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Philippines: Landlord and Tenant

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Last Updated: 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.

 

Philippines - more data and information

Your Comments

posted by J. S. de Jesus | 2007-06-13

Property Manager, Makati

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

posted by Desiree Haffenden | 2007-09-13

sales, Makati Philippines

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.

posted by Teresa Garcia | 2007-10-11

Manila, Philippines

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

posted by Charmy Cabuco | 2008-01-04

Employed, Mandaluyong, Phils

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?

posted by R. c. | 2008-01-17

proprietor, tagaytay phil

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.

posted by L. Langford | 2008-02-23

Housewife, Santa Rosa

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

posted by rina lacido | 2008-03-14

employee, U.S.A.

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

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