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Nov 08, 2007
Rents are paid one year in advance in Manila

Philippine law is generally PRO-LANDLORD in the luxury segment but it is NEUTRAL as between landlord and tenant for the rest of the market.

Rents: Can landlord and tenant
freely agree rents in Philippines?

Parties can freely negotiate rent in all segments of the market as the Rental Reform Act of 2002 expired in 2004.

Deposits

The landlord and tenant can negotiate any deposit they wish.

By custom in upper-end condominiums, rents are paid in advance with post-dated cheques for the duration of the lease contract, usually 1 year. Contracts usually state security deposits worth 2-3 months’ rent. The deposit is returned one month after the end of the tenancy, after deductions for repairs and unpaid bills have been made.

For the rest of the rental market, landlords typically demand one month's advance rental and two months' deposit. The deposit is usually used to pay the rent for the last month of the occupancy. Most of the time, the landlord is left with unpaid bills and repairs.

What rights do landlords and tenants have in Philippines, especially as to duration of contract, and eviction?

In the formal (luxury) market, the contract can be freely negotiated, and the conditions of the contract prevail.

If the tenant is still in the unit 15 days after the lease agreement has expired, and no notice has been given by either party beforehand, it is implied that the contract has been renewed but with a different term as determined by the courts.

In the lower end of the market, contracts are usually oral. According to the law, in these circumstances, the landlord can eject a tenant due to the following:

  • Nonpayment of rent for three months;
  • Subleasing the unit without the written consent of the landlord;
  • Landlord’s need for the property for personal use. Three months’ formal notice must be given;
  • Need of the landlord to make necessary repairs. The ejected tenant; however, retains first preference to rent the same unit.

The tenant can terminate the lease agreement at any time. The tenant can also withhold rent payments, if the landlord refuses to make necessary repairs or fails to maintain the tenant in peaceful and adequate enjoyment of the property leased.

If the unit is condemned for demolition, a notice of 15 days is given to the tenants to leave the unit. If the landlord wishes to evict a tenant, he must file a case in court. Within 10 days, he can apply for a permit to reclaim the property. The court must decide within 30 days, notwithstanding appeals, counter appeals, delays, and other matters. The court would then order the Court Sheriff to assist the landlord in claiming his property.

EVICTION FOR NON-PAYMENT OF RENT

Duration until completion of service of process 42
Duration of trial 97
Duration of enforcement 25
Total Days to Evict Tenant 164
Courts: The Lex Mundi Project

How effective is the Filipino legal system?

Barangay (town) tribunals mediate in most landlord-tenant problems. If the problem is not resolved at the town level, the parties may go to court and endure a long and expensive trial. But the legal system is cumbersome. In practice the landlord’s success in evicting a tenant may depend on his influence in influencing the police (or local gang members) to apply pressure.

Legislation: Recent changes in Filipino
landlord and tenant law

The Civil Code of the Philippines [Articles 1654-1688] provides a general guideline for the conditions of lease of rural and urban lands. The owner of the land or property, however, should be wary that the law contains provisions that in certain circumstances the “custom of the place” shall be followed. For a country with almost 60 ethno-linguistic groups, the custom may be unpredictable, especially in rural areas.

The Rental Reform Act of 2002 (Republic Act No. 9161) regulates rentals of residential units with rents not exceeding PHP7,500 (US$141) per month in cities, and PHP4,000 (US$75) per month in all other areas. It expired in 2004 but the provisions are generally still followed at the lower segment of the rental market.




Comments

#1 J. S. DE JESUS | June 13, 2007

Your site is a great help but I do have specific questions that were not covered by the discussion about tenants and landlords. I am managing a house in Makati that has 7 rooms being rented out to female tenants exclusively at a rental rate of PHP 3000 to 3800 per room. I am currently have 8 tenants. Here are my concerns: 1. I would like to know if Philippine laws have regulations for this type of rentals. 2. How do I evict a tenant without violating the Philippine laws? 3. If my tenant violates the House Rules, can I use that act of violation as sufficient ground for eviction? I have been managing this property for only a year so any information that you can provide me would definitely be of great help. Thank you very much for your time. I look forward to your response. Sincerely, Janice

#2 DESIREE HAFFENDEN | September 13, 2007

I would like to know about what if the owner who sale her property not sign a deed of sale but we give already 95% of the total price of the property.She sign all the checks that we pay her but then she still not sign the deed of sale but the rest of her children sign already.We file in court and deposit the balance amount.I want to know how normaly take this before we get decision.

