Tenant Rights on Security Deposit and Eviction Notice in the Philippines
A comprehensive legal guide for residential tenants and landlords
Important: This article is informational only and is not a substitute for personalized legal advice. Philippine statutes and regulations are amended from time to time; always consult a lawyer or the proper government office (e.g., the Department of Human Settlements and Urban Development – DHSUD) for the most current rules.
1. Core Sources of Law
| Instrument | Key Provisions on Tenancy |
|---|---|
| Civil Code of the Philippines (Republic Act No. 386, 1949) | Art. 1654 (landlord’s obligations), Art. 1657 (tenant’s obligations), Art. 1673 (grounds and procedure for ejectment), Arts. 1306 & 1409 (freedom of contract and void stipulations) |
| Rent Control Act of 2009 (RA 9653) + latest extension (RA 11571 of 2021, in force until 31 Dec 2027) | Sec. 7 (limit: max 1 month advance + 2 months deposit; refund rules), Sec. 4 (prohibition against arbitrary ejectment, enumerated grounds), Sec. 5 (rent-increase caps) |
| Batas Pambansa Blg. 877 (still governs units above the RA 9653 rent ceiling) | Regulates rents, deposits, and eviction for higher-value units |
| Rules of Court, Rule 70 | Governs forcible entry and unlawful detainer suits (summary procedure, 30-day judgment period, supersedeas bond to stay execution) |
| Katarungang Pambarangay Law (Title I, RA 7160) | Mandatory barangay conciliation before any ejectment or deposit-recovery suit if parties reside in the same city/municipality |
| Special Issuances | DILG/DOJ/SC circulars on pandemic moratoria, DHSUD advisories on rent control implementation |
2. Security Deposit: Rights and Obligations
2.1 Statutory Limits
- Maximum amount – One (1) month advance rent plus up to two (2) months deposit (RA 9653 §7).
- Any stipulation for a larger deposit is void for units covered by the Rent Control Act; for higher-rent units (beyond current ₱12,000–₱20,000 ceiling depending on location), the Civil Code’s general principles apply and “reasonableness” governs.
2.2 Proper Use of the Deposit
The landlord may apply the deposit only to:
- Unpaid rent, utility charges, or penalties;
- Cost of repairing actual damage beyond normal wear and tear;
- Reasonable cleaning/rehabilitation to restore the unit to the condition agreed upon at the start of the lease.
Tip: The parties should attach a move-in inspection report and photos to the lease to avoid later disputes.
2.3 Return of the Deposit
Timeframe – Within one (1) month from tenant’s surrender of the premises (RA 9653 §7).
Mode – Cash or check, accompanied by an itemized statement of deductions and official receipts.
Interest – The law is silent; deposits are ordinarily non-interest-bearing unless the contract says otherwise.
Failure or refusal to return lets the tenant:
- Send a demand letter (often via barangay conciliation first);
- File a Small Claims case (if ≤ ₱1 million) or a regular civil action, with legal interest (currently 6% p.a.) reckoned from formal demand.
2.4 Common Misconceptions
| Myth | Correct Rule |
|---|---|
| “Deposit automatically covers the last two months of rent.” | Wrong unless both sides expressly agree. By default, deposit is separate from advance rent. |
| “Landlord may keep the deposit if tenant does not give 30-day notice to vacate.” | The landlord may deduct actual loss (e.g., one month rent if a replacement tenant is lost), but may not forfeit the entire deposit arbitrarily. |
| “Verbal leases are exempt from deposit rules.” | No. RA 9653 applies to all residential leases within its rent ceiling, written or not. |
3. Eviction (Ejectment): Grounds, Notice, and Procedure
3.1 Lawful Grounds Under RA 9653 (for covered units)
- Substantial arrears – Tenant defaults for three (3) months.
- Legitimate need – Owner, spouse, ascendant, descendant needs the unit for personal use; must give 3-month written notice.
- Necessary repairs ordered by authorities – Tenant may re-occupy after completion.
- Subletting or assignment without consent.
- Damage or misuse of premises.
For units outside RA 9653 (i.e., higher rent), Art. 1673 CC allows ejectment for lease expiration or breach of conditions (non-payment, violation of use, etc.).
