Quick answer

A tenant is generally liable for damage caused by the tenant, household members, guests, or visitors—but not for ordinary wear and tear, deterioration caused by time, an inevitable event, or defects and necessary repairs that are the landlord’s responsibility.

The lease agreement matters, but it does not automatically justify every deduction from a security deposit. The person demanding payment should identify each damaged item, show its condition before and after the tenancy, establish the cause, and prove the reasonable cost of repair or replacement. A landlord should not charge the full price of a brand-new item when the damaged item was already old or partly worn out.

A tenant who disputes a charge should object promptly in writing, request an itemized computation and supporting receipts or estimates, and preserve photographs, inspection reports, messages, and proof of payments. Neither side should use threats, lockouts, utility disconnection, destruction of property, or other forms of self-help to force payment.

The basic rules under Philippine law

The starting point is the lease and the Civil Code.

Under Articles 1654 and 1657 of the Civil Code of the Philippines:

The landlord must deliver the property in a condition fit for its intended use and make necessary repairs during the lease, unless a valid stipulation places a particular repair obligation elsewhere.
The tenant must pay rent and use the property with the diligence of a prudent person, for the agreed purpose.

When the lease ends, Article 1665 requires the tenant to return the property substantially as received, except for loss or impairment caused by:

the passage of time;
ordinary wear and tear; or
an inevitable cause.

If the parties did not prepare a statement describing the property’s condition at the beginning of the lease, Article 1666 creates a presumption that the tenant received it in good condition, unless contrary evidence exists.

Article 1667 makes the tenant responsible for deterioration or loss unless the tenant proves that it occurred without the tenant’s fault. The special burden placed on the tenant does not apply when destruction resulted from an earthquake, flood, storm, or other natural calamity. Even then, negligence that caused or worsened the loss may still matter.

Article 1668 also makes the tenant answerable for deterioration caused by members of the tenant’s household and by guests or visitors. The Supreme Court has applied these rules by distinguishing damage attributable to the tenant from deterioration that occurred without the tenant’s fault. See, for example, Cebu Shipyard and Engineering Works, Inc. v. William Lines, Inc. and Lhuillier v. British Airways.

Damage is different from ordinary wear and tear

There is no single statutory checklist covering every stain, crack, appliance, or fixture. The distinction depends on the item’s age and expected life, the length and intensity of occupancy, the cause and severity of the condition, the lease terms, and the available evidence.

Conditions commonly consistent with ordinary use may include:

minor scuffing or fading of paint over time;
gradual wear on flooring, hinges, handles, or fixtures;
deterioration caused by age despite reasonable care; and
replacement needs arising from an old component reaching the end of its useful life.

Conditions more likely to be chargeable to a tenant may include:

broken doors, windows, locks, tiles, or fixtures caused by misuse;
burns, large holes, unauthorized alterations, or deliberate damage;
water damage made worse by failing to report a known leak promptly;
damage caused by an occupant, pet, guest, or visitor; and
missing landlord-owned furniture, appliances, keys, or accessories.

These are illustrations, not automatic conclusions. For example, a cracked tile may result from impact, defective installation, structural movement, or age. A professional inspection may be necessary when the cause is disputed.

Who must pay for repairs?

Repairs normally belonging to the landlord

The landlord is generally responsible for necessary repairs that keep the premises suitable for the agreed use, subject to the lease and the cause of the problem. Examples may include structural defects, aging plumbing, roof failure, defective electrical systems, or deterioration not caused by the tenant.

The tenant must notify the landlord as soon as possible about necessary repairs. Under Article 1663, a tenant may be liable for additional damage caused by an unreasonable failure to report the problem. If the landlord fails to make an urgent repair needed to avoid imminent danger, the tenant may arrange the repair at the landlord’s cost, but should document the emergency, notice, work performed, and expense carefully.

A tenant should not simply deduct repair costs from rent without checking the lease and obtaining legal advice. Although Article 1658 permits suspension of rent in specified circumstances involving failure to make necessary repairs or maintain peaceful and adequate enjoyment, whether that remedy is available and properly exercised depends on the facts. An incorrect withholding of rent can create a separate default dispute.

Damage normally belonging to the tenant

The tenant may be charged when credible evidence connects the deterioration to negligent, improper, unauthorized, or abusive use by the tenant or someone for whom the tenant is legally responsible.

Liability is not necessarily equal to the cost of complete renovation or brand-new replacement. Recoverable actual damages must be proved and tied to the loss. The appropriate amount may be the reasonable repair cost or the proven value of the actual loss, accounting for the item’s prior condition, age, prior defects, and ordinary depreciation where relevant.

A lease clause may allocate maintenance duties or specify charges, but contractual penalties remain subject to applicable law. Courts may equitably reduce a penalty that is iniquitous or unconscionable under Article 1229 of the Civil Code.