#3 TERESA GARCIA | October 11, 2007

I am a tenant and would like to terminate my lease of contract before expiration for personal and health reason because I am living in the 5th floor without elevator . Can I get my 2 months deposit from my landlord? My present contract state's that "If the tenant terminate the lease of contract before expiration thereof for whatever cause or reason, the security deposit shall be automatically forfeited by the landlord in favor of the landlord since the parties agree that the term of this contract has been fixed for the benefit of the landlord?" I dont have any idea about philippine law.. How can I terminate my contract . Can I consume my security deposit as rental fee or by non payment of utility bills. I just want to get or use my security deposit by any means. thank you

#4 CHARMY CABUCO | January 04, 2008

I would like to ask .. our tenant has not paid for 9 months now and we have summon letters from the barangay already for eviction.. the last receipt we issued was sept 2007.. but it is for a different period, but left it blank because he was delayed and i don't have my records with me.. can he tell us or the barangay that his last payment is sept 2007 when in fact it is only the date i received the payment and not the month or the period the payment is for?

#5 R. C. | January 17, 2008

can a contract of lease agreement be changed once its been agreed upon, signed and notarized? what actions can be made once there is a breach of contract and harrassment from the landlord.

#6 L. LANGFORD | February 23, 2008

Good day, I need some advice pls, i have a hard time collecting my security deposit with my previous landlord whats on the contract was that the security deposit will be returned after 60 days without interest but its been 8 months now she hasnt returned it yet, she wont answer my calls nor text. By the way, the amount is 60,000 pesos and she only gave partial of 20,000 pesos. Please i need your help and advice.Thanks

#7 RINA LACIDO | March 14, 2008

How often and how much can a landlord increase rental rate of residential apartments in mixed ordinary commercial/residential working class neighborhood?

#8 CHRIS JONES | June 17, 2008

If a non-resident of the Philippines i.e. not part of SRRV programme, one is not able to open a Filipino bank account. So, where/how can one bank/pay in rental cheques?

#9 AL BATICAN | March 18, 2010

I would like to consult regarding our present situation, first of all we've been renting for 19 yrs now and it is our fourth landlord. curently we are paying less than the other units and our new landlord just started not collecting our rental, we were advcie by the caretaker that our unit will be repaired
and after we can rent again but a higher price. basically we didn't ask for repairs, we just do it on our own expense. do you fine this fair? what would be the best compromise? thank you.

#10 LITA C. | April 17, 2010

i would like to ask if the landlord has the right to padlock the rented apartment once the tenant is not paying their rent for 5 months? also their electricity has been disconnected a month ago and in addition to that their water bill arrived and the amount due is 1500+ the due date i will be on Monday April 10 2010... I am the caretaker of the said apartment and I'm afraid that they can't afford to settle all those payables... so the owner decided to padlock the unit...and will be available for entry when payment receive... is it allowable by the law? thanks

#11 ELAINE SANCHEZ | April 24, 2010

good day !I would just like to ask is it in the law that every year the lessor will increase their rental fee? and how many percent should be their increase? because in my own case our residential rental fee is 6,500 per month Philippine currency,then after a year they increased us of 10 percent. please help..thank you so much

#12 SHERWIN C. | April 25, 2010

@ Elaine, here is the answer/

Sec. 3. Monthly Rental and Maximum Increase. – Beginning 01 January 2002 and for a duration of three (3) years thereafter ending on 31 December 2004, the monthly rentals of all residential units in the National Capital Region and other highly urbanized cities not exceeding Seven thousand five hundred pesos (P7,500.00) and the monthly rentals of all residential units is all other areas not exceeding Four thousand pesos (P4,000.00) shall not be increased annually by the lessor, without prejudice to existing contracts, by more than ten percent (10%).

#13 JOHN DELION | April 29, 2010

Excellent site, thanks. Question on long term lease of land:

Is it possible inside the lease contract or outside it, to have a promise to sell to present or future Lessee against payment of an additional amount (for example 500,000 Pesos indexed on official rate of inflation), if the Lessee is eligible to own land in Philippines?


