Quick answer

A landlord may require an additional rental deposit only when the law and the lease permit it.

For a residential unit covered by the Rent Control Act, the landlord cannot demand more than:

One month’s advance rent; and
A total deposit equal to two months’ rent.

An added “security,” “damage,” “key,” “pet,” or similarly refundable deposit may be unlawful if, in substance, it pushes the total security deposit above the two-month ceiling. Calling the charge a different name does not necessarily place it outside the law; its purpose and terms matter.

For a residential unit outside rent-control coverage, Republic Act No. 9653 does not impose the same express two-month ceiling. The written lease and the Civil Code generally govern. Even then, a landlord usually cannot introduce a new deposit during an unexpired fixed-term lease unless the existing agreement authorizes it or the tenant freely agrees to amend the contract.

The rule for rent-controlled residential units

Section 7 of the Rent Control Act of 2009, or Republic Act No. 9653, 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 throughout the lease;
Returned with any accrued interest when the lease ends, subject to lawful deductions; and
Applied only in an amount commensurate with the tenant’s actual unpaid obligations or damage.

The Act identifies unpaid rent, electricity, telephone, water and other utility bills, as well as damage to house components or accessories, as matters that may be charged against the deposit. It does not authorize the landlord to keep the entire deposit automatically whenever any minor amount is owed.

A lease clause cannot override the statutory ceiling for a covered unit. Under Article 1306 of the Civil Code, parties may set their own contract terms only when those terms are not contrary to law, public order or public policy.

Which rentals are covered in 2026?

The National Human Settlements Board’s official issuances page identifies NHSB Resolution No. 2024-01 as the current rent-control regulation for January 1, 2025 through December 31, 2026.

For 2026, the regulation generally covers qualifying residential units with monthly rent of ₱10,000 or less when the same tenant continues occupying or renews the lease. The 2026 ceiling on a rent increase for such a continuing tenancy is 1%.

Residential units can include:

Apartments and houses;
Condominium units used as residences;
Dormitories, boarding houses, rooms and bedspaces;
Land on which another person’s dwelling stands; and
Certain mixed residential-business premises used principally as the owner’s or occupant’s dwelling.

Hotels, hotel rooms, motels and motel rooms are not included in the Act’s definition of a residential unit.

Coverage depends on the rent, relevant year, occupancy history, property use and exclusions in the applicable resolution. In particular, the current resolution contains rules concerning vacancies and certain newly constructed units. The official text should be checked before concluding that a particular tenancy is covered.

Do not assume the current threshold or other 2026 rules will remain the same after December 31, 2026. A later NHSB or Department of Human Settlements and Urban Development issuance will need to be checked.

Is a deposit “top-up” allowed after the rent increases?

For a covered unit, the clearest statutory rule is that the landlord cannot hold more than the equivalent of two months’ deposit. Whether a landlord may require a mid-tenancy top-up within that ceiling depends on the lease and the circumstances.

Consider these examples:

If the tenant originally paid a one-month deposit and the lease expressly provides for adjustment after a lawful rent increase, a request to increase the deposit—without exceeding two months’ rent—may be enforceable.
If the tenant already paid two months’ deposit, an additional refundable security deposit would normally exceed the statutory limit for a covered unit.
If the lease fixes the deposit at a stated peso amount and contains no adjustment clause, the landlord cannot ordinarily change that obligation unilaterally during the fixed term.
At renewal, the parties may negotiate new terms, but a covered lease still cannot require a deposit exceeding the statutory ceiling.
A landlord cannot disguise an excessive deposit as several smaller refundable charges merely to avoid the limit.

The computation should be based on the lawful rent. A deposit increase cannot be justified by an underlying rent increase that violates the applicable rent-control ceiling or the existing lease.

What if the rental is not covered by rent control?

For units outside the current coverage of Republic Act No. 9653, the lease becomes especially important.

Articles 1159 and 1308 of the Civil Code provide that contractual obligations have the force of law between the parties, must be performed in good faith and cannot be left entirely to the will of only one party. Accordingly:

A landlord may enforce a deposit obligation already stated in a valid lease.
A clause expressly allowing the deposit to be adjusted after a rent increase may support a top-up request.
A landlord generally cannot add a new financial obligation during a fixed term when the contract gives no authority to do so.
The parties may voluntarily sign a clear amendment.
A tenant should not sign an amendment under pressure without understanding the amount, purpose, refund conditions and effect of refusing.

At the end of a fixed term, the landlord may propose different terms for a new lease, subject to any applicable rent-control rule and other mandatory law. If the tenant remains for 15 days with the landlord’s acquiescence and without prior contrary notice, Article 1670 may create an implied new lease and revive other terms of the original contract, although the duration changes according to the Civil Code.

