Introduction

In the Philippines, rent increases and security deposits are governed by a mix of national statute, contract law, civil law principles, and practical leasing custom. The most important starting point is the Rent Control Act, as periodically extended or amended by law, together with the Civil Code of the Philippines and the parties’ lease contract.

This topic matters because many landlord-tenant disputes do not arise from total nonpayment or eviction alone. They arise from more ordinary but recurring issues: how often rent may be increased, by how much, when notice must be given, whether a deposit may be increased mid-lease, whether advance rent can be demanded beyond legal limits, and what happens when the lease is renewed or continues month-to-month.

The correct legal analysis always depends on five threshold questions:

Is the unit residential or commercial?
Does the property fall within the coverage of rent control law?
Is there a written lease, and what does it say?
Is the increase being imposed during the lease term or upon renewal?
Is the charge a true rent increase, or is it disguised as an increase in deposit, association dues, utility charges, common area fees, or some other pass-through?

These questions determine whether the landlord’s action is valid, void, voidable, or challengeable.

I. Main Legal Sources in the Philippine Setting

A. The Rent Control Act framework

Philippine residential rentals within the statutory threshold are subject to rent control. The law has historically imposed:

a cap on allowable annual rent increases for covered residential units;
limits on how much advance rent and security deposit may be collected;
restrictions on ejectment or unfair lease practices in certain circumstances.

The specific rental-value threshold and allowable percentage increase have changed over time depending on the current law or extension then in force. Because rent control laws are time-sensitive, the exact cap applicable to a particular dispute depends on the law effective during the relevant period.

Still, the core structure remains stable:

covered residential units are subject to statutory rent increase limits;
landlords generally cannot exceed those limits by contract;
the law is protective in nature and is typically construed in favor of the tenant where the unit is covered.

B. The Civil Code of the Philippines

Where rent control does not apply, or where the issue is not expressly governed by the rent control statute, the Civil Code governs. The Civil Code supports the following principles:

leases are generally binding according to their terms, so long as they are not contrary to law, morals, good customs, public order, or public policy;
the lessor must maintain the lessee in the peaceful and adequate enjoyment of the property;
the lessee must pay rent as agreed and use the property in a proper manner;
lease stipulations are enforceable if valid and clear;
ambiguous contract terms may be construed against the party who caused the ambiguity, often the lessor in pre-drafted lease forms.

C. Local government, condominium, and regulatory context

Although national law is primary, practical rental disputes can also involve:

local ordinances;
barangay conciliation requirements before court action in many interpersonal disputes;
condominium corporation rules on access, move-in fees, and common charges;
housing or regulatory agencies in limited contexts.

These do not generally override national rent-control protections, but they may affect procedure and enforcement.

II. What Counts as “Rent” Under Philippine Rental Law

A major source of abuse is the relabeling of rent.

A landlord may call a charge:

escalation fee,
maintenance contribution,
reservation fee,
service fee,
association reimbursement,
amenities charge,
occupancy fee,
administrative surcharge,

but if the amount is effectively compensation for use and occupancy of the premises, it may be treated as rent in substance.

This matters because the law looks to substance over label. A landlord cannot usually evade a rent cap by keeping the stated monthly rent unchanged while imposing a mandatory monthly “facility fee” that is really part of the consideration for staying in the unit.

By contrast, genuine third-party pass-throughs, such as actual utility consumption or duly documented association charges separately assumed by contract, may be treated differently, depending on the lease.

III. Coverage: When Rent Control Applies

A. Residential, not commercial

Rent control laws are aimed principally at residential units. A purely commercial lease is generally not entitled to the same statutory rent cap. For commercial leases, the contract usually controls, subject to Civil Code limits on unconscionability, bad faith, and illegality.

B. Rental amount threshold

Coverage depends on whether the unit’s monthly rent falls within the statutory threshold set by the rent control law in force at the time. Historically, the law has covered residential units only up to a certain monthly rental amount.

This means two units in the same building may be treated differently:

one may be covered by rent control,
the other may be outside it if the rent exceeds the threshold.

C. Existing tenants versus new tenants

A recurring distinction is between:

the current tenant staying in the same covered unit, and
a new tenant after vacancy.

Rent control is usually most protective as to increases charged to the existing tenant. Once the tenant vacates and a new lease begins with a new tenant, the law’s treatment may differ depending on the governing statute. In practice, landlords often have more flexibility after lawful vacancy than during the protected tenancy.

