Tenant rights guide · Security deposit Philippines
Security Deposit Philippines: Can Your Landlord Keep It?
Carlo, a BPO agent in Makati, moved out after two years. His landlord refused to return his ₱20,000 security deposit — two months of ₱10,000 rent — claiming "renovation costs." Carlo's only sin was faded paint and a few scuff marks from furniture. That's not damage. That's two years of living.
Under RA 9653 §7, Carlo's landlord had one month to return that deposit, minus only legitimate deductions. Faded paint is not one of them. This guide explains what the law actually says, what your landlord can and cannot keep, and the exact steps to take when they refuse to return what's yours.
Your rights, simply: Your landlord must return your security deposit within 1 month of move-out. Normal wear and tear — faded paint, minor scuffs, small nail holes — cannot be deducted. The deposit is your money held in trust.
What RA 9653 §7 actually says
Section 7 of the Rent Control Act sets the rules for security deposits and advance rent. It applies to all covered residential units — those with monthly rent at or below ₱10,000 in NCR and highly urbanized cities, or ₱5,000 elsewhere. Three rules govern everything.
Deposito sa Seguridad
Security Deposit
A refundable sum collected upfront and held by the landlord as security against unpaid rent or damages. Under RA 9653, the maximum is two months' rent. It is not the landlord's income — it must be held separately and returned after the lease ends.
Paunang Bayad
Advance Rent
One month's rent collected upfront, applied to the first (or sometimes last) month of the lease. RA 9653 limits this to one month. Some landlords try to bundle this with additional deposits — that is a violation.
Pangkaraniwang Pagkasira
Normal Wear and Tear
Gradual deterioration that results from ordinary, reasonable use of the property over time. Faded paint, minor scuffs, small nail holes, worn floor finishes — these cannot be charged to the tenant. Only actual damage beyond this standard can be deducted from the deposit.
Legal reference
Maximum security deposit
Pinakamaraming deposito
2 months' rent
Covered residential units under RA 9653
Maximum advance rent
Pinakamaraming paunang bayad
1 month's rent
Covered residential units under RA 9653
Return deadline
Deadline ng pagbabalik
Within 1 month after end of lease or vacancy
All covered units; balance after legitimate deductions
Valid deductions
Lehitimong bawas
Unpaid rent + actual damages beyond normal wear and tear
Must be itemized and documented; vague claims are not valid
| Legal Concept | Filipino Term | English Meaning | When This Applies |
|---|---|---|---|
| Maximum security deposit | Pinakamaraming deposito | 2 months' rent | Covered residential units under RA 9653 |
| Maximum advance rent | Pinakamaraming paunang bayad | 1 month's rent | Covered residential units under RA 9653 |
| Return deadline | Deadline ng pagbabalik | Within 1 month after end of lease or vacancy | All covered units; balance after legitimate deductions |
| Valid deductions | Lehitimong bawas | Unpaid rent + actual damages beyond normal wear and tear | Must be itemized and documented; vague claims are not valid |
What can — and cannot — be deducted
The dividing line is "normal wear and tear." A unit that has been lived in for two years will naturally show signs of use. The law expects that. What it does not allow is for the landlord to charge the tenant for that ordinary passage of time.
Valid deductions
- —Unpaid rent at move-out
- —Broken windows or mirrors (tenant-caused)
- —Large holes in walls beyond normal hanging
- —Damage from water leaks caused by tenant negligence
- —Missing or destroyed fixtures (fans, light fittings)
- —Unapproved modifications not restored to original state
NOT valid deductions
- —Faded or peeling paint from normal aging
- —Minor scuffs and surface marks on walls
- —Small nail holes from picture frames
- —Worn floor surfaces from normal foot traffic
- —General cleaning fees after normal occupancy
- —Vague 'renovation' costs without itemization
Carlo disputes the 'renovation costs' deduction
Landlord: Hindi ko maisauli ang deposito mo kasi kailangan pa naming i-renovate ang buong unit.
I can't return your deposit because we still need to renovate the entire unit.
Carlo: Anong specific na damage ang ginawa ko? Kailangan ninyong i-itemize yan.
What specific damage did I cause? You need to itemize that.
Landlord: Ang pintura ay matagal nang kumupas at may mga gasgas ang dingding.
The paint has faded and there are scuffs on the wall.
RA 9653 §7 / Civil Code: Faded paint and surface scuffs after two years of occupancy are normal wear and tear. These cannot be charged to the tenant. The landlord must return the full deposit within one month.
The 1-month return rule
Your landlord has exactly one month from the end of your lease (or from the date you actually vacated, if later) to return your deposit. Not two months. Not "when we finish the inspection." One month is the legal maximum.
If the landlord has legitimate deductions, they must provide an itemized statement and return the remainder within that same window. The clock does not pause while they calculate deductions.
Deposit return timeline
Day 0: Move-out / end of lease
Day 1–30: Landlord must return deposit (minus itemized deductions) within this window
Day 31+: Landlord is in violation of RA 9653 §7 — file complaint with DHSUD or proceed to small claims court
If your unit is above the RA 9653 threshold
If your monthly rent exceeds ₱10,000 in NCR (or ₱5,000 elsewhere), RA 9653 does not apply to your deposit. The amount you paid, the terms of return, and the deduction rules are whatever your lease contract says — governed by Civil Code Arts. 1642–1687.
Even without RA 9653, the general principles of good faith and contract law still apply. A landlord who keeps a deposit without a valid contractual basis can still be sued in civil court for