Is it possible for the Lesse to "sell" or transfer his/her lease contract before end of the lease contract to a third party? If so, if the new Lessee is eligible to own property in Philippines, can this new Lessee acquire the property? I mean transforming the lease contract in a purchase/sale contract, to acquire l ownership of the property?

Many thanks again for your site

#14 RHYS | April 30, 2010

I would like to consult about our present situation. First of all, we have been renting the place for commercial purposes. We have been doing business for five years without so much problem from the owner. actually, we are not the only tenants that do the same. It has been agreed verbally and it's obvious that we have doing business...Now, the problem is that we, the tenants, received a letter from a law office, consented ( i dunno if it's the right word-consented )by our landlady telling us to vacate the place for 15 days,. We are not even notified!Three months’ formal notice is not provided plus we have renovations in the our rented commercial place and the landlady has been aware of all the necessary renovations that we've made.The whole time that we made renovations, she didn't stop us from doing so...

Please help..my abundant tnx...

#15 ERIC KING | May 19, 2010

Hello,

We live in Buho near Tagaytay, in an apartment. Our rent is 3,500 a month. We have been here two years, never have been late on rent or utilities. Our Landlord told us 2 months ago to vacate, because he needs his place for himself. 2 months is now up We haven't found a suitable place to move.

I went to pay the rent today, or to discuss an agreement to extend for another month or even half of a month. Our Landlord will not answer his door. We know he is upset. I see by your info here, that we have the right to a 3 month notice, in this case. Does this hold true? we are in Buho, Silang, Cavite. Our course our Landlord has more pull with the local Barangay than us.

What are our rights?

Thanks, Eric King

#16 IMEE DIZON | May 21, 2010

Hi,i would like to inquire and seek help.We are renting an apartment and the old owner sell the units.Were almost 3 years now in this apartment but we already buy a house and we want to use our advance payments like 1 month advance and 2 months deposits plus we have 3thousand deposit for water and electric.But the new owner is telling us that the old owner did not endorse anything to them.But when we heard that the old owner is selling the units we told them to endorse or tell to the new owner our advance payments so that they will know.Now my problem is we dont have a contract even the next door our neighbor dont have a contract we only have the receipt and states there the deposits and advance payment.Now,the new owner wanted us to pay for they dont want to honor our payments to the old owner.What is our right as tenant regarding this case?

#17 JANNA | May 23, 2010

Hi...our tenant had been renting for almost two years and half...He pays on time and never have problem with him...But my brother decided to get the property for personal use...the problem is., the tenant doesnt want to go even he already used the deposit.He is asking for 9 months before he will leave the house he rent.

#18 ANDREI FERNANDEZ | June 06, 2010

hi, would like seek some advice, we are renting appartment here in makati. me, my wife and my two freinds are sharing for the rent expense. now my two friends decided to move in other apartment. my wife and i decided to continue renting this appartment but our landlord want us to leave, he state that the one who signed the contract is one of our friend so if this friend of mine will leave we must also leave. when we got this appartment our landlord knows from the very first that we are four. this friend of mine who signed the contract is ex-employee of our landlord. being ex-employee, our landlord gave some previllage to us, he charge us for one month advance only no deposit at all. now that this friend of mine who signed the contract want to leave our landlord tell us that we must also leave. we dont have copy of the contract. do we have no right to stay? is it right to force us to leave by our landlord?

#19 FRANZ | June 12, 2010

can i ask r tenants obliged to pay the monthly dues of the HOmeowners Association..we were greatly surprised when a lady came r place and gave a letter saying that we owe P1,200 for 12mos monthly dues..cuz we were occupying the apartment for a year now...
is this legal....shudnt we have the right to waive this rules when the fact that were not HOME OWNERS as word implies..were just tenants.
hope to hear a response on this matter..thanks

#20 PAULMONTEJAR | June 13, 2010

How much is the allowable increase of the house rental from Php 7,500.00 after one year? The house is in NCR.
Also, if I want to use the house for personal use after the end of the one year contract, how will I notify the lessor? Should it be in writing and the document Notarized? How long can I require them to vacate? Thanks

#21 MIRASOL | June 14, 2010

we have contract for one year. But i dont want to finish it because it is not convenience anymore to live in. They will fix the ceiling but they ask me to pay for it. They will removed and put new materials plus the labor. Can I terminate my contract with my Landlord?