D. Lease renewal versus continuation

A covered tenant’s protection may still apply on renewal or continuation, but the extent depends on the statute and the wording of the lease. A landlord cannot automatically assume that the expiration of the written term allows unrestricted repricing if the unit remains covered by law.

IV. Rules on Rent Increases

A. General rule: no unilateral increase during a fixed lease term unless validly agreed

If there is a fixed-term lease at a stated monthly rental, the landlord ordinarily cannot increase rent mid-term unless the lease itself clearly allows it and the clause is valid under applicable law.

For covered residential units, even an escalation clause may be ineffective if it violates the rent-control cap.

For non-covered or commercial leases, an escalation clause may be enforceable if:

it is clear and definite,
it is not illegal or unconscionable,
it is not imposed in bad faith.

B. Rent-controlled units: annual cap

For covered units, the law typically limits the amount by which rent may be increased per year. The commonly discussed rule in many periods of Philippine rent-control legislation has been a maximum percentage increase per year, not a free-form adjustment.

Key implications:

the cap generally applies to the same dwelling unit occupied by the tenant;
it usually bars increases above the legal maximum within the relevant annual period;
a landlord cannot usually stack multiple smaller increases within the same year to exceed the cap.

C. Timing of increase

Even if an increase is permitted, it is usually expected that:

the increase be imposed only after the required period has elapsed;
the tenant be given clear notice;
the new rent be applied prospectively, not retroactively.

A retroactive demand saying the rent was “actually increased three months ago” is usually suspect unless the contract unmistakably provides for an automatic adjustment and the law allows it.

D. Need for notice

As a matter of fairness and enforceability, rent increases should be communicated through written notice, stating:

the present rent,
the new rent,
the legal or contractual basis,
the effectivity date.

A sudden verbal announcement is fertile ground for dispute. Even where not expressly required in a statute, written notice is the prudent legal standard.

E. Fixed term versus month-to-month lease

A crucial distinction exists between:

Fixed-term lease The landlord is generally bound to the agreed rent until the term ends.
Month-to-month lease or lease without a definite term The lessor may have greater flexibility to adjust rent for the next rental period, but still subject to rent control if the unit is covered and subject to good-faith notice requirements.

A landlord cannot convert a fixed-term lease into a month-to-month arrangement by mere assertion while the contract is still subsisting.

V. Escalation Clauses

A. What is an escalation clause?

An escalation clause is a lease term allowing rent to increase upon the happening of a specified event or after a given period, such as:

every year by a fixed percentage,
upon increase in real property tax,
upon inflation,
upon increase in association dues,
upon devaluation or foreign exchange movement.

B. When valid

An escalation clause is more likely to be valid when it is:

expressly written,
specific in formula,
objectively measurable,
not one-sided,
not contrary to rent-control law.

C. When invalid or challengeable

An escalation clause may be invalid or vulnerable if it is:

vague, such as “rent may be increased at the sole discretion of the landlord”;
hidden in fine print and fundamentally oppressive;
used to exceed a statutory rent cap;
imposed during a term where the contract otherwise fixes the rent;
triggered by factors unrelated to the lease in a way that becomes unconscionable.

D. Interaction with rent control

If rent control applies, a contractual escalation clause cannot normally override the law. Private agreement cannot legalize what the statute prohibits.

VI. Security Deposits: Nature and Legal Purpose

A security deposit is money given by the tenant to secure performance of lease obligations. It is not itself rent, though it may later be applied to lawful obligations if the lease or law allows.

Its legitimate functions generally include securing payment for:

unpaid rent;
unpaid utility bills chargeable to the tenant;
damage beyond ordinary wear and tear;
other specific obligations clearly allowed under the lease.

A security deposit is not meant to be:

automatic additional profit for the landlord;
a penalty fund;
a substitute for routine maintenance;
a way to force the tenant to absorb normal depreciation.

VII. Limits on Security Deposits and Advance Rent in Covered Residential Leases

A central protection in Philippine residential leasing law is the limit on how much a landlord may require as:

advance rent, and
security deposit.

For covered residential units, the law has long restricted collection to a limited amount, traditionally understood as:

not more than one month advance rent, and
not more than two months security deposit,

subject to the exact terms of the law in force.

