Landlord Charges After Move-Out: What Fees Are Legal in the Philippines
This is general information on Philippine landlord-tenant practice, rooted in the Civil Code on lease and rent-control rules that periodically apply to certain residential units. It’s not a substitute for legal advice on a specific lease or dispute.
1) The basic rule: only actual, lawful, and contractually agreed costs
When a tenant vacates, a lessor may deduct from the security deposit (or separately bill) only the following, and only if they are (a) permitted by law and the lease, and (b) supported by proof:
- Unpaid rent (including prorated last-month rent if the lease so provides).
- Unpaid utilities and government charges attributable to the tenant’s occupancy (electricity, water, internet, cable, garbage fees, and metered gas), including reasonable reconnection/transfer fees caused by the tenant.
- Damage beyond normal wear and tear to the premises, fixtures, or appliances, caused by the tenant or guests.
- Contractually stipulated fees that are lawful, reasonable, and clearly stated in the lease (e.g., key/FOB replacement if not returned; professional cleaning where the unit was left unreasonably dirty).
Everything else is presumptively not collectible after move-out unless expressly allowed by law or a clear lease clause and backed by evidence.
2) Security deposit: purpose, deductions, and return
Purpose
- A residential security deposit is a guarantee for the faithful performance of tenant obligations (rent, utility payments, care of the unit). It is not automatic “liquidated damages,” nor a substitute for the last month’s rent unless the lease specifically allows applying it as such.
Deductions
- Deductions must be itemized and grounded in receipts, invoices, meter readings, or a move-out inspection report with dated photos/videos, plus proof of actual repair cost (job order/official receipt).
- Normal wear and tear is not chargeable (see Section 3).
Timeline to return
- The Civil Code does not fix a specific number of days, but practice considers 30 days (up to 60 in complex turnovers) as a reasonable period to finalize utility bills and repairs. A longer period should be justified by objective constraints expressly stated in the lease (e.g., association billing cycle).
Interest on wrongful withholding
- If a landlord unreasonably withholds the refundable balance, the tenant may demand legal interest from the date of demand until payment, in addition to the deposit itself.
3) What counts as “normal wear and tear” (not billable)
Normal depreciation from ordinary, careful use over time is generally not chargeable:
- Hairline wall cracks; minor paint fading or uniform discoloration from sunlight; a few nail holes used for hanging (unless the lease bans it and requires patching).
- Minor scuffs on floors; oven/range discoloration from ordinary use; appliance parts reaching end-of-life through ordinary wear.
- Grout discoloration, mild water marks that result from normal use and are not due to negligence.
Billable damage typically includes: broken tiles from impact; shattered or cracked glass; burns on countertops; pet urine-soaked carpets; writing/drawing on walls; missing items; appliance damage from misuse; pest infestation due to unclean habits; unauthorized alterations.
4) Common move-out charges—what’s legal vs. questionable
Charge Type | Usually Legal if… | Often Not Legal if… |
---|---|---|
Unpaid rent | Rent accrued under the lease; properly computed to end date; supported by ledger | Includes “future rent” after valid termination without a clear, enforceable liquidated damages clause |
Utilities | Based on final meter readings or itemized bills for the tenant’s occupancy | “Estimated” bills with no readings; charging for periods after move-out |
Repairs | For tenant-caused damage; cost proven by invoices/OR; scope reasonable | Repainting an entire unit solely for cosmetic refresh where walls show only normal wear |
Cleaning | Where the unit was left unsanitary/excessively dirty; fee is reasonable and in lease | “Standard cleaning fee” automatically charged despite the unit being returned clean |
Keys/FOBs | If not returned; fee equals actual replacement cost per admin schedule | Inflated “penalty” much higher than replacement cost |
Pest treatment | Infestation shown to be tenant-caused (e.g., food waste negligence) | Building-wide issues not tied to tenant’s acts |
Association dues / penalties | If the lease assigns these to tenant and there are unpaid amounts incurred during occupancy | Charging owner’s regular dues not assigned in the lease, or penalties occurring after surrender |
Move-out/ elevator booking | If required by condo/HOA rules and disclosed in lease/house rules | Surprise fees not disclosed or not part of building rules |
Early termination fee | If there’s a clear clause (notice, break fee, or forfeiture limited to reasonable amount) | Punitive, open-ended “lost rent until re-let” without mitigation or cap |
5) Rent-controlled units vs. non-covered units
- Rent-control rules (when in force) typically set protections on deposits, advance rent, increases, and eviction procedures for covered units (often depending on monthly rent ceilings and building type). If your unit is covered, there may be caps on advance rent and security deposit and rules against arbitrary charges.
- Non-covered units remain governed by the Civil Code and the contract—but consumer-protection principles still apply: charges must be lawful, reasonable, and not contrary to morals, good customs, public order, or public policy.
Tip: Even outside rent control, courts generally disfavor automatic forfeiture of deposits that bears no relation to actual loss.
6) Documentation best practices (protects both sides)
Before move-out
- Give written notice per lease (e.g., 30 days).
