In the Philippines, the relationship between a lessor (landlord) and a lessee (tenant) is governed primarily by the Civil Code of the Philippines and, for specific residential units, Republic Act No. 9653, better known as the Rent Control Act of 2009 (which has been extended through various resolutions by the National Human Settlements Board).

Understanding the legal framework is essential for both parties to ensure that rights are protected and obligations are met.

1. The Rental Contract: The Law Between the Parties

Under Philippine law, a lease agreement is a consensual contract. While oral leases are valid, written contracts are highly recommended to clearly define the terms of payment.

Principal Obligation: The lessee is obliged to pay the price of the lease according to the terms stipulated.
Default Timing: If the contract does not specify a date, payment is generally due at the end of the month or according to local custom. However, almost all modern contracts specify a "grace period" (e.g., within the first 5 days of the month).

2. Rent Control Act vs. Civil Code

The rules applicable to your lease depend on the monthly rental amount:

Residential Units (Rent Control Act)

If the rent falls below a certain threshold (currently regulated for units in the NCR and highly urbanized cities), the following rules apply:

Rent Increases: The lessor cannot increase the rent by more than the percentage allowed by the government (usually capped annually).
Advance Rent & Deposit: The lessor is strictly limited to collecting a maximum of one (1) month advance rent and two (2) months security deposit. Any amount beyond this is a violation of the law.

Commercial or High-End Residential (Civil Code)

For units not covered by the Rent Control Act, the principle of "Freedom of Contract" prevails. The parties can freely agree on:

The amount of advance rent and security deposits.
The percentage of annual rent escalations.

3. Late Payment Remedies and Penalties

When a tenant fails to pay on time, the law provides the landlord with specific remedies. However, "self-help" measures (like cutting off electricity or padlocking the door without a court order) are generally illegal.

A. Late Payment Penalties

A landlord can only charge interest or penalties for late payments if they are expressly stated in the written contract. If the contract is silent, the landlord may only claim the legal interest rate (currently 6% per annum) from the time a judicial or extrajudicial demand is made.

B. The "Three-Month Rule"

Under the Rent Control Act, a tenant can be legally evicted if they are in arrears for three (3) months. Under the Civil Code, even a single month of non-payment can be a ground for judicial rescission of the lease, provided a formal demand is made.

4. The Eviction Process (Unlawful Detainer)

In the Philippines, a landlord cannot simply throw a tenant out. There is a mandatory legal process:

Demand to Pay and Vacate: The landlord must serve a formal letter demanding that the tenant pay the arrears and vacate the premises within a specific period (usually 15 days for houses or 5 days for commercial spaces).
Barangay Conciliation: If both parties reside in the same city/municipality, the dispute must generally undergo mediation at the Lupong Tagapamayapa (Barangay level) before a case can be filed in court.
Unlawful Detainer Suit: If mediation fails, the landlord files a case in the Metropolitan or Municipal Trial Court. This is a "summary procedure" designed to be faster than regular cases.
Writ of Execution: Only a court-appointed sheriff, armed with a court order, can physically remove a tenant from the property.

5. Handling Security Deposits

The security deposit is intended to cover unpaid utility bills or physical damages to the property exceeding normal wear and tear.

Return Policy: The deposit (and any remaining interest) should be returned to the lessee within one month after the lease expires, provided all obligations are settled.
Non-Application to Rent: Unless the contract says otherwise, a tenant cannot unilaterally decide to use the security deposit as payment for the "last two months" of stay.

Summary Table: Key Obligations

Feature	Rule under Philippine Law
Max Advance Rent	1 Month (for Rent-Controlled units)
Max Security Deposit	2 Months (for Rent-Controlled units)
Eviction Ground	3 months of non-payment (RA 9653)
Penalty Interest	Must be written in the contract to be enforceable
Required Action	Formal "Demand to Pay and Vacate" is mandatory

Note: This article provides general information and does not constitute formal legal advice. For specific disputes, it is best to consult with a member of the Integrated Bar of the Philippines (IBP) or seek assistance from the Public Attorney's Office (PAO).

Would you like me to draft a formal Demand Letter for unpaid rent or a standard Lease Agreement template based on these rules?