This is one of the most litigated and frequently violated rules in practice. Many lease offers attempt to require “two months advance and two months deposit,” “three plus two,” or similar formulas. For covered units, arrangements beyond the statutory ceiling may be challengeable.

Important distinction

Advance rent is prepayment applied to future rental periods.
Security deposit is held to answer for obligations, not immediately applied as rent unless the parties validly agree or the law permits.

Landlords often blur these concepts. They are legally distinct.

VIII. Can a Landlord Increase the Security Deposit?

A. During the existing lease term

As a general rule, if the lease already fixed the amount of the security deposit, the landlord cannot unilaterally require an additional deposit mid-term unless:

the lease clearly authorizes adjustment,
the clause is valid,
the adjustment does not violate rent-control rules or public policy.

For covered residential leases, demanding an additional deposit mid-lease may be treated as an attempt to circumvent the law, especially where the original deposit already reached the statutory maximum.

Example

If a covered residential lease started at ₱10,000 monthly rent, with:

1 month advance = ₱10,000
2 months deposit = ₱20,000

and the landlord later raises rent to ₱10,700, the landlord may argue the security deposit should also now be adjusted to reflect two months of the new rent. Whether that is allowed depends on the lease terms and statutory restrictions. If the law’s protective structure is defeated by repeatedly topping up deposits every time rent changes, the practice becomes vulnerable to challenge.

The safer legal view is that no automatic mid-term top-up should be required unless clearly and lawfully agreed.

B. Upon renewal of lease

Upon a new lease term or renewal, a landlord may more plausibly require the deposit to correspond to the new rental amount, provided:

the lease is genuinely being renewed or replaced,
the unit is not being used to evade rent-control protections,
the total required deposit does not exceed the legal limit for covered units.

In practice, the landlord may either:

retain the old deposit and ask for a top-up, or
account for the old deposit and require a new deposit amount under the renewed lease.

This must be done transparently.

C. If the deposit was less than the maximum

If the original lease required less than the maximum lawful deposit, the landlord may have a stronger argument upon renewal for adjusting it up to the lawful ceiling, provided the contract supports the change and it is not arbitrary.

D. For non-covered or commercial leases

Outside rent-control coverage, security deposit rules are more heavily contractual. Many commercial leases require:

2 to 6 months deposit,
replenishment of deposit if applied,
annual true-up,
additional deposit on rent escalation.

These may be enforceable if not unconscionable and if clearly agreed.

IX. Is a Security Deposit Automatically Increased When Rent Increases?

Not automatically.

A rent increase does not by itself automatically increase the deposit unless:

the contract expressly says the deposit shall always equal a stated number of months of the current rent; and
the clause is valid under applicable law.

Without such a clause, the tenant can argue that the originally paid deposit remains the agreed deposit until lease expiry.

Even with such a clause, the clause may still be challengeable in covered residential leases if it functions as an indirect circumvention of deposit limits or rent-control protections.

X. May the Landlord Use the Deposit During the Lease?

Ordinarily, the landlord should hold the deposit until lease termination and final accounting. It is generally not meant to be freely spent during the tenancy, except according to the agreement and the law.

A landlord may sometimes apply the deposit during the lease if:

the tenant is in default and the contract permits application;
the tenant consents;
there is a clear accounting.

But if the deposit is applied before move-out, the landlord may then seek replenishment only if the contract clearly allows it and the demand is lawful.

For covered residential leases, a replenishment demand that pushes the deposit structure beyond legal bounds may be open to challenge.

XI. Duty to Return the Security Deposit

At the end of the lease, the landlord must usually return the deposit less only lawful deductions.

Lawful deductions commonly include:

unpaid rent;
unpaid utilities that the tenant contractually assumed;
repair costs for damage beyond normal wear and tear;
other obligations expressly chargeable to the tenant.

Not generally proper deductions:

repainting due solely to ordinary aging;
replacement due to normal deterioration;
improvements that benefit the landlord beyond restoration;
undocumented or speculative damage charges;
penalties not clearly agreed upon.

Need for accounting

The landlord should provide a reasonable itemized accounting of deductions. Refusal to explain deductions may support a claim for refund.

XII. Interest on Security Deposits

Philippine rent law has, in various formulations, required the security deposit for covered residential units to be kept in a bank account and for the interest to accrue for the tenant’s benefit, usually to be returned at lease end subject to lawful deductions.

