Overview

In the Philippines, a landlord may require one (1) month advance rent and a security deposit on lease renewal if (1) the arrangement is lawful under applicable rent-control rules (if any), and (2) the tenant agrees as part of a renewed or new lease contract.

But the answer changes depending on:

What kind of property is being leased (residential vs. commercial),
Whether rent control applies (and what the current coverage/ceilings are),
Whether the “renewal” is a new contract or merely an extension of an existing lease,
What was already collected under the current lease (existing deposit/advance),
How the renewal is documented and accepted (signed renewal vs. implied month-to-month continuation).

This article explains the full Philippine legal context and the practical rules that usually decide who is right.

Key Terms (Philippine leasing practice)

1) Advance rent

Money paid ahead of time to cover rent for a future period (commonly the first month of the renewed lease).

2) Security deposit

Money held by the landlord to answer for:

unpaid rent (if allowed by contract/law),
unpaid utilities,
repairs for tenant-caused damage (beyond ordinary wear and tear),
other obligations specifically allowed in the contract.

A deposit is not automatically the “last month’s rent” unless the contract clearly says so.

3) Lease renewal vs. lease extension vs. new lease

Renewal (often): a new fixed term, sometimes with revised rent and updated terms.
Extension: continued lease for another term, usually referencing the same terms unless amended.
New lease: brand-new contract replacing the old one.

The label matters less than the substance: did both parties agree to updated terms?

Governing Law in the Philippines

A) Civil Code rules on lease (general baseline)

Philippine leases are governed primarily by the Civil Code provisions on lease and obligations and contracts. The Civil Code generally follows freedom of contract: parties may set terms they want so long as they are not contrary to law, morals, good customs, public order, or public policy.

Implication: If there is no special rent-control limitation, landlords and tenants can usually agree to:

1 month advance + deposit,
2 months deposit,
different structures, as long as they are not unconscionable or unlawful.

B) Rent control (special rules for certain residential units)

For some residential rentals, the Rent Control Act (R.A. 9653) and later extensions/implementations set limits such as:

Not more than 1 month advance, and
Not more than 2 months deposit (for covered units, depending on current ceilings and coverage rules).

Implication: If the unit is covered by rent control, a landlord generally cannot exceed the statutory cap—even on renewal—because renewal terms still must comply with law.

Practical note: Coverage under rent-control rules depends on location, monthly rent, and the latest implementing rules/renewals. If you are in a bracket that is not covered, the cap may not apply.

The Core Question: Can a Landlord Demand 1 Month Advance + Deposit on Renewal?

Short legal principle

A landlord can require these on renewal only if the tenant is entering a renewed/new agreement and the demand does not violate any applicable rent-control limits.

However, there are important nuances about whether the landlord can ask again when the landlord already holds money from the current lease.

Scenario-by-Scenario Analysis

Scenario 1: Formal renewal with a new contract (tenant signs)

If the renewal is documented (new lease/renewal agreement) and the tenant signs:

✅ Landlord generally allowed to require:

1 month advance rent for the renewed term; and
a security deposit, subject to:
- rent-control caps (if applicable), and
- fairness and clear contract terms.

But what about the existing deposit from the prior lease?

This is where disputes usually happen.

A landlord typically has three lawful ways to handle renewal deposits:

Carry over the existing deposit
- Deposit remains with the landlord and continues to secure obligations under the renewed term.
Refund and re-collect (paper reset)
- Landlord refunds old deposit (less lawful deductions), then collects new deposit.
Top-up only (if deposit is pegged to rent amount)
- Example: deposit was “equivalent to 1 month rent.” If rent increases on renewal, landlord may ask tenant to add the difference rather than paying a full new deposit again.

🚫 Red flag (often unfair/unjustified)

Demanding a brand-new full deposit while also keeping the old deposit, without refund, carry-over accounting, or a clear legal/contract basis. This can look like an excessive or duplicative collection—especially under rent control or where terms are ambiguous.

Scenario 2: “Renewal” but it’s really an extension of the same lease terms

If both parties simply extend the lease (same contract, longer time), and there is no clear agreement that deposit/advance must be paid again:

✅ Usually reasonable:

Continue holding the existing deposit.
Apply the original advance rules.

⚠️ Landlord may negotiate changes, but cannot impose unilaterally

A landlord can propose: “Renewal requires fresh advance/deposit.” But if the tenant doesn’t agree and the landlord still accepts rent without a new contract, the landlord may have difficulty claiming the tenant accepted the new demand.

Scenario 3: No signed renewal, but the tenant stays and landlord keeps accepting rent (month-to-month)

This is common in the Philippines: a fixed-term lease ends, tenant remains, landlord accepts rent.

Under Civil Code concepts of implied continuation (often discussed as implied renewal/month-to-month), the relationship can continue under substantially the same terms unless properly changed by agreement.

Key practical effect

The landlord cannot just announce: “Pay a new deposit now,” and treat nonpayment as breach unless the tenant agreed to it (expressly or clearly by conduct).
If the landlord continues accepting rent with no renewal document, the landlord may be treated as accepting continuation under prior conditions.

That said, the landlord is not forced to keep leasing indefinitely—if the landlord wants new terms, the landlord can:

require a formal renewal agreement,
set reasonable notice for non-renewal, and
if the tenant refuses and overstays, pursue proper legal remedies (not self-help lockouts).