Refundable deposits versus genuine charges

Not every amount collected at move-in is automatically a rental deposit. A reasonable, disclosed payment for an actual service may be different from money held as security.

Ask what happens to the payment:

Must it be returned if no loss occurs?
Can the landlord retain or deduct from it after the lease?
Is it intended to secure rent, utilities, keys, damage or another tenant obligation?
Is there an actual third-party service or expense corresponding to the charge?
Does the receipt call it non-refundable even though the lease treats it as security?

A charge that is refundable or held against possible future loss is more likely to function as a deposit. A genuine, clearly disclosed service charge may be treated differently. The result depends on the contract and the real purpose of the payment—not its label alone.

What may be deducted from the deposit?

For a covered tenancy, deductions should correspond to actual financial loss involving unpaid rent, unpaid utilities or tenant-caused damage covered by Section 7.

The tenant is not responsible for deterioration caused by ordinary wear and tear. Article 1665 of the Civil Code requires the tenant to return the premises as received, except for loss or impairment due to the passage of time, ordinary wear and tear or an inevitable cause.

Examples that may support deductions include:

Unpaid rent;
Utility bills that the tenant was contractually required to pay;
A broken fixture caused by misuse;
Missing keys or access devices, where replacement is reasonably necessary; and
Damage caused by household members, guests or visitors.

Items that should be questioned include:

Ordinary fading, minor scuffs or aging;
Pre-existing damage;
Renovations or improvements unrelated to tenant-caused damage;
Unexplained lump-sum “cleaning” or “repainting” deductions;
Charges exceeding the actual repair or replacement loss; and
Automatic forfeiture of the entire deposit for a small unpaid amount.

The tenant should request an itemized accounting, supporting bills or estimates, and the return of the undisputed balance and accrued interest.

What to do if an additional deposit is demanded

1. Ask for the request in writing

Request the exact amount, deadline, purpose and contractual basis. Ask whether the charge is refundable and how it will be held and returned.

Do not rely solely on a verbal explanation from a caretaker or broker. Confirm that the person making the demand is authorized by the owner.

2. Check the lease and payment records

Review:

The deposit and advance-rent clauses;
Any adjustment or renewal clause;
The fixed term and expiration date;
The current monthly rent;
All receipts and electronic-payment records; and
Any inventory or move-in condition report.

Keep “advance rent” separate from “deposit.” They serve different purposes and have different limits under the Rent Control Act.

3. Determine whether the unit is covered

Record the property’s location and use, the rent paid during the relevant year, whether the same tenant remains in possession, and when the unit was constructed or first offered for lease. Compare those facts with NHSB Resolution No. 2024-01 and official DHSUD guidance.

If coverage is disputed, ask DHSUD or a lawyer to review the actual documents rather than relying on an old online summary.

4. Respond calmly and specifically

If the demand appears excessive, state in writing:

How much advance rent and deposit have already been paid;
Why the proposed charge would exceed the applicable limit or contradict the lease;
That the tenant remains willing to comply with lawful, agreed obligations; and
A request to withdraw or revise the demand.

Continue paying undisputed rent on time and preserve proof. Stopping rent payments can create a separate breach and weaken the tenant’s position.

5. Obtain a receipt if payment is made

The receipt should identify:

The payer and payee;
The date and amount;
The leased premises;
Whether the payment is advance rent, deposit or a non-refundable charge; and
The purpose and refund conditions.

Avoid paying cash without a contemporaneous signed receipt.

6. Escalate through the proper channel

A rental dispute may first require barangay conciliation when the parties and dispute fall within Sections 408 to 412 of the Local Government Code. This often depends on where the parties actually reside and whether a statutory exception applies.

If no settlement is reached, the appropriate next step may include:

A formal written demand;
A civil claim for return of money;
A small-claims case when the claim and relief qualify under the current Supreme Court rules; or
A different civil or criminal proceeding, depending on the violation and requested remedy.

Barangay proceedings are not a substitute for urgent court relief, and not every landlord-tenant dispute is subject to barangay conciliation.

Evidence worth preserving

Keep copies of:

The signed lease and every amendment or renewal;
Deposit, advance-rent and monthly-rent receipts;
Bank-transfer confirmations and account statements;
Text messages, emails and letters about the additional deposit;
Advertisements or written representations made before move-in;
Move-in and move-out photographs or videos;
A dated inventory and condition report;
Utility bills and proof of payment;
Repair requests and the landlord’s responses;
Inspection notices and reports;
Contractor invoices, estimates and receipts supporting deductions;
The landlord’s final accounting of the deposit; and
Barangay notices, settlement papers or certificates to file action.

Photographs are strongest when dated, organized by room and supported by a written turnover record signed by both parties.