3.2 Notice to Vacate / Demand to Pay and Vacate
| Situation | Minimum Period Recognized by Courts¹ |
|---|---|
| Non-payment of rent | 5 days (buildings) / 15 days (land) after written demand² |
| Expiry of lease term | “Reasonable” (often treated as the 3-month notice under RA 9653 if covered) |
| Retaking for personal use | 3 months (statutory) |
¹Jurisprudence treats these as guidelines; parties may stipulate longer notice. ²Based on long-standing Supreme Court practice under Rule 70; safer course is to give a full 15 days.
3.3 Barangay Conciliation
Except where one party is a corporation or they live in different localities, the complainant must:
- File a Complaint with the Punong Barangay;
- Attend mediation;
- If unresolved, receive a Certification to File Action – prerequisite to court filing.
3.4 Court Process (Rule 70 Summary Procedure)
Complaint for unlawful detainer (if possession was lawful at the start) or forcible entry (if possession was illegal from the outset).
Answer – within 10 days; no motion to dismiss except lack of jurisdiction.
Pre-trial & Judgment – within 30 days after last responsive pleading.
Execution – immediate upon judgment; tenant may stay execution by:
- Filing a supersedeas bond; and
- Depositing monthly rents during appeal.
3.5 Self-Help is Illegal
Locks-changing, padlocking, cutting utilities, or harassment to force the tenant out expose the landlord to:
- Criminal liability (e.g., grave coercion, unjust vexation);
- Administrative fines by DHSUD/HLURB;
- Civil damages for violation of tenant rights.
4. Special Protections & Recent Developments
- Pandemic Moratoria (2020–2022) – Bayanihan Acts and DHSUD circulars temporarily suspended ejectment and rent increases; these have lapsed but illustrate the State’s power to intervene.
- Extension to 2027 – RA 11571 extended rent control; Congress may adjust the rent ceiling again (currently ≤ ₱12,000 / ₱20,000 depending on region).
- Anti-Retaliation – Eviction motivated by tenant complaints to authorities or organization of tenant unions is prohibited and can invalidate a notice.
- Consumer Act & Anti-Red Tape Act – Require landlords to issue official receipts and prohibit deceptive practices.
5. Practical Checklist for Tenants
Before Signing
- Read the lease; strike out clauses exceeding 1 + 2 month advance/deposit.
- Demand a signed inventory & photos.
During Occupancy
- Pay rent on or before due date and keep receipts.
- Report defects in writing; landlord must make major repairs (RA 9653 §6).
Preparing to Move Out
- Serve at least 30 days written notice (or the period in your lease).
- Invite the landlord to a joint inspection.
- Secure a deposit-return schedule in writing.
If Problems Arise
- Barangay first; bring proof (lease, receipts, photos).
- For small sums (≤ ₱1 M), file small claims (no lawyer needed).
- For eviction threats, consult counsel early to avoid default judgment.
6. Frequently Asked Questions (FAQ)
Q 1: My landlord never issued receipts. Can I withhold rent?
No. Pay rent but document it (bank transfer, witnesses). Failure to issue receipts is a tax and consumer violation, but non-payment gives ground for eviction.
Q 2: The unit was sold; the new owner wants me out immediately.
Sale does not void the lease. The buyer steps into the shoes of the lessor; you remain protected until the lease expires or RA 9653 grounds exist.
Q 3: Can I insist on using my two-month deposit for the last two months’ rent?
Only with the lessor’s written consent. Otherwise you must pay rent and wait for the refund.
Q 4: Utilities were disconnected to force me out. What can I do?
File criminal charges for grave coercion and a civil injunction; courts may issue a temporary restraining order restoring services.
7. Conclusion
Philippine law strikes a balance: landlords may earn a fair return and regain their property for legitimate reasons, but tenants cannot be evicted or deprived of their deposits without due process. Understanding the statutory limits, notice periods, and available remedies empowers both parties to prevent disputes—or resolve them swiftly when they arise.
Authored 23 July 2025 • Compiled from Civil Code, RA 9653 (as amended), BP 877, Rule 70 Rules of Court, and DHSUD issuances.