Quick answer

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

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

one month’s advance rent; and
two months’ rent as security deposit in total.

An “additional deposit” cannot lawfully be used to push the tenant’s total security deposit above that two-month ceiling. If the deposit is below the ceiling, the landlord still does not automatically have the right to increase it during an existing fixed-term lease. There should be a valid lease provision—such as a clause requiring the deposit to be adjusted after a lawful rent increase—or a new agreement accepted by both parties.

For residential units outside rent-control coverage, commercial premises, and certain other excluded arrangements, the lease and the Civil Code generally control. Even then, a landlord ordinarily cannot rewrite the deposit terms of an ongoing contract unilaterally unless the contract already authorizes the adjustment.

The rule for rent-controlled residential units

As of September 22, 2026, National Human Settlements Board Resolution No. 2024-01 continues rental regulation through December 31, 2026 for residential units with a monthly rent of ₱10,000 or less.

The resolution covers qualifying units nationwide while occupied by the same lessee. It limits the rent increase to:

2.3% during 2025; and
1% during 2026.

The 1% figure is a maximum for 2026, not an automatic increase. A landlord must also comply with the existing lease.

For covered tenancies, Section 7 of Republic Act No. 9653, or the Rent Control Act of 2009, states that the landlord 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 landlord’s account name for the duration of the lease. (lawphil.net)

The statutory deposit ceiling applies to the total deposit, not separately to every demand. A landlord cannot avoid it by relabeling part of the payment as a “damage bond,” “utility deposit,” “key deposit,” or similar charge if the payment actually serves as security for the tenant’s lease obligations.

A genuinely separate charge may require a different analysis—for example, a condominium association deposit paid to and administered by the condominium corporation—but its name alone is not decisive. The lease, receipts, purpose of the charge, recipient, refund terms, and actual practice all matter.

When a deposit top-up may be valid

An additional deposit may be enforceable in the following situations, subject to the legal ceiling for covered units.

The lease contains a deposit-adjustment clause

A lease may state that, whenever the monthly rent is lawfully increased, the tenant must add enough to maintain the deposit at one or two months of the new rent.

For example, suppose the lawful rent increases from ₱8,000 to ₱8,080 in 2026 and the lease requires a deposit equal to two months’ rent:

Existing deposit: ₱16,000
Maximum deposit based on the new rent: ₱16,160
Possible top-up under the clause: ₱160

The landlord could not demand an additional ₱8,080 on top of the existing ₱16,000 because that would produce a total exceeding two months of the new rent.

The rent increase itself must also be valid. A deposit adjustment based on an unlawful rent increase is open to challenge.

The parties voluntarily amend the lease

The landlord and tenant may agree in writing to change the deposit, provided the agreement does not violate a mandatory law. For a covered tenancy, consent does not make a deposit exceeding the statutory maximum lawful.

Consent should be genuine. Payment made only because of an immediate threat of lockout, utility disconnection, seizure of belongings, or other unlawful pressure may raise additional legal issues.

A lease expires and the parties negotiate a renewal

At renewal, the parties may negotiate new terms. For a covered unit, however, the renewed terms must still comply with the applicable rent-control rules, including the two-month deposit limit.

If the existing lease simply continues without a clear new agreement, whether the landlord may impose a new deposit obligation will depend on the original contract and the circumstances. Do not assume that continued occupancy alone proves acceptance of every new demand.

A new tenant takes over a vacant unit

When a covered unit becomes vacant during 2025 or 2026, the landlord may set the initial rent for the next tenant. The deposit may then be calculated using that new rent, but the statutory limit remains relevant if the new tenancy falls within current rent-control coverage.

For boarding houses, dormitories, rooms, and bedspaces offered to students, rent may not be increased more than once in a year.

When an additional deposit is generally questionable

A demand should be examined carefully when:

the tenant already paid a two-month deposit for a covered unit;
the lease fixes the deposit and contains no adjustment clause;
the landlord makes the demand in the middle of a fixed lease term;
the alleged top-up is based on an increase exceeding the applicable rent cap;
the landlord calls the payment a separate “bond,” but it secures the same obligations as the existing deposit;
the demand is made only orally and the landlord will not issue a receipt or written explanation;
the landlord refuses to disclose the total deposit already held;
the landlord demands cash without documenting who received it or what it covers; or
the landlord threatens immediate physical eviction without a court order.

Under Articles 1159 and 1306 of the Civil Code of the Philippines, contractual obligations must be performed in good faith, and the parties may establish lease terms only insofar as those terms are not contrary to law, morals, good customs, public order, or public policy. A landlord generally cannot add a new material payment obligation merely because the landlord now prefers different terms. (lawphil.net)

What the deposit may be used for

For a covered tenancy, the deposit and its accrued interest may be applied to:

unpaid rent;
unpaid electricity, telephone, water, or other utility bills; and
damage to components or accessories of the unit.