#22 ROBERTO VALENZUELA | June 22, 2010

Sir, I find your legal advise relevant in my present business undertakings. Sir, I have signed a contract of lease for commercial use for one year together with payment of the one month advance and one deposit. But after a month of use of the space, the lessor constructed a concrete gate with a permanent post in the middle to connect two steel gates when closing it. I cried foul considering that it will affect much the marketability of my products considering that is an auto supply store with repair shop. With this, I decided not continue my lease contract of the space.My question sir, Can I still get my one month deposit? The lessor said I cant get it anymore because the contract I signed stated that deposit is non-refundable. Is he right Sir? Appreciate your help sir.

#23 JASON TOTANES | June 23, 2010

Regarding increase in rental fee, I got a letter notifying me about a 7% increase effective July 2010 (as soon as I sign the letter...-which I havent signed yet)as mandated by the by the Law as indicated in their letter and according to the owner/care taker of the house. we don't know who the real owner is. on the notification letter, the person who lives in a small house attached to our house is the signatory however we were told that the house is owned by his brother who lives along our street.

my questions are:

-who are qualified to implement such increase?

-should they be FIRST registered in our local municipality and obtain a Mayor's permit/Business permit?

-are there any requirements that they need to show aside from the notification letter?

-who should be the signatory? the owner of the house or is it okay for the relative of the owner to be the signatory?

#24 JACQUELINE E. EBIO | July 01, 2010

What if , we already signed an agreement with the presence of an attorney in our baranggay, and our tenant also signed and aggreed on it, that if ever they failed to pay rent or electric bill, and water bill, we will give them 1mo. to vacate the place, but now they dont want to comply on that agreement,thus, we still have the rights to evict them, based on the agreement we agreed upon?

#25 IRENE ANGELES | July 01, 2010

Greetings! i'm into situation like, our contract were 2years effective june 1st 2009, 15k monthly rental.as stated in the contract 1mos deposit, 1 month rental and 12 months post dated checks as one year rental...suddenly new house owner arrived in our place june 28, 2010 and verbally saying we have to vacate the premises on june 30, 2010 because they owned it now...we don't have any idea that the old house owner whom we signed the lease contract sold the property to our neighbor. do the new house owner can evict us immediately like that? what action can we do to old house owner...

#26 CRISTINA MOJICA | July 04, 2010

Sir, i would like to ask for your advice. my family had rented a house and the son of the landlord asked 3months of deposit and 2k deposit for electricity. the day that we signed contract. i asked the section that says non-refundable. but the landlord said its just for formality. we were able to use 1month of the 3months deposit. is it really not refundable based on the law. since the contract was is not legalized contract

#27 MITCH | July 19, 2010

sir is right that the landlord shall add 3.5% if i fail to pay my monthly rental?and is it right that if there is something needed to be changed in the house or something got broken like the door or the faucet.,should i be the one to shoulder the expenses?

#28 NILO/JULY 21 2010 | July 20, 2010

sir a pleasant day im rent the appartment for more than ten years and im so close with the owner of the appartment i rented, sudddly the owner died oldage wat next the daugther take over the appartment she immidiaterly wanted to increase the rental went i ask her give me next year or time ant i told her our transaction she doest even hav formal invoiece of BIR i told her the bir will after all the iligal business she got angry she immediately went to her lawyer and the lawyer call me and say i have given 30days to vaccate and i ask the lawyer why what are the ground and she told me i threated the owner of the appartment and im asking help and advice is it rigth that they will just ask us to vaccate or what are the rigth law for this please help me... thanks more power

#29 ANN | July 22, 2010

in my contract with the landlord, all broken fixtures and missing items or damages shall be charged against my 2 months deposit. however, the landlord already informed me that when we leave by the end of the month (end of our contract), he will not give back our deposit or any amount because it will be used to repaint the house after we leave. since we did not damage anything except for the usual wear and tear of the house paint (we rented the place only for a year), we are expecting for a change but he is claiming that it is legal to forfeit the deposit fully. is it true? i was told after paying advance payment for 1 yr and 2 months deposit that the official receipt will be given next time we see each other since he forgot to bring it but i never got it.