This is a detail often ignored in real-world leasing practice, but it is significant. A landlord who keeps the deposit without observing statutory handling requirements may be exposed to a refund claim.

Whether the tenant can practically recover the interest depends on proof, the exact governing statute, and the circumstances. But as a legal principle, the deposit is not supposed to be treated as the landlord’s unrestricted money.

XIII. Distinguishing Between Deposit, Advance, Reservation, and Last-Month Rent

Landlords and brokers often use overlapping terms. Legally, the labels should be separated.

A. Advance rent

Prepaid rent for a future period.

B. Security deposit

Held as collateral against specified obligations.

C. Reservation fee

Usually paid before occupancy to reserve the unit. Whether it is refundable depends on the agreement and surrounding facts. If it is later credited to rent or deposit, that should be clearly stated.

D. Last-month rent

Sometimes landlords call a payment “advance for the last month.” This may still legally count as advance rent, and not something distinct that avoids statutory limits.

A court or adjudicator may look beyond the label to the function of the payment.

XIV. Common Landlord Practices That May Be Legally Problematic

Several recurring practices deserve special attention.

1. Mid-lease rent increase without contractual basis

This is generally invalid.

2. Annual increase beyond statutory cap for covered units

This is generally unlawful.

3. Deposit top-up demanded every time rent increases

This may be challengeable, especially if it results in more than the lawful deposit or operates oppressively.

4. “Non-refundable deposit”

A true security deposit is ordinarily refundable subject to lawful deductions. A blanket “non-refundable deposit” clause in a residential lease is vulnerable to attack.

5. Forfeiture of entire deposit for any breach

This may be considered a penalty and may be reduced or disregarded if iniquitous or unconscionable.

6. Converting the deposit automatically into the last month’s rent without agreement

A tenant cannot always insist on this, and a landlord cannot always do it either. It depends on the contract and the circumstances.

7. Charging hidden fees to defeat rent-control limits

Potentially unlawful.

8. Refusing to return deposit without itemized deductions

Legally weak.

XV. Common Tenant Misunderstandings

Tenants also sometimes assume rights that are not absolute.

1. “I can always use my deposit as last month’s rent.”

Not necessarily. Unless the lease allows it or the landlord agrees, the deposit usually remains a security fund until end-of-lease accounting.

2. “Any rent increase is illegal.”

Not true. Some increases are valid, especially:

outside rent-control coverage,
upon renewal,
under a valid escalation clause,
within statutory caps where rent control applies.

3. “The landlord must return the full deposit immediately on move-out day.”

Not always. The landlord may first inspect the premises and compute lawful deductions within a reasonable time.

4. “Wear and tear means anything broken.”

No. Ordinary wear and tear is the natural deterioration from normal use. Damage from negligence, abuse, or unauthorized alterations may be chargeable to the tenant.

XVI. Renewal, Holdover, and Month-to-Month Situations

One of the hardest issues is what happens when the fixed term expires but the tenant stays.

A. Renewal by express agreement

If the parties renew the lease, the rent and deposit may be renegotiated, subject to applicable law.

B. Tacit renewal or implied new lease

Under civil law concepts, continued possession with the lessor’s acquiescence may create an implied lease, often on a month-to-month basis depending on how rent is paid.

In that setting:

the landlord may have more room to revise terms prospectively;
but if the unit is covered by rent control, statutory protections may still constrain the increase.

C. Holdover without consent

If the tenant remains without the landlord’s consent, the landlord may pursue ejectment and damages. Even then, self-help measures remain risky.

XVII. Can the Landlord Refuse Renewal Unless the Tenant Agrees to a Higher Deposit?

This depends on coverage and context.

For covered residential units

If the demand effectively defeats statutory protections, it may be challengeable. A landlord cannot use renewal as a disguised mechanism to collect what the law would otherwise forbid.

For non-covered or commercial units

The landlord typically has greater freedom to set conditions for a new term, including higher deposits, so long as the terms are not illegal or unconscionable.

Practical reality

Many disputes center not on pure legality alone but on bargaining leverage. A tenant may accept a higher deposit to remain, then later question its validity if the unit was in fact covered by protective law.