Any forfeiture or deduction must be commensurate with the actual monetary loss. The law does not authorize the landlord to keep the entire deposit automatically whenever any minor breach occurs. (lawphil.net)

The Supreme Court has recognized that a deposit may be applied to documented damage beyond ordinary wear and tear when the lease permits it and the evidence supports the expense. In one case, the landlord produced photographs and repair receipts, and only the proven repair cost was offset against the deposit; the remaining balance had to be returned. Philippine-Japan Active Carbon Corporation v. Borgaily, G.R. No. 197022, January 15, 2020. (lawphil.net)

A contractual forfeiture clause is not always conclusive. Courts may reduce a penalty that is excessive or unconscionable in light of the breach. Ligutan doctrine as applied in L.A. Ferrer v. Court of Appeals, G.R. No. 172384, September 12, 2007. (lawphil.net)

The tenant should not assume, however, that the security deposit may automatically be used as the last month’s rent. Its use depends on the lease and the applicable law. Stopping rent payments on that assumption may create arrears.

Interest and return of the deposit

For a covered residential lease, the landlord must keep the deposit in a bank under the landlord’s account name. Accrued interest is returnable to the tenant when the lease expires, subject to lawful deductions.

Republic Act No. 9653 does not establish one universal number of days—such as 15, 30, or 60 days—for every deposit refund. Check the lease for an agreed return period. If the lease is silent, the tenant should make a written demand after:

surrendering the unit and keys;
completing a joint inspection, if possible;
settling or documenting outstanding bills; and
requesting an itemized account of every deduction.

The landlord should return the undisputed balance rather than retain the entire deposit merely because one item remains contested.

What if the rent is above ₱10,000?

A residential unit renting for more than the current ₱10,000 coverage threshold is generally outside the special 2025–2026 rent-control regulation. Commercial leases, hotels, motel rooms, and hotel rooms are also outside the statutory definition of covered residential units.

In those cases, examine the lease closely:

If it sets a fixed deposit with no adjustment mechanism, the landlord ordinarily needs the tenant’s agreement to add a new mid-term obligation.
If it expressly requires a top-up after a rent increase, that clause may be enforceable.
If the lease has expired, the landlord may propose a larger deposit as a condition of a new lease or renewal.
A provision that violates law or public policy, or an excessive penalty that is iniquitous or unconscionable, may still be challenged.

The two-month statutory ceiling should not be assumed to govern an excluded tenancy. Conversely, being outside rent control does not give the landlord a general power to disregard the signed lease.

What a tenant should do after receiving a demand

1. Ask for the demand in writing

Request the following:

exact additional amount;
reason for the increase;
lease clause relied upon;
computation of the total deposit after payment;
effective date; and
confirmation that an official receipt or signed acknowledgment will be issued.

Do not rely solely on a phone call or verbal assurance.

2. Check whether the unit is covered

Confirm:

that the premises are principally residential;
the current monthly rent;
whether the same tenant remains in possession;
whether the unit is newly constructed and excluded under the current resolution; and
whether the arrangement is actually a hotel, commercial lease, or another excluded occupancy.

3. Compare the demand with the lease

Look for provisions on:

the original deposit;
rent escalation;
deposit replenishment or adjustment;
deductions and forfeiture;
utilities and association charges;
renewal;
early termination; and
return of the deposit.

Read the entire lease. A clause should not be interpreted in isolation if another provision limits or explains it.

4. Calculate the total deposit

For a covered tenancy, add all amounts that function as security. If the result exceeds two months of the lawful rent, ask the landlord to withdraw or revise the demand.

5. Respond calmly in writing

A useful response is:

I received your request for an additional deposit of ₱. My current deposit is ₱. Please identify the lease provision and legal basis for the adjustment and provide a computation showing that the total deposit complies with Republic Act No. 9653. I am continuing to comply with the existing lease while we clarify this demand.

Adapt the wording to the facts. Do not admit liability if the basis is disputed.

6. Continue paying undisputed rent on time

A deposit dispute does not normally justify withholding rent. For covered units, rent arrears totaling three months are a statutory ground for judicial ejectment.

If the landlord refuses the agreed rent, document the attempted payment. Section 9 of Republic Act No. 9653 allows a tenant of a covered unit to deposit the rent, by way of consignation, in court or with the city or municipal treasurer, barangay chairperson, or a bank in the landlord’s name with notice to the landlord. The first deposit must be made within one month after the refusal; subsequent rent must be deposited within the first ten days of each current month. Because defective consignation can have serious consequences, obtain legal advice before relying on this procedure. (lawphil.net)

7. Try to resolve the issue formally

Send a written demand or objection and retain proof of delivery. Barangay conciliation may be required before a court case when the dispute and the parties fall within the Katarungang Pambarangay rules.

For guidance, a tenant may approach:

the appropriate DHSUD regional office;
the barangay where the property is located;
the local housing or legal office, if available;
the Public Attorney’s Office, subject to its eligibility and merit requirements; or
the Integrated Bar of the Philippines or private counsel.