#30 CRIS ABANGGAN JR | July 23, 2010

we are claiming 44 hectars property within cebu city.
the title belongs to our great great grand ancestors.we had tax delinguent of 13 million where the city gov. is now demanding us to pay.we been to court for declaration of hears but dismiss for the reason of "we need to pay the tax obligation first before we claim the property according to law" thats the decesion of the judge dom dom.please who ever had the knowledge of this matter please send me mail.for more info please call 0922-7226-231

#31 LANDLORD | August 02, 2010

i have tenant which we don't have contract for a year now.My problem is i want to use now my unit,but the tenant still refuse to move out, i already given 3 months notice the tenant,i inform the tenant that i will use the unit.what shall i do? can i file a case now?

#32 PRECY | August 02, 2010

Im a tenant who rented the house for 2 years.. i had a problem regarding with the dipuel water.. its not coming out anymore the water and its all rust... so i ask my landlord to apply the maynilad water.. my landlord told me that im the one who will responsible the cost of what expenses in applying the NAWASA. is it true that im the one who gonna shoulder it?
and my second question is is it every year they need to increase the rent? and how many percent should they allowed to add the increase? thank you

#33 M.AGREGADO | August 03, 2010

We are a new tenant running in 2 weeks only my new landlord & I agreed for a 1 month deposit 1 month advance and when I gave it to her she issued an ordinary receipt only and advice us to move whenever we want( she already gave us the house key)to transfer while she is preparing for our contract of lease.In verbal agreement we agreed to shoulder first all the repairs like door lock, electrical wirings(switches that are not functioning), roof leaks(all over the entire kitchen areas, living room and bedroom ,it is a total mess) and house paintings to deduct it in our monthly rental.We do all the repairs(because the condition of the house is not liveable)but due to it's location we are opt to transfer knowing that we can fix it but after our transfer when our landlord visited the place she looks amaze with the changes and after a few days on our 12th day she serve us with the contract of only six months for they will be needing the place and an additional advance payment of 1 month to add to our 2 mos deposit for they realize it is the normal advance fees & stated in the contract not to be use for monthly rentals or is not consumable for 2 months grace period as prior notice to vacate the place. My question is is it right?Is there any law to protect us, it's too hard not to comply and sign in the contract where in fact we just only move in and you know it is not easy to move and transfer we felt harrass and pressured and been fooled with the agreement of deducting all our expenses in repairs ang paintworks because right now she just decline the agreement. Any advice you could give. Actualy with that kind of landlord we also felt not to go on business to her longer but we had no more budget ant time, effort to look for another place at this early. Any advice you can give? Thanks.

#34 RHIAANE | August 03, 2010

We are a new tenant, Me and my landlord verbally have agreement that we can already use our 1 month advance we transfered July 17, so i told her that our nxt payment will be sept.17?she agreed but after 2days, after she recieved my 2months dep.and 1month advance she informed me that my nxt payment will be august 17?because she want an advance payment, which is i think its not right bec.we already have a 2months deposit. And it is right that they are just issuing an ordinary reciept,not a BIR reciept?then they have the right to increase the rent?Hope you can immediately answer my question,and give me advise regarding rhis matter bec. i really felt abused by our landlord.Thanks and God Bless

#35 ANNABELLE | August 15, 2010

We are renting of 4,000 pesos a month.Our landlord did not issue any BIR receipt for almost three years. i have decided to use my two months deposit because of our landlord refuse to repairs our neighbors roof and gutters that cause the rains pouring in our ceiling that cause damages in our belongings and others.I want to know that i can now use my rights not paying our rentals for three months?we are good and on time paying our monthly dues. i just want that my landlord will realize that all tenants have the rights to live in their rented house with peaceful and liveable place.am i right pls help me,thank you

#36 ARCHIE | September 02, 2010

sir we are renting for more than 40 years and the owner sold it,i heard that supposedly we are the one to offer to buy it first,is that true?because the owner sold it to other person.if that so,can we file a case to the owner,we want it to buy thak you

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