Quick answer

A landlord may ask for an additional security deposit only if the law and the lease allow it.

For a residential unit covered by the current Philippine rent-control rules, the landlord cannot require more than:

one month’s advance rent; and
two months’ security deposit in total.

A landlord cannot avoid these limits simply by collecting another amount that functions as security and calling it a “utility,” “pet,” “key,” “damage,” or “renewal” deposit. Whether a separate charge is lawful depends on its real purpose, the lease terms, and the unit’s coverage under rent control.

For a unit outside rent control, the parties generally have more freedom to set the deposit in their contract. Even then, a landlord normally cannot impose a new deposit during an existing fixed-term lease unless the lease already permits it or the tenant agrees to an amendment. The landlord may propose different terms when the lease expires and is renewed, subject to other applicable laws.

The rule for rent-controlled residential units

Section 7 of the Rent Control Act of 2009, Republic Act No. 9653, provides that a lessor cannot demand more than one month’s advance rent or more than two months’ deposit.

The deposit must be:

kept in a bank under the landlord’s account name throughout the lease;
returned with the interest it earned when the lease expires; and
used only to the extent needed to cover unpaid rent, electricity, telephone, water or other utility bills, or damage to the premises and its accessories caused by the tenant.

The landlord is not automatically entitled to keep the entire deposit merely because there is some unpaid amount or damage. The statutory language limits forfeiture to an amount proportionate to the financial loss.

The National Human Settlements Board’s Resolution No. 2024-01 continues rent regulation from January 1, 2025 through December 31, 2026. Its current coverage is limited to residential units with monthly rent of ₱10,000 or less, subject to the resolution’s conditions. For the same tenant, the maximum rent increase is 2.3% in 2025 and 1% in 2026.

The deposit ceiling concerns the total amount held as security—not the number of times the landlord asks for payment.

Example

If the monthly rent is ₱8,000 and the tenant has already paid a two-month security deposit of ₱16,000, the landlord generally cannot demand another ₱8,000 as an additional security deposit while the unit remains covered.

If the rent lawfully rises to ₱8,080 in 2026, a landlord might ask to adjust a deposit expressly defined as “two months’ rent” by ₱160. Whether that small top-up is due will depend on the lease wording, but the resulting total still cannot exceed two months of the lawful rent.

Which rentals are covered?

The statutory definition includes apartments, houses, rooms, dormitories and bedspaces used for residential purposes. It excludes motels, motel rooms, hotels and hotel rooms.

A mixed-use unit may still qualify when the owner and the owner’s family actually live there and principally use it as their dwelling, even if they also conduct a home industry, retail activity or other business there.

Under the regulation in force through December 31, 2026, the key monetary threshold is a monthly rent of ₱10,000 or less. Coverage can still depend on matters such as the applicable year, the rent before any increase, whether the same tenant remains in possession, and the actual nature of the premises. Examine the lease and the current NHSB resolution rather than relying only on the unit’s advertised rent.

What if the monthly rent is above ₱10,000?

A unit above the current rent-control threshold is generally outside the special deposit ceiling in Section 7 of Republic Act No. 9653. The lease and the general law on contracts then become especially important.

Under the Civil Code:

obligations arising from a contract have the force of law between the parties and must be performed in good faith;
parties may establish their own terms so long as those terms are not contrary to law, morals, good customs, public order or public policy; and
a contract generally cannot be left to the will of only one party.

Accordingly, an agreed three-month deposit for an uncovered unit is not automatically invalid merely because it exceeds the Rent Control Act’s ceiling. But a landlord ordinarily cannot change a fixed lease unilaterally by announcing an extra deposit that the signed agreement does not authorize.

Check for clauses addressing:

increases or replenishment of the deposit;
changes in rent;
pets or additional occupants;
utility security;
damage discovered during the lease;
condominium or homeowners’ association charges; and
renewal or holdover after the stated term.

A broadly worded clause does not necessarily settle the issue. Its enforceability and proper interpretation may depend on the complete contract and the surrounding facts.

When an additional payment may be valid

An additional payment may be lawful in situations such as these:

The existing deposit has been partly applied

If the lease validly allows the landlord to use the deposit during the tenancy—for example, to pay an overdue utility bill—the contract may require the tenant to replenish the amount. For a covered unit, however, the replenished total should not exceed the statutory maximum.

The landlord should identify the obligation paid and provide supporting documents rather than merely stating that the deposit was “used.”

The parties voluntarily amend the lease

For an uncovered unit, the landlord and tenant may agree in writing to modify the deposit. The amendment should state the new amount, its purpose, permitted deductions and refund arrangements.

Consent should be genuine. A tenant should not sign immediately under a threat of lockout, utility disconnection or removal of belongings.