XVIII. Eviction Threats Used to Enforce Illegal Increases

A landlord sometimes demands:

an illegal rent increase,
an unlawful deposit top-up,
additional advance rent,

and then threatens disconnection, lockout, or immediate eviction if the tenant refuses.

This is legally dangerous for the landlord.

Even where the tenant is actually in default, the landlord generally should not resort to self-help eviction such as:

changing locks,
removing the tenant’s belongings,
cutting water or electricity without lawful basis,
barring access.

Proper judicial process is usually required for ejectment. Illegal pressure tactics can expose the landlord to damages and other liability.

XIX. Remedies Available to Tenants

A tenant faced with an unlawful rent increase or deposit demand may consider:

A. Written objection

Send a dated written protest stating:

the current rent,
the demanded increase,
why it is unlawful or unsupported,
willingness to continue paying lawful rent.

This is often crucial evidence.

B. Tender of correct amount

If the tenant believes the increase is illegal, tendering the rent believed to be legally due may help show good faith.

C. Barangay conciliation

Many landlord-tenant disputes between individuals first pass through barangay proceedings before court.

D. Defense in ejectment case

If the landlord sues for ejectment based on nonpayment of the increased amount, the tenant may raise the illegality of the increase as a defense.

E. Action for refund or damages

Where excess deposit or unlawful charges have been collected, a claim for refund may be possible.

XX. Remedies Available to Landlords

A landlord is not without protection.

A. Collect lawful increases

If the rent increase is authorized by law and contract, the landlord may demand payment.

B. Apply deposit to lawful obligations

At lease end, the landlord may deduct proven obligations.

C. Demand replenishment where validly agreed

If the lease clearly permits it and no law is violated, replenishment may be demanded after lawful application of the deposit.

D. File ejectment or collection case

If the tenant refuses to pay lawful rent or overstays, the landlord may pursue proper legal remedies.

XXI. Evidence That Usually Matters in Disputes

In Philippine rental disputes, these documents are especially important:

written lease contract and renewals;
proof of monthly rent historically paid;
receipts for rent, deposit, and advance rent;
written notices of increase;
proof of property condition at move-in and move-out;
utility bills;
photos, inspection reports, turnover forms;
text messages, emails, and chats confirming terms;
ledger or accounting of deductions.

A party who relies only on verbal claims is at a disadvantage.

XXII. Special Issues in Condominium Leasing

Condo rentals often involve special charges and arrangements.

A. Association dues

The contract should state whether these are included in rent or separately chargeable.

If association dues were originally included in rent, the landlord may not simply carve them out later and call the change “not a rent increase” if the tenant’s total monthly burden rises.

B. House rules and move-in fees

Condo corporations may impose move-in or move-out fees. Allocation of these fees depends on the lease.

C. Repairs

Distinguish between:

unit-owner obligations,
association/common-area obligations,
tenant-caused damage.

Deposit deductions must reflect that distinction.

XXIII. Commercial Leases: Different Approach

Although the topic often arises in residential settings, commercial leases deserve separate treatment.

For commercial properties in the Philippines:

rent-control protections generally do not apply in the same way;
the lease contract is dominant;
escalation clauses are common and often aggressive;
security deposits of several months are routine;
top-up clauses tied to escalated rent are more often enforced.

Still, commercial lease provisions may be attacked if they are:

ambiguous,
oppressive,
contrary to law,
imposed in bad faith,
penal beyond reason.

The analysis becomes more contractual and less statutory.

XXIV. How Courts and Lawyers Usually Analyze These Cases

A careful legal analysis usually proceeds in this order:

1. Identify the nature of the premises

Residential or commercial.

2. Determine statutory coverage

Does rent control apply based on the rent amount and the governing law at the time?

3. Read the lease literally, then purposively

What is the exact clause on rent increase, deposit, advance rent, renewal, default, and deductions?

4. Test the clause against mandatory law

Even clearly written clauses can fail if contrary to statute or public policy.

5. Examine timing

Was the increase imposed:

during term,
at renewal,
after vacancy,
during tacit renewal?

6. Look for circumvention

Is the landlord really increasing rent through another label?

7. Assess proof and conduct

Who has receipts, notices, accounting, and evidence of good or bad faith?