A claim seeking only the return of a definite sum may qualify for the courts’ small-claims procedure, depending on the amount and nature of the case. The proper remedy, court, required prior conciliation, and documents should be confirmed before filing.

Evidence to preserve

Keep copies of:

the signed lease and every renewal or amendment;
receipts for the original deposit, advance rent, and later payments;
bank transfers, checks, electronic-wallet records, and acknowledgment messages;
the written demand for the additional deposit;
text messages, emails, and letters discussing its purpose;
rent-increase notices and computations;
move-in and move-out photographs or videos;
the inventory and condition report;
utility and association statements;
inspection reports and repair estimates;
proof that rent was offered or paid; and
proof of surrender of the keys and possession.

Photographs should be dated when possible. Keep original electronic files because forwarded or compressed copies may lose useful metadata.

Common mistakes

Treating advance rent and a security deposit as the same thing

Advance rent pays for occupancy during an agreed rental period. A security deposit secures obligations such as unpaid bills or property damage. Different rules and refund consequences apply.

Paying without obtaining a receipt

The receipt should identify the amount, date, unit, payer, recipient, and whether the payment is advance rent, security deposit, replenishment, or another specific charge.

Assuming every residential lease is rent-controlled

The current monthly-rent threshold, type of premises, construction status, occupancy, and applicable control period all matter.

Assuming the landlord may increase the deposit whenever rent rises

A lawful rent increase does not automatically amend the deposit provision. The lease must be checked for an adjustment clause or the parties must reach a valid agreement.

Using the deposit as rent without authority

Unless the landlord agrees or the lease clearly permits it, the tenant should continue paying rent and pursue the deposit dispute separately.

Leaving without documenting the unit’s condition

Without move-out photographs, meter readings, an inventory, and proof of key turnover, disagreements about damage and unpaid charges are harder to resolve.

When legal help is urgent

Seek prompt legal assistance if:

the landlord changes the locks or physically removes the tenant’s belongings;
utilities are disconnected to force the tenant out;
there is a threat of violence, harassment, or seizure of property;
the tenant receives a barangay summons, demand to vacate, court summons, or ejectment complaint;
the landlord refuses rent and arrears are beginning to accumulate;
the demanded deposit would exceed the statutory limit for a covered unit;
the landlord claims major damage without an inspection, photographs, invoices, or receipts;
a substantial deposit is being withheld after move-out; or
the lease is commercial, mixed-use, rent-to-own, corporate, or otherwise legally complex.

A landlord ordinarily must use the proper judicial process to evict a tenant. A deposit dispute by itself does not authorize self-help eviction.

Penalties under the Rent Control Act

A person found guilty of violating Republic Act No. 9653 may be punished by a fine of ₱25,000 to ₱50,000, imprisonment from one month and one day to six months, or both.

Criminal liability is not automatic merely because the parties disagree about how a lease should be interpreted. Coverage, the precise demand, the contract, intent, and evidence must still be established through the proper process. (lawphil.net)

Frequently asked questions

Can the landlord ask me to restore a deposit that was lawfully used?

Possibly. If the lease expressly requires replenishment and the landlord lawfully applied part of the deposit to an obligation already due, a top-up may be enforceable. For a covered unit, the restored total still cannot exceed two months’ rent.

Can the landlord demand another two-month deposit after increasing the rent?

Not if the landlord is already holding a deposit equal to two months’ rent. At most, a valid adjustment clause may support a top-up equal to the difference between the old and new deposit amounts, subject to the lawful rent and statutory ceiling.

Is a verbal demand binding?

A verbal agreement can sometimes have legal effect, but it is difficult to prove and cannot override mandatory law. Ask for the proposed change in writing before paying.

Can I refuse an unlawful additional deposit?

A tenant may dispute a demand that is inconsistent with the law or lease. Respond in writing and continue performing undisputed obligations, especially timely rent payment. Because refusal may lead to an ejectment threat or nonrenewal dispute, obtain advice based on the actual documents.

Can the landlord keep the whole deposit for minor damage?

Not automatically. For a covered tenancy, deductions should correspond to the proven monetary loss. Ordinary wear and tear should be distinguished from tenant-caused damage, and the landlord should provide an itemized computation and supporting evidence.

Does the landlord have to return interest on the deposit?

For a tenancy covered by Republic Act No. 9653, yes. The accrued bank interest is returnable at lease expiration, subject to lawful deductions allowed by the Act.

Does the 1% rent cap continue after 2026?

Not automatically. NHSB Resolution No. 2024-01 applies only through December 31, 2026. Any increase or deposit adjustment intended to take effect in 2027 should be checked against the law or official issuance then in force.

Official sources

This article provides general legal information, not legal advice or a prediction of how a particular dispute will be decided. Lease language, payment records, the nature of the premises, and current government issuances can change the result. Sources were checked as of September 22, 2026.