A new lease is being negotiated

When the existing lease expires, the landlord may offer a new contract with different terms if the unit is outside the statutory cap. The tenant may accept, reject or negotiate those terms.

For a covered unit, a renewal cannot be used to collect more than the legal maximum while the rent-control protections apply.

There is a genuinely separate charge

A payment for a specific item or service may be distinct from a security deposit. Examples could include an agreed advance payment for separately billed services or the actual cost of replacing a lost access card.

The label is not decisive. If the landlord holds refundable money mainly to secure the tenant’s general performance, it may function as part of the security deposit. The treatment of a specialized charge should be assessed from the lease, receipts and actual purpose.

Requests that should raise concern

Ask for a written explanation before paying if the landlord:

already holds two months’ deposit for a covered unit;
demands a new “damage deposit” without identifying any damage;
creates a deposit not mentioned in the current lease;
refuses to issue a receipt;
insists on cash without acknowledging its purpose;
treats advance rent as another security deposit;
requires payment to an unrelated person or unidentified account;
says every deposit is automatically non-refundable;
refuses to explain how the existing deposit is held;
demands an amount based on an unlawful rent increase; or
threatens an immediate lockout, utility disconnection or seizure of belongings.

A demand is not made lawful merely because it is described as customary practice.

What tenants should do

1. Check whether the unit is covered

Confirm:

the current monthly rent;
the rent charged before the proposed increase;
whether the premises are primarily residential;
whether the same tenant remains in possession; and
the dates and term of the lease.

Keep the advertisement, original lease, renewal agreements and rent receipts.

2. Add up all amounts serving as security

List every refundable or forfeitable payment, regardless of its label. Separate true advance rent—which pays for a specified rental period—from money held against possible future obligations.

3. Ask for the demand in writing

Request the following:

exact amount;
stated purpose;
lease provision or legal basis;
due date;
whether it is refundable;
where it will be held;
permitted deductions; and
refund date and procedure.

A practical written response may say:

Please identify the lease provision and legal basis for the additional deposit, and provide a breakdown of all advance rent and deposits currently held. My records show that I have already paid ₱___ as advance rent and ₱___ as security deposit.

4. Do not ignore undisputed rent

Continue paying the rent that is clearly due under the existing agreement. A dispute over an additional deposit does not necessarily excuse nonpayment of ordinary rent.

If the landlord refuses to accept rent, document the attempted payment. Section 9 of Republic Act No. 9653 provides specific methods and deadlines for depositing rent in covered tenancies after a refusal. Because incorrect consignation can still expose a tenant to ejectment, obtain legal advice promptly before relying on that procedure.

5. Negotiate a written solution

Possible solutions include:

withdrawing the additional demand;
clarifying that an amount is advance rent rather than security;
reducing the total to the legal ceiling;
paying an agreed top-up by installments;
limiting deductions to documented losses; or
signing a clear amendment for an uncovered unit.

Do not rely solely on a verbal assurance that the money will be returned.

6. Use the appropriate dispute process

For many disputes between individuals residing in the same city or municipality, or in adjoining cities or municipalities, prior barangay conciliation may be required before a court case. Coverage and exceptions are governed by Sections 408 to 412 of the Local Government Code.

Bring copies of the lease, receipts, payment records, written demand and communications. Ask that any settlement specify the exact amount to be returned or credited and the deadline for compliance.

A qualifying claim for money may fall under the Supreme Court’s small-claims procedure. The proper remedy depends on whether the dispute concerns recovery of money, enforcement or interpretation of a lease, possession of the property, or threatened eviction.

DHSUD’s central and regional offices may also provide information about current rent-control coverage and issuances. Their official contact information is available through the Department of Human Settlements and Urban Development.

Evidence to preserve

Keep originals or reliable copies of:

the signed lease and every addendum or renewal;
proof of all deposits and advance rent;
official receipts, deposit slips and electronic-transfer records;
messages explaining what each payment was for;
rent-increase and additional-deposit notices;
bank or payment-account details supplied by the landlord;
move-in and move-out inspection reports;
dated photographs and videos of the unit;
inventories of furniture, appliances, keys and access cards;
utility bills and meter readings;
repair requests and the landlord’s replies;
invoices or estimates claimed as deductions; and
proof that rent was offered if the landlord refused it.

At move-in, document existing cracks, stains, water damage, missing items and defective appliances. At move-out, take new photographs and meter readings, return the keys through a documented handover, and request a written accounting of every deduction.

Rules for deductions and return of the deposit

For a covered unit, the Rent Control Act permits the deposit and its interest to be applied proportionately to unpaid rent, unpaid utilities and tenant-caused destruction of house components or accessories.