- Request a pre-inspection to identify items you can cure before turnover.
- Secure final meter readings and request final utility bills be sent or transferred.
On turnover day
- Conduct a joint inspection with a checklist and timestamped photos/videos.
- Turn over keys/FOBs, gate passes, parking access; get a signed acknowledgment of surrender and meter readings.
After turnover
- Landlord furnishes an itemized statement of deductions with copies of invoices/ORs and returns the balance of the deposit within a reasonable time.
7) Frequently disputed items—and how they’re resolved
“Painting charge” for the whole unit
- If only normal wear is present, wholesale repainting for the next tenant is a landlord cost. Spot repair is billable only for tenant-caused staining, markings, or unauthorized paint jobs.
“Professional cleaning”
- Chargeable only if the unit was left in an unreasonably dirty or unsanitary condition; mere routine turnover cleaning is generally not a tenant charge unless clearly stipulated and reasonable in amount.
“Lost rent” after early move-out
- Collectible only under a clear, reasonable liquidated damages clause or as proven actual loss where the landlord exercised diligence to mitigate (re-let promptly). Open-ended demands are suspect.
Appliance replacement at brand-new price
- Tenant owes the repair or depreciated replacement cost for tenant-caused damage, not an automatic upgrade.
Association/parking/amenity penalties
- Billable if the lease or house rules assign them to the tenant and they arose during the tenant’s occupancy.
8) The move-out accounting—how to compute properly
Start with security deposit amount.
Deduct:
- Unpaid rent (to end date).
- Unpaid utilities (attach bills/readings).
- Proven repair costs for tenant-caused damage (attach job orders/ORs).
- Contract-permitted fees (keys/cleaning), if reasonable and evidenced.
Do not deduct for normal wear, routine repainting, or owner upgrades.
Provide an itemized statement; return the balance via traceable method.
Example (illustrative): Security deposit ₱30,000 − Final electricity bill (prorated) ₱1,850 − Keycard replacement (admin schedule) ₱800 − Wall patch/spot repaint for marker stains (invoice) ₱2,400 = Refund due: ₱24,950
9) Process for disputes
- Write a demand (email + hard copy) requesting the itemization and refund, citing the lease, attaching your turnover checklist and photos. Give a firm deadline (e.g., 10 banking days).
- Barangay conciliation (Katarungang Pambarangay) if the parties are natural persons residing/located in the same city/municipality—often required before filing suit.
- Small Claims (Metropolitan/Municipal Trial Court) for money claims within the current small-claims threshold—no lawyers required. Claim may include legal interest.
- Regular civil action for amounts or issues beyond small-claims or involving damages/contract interpretation.
- Condo/HOA channels if the charge originates in building rules (elevator/amenity penalties).
10) Clauses to look for in your lease
- Deposit & advance rent: amount, cap (if covered by rent control), and whether deposit may be applied to last month’s rent.
- Repairs & maintenance: who bears minor repairs; definition of “wear and tear.”
- Utilities & dues: who pays, how to close accounts.
- Alterations: painting, drilling, fixtures, pet policies.
- Move-out procedures: notice period, inspection, cleaning standard, elevator bookings.
- Early termination: notice, break fee, forfeiture (must be reasonable).
- Dispute resolution: venue, barangay conciliation, interest on sums due.
11) Practical tips (for a smooth, lawful turnover)
- Read the house rules early; many charges stem from building procedures (elevator booking, move-out hours).
- Over-document: photos, videos, meters, checklists, receipts.
- Return all access items; get a receipt.
- Ask for admin fee schedules (keys, move-out bookings) before moving.
- Coordinate final utility cut-offs to avoid post-move charges.
- Negotiate reasonable fixes (e.g., patch + spot paint instead of full repaint).
- Keep communications in writing and polite—many disputes settle at the barangay with complete paperwork.
12) Quick reference: Typically legal vs. illegal move-out charges
Legal (with proof):
- Unpaid rent up to move-out date per lease.
- Final utilities for your occupancy.
- Repairs for tenant-caused damage (invoice-based).
- Key/FOB replacement at actual cost.
- Reasonable cleaning where unit left unsanitary (lease-based).
- Building booking fees disclosed in rules/lease.
Illegal or abusive (common examples):
- Automatic forfeiture of the entire deposit without itemization.
- Charging for normal wear and tear (repainting the whole unit for turnover).
- “Lost rent” far beyond a reasonable, agreed break fee.
- Undisclosed or inflated penalties not in the lease/rules.
- Billing periods after surrender of possession (absent fault).
- Withholding the deposit indefinitely without cause or documentation.
Bottom line
After move-out in the Philippines, landlords may charge only lawful, reasonable, and provable amounts that arise from the tenant’s obligations under the lease—not cosmetic refreshes or owner improvements. Tenants are entitled to a timely, itemized accounting and refund of any balance, with interest if wrongfully withheld. When in doubt, paper trails, barangay conciliation, and (if needed) small claims provide practical remedies.