Security-deposit deductions

Check the signed lease first. It should state the deposit amount, the obligations it secures, inspection procedures, permitted deductions, and when any balance must be returned.

For residential units covered by rent-control regulation, Section 7 of Republic Act No. 9653 provides that a landlord may not demand more than two months’ deposit. The deposit is to be kept in a bank under the landlord’s account name, with accrued interest returned at the end of the lease. The deposit and interest may be applied, only in an amount commensurate with the pecuniary damage, to unsettled rent or utilities or destruction of house components and accessories.

The current rent-control period runs from January 1, 2025 through December 31, 2026 under National Human Settlements Board Resolution No. 2024-01. Coverage depends on matters such as the residential unit’s rent and the governing issuance; commercial leases and residential units outside the prescribed coverage may instead be governed primarily by the Civil Code and their contracts.

A defensible deduction should normally be supported by:

the lease and move-in inventory;
dated before-and-after photographs or video;
a joint inspection report, if available;
a clear explanation of how the damage occurred;
repair invoices, official receipts, or credible estimates;
the age and pre-existing condition of each item; and
an itemized computation showing the deposit, deductions, interest if applicable, and remaining balance.

A bare statement that the deposit is “forfeited” is not a substitute for proving the basis and amount of the loss. Conversely, a tenant should not assume that surrendering the deposit settles damage exceeding its value unless the landlord expressly agrees to that settlement.

What each side should do

If you are the tenant

Photograph and record every room, appliance, meter, fixture, key, and existing defect before moving in and again before returning possession.
Keep the lease, inventory, turnover forms, payment records, repair requests, and landlord’s replies.
Report leaks, electrical problems, pests, structural defects, and other developing damage promptly in writing.
Ask for a joint move-out inspection and a signed turnover record.
Return all keys and obtain written proof of the date possession was surrendered.
If money is withheld, request an itemized statement, photographs, invoices or estimates, and the deposit balance.
Dispute inaccurate charges in writing. Identify each contested item and attach supporting proof.
Do not alter evidence or perform disputed repairs after turnover without agreement.

If you are the landlord

Use a detailed move-in inventory signed by both parties.
Conduct inspections with reasonable notice and in accordance with the lease and the tenant’s right to peaceful enjoyment.
Notify the tenant promptly when damage is discovered and allow a reasonable opportunity to inspect it.
Separate tenant-caused damage from aging, pre-existing defects, ordinary wear, and necessary landlord repairs.
Obtain itemized, commercially reasonable estimates or invoices.
Avoid charging the tenant for upgrades or unrelated renovation.
Send a written accounting of the deposit and pay any undisputed balance.
Preserve damaged items when practicable until they have been documented and the tenant has had a fair chance to inspect.

A practical way to settle the dispute

Begin with a written demand or response containing:

the parties’ names and property address;
the lease and turnover dates;
a numbered list of disputed items;
the claimed cause and supporting evidence for each item;
the amount claimed or requested;
copies of material documents; and
a reasonable deadline and proposed inspection, repair, or payment arrangement.

Possible settlements include an agreed repair, a reduced deduction reflecting the item’s age, payment by installments, return of the undisputed deposit, or a mutual release after payment. Record any settlement in writing and identify exactly which claims it resolves.

A written extrajudicial demand can also have legal significance. Article 1155 of the Civil Code provides that prescription may be interrupted by filing an action, a written extrajudicial demand by the creditor, or a written acknowledgment of the debt by the debtor. Do not rely on informal conversations when a claim may be approaching a deadline.

Barangay conciliation and court options

Barangay conciliation is generally a precondition to filing suit when the dispute falls within the Lupon’s authority and the individual parties actually reside in the same city or municipality. Venue generally lies in the barangay where both reside or, if they reside in different barangays within the same city or municipality, where the respondent resides. Exceptions include disputes involving juridical entities, parties residing in different cities or municipalities subject to the adjoining-barangay exception, government parties, and situations requiring urgent legal action. The governing provisions appear in Sections 408–412 of the Local Government Code.

For a claim seeking only payment or reimbursement of money not exceeding ₱1,000,000, the current Rules on Expedited Procedures may permit a small-claims case in the appropriate first-level court. This can cover money owed under a lease or other contract. The Supreme Court provides the current rules, forms, and instructions on its Small Claims page.

Small claims proceedings generally do not allow lawyers to appear for a party at the hearing, although a party may consult a lawyer before or after it. The proper court, venue, filing requirements, barangay certification, and treatment of interest and other claims should be checked against the current forms and the specific facts.

A case involving ejectment, possession of the premises, an injunction, extensive non-monetary relief, or a claim exceeding the small-claims ceiling follows different procedures. A landlord cannot physically remove a tenant merely by asserting property damage; ejectment is a judicial remedy. Damage to the premises may also constitute a lease violation supporting judicial ejectment when the statutory and contractual requirements are met.