Scenario 4: Rent-controlled residential unit (if covered)

If the unit is covered by rent control:

✅ Allowed (typical cap structure)

Up to 1 month advance and up to 2 months deposit (subject to current coverage rules).

On renewal:

The landlord may still require lawful advance/deposit, but not beyond the cap.
If the landlord already holds the maximum deposit allowed, demanding another full deposit without refund or carry-over may be challengeable as exceeding lawful limits in substance.

Residential vs. Commercial Leases

Residential

Potentially affected by rent control.
Consumer-protective policies are stronger.
Disputes often include deposit returns, deductions, and unfair conditions.

Commercial

Rent control generally does not apply.
Freedom of contract is broader.
Landlords commonly demand higher deposits (e.g., 2–6 months), though enforceability can still be attacked if unconscionable or ambiguous.

Deposit Handling Rules: What Landlords Can and Cannot Do

Landlord can usually:

Keep the deposit during the lease as security.
Deduct unpaid rent/utilities and repair costs for tenant-caused damage (as allowed by the contract).
Require proof/receipts for deductions (not always stated in law, but strongly expected for fairness and dispute defense).

Landlord should not:

Treat the deposit as automatically forfeited without basis.
Deduct for ordinary wear and tear (e.g., minor paint fading).
Refuse to return any balance without explaining deductions.
Use “deposit” to charge penalties not found in the contract.

Timing of return

There isn’t one universally applied “X days” rule across all private leases. Best practice (and often what contracts state) is return within a reasonable time after:

turnover of keys,
inspection,
final utility billing reconciliation.

If the contract states a specific period (e.g., 30 days), that usually governs unless abusive.

Is it Legal to Require “1 Month Advance + 1 Month Deposit” on Renewal Specifically?

Yes, often legal—but only if properly structured

A landlord is typically on strong ground if the renewal agreement says something like:

“Upon signing of this Renewal Agreement, LESSEE shall pay one (1) month advance rental to be applied to the first month of the renewed term and maintain a security deposit equivalent to one (1) month rent. The existing security deposit paid under the prior lease shall be carried over and shall continue as security for the renewed term.”

This avoids double collection.

The dispute usually arises when the landlord says:

“Pay a new 1 month deposit again,” while keeping the old one.

That is where tenants can argue:

it’s duplicative,
not agreed,
potentially beyond rent-control caps (if covered),
and inequitable.

Can a Landlord Refuse Renewal Unless You Pay the New Deposit/Advance?

Generally: yes (subject to contract and anti-retaliation/public policy concerns)

If the lease term has ended and there is no contractual right to renew, the landlord can choose not to renew unless terms are met.

But the landlord must still follow lawful processes:

No harassment,
No lockouts,
No taking utilities as pressure,
No seizure of property without lawful basis.

If the tenant stays without an agreement, the landlord’s remedy is generally through proper legal action (ejectment/unlawful detainer), not self-help.

What Tenants Can Do If They Think the Renewal Demand Is Unlawful or Abusive

1) Ask for an accounting of the current deposit

Request in writing:

how much is currently held,
what it secures,
whether it will be carried over,
whether the landlord is asking only for a top-up.

2) Propose a “carry-over + top-up” approach

If rent increased, offer:

deposit top-up only,
advance applied to first month of renewed term.

3) Check if rent control coverage applies

If covered, point out the cap (advance/deposit limitations). This can be decisive.

4) If dispute escalates

Common routes include:

Barangay conciliation (often required first for many disputes between individuals in the same locality),
then courts for ejectment or money claims, if unresolved.

Practical Checklist (Renewal Payment Legality)

A renewal demand is more likely lawful if:

✅ The tenant signs a renewal/new lease that clearly states the payment terms
✅ The unit is not rent-controlled or the terms stay within rent-control caps
✅ The demand does not duplicate an existing deposit without refund/carry-over
✅ The deposit purpose, deductions, and return conditions are written
✅ Receipts are issued and payment application is clear (advance = first month)

A renewal demand is more likely challengeable if:

⚠️ Landlord wants a “new deposit” while keeping the old deposit with no accounting
⚠️ Terms exceed rent-control limitations (if covered)
⚠️ The landlord changes terms without a signed renewal and still accepts rent
⚠️ Deposit is labeled “non-refundable” with no justification
⚠️ Deductions are vague or unlimited

Suggested Renewal Clause (Tenant-Friendly but Balanced)

“The Security Deposit previously paid by the LESSEE under the prior lease shall be carried over and shall continue to secure the obligations under this renewed term. If the monthly rental has increased, the LESSEE shall pay only the amount necessary to adjust the Security Deposit to the agreed equivalent of one (1) month rental. One (1) month advance rental shall be paid upon renewal and shall be applied to the first month of the renewed term.”

Bottom Line

Yes, a landlord in the Philippines can require 1 month advance and a security deposit on lease renewal if the tenant is entering a renewed/new agreement and the requirement is within legal limits (especially if rent control applies).
The most common legal problem is not the existence of a deposit, but double collection: asking for a fresh deposit while still holding the old one without refund, carry-over, or clear top-up logic.
If there is no signed renewal and the landlord simply keeps accepting rent, the landlord may have a harder time enforcing a new deposit requirement without clear agreement.

If you paste the exact renewal message/notice (remove names and addresses), I can map it to the scenarios above and show which parts are strong, weak, or negotiable.