. No. 205832. Because the correct demand, ground, venue, and filing date are critical, legal advice should be obtained before attempting eviction.

A tenant who receives a demand to vacate, summons, or court order should not ignore it even if the damage allegation appears exaggerated.

Deadlines for ordinary civil claims

The Civil Code generally provides:

Ten years for an action based on a written contract;
Six years for an action based on an oral contract; and
Four years for an action based on injury to rights or quasi-delict.

The correct period depends on the legal basis and when the cause of action accrued. A written extrajudicial demand, filing in court, or written acknowledgment of the debt can interrupt prescription under Article 1155. Barangay proceedings have their own maximum 60-day interruption rule.

Do not wait for the apparent outer deadline. Evidence deteriorates, witnesses move, repairs alter the scene, and an incorrect classification of the claim can result in a shorter period than expected.

Common mistakes

Moving in without a signed condition report or dated photographs;
Treating every mark as tenant damage;
Charging full replacement cost without considering age, prior condition, or repairability;
Repairing immediately without first documenting the condition or offering a reasonable inspection;
Withholding the entire deposit without an itemized accounting;
Treating the deposit as the tenant’s last month of rent without written agreement;
Stopping rent or deducting repair expenses unilaterally;
Ignoring the lease’s notice and inspection provisions;
Failing to report leaks or defects promptly;
Using unsupported contractor estimates or undocumented cash payments;
Signing a vague settlement that does not state payment and repair obligations;
Resorting to lockouts, threats, utility disconnection, or removal of belongings; and
Ignoring a barangay summons, court summons, demand to vacate, or insurance notice.

When legal help is urgent

Seek prompt legal assistance when:

The property presents a fire, electrical, structural, gas, sanitation, or other immediate safety risk;
A party threatens violence, forced entry, lockout, utility disconnection, or removal of belongings;
The dispute includes eviction or possession of the premises;
A demand letter, barangay summons, court summons, or order has been received;
The claimed loss is substantial or exceeds the small-claims limit;
The damage involves common areas, neighboring units, third parties, or condominium assessments;
An insurer may deny coverage because notice was delayed;
Documents or signatures appear falsified;
Evidence may be destroyed or repairs cannot safely be delayed; or
A prescriptive deadline may be approaching.

Qualified indigent persons may request free legal assistance from the Public Attorney’s Office, subject to its merit and qualification requirements.

Frequently asked questions

Can a landlord charge the tenant for repainting?

Only when the repainting is reasonably connected to chargeable damage or a valid lease obligation. Routine fading and minor marks from normal occupancy may be ordinary wear. Severe stains, smoke damage, unauthorized colors, writing, or damage requiring unusual preparation may justify a reasonable charge.

Can the landlord keep the entire security deposit?

Not automatically. The landlord should establish obligations equal to or greater than the deposit. Any unused balance should be returned. For rent-controlled units, forfeiture must be commensurate with the pecuniary damage or unpaid obligations, and accrued deposit interest is covered by Section 7 of Republic Act No. 9653.

Is the tenant responsible for damage caused by children or visitors?

Generally, yes. Article 1668 makes the tenant liable for deterioration caused by members of the household, guests, and visitors.

What if there was no move-in checklist?

The law presumes that the tenant received the property in good condition unless there is contrary proof. Dated photographs, repair messages, advertisements, inspection records, and credible witnesses may rebut that presumption.

What if a typhoon or flood caused the damage?

The tenant is not automatically liable. The immediate cause, building condition, insurance, lease terms, and conduct of both parties must be examined. A tenant may still be responsible for avoidable additional loss caused by negligence after discovering the problem.

May a tenant repair the property and deduct the expense from rent?

Article 1663 permits a tenant to order urgent repairs at the landlord’s cost when the landlord fails to act and the work is needed to avoid imminent danger. Article 1658 also addresses suspension of rent when the landlord fails to make necessary repairs or maintain peaceful and adequate enjoyment.

These remedies are highly fact-sensitive. The tenant should give written notice, document urgency and cost, and obtain legal advice before withholding or offsetting rent. An incorrect unilateral deduction can create rent arrears and an ejectment dispute.

Can property damage be a ground for eviction?

It can be, particularly when the tenant violates a lease condition, uses the property for an unauthorized purpose that causes deterioration, or fails to exercise the required care. Eviction must still be pursued judicially and with the required demand and procedure.

What if the other party refuses a joint inspection?

Send a written invitation giving reasonable dates, record the refusal or nonappearance, and conduct a detailed inspection with independent witnesses or a qualified professional. Preserve original photographs, video, and repair records.

Can repair costs or a deposit refund be claimed through small claims court?

Yes, if the case seeks only payment or reimbursement of money and the total claim does not exceed ₱1,000,000, exclusive of interest and costs. Eviction, injunction, rescission, and other non-monetary relief require a different procedure.

Are attorney’s fees automatically recoverable?

No. Attorney’s fees generally require a contractual or statutory basis, or one of the circumstances recognized in Article 2208 of the Civil Code. Even when recoverable, they must be reasonable.

Official sources

This article provides general Philippine legal information, not legal advice for a particular dispute. Liability depends on the lease, the property’s condition, causation, evidence, and procedural history. Sources and current procedures were checked as of July 23, 2026.