In the Philippines, the relationship between a landlord (lessor) and a tenant (lessee) is governed primarily by the Civil Code of the Philippines (Articles 1642 to 1688) and Republic Act No. 9653, also known as the Rent Control Act of 2009. Understanding these statutes is vital for ensuring a harmonious relationship and protecting the legal interests of both parties.

I. The Scope of the Rent Control Act (R.A. 9653)

The Rent Control Act applies specifically to residential units in the National Capital Region (NCR) and other highly urbanized cities with monthly rents not exceeding P10,000, and to units in all other areas with monthly rents not exceeding P5,000 (subject to periodic adjustments by the National Human Settlements Board).

Rent Increases: For units covered by the Act, the lessor cannot increase the rent by more than the percentage set by the regulatory board (historically capped at 4% to 7% annually).
Coverage: It includes apartments, houses and/or lots, building rooms, and dormitories used for residential purposes.

II. Rights and Obligations of the Lessor (Landlord)

Primary Obligations

Delivery of the Property: The lessor must deliver the leased property in such a condition as to render it fit for the use intended.
Necessary Repairs: Unless there is a stipulation to the contrary, the lessor is responsible for making all necessary repairs to keep the property suitable for the use to which it has been devoted.
Peaceful Possession: The lessor must maintain the lessee in the peaceful and adequate enjoyment of the lease for the entire duration of the contract.
No Alterations: The lessor cannot alter the form of the thing leased in such a way as to impair the use for which it is intended.

Primary Rights

Collection of Rent: The right to receive the agreed-upon rent on the date specified in the contract.
Inspection: The right to inspect the property at reasonable times and with prior notice.
Termination for Cause: The right to eject the lessee for valid legal grounds, such as non-payment of rent, expiration of the lease period, or violation of contract terms.

III. Rights and Obligations of the Lessee (Tenant)

Primary Obligations

Payment of Rent: The lessee must pay the price of the lease according to the terms stipulated.
Proper Use: The lessee must use the property as a "diligent father of a family," devoting it only to the use stipulated or that which is inferred from the nature of the property.
Notification of Urgent Repairs: The lessee is obliged to notify the lessor, with the same urgency, of any need for repairs to prevent further damage.
Return of Property: Upon expiration of the lease, the lessee must return the property in the same condition as it was received, save for what has been consumed by time or inevitable cause.

Primary Rights

Right to a Habitable Unit: The right to live in a property that is safe and structurally sound.
Suspension of Payment: Under Article 1658 of the Civil Code, the lessee may suspend the payment of rent if the lessor fails to make the necessary repairs or fails to maintain the lessee in peaceful possession.
Reimbursement for Improvements: If the lessee makes useful improvements in good faith, they may be entitled to reimbursement of one-half of the value of the improvements at the end of the lease, provided the lessor opts to keep them.

IV. Rules on Deposits and Advance Rentals

Under the Rent Control Act, the lessor is strictly limited in what they can demand:

Limit: The lessor can only demand a maximum of one (1) month advance rent and two (2) months deposit.
The Deposit: This must be kept in a bank under the lessor's name, and any interest earned must be returned to the lessee. The deposit is primarily intended to cover unpaid bills or damages caused by the lessee beyond "natural wear and tear."

V. Grounds for Ejectment (Unlawful Detainer)

A lessor cannot simply lock out a tenant or throw their belongings on the street. Ejectment must follow legal due process. Valid grounds include:

Expiration of the Period: When the lease term ends and is not renewed.
Non-payment of Rent: Arrears for a total of three (3) months.
Subleasing: If the lessee sublets the property without the written consent of the owner.
Repairs: Necessary repairs of the unit which has been the subject of an order of condemnation by appropriate authorities.
Owner’s Need: When the owner (or an immediate family member) needs the unit for their own use, provided the lessee is given three months' notice.

VI. The "Tacita Reconduccion" (Implied New Lease)

If, at the end of the contract, the lessee continues enjoying the thing leased for fifteen days with the acquiescence of the lessor, and unless a notice to the contrary has been given by either party, it is understood that there is an implied new lease. The terms of the original contract are maintained, except for the duration, which then becomes month-to-month if the rent is paid monthly.