Rent increases without a written lease contract: landlord and tenant rights

1) No written contract doesn’t mean “no lease”

In the Philippines, a lease can be oral (verbal), written, or even implied by conduct. If a person occupies a property with the owner/lessor’s consent and pays rent that the owner accepts, a landlord–tenant relationship exists even without a signed lease.

Why that matters: the parties still have enforceable rights and duties under the Civil Code provisions on lease, special rent-control laws (when applicable), and general rules on obligations and contracts (e.g., good faith).


2) What “lease terms” exist when nothing is written?

When there is no written lease, the “terms” usually come from:

  • What the parties actually did and said (agreed rent, due date, included utilities, number of occupants, etc.)
  • Custom and practice (common arrangements for similar rentals)
  • Civil Code default rules when the parties did not agree

A) Fixed-term vs. periodic (month-to-month) leases

Most unwritten residential rentals function as a periodic lease—often month-to-month—because rent is typically paid monthly.

Under Civil Code concepts, if the tenant continues occupying the unit after a supposed term ends and the landlord accepts rent, an implied new lease may arise (often discussed as tacita reconducción), generally following the period by which rent is paid (monthly → month-to-month).

Practical effect: without a written fixed term, many disputes are treated as involving a renewable month-to-month tenancy, terminable with proper notice and subject to limits of law.


3) Is the landlord allowed to increase rent without a written contract?

**Sometimes yes, sometimes no—**it depends on (1) whether the unit is covered by rent control, and (2) whether the increase is imposed in a way consistent with the lease relationship and due process.

There are two broad regimes:

Regime 1: Units covered by rent control (often residential, below a rent ceiling)

If the rental unit falls under the Rent Control Act (Republic Act No. 9653) and its implementing rules/extensions (as applicable), rent increases are typically capped and may be allowed only once per year and/or under specific conditions.

  • The law historically imposed an annual percentage cap for covered units.
  • Coverage depends on location and monthly rent amount (a statutory ceiling).
  • The specific ceilings, allowed rates, and covered periods can change by legislation or extension.

Key point: if rent control applies, the landlord cannot lawfully demand an increase above the statutory cap, even if there is no written lease. The tenant may have remedies for overcollection.

Regime 2: Units not covered by rent control (or commercial leases)

If rent control does not apply, rent is generally governed by:

  • Freedom to contract (what was agreed), and
  • Civil Code principles (good faith, no abuse of rights, etc.)

In a month-to-month setting without rent control:

  • The landlord usually cannot unilaterally rewrite the current month’s rent mid-period after the tenant has already accrued the right to occupy for that period under the existing terms.
  • But the landlord can typically propose a new rent effective next rental period (e.g., next month), and the tenant can either accept (expressly or by staying and paying) or decline (and move out by the end of the period).

Bottom line: outside rent control, increases are often treated as part of a renewal decision—not a midstream unilateral change.


4) “Unilateral increase” vs. “increase upon renewal”: the legal difference

Unilateral increase (problematic)

This is when a landlord says: “Starting tomorrow, rent is higher,” while continuing to treat the tenancy as ongoing under the same period—especially if the tenant has already paid or the period is already running.

This can raise issues because:

  • Lease terms are not generally changed unilaterally.
  • The tenant has a right to peaceful possession for the rental period already paid/earned.
  • Sudden increases can be tied to improper pressure tactics.

Increase upon renewal / next period (often permissible outside rent control)

For a month-to-month lease, the landlord may say:

  • “Next month, rent will be ₱X. If you stay, those are the terms.”

If the tenant remains and pays the new rent, that conduct may be treated as acceptance of the new terms.


5) How should rent increases be communicated?

Even without a written lease, best practice—and often what courts expect in disputes—is:

  • Clear notice of the new rent
  • Reasonable lead time before it takes effect (commonly aligned with the monthly period)
  • A definite effective date and amount

If rent control applies: the notice should also reflect compliance with the statutory cap and timing rules.


6) Tenant rights when facing a rent increase (no written lease)

A) Right to remain for the current paid rental period

If the tenant has paid rent for the month (or other period), the tenant generally has the right to occupy for that period, subject to lawful grounds for ejectment (e.g., nonpayment, violation of conditions, etc.). Rent increases usually cannot retroactively change a period already paid for.

B) Protection under rent control (if covered)

If covered, the tenant may:

  • Refuse increases beyond the legal cap
  • Document overcollection and seek appropriate remedies
  • Use rent-control rules as a defense in disputes tied to rent demands and eviction threats

C) Right against illegal eviction and harassment

Even if the tenant refuses an increase, the landlord cannot lawfully:

  • Lock the tenant out
  • Cut utilities as a pressure tactic (especially if the landlord controls them or the cut is done to coerce)
  • Remove belongings without due process
  • Use threats, violence, or intimidation

Eviction must follow lawful process (typically an ejectment case in court), except when the tenant voluntarily leaves.

D) Right to receipts and to contest the “true” agreed rent

Without a written contract, proof becomes crucial. Tenants should keep:

  • Rent receipts (or screenshots of transfers)
  • Chats/messages about rent terms
  • свидences of consistent payment amounts and dates
  • Utility bills and arrangements if relevant

E) Paying “under protest”

In real life, tenants sometimes pay the increased amount to avoid immediate conflict. This can be argued by landlords as acceptance. If a tenant pays while disputing legality (especially under rent control), it is safer to:

  • Create a written record (message/email) that payment is under protest and subject to legal rights
  • Keep evidence of the protest

Whether payment equals acceptance can be fact-specific; courts look at the whole conduct of the parties.