Common mistakes to avoid

Treating one month’s advance rent as part of the two-month deposit without checking how the documents classify it.
Assuming the two-month ceiling applies to every residential rental regardless of current statutory coverage.
Accepting several refundable charges without adding them together.
Signing a lease amendment without checking whether it waives existing rights.
Paying through an agent without verifying authority or obtaining a receipt.
Withholding rent merely because the deposit is disputed.
Using the deposit as the last month’s rent without the landlord’s written agreement.
Moving out without documenting the condition of the unit and returning the keys formally.
Ignoring a summons, demand letter or barangay notice.
Assuming the landlord may personally remove the tenant or seize belongings without lawful process.

Can refusal lead to eviction?

Refusing an unlawful or unagreed additional deposit does not, by itself, give the landlord an automatic right to remove the tenant.

For covered residential units, Republic Act No. 9653 lists grounds for judicial ejectment, including specified rent arrears, unauthorized assignment or subleasing, expiration of the lease, qualifying owner or family use, and necessary repairs under an official condemnation order. The landlord must use lawful procedures.

Outside rent control, Article 1673 of the Civil Code permits judicial ejectment for reasons including expiration of the agreed term, nonpayment of stipulated rent, violation of lease conditions and certain misuse of the premises. Whether refusal to pay an additional deposit constitutes a lease violation therefore depends on whether the obligation was validly included in the contract.

A landlord generally should not use lockouts, utility disconnection, removal of belongings, intimidation or physical force as a substitute for judicial process.

Penalties under the Rent Control Act

Section 13 of Republic Act No. 9653 provides that a person found guilty of violating the Act may be punished by:

A fine of ₱25,000 to ₱50,000;
Imprisonment from one month and one day to six months; or
Both.

These penalties do not arise automatically from an accusation or barangay complaint. Criminal liability and the proper charge must be established through the appropriate proceedings. The provision is relevant only when the tenancy and conduct are covered by the Act.

When legal help is urgent

Seek prompt assistance from a Philippine lawyer, the Public Attorney’s Office if eligible, or the appropriate government office when:

The landlord threatens or carries out a lockout;
Utilities are disconnected to force payment or departure;
The landlord or agent enters without permission and removes property;
There are threats, violence or harassment;
A summons, complaint or formal demand has been received;
The landlord refuses rent to manufacture alleged arrears;
The tenant is being forced to sign a waiver or immediate surrender;
The deposit is substantial or the deductions involve disputed damage;
The lease contains an acceleration, penalty, forfeiture or confession-of-judgment clause; or
The rent-control status of the property is unclear and a deadline is approaching.

If rent is refused, obtain legal advice promptly about proper tender or consignation. Simply keeping the money without documenting the attempted payment may create avoidable risk.

Frequently asked questions

Can the landlord collect three months’ deposit if the tenant agrees?

Not for a residential unit covered by Republic Act No. 9653. A private agreement cannot validly defeat a mandatory statutory ceiling. For an uncovered unit, the answer depends primarily on the lease and other applicable law.

Is one month’s advance plus two months’ deposit legal?

Yes, that is the maximum combination expressly allowed for a covered unit: no more than one month’s advance rent and no more than two months’ deposit.

Does a refundable pet deposit count?

It may. If the payment is held as security against future pet-related damage and must be refunded when no loss occurs, it may function as part of the total deposit. The specific wording and actual arrangement should be examined.

Can the landlord increase the deposit every time rent increases?

Not automatically. The resulting total must remain lawful, and the lease must support the adjustment or the tenant must agree to it. An unexpired contract generally cannot be changed solely at one party’s will.

Must the deposit earn interest?

For a tenancy covered by Section 7 of Republic Act No. 9653, the deposit must be kept in a bank and the accrued interest must be returned to the tenant when the lease expires, subject to lawful deductions.

How soon must the landlord return the deposit?

Section 7 does not prescribe a specific number of days. Check the lease for a return deadline. After turnover and final billing, request a written accounting and repayment by a definite reasonable date.

Can the tenant use the deposit as the final two months’ rent?

Not unless the lease permits it or the landlord agrees in writing. A deposit is security; it is not automatically prepaid rent.

What if the landlord says the whole deposit is forfeited?

Ask for the lease clause, an itemized accounting and proof of actual loss. For a covered unit, Section 7 permits forfeiture only in an amount commensurate with unpaid obligations or tenant-caused damage. An automatic total forfeiture may be challengeable.

Where can the current rule be checked?

Consult the official DHSUD list of NHSB policies, the text of Republic Act No. 9653, and the Civil Code. Use the issuance applicable to the year in question.

This article provides general legal information, not legal advice for a particular dispute. Coverage and available remedies may depend on the lease language, rent, dates, occupancy history, property use, parties’ residences and supporting evidence. Laws and official issuances were checked as of September 19, 2026.