Time limits

The filing period depends on the legal basis of the claim:

An action upon a written contract generally must be brought within 10 years from accrual under Article 1144 of the Civil Code.
An action upon an oral contract generally must be brought within six years under Article 1145.
A claim based on injury to rights or a quasi-delict may be subject to a four-year period under Article 1146.
Different rules may apply if the relief sought is possession, ejectment, enforcement of a barangay settlement, or another special remedy.

Identifying when the cause of action accrued and which period governs can be fact-sensitive. A demand letter does not create an unlimited extension, and oral negotiations should not be assumed to stop a deadline.

Evidence to preserve

Keep original or backed-up copies of:

the signed lease and all renewals or amendments;
move-in and move-out inventories;
photographs and videos with their original dates and metadata;
inspection reports and building-administration records;
repair requests, emails, text messages, and chat conversations;
utility records and incident reports;
receipts, quotations, invoices, warranties, and proof of an item’s age;
deposit, rent, and other payment records;
proof of notices and demands, including delivery receipts;
witness names and contact details;
insurance reports and claims; and
barangay records, certificates, and settlement documents.

Photographs are stronger when they show the whole room as well as close-ups and can be matched to a date, location, and item. Preserve original files rather than only screenshots or compressed copies sent through messaging applications.

Common mistakes

Treating every difference from move-in condition as tenant-caused damage.
Assuming “ordinary wear and tear” covers negligence or failure to report a worsening problem.
Replacing an old item with a premium new item and charging the entire cost to the other party.
Relying only on an unsigned inventory or undated photographs.
Repairing or discarding the item before documenting it or allowing inspection.
Withholding the entire deposit without an itemized explanation.
Assuming the deposit is automatically the maximum possible liability.
Using the dispute as a reason to disconnect utilities, change locks, seize belongings, or threaten occupants.
Ignoring barangay conciliation when it is a legal precondition.
Missing a filing deadline while negotiations continue.
Signing a turnover document, waiver, or settlement without checking whether it releases all claims.

When legal help is urgent

Seek prompt advice from a Philippine lawyer, the Public Attorney’s Office if eligible, or an appropriate legal-aid organization when:

anyone faces immediate danger from unsafe wiring, structural failure, fire, flooding, or another serious hazard;
the landlord has changed locks, removed belongings, disconnected essential utilities, or attempted eviction without court process;
there is alleged intentional destruction, violence, threats, trespass, or possible criminal conduct;
the disputed amount is substantial or structural damage is involved;
an insurer, condominium corporation, property manager, contractor, or multiple tenants may share responsibility;
a court summons, barangay notice, demand to vacate, or formal claim has been received;
evidence may be destroyed or repairs must begin immediately;
the lease contains arbitration, penalty, indemnity, or unusual deposit provisions; or
a prescriptive or procedural deadline may be near.

Frequently asked questions

Can a landlord keep the entire security deposit?

Not automatically. The landlord needs a contractual or legal basis and evidence supporting the amount retained. For rent-controlled residential units, deductions for specified obligations or destroyed components must be commensurate with the pecuniary damage. Any undisputed balance should be accounted for and returned.

Is repainting always chargeable to the tenant?

No. Repainting caused by normal fading and reasonable occupancy may be ordinary wear. Repainting made necessary by unusual stains, burns, unauthorized colors, or excessive wall damage may be chargeable, depending on the lease, length of occupancy, previous condition, and evidence.

Who pays when a leak damages the unit?

Responsibility depends on the leak’s cause and the parties’ conduct. An aging roof or defective pipe may be the landlord’s repair obligation. A tenant may be liable if misuse caused the leak or if the tenant failed to report it promptly and that delay worsened the damage.

Is the tenant liable for damage caused by a guest?

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

What if there was no move-in inspection report?

The dispute becomes more evidence-dependent. Article 1666 presumes the tenant received the property in good condition unless there is proof to the contrary. The tenant may rebut that presumption with dated photographs, messages reporting existing defects, witnesses, repair records, or other reliable evidence.

Can the landlord charge replacement cost without a receipt?

A quotation or other competent evidence may sometimes help establish the likely repair cost, but an unsupported figure is vulnerable to challenge. Whether an estimate, invoice, receipt, expert assessment, or other proof is sufficient depends on the claim and the evidence as a whole.

Can the tenant repair the damage instead of paying?

Only if the landlord agrees or the lease clearly permits it. The parties should approve the scope, contractor, materials, deadline, and inspection arrangements in writing. Unauthorized work can create another dispute.

Can either party go straight to court?

Not always. Barangay conciliation may first be mandatory depending on the parties’ residences, legal personalities, and the nature of the dispute. If only money is sought and the claim does not exceed ₱1,000,000, the small-claims process may apply after any required barangay proceedings.

This article provides general legal information, not legal advice or a prediction of any case’s outcome. Rights and procedures depend on the lease, evidence, location, parties, relief sought, and current issuances. Official sources were checked as of August 30, 2026.