7) Landlord rights when there is no written lease

A) Right to propose new rent for the next period (subject to rent control)

Outside rent control, a landlord can set terms for renewal of a periodic lease, including a higher rent, effective the next rental period, provided it is not abusive or illegal.

B) Right to terminate a periodic tenancy with notice

For a month-to-month arrangement, the landlord can generally terminate the lease effective the end of the period, with proper notice consistent with the rental period and fairness. (Notice requirements can be shaped by law, local practice, and the facts; written notice is strongly advisable.)

C) Right to collect rent and to sue for ejectment on lawful grounds

If the tenant refuses to pay rent that is lawfully due (including a lawful increased rent that became the agreed term for the new period), the landlord may:

  • Demand payment, and
  • If unresolved, file an ejectment case (commonly unlawful detainer if the possession became illegal after demand to vacate, or forcible entry if initial entry was illegal—though most landlord-tenant disputes are unlawful detainer)

D) Right to protect the property and enforce reasonable house rules

Reasonable conditions (e.g., limits on illegal acts, damaging the unit, nuisance, subleasing restrictions) may be enforced, but enforcement still must respect due process and anti-harassment norms.


8) Deposits, advances, and their role in rent-increase disputes

In many Philippine rentals, tenants pay:

  • Advance rent (often applied to the first month or last month, depending on agreement), and/or
  • Security deposit (to answer for unpaid bills, damages beyond ordinary wear and tear, etc.)

Without a written agreement:

  • The purpose of each payment should be clarified by receipts/messages.
  • A landlord generally should not simply reclassify a security deposit as “additional rent” to force an increase, unless the tenant clearly agreed.
  • Disputes about deposit refund often turn on proof of damages, unpaid utilities, and documented turnover condition.

9) What counts as “reasonable” notice and “reasonable” increase?

Notice

For periodic leases, “reasonable” notice usually tracks the rental period:

  • Month-to-month → notice before the next month begins is the cleanest approach

But the safest route for either party is:

  • Give notice in writing, and
  • Give enough time for the other party to make a real choice (pay/move, or negotiate)

Increase amount

Outside rent control, there is no single statutory percentage that always applies. Still, increases may be challenged when tied to:

  • Bad faith
  • Abuse of rights
  • Harassment tactics
  • Schemes to circumvent rent control (when covered)

10) Common scenarios and how rights typically apply

Scenario A: “Landlord demands a 30% increase effective immediately, mid-month”

  • Tenant: strong argument that the increase cannot apply mid-paid period; can insist existing rent covers the current month.
  • Landlord: may propose new rent for next month; cannot lawfully lock out tenant for refusing mid-month increase.

Scenario B: “Landlord says: next month rent increases; if you don’t agree, move out”

  • Outside rent control: often treated as a permissible renewal term for a month-to-month lease, assuming adequate notice and no illegal tactics.
  • If rent control applies: increase must comply with the cap and other rules.

Scenario C: “Tenant refuses increase; landlord cuts water/power”

  • This can expose the landlord to legal risk; coercive utility shutoffs are commonly treated as unlawful pressure and may support claims/defenses.

Scenario D: “Tenant keeps paying old rent; landlord accepts but complains”

  • Acceptance of old rent can be used to argue the landlord acquiesced to the old terms for that period. Repeated acceptance without clear reservation can weaken the landlord’s claim that the new rent was the operative term.

Scenario E: “Tenant pays the new rent once; later disputes it”

  • Landlord may argue acceptance. Tenant may counter that payment was under protest, made under pressure, or illegal under rent control. Evidence matters.

11) Enforcement and dispute resolution: what actually happens in practice

Step 1: Document everything

Both sides should keep:

  • Payment records, receipts, transfers
  • Communications on rent and notice
  • Photos/videos of unit condition at move-in/move-out
  • Utility arrangements

Step 2: Barangay conciliation (often required)

Many disputes between individuals in the same city/municipality go through barangay conciliation before filing in court (with recognized exceptions). If conciliation applies, a Certificate to File Action is typically needed before court.

Step 3: Ejectment cases in court (for possession issues)

If the issue escalates to removal of the tenant, landlords usually file ejectment in the proper first-level court (e.g., Municipal Trial Court/Metropolitan Trial Court), depending on location.

Important practical points:

  • Ejectment is about possession, designed to be relatively summary.
  • “Self-help” eviction is risky; courts generally require judicial process.

12) Criminal vs. civil exposure (high level)

Most rent-increase disputes are civil. However, certain conduct—threats, violence, forced entry, taking property—can cross into criminal territory. Even without criminal charges, such conduct can heavily affect civil outcomes and defenses.


13) Best practices (legally protective, even without a written lease)

For tenants

  • Pay rent in traceable ways; insist on receipts
  • Keep messages that show agreed rent and terms
  • If contesting an increase, respond in writing and keep it calm and factual
  • Avoid withholding rent entirely unless you clearly understand your legal footing; nonpayment can be a powerful ejectment ground

For landlords

  • Give rent-increase notice in writing with a clear effective date
  • Check whether rent control applies before setting the increase
  • Avoid coercive tactics (lockouts, utility cuts, taking belongings)
  • If ending a month-to-month lease, give clear written notice and follow lawful process if the tenant does not leave

14) Key takeaways

  • A lease can be valid and enforceable without a written contract.
  • Rent control, when applicable, can limit increases regardless of whether the lease is written or oral.
  • Outside rent control, rent increases are typically valid when framed as terms for the next rental period (renewal), not as a mid-period unilateral change.
  • Eviction and coercive measures must follow lawful process; “self-help” eviction tactics create serious legal risk.
  • With no written lease, outcomes often hinge on evidence of conduct: receipts, messages, and consistent payment history.

Disclaimer: This content is not legal advice and may involve AI assistance. Information may be inaccurate.