XXV. Practical Legal Rules of Thumb

In Philippine residential leasing, the following working principles are often sound:

A landlord usually cannot raise rent mid-lease unless the contract validly allows it and no rent-control rule is violated.
For covered residential units, annual increases are generally capped by law.
A landlord generally cannot collect more than the lawful limit on advance rent and deposit for covered units.
A security deposit is not automatically adjusted just because rent increased.
A deposit must be returned after lawful deductions and proper accounting.
Clauses that are vague, one-sided, or evasive of rent-control policy are vulnerable.
Commercial leases are usually more contract-driven than residential leases.

XXVI. Illustrative Scenarios

Scenario 1: Covered residential lease, mid-year increase

A tenant rents a covered apartment for one year at ₱8,000 per month. After six months, the landlord announces that rent is now ₱9,000 due to inflation.

Likely result: the increase is highly vulnerable. The original fixed rent generally governs during the term, and the statutory cap may also bar the jump.

Scenario 2: Covered unit, renewal with modest increase

The one-year lease expires, and the landlord renews at a legally capped increase.

Likely result: generally more defensible, assuming proper notice and compliance with law.

Scenario 3: Deposit top-up after rent increase

The landlord says: “Because rent increased by ₱500, you must add ₱1,000 to your two-month deposit.”

Likely result: not automatic. The lease and the governing law must support it. In covered units, this may be challengeable.

Scenario 4: Commercial office lease

The lease states that rent increases 5% yearly and the deposit shall always equal three months of prevailing rent.

Likely result: often enforceable if clearly agreed and not unconscionable.

Scenario 5: Deposit withheld for repainting and deep cleaning

Tenant leaves the unit in ordinarily used condition after a long stay. The landlord withholds the entire deposit for repainting and cleaning.

Likely result: ordinary wear and tear is generally not fully chargeable to the tenant. Blanket forfeiture is doubtful.

XXVII. Drafting Issues That Make a Big Difference

A lease is stronger when it clearly states:

amount of monthly rent;
term of the lease;
whether and when rent may increase;
whether there is an escalation clause and its exact formula;
amount of advance rent and security deposit;
whether deposit earns interest where required by law;
when and how the deposit may be deducted;
deadline for refund after move-out;
who pays utilities, dues, and taxes;
inspection procedure at turnover;
consequences of early termination.

Badly drafted leases produce avoidable disputes.

XXVIII. Red Flags in Lease Clauses

Tenants should scrutinize clauses such as:

“Landlord may increase rent anytime upon notice.”
“Deposit is automatically forfeited for any breach.”
“All payments are non-refundable.”
“Association dues may be imposed anytime at landlord’s discretion.”
“Tenant waives all rights under rent control laws.”
“Security deposit shall be adjusted whenever landlord deems necessary.”

These are not automatically void in every context, but each is legally suspect, especially in residential covered leases.

XXIX. Interaction With Good Faith and Public Policy

Even beyond black-letter statutory rules, Philippine law values good faith in contractual relations. A landlord acting in bad faith may be penalized even where the contract seems facially broad.

Examples of bad faith conduct may include:

imposing increases the landlord knows are unlawful;
misrepresenting the tenant’s legal obligations;
withholding deposit without basis;
inventing damage after move-out;
using utility cutoffs to compel payment of disputed amounts.

Likewise, a tenant acting in bad faith may lose equitable sympathy if the tenant:

deliberately withholds all rent despite a lawful increase;
causes damage and denies it;
stays beyond the term without payment;
refuses legitimate inspection and accounting.

XXX. Bottom-Line Legal Position

Under Philippine rental law, rent increases and security deposit adjustments are not governed by contract alone. They are shaped by mandatory legal rules, especially for covered residential rentals.

The dominant legal ideas are these:

Rent increases are restricted when rent control applies and are not freely imposable during a fixed term.
Security deposits are limited in amount for covered residential leases and cannot be endlessly expanded by relabeling or unilateral demand.
A deposit adjustment is not automatic upon rent escalation unless validly provided and legally permissible.
At lease end, the deposit remains refundable subject only to lawful, provable deductions.
Courts and adjudicators will often look past labels to determine whether a charge is really rent, really a deposit, or really an unlawful circumvention of tenant protection law.

In practical terms, the legality of any specific rent increase or deposit adjustment in the Philippines turns on the intersection of statutory coverage, lease wording, timing, and good faith. Where the property is a covered residential unit, the landlord’s freedom to increase rent or demand additional deposit is significantly narrower than many private lease forms suggest.