That does not make every repair charge proper. Relevant questions include:

Was the condition already present at move-in?
Is it ordinary deterioration from normal use?
Did the tenant cause the damage?
Was repair actually necessary?
Is the amount supported by an invoice, receipt or reasonable estimate?
Does the lease make the tenant responsible for that item?
Has depreciation or the item’s prior condition been considered?

Republic Act No. 9653 does not specify a fixed number of days for returning the deposit. The lease should therefore state a reasonable deadline, preferably tied to key turnover, inspection and receipt of final utility bills. If the contract gives a deadline, the landlord should follow it.

Common mistakes

Confusing advance rent with a deposit

Advance rent pays rent for an identified period. A security deposit secures possible obligations. For covered units, the landlord cannot demand more than one month’s advance rent and two months’ deposit.

Looking only at the payment’s label

A “utility bond” or “damage fund” may still be a deposit if it is refundable and held as general security. Examine its function and terms.

Paying before receiving the final lease

Do not transfer a substantial amount based only on a listing or chat conversation. Verify the landlord or agent’s authority, read the final contract, and obtain an acknowledgment describing each payment.

Treating the deposit as the final month’s rent

A tenant should not simply stop paying rent and assume the security deposit will cover it unless the landlord agrees or the lease clearly permits this. Doing so may create rent arrears.

Signing an unclear renewal

A renewal may reset important terms. Confirm the rent, total deposit already held, any top-up, credit for earlier payments, and the deadline for returning the money.

Leaving without a documented turnover

Without photographs, meter readings and an acknowledgment that the keys were returned, later disputes over damage, utilities or continued occupancy become harder to resolve.

When legal help is urgent

Consult a Philippine lawyer or the Public Attorney’s Office promptly if:

the landlord threatens or carries out a lockout;
electricity or water is disconnected to force payment or departure;
the landlord enters without consent and removes belongings;
an ejectment summons, barangay notice or court paper arrives;
the landlord refuses rent and arrears may accumulate;
the tenant is being forced to sign or pay under threat;
the amount involved is substantial;
there are allegations of fraud, falsified documents or violence; or
the tenancy’s coverage under rent control is genuinely uncertain.

Do not ignore formal notices. Court and barangay deadlines may continue running while the parties negotiate.

FAQ

Can a landlord collect three months’ security deposit?

Not for a residential unit covered by the current rent-control rules. The statutory maximum is two months’ deposit. For an uncovered unit, the agreed lease generally governs, subject to general contract law.

Can the landlord ask for a deposit top-up after increasing the rent?

Possibly, if the lease makes the deposit equal to a stated number of months and the rent increase is lawful. A covered unit’s total deposit must still remain within the two-month ceiling. A landlord should not retroactively rewrite a fixed deposit without contractual support or agreement.

Is a separate utility deposit allowed?

It depends on its purpose and the unit’s coverage. If it merely provides additional security for utility bills, it may be treated as part of the total deposit for a covered unit. A genuine, specifically documented payment to a utility provider or for a distinct service may be different. Review the actual arrangement rather than the label.

Can a landlord require a pet deposit?

For an uncovered unit, a clearly agreed pet deposit may be enforceable. For a covered unit, a refundable amount held against pet damage may count toward the two-month deposit ceiling. The landlord may instead prohibit pets if the lease validly does so.

Can the landlord deduct repainting costs?

Only when there is a valid basis, such as tenant-caused damage beyond ordinary use and responsibility under the lease. Automatic full-unit repainting at the tenant’s expense is not necessarily justified. Move-in and move-out evidence is important.

Must the deposit earn interest?

For units covered by Republic Act No. 9653, the deposit must be kept in a bank under the landlord’s account name, and the accrued interest must be returned to the tenant when the lease expires, subject to lawful deductions.

Can the landlord keep the entire deposit because of one unpaid bill?

Not automatically. For a covered unit, forfeiture should be proportionate to the actual unpaid obligation or damage. The tenant should request an itemized accounting and supporting documents.

What if the lease says the deposit is non-refundable?

For a covered unit, that wording cannot remove statutory protections governing the deposit and lawful deductions. For an uncovered unit, the clause must be read in context; calling security money “non-refundable” does not necessarily permit an arbitrary forfeiture unrelated to a valid obligation or agreed charge.

Is an oral demand enough?

A demand may be communicated orally, but the tenant should request it in writing. Written terms and payment records greatly reduce disputes about the amount, purpose and due date.

Official sources

This article provides general legal information, not advice for a particular lease or dispute. Coverage and available remedies may depend on the rent history, property use, contract language, location and documents. Official sources were checked as of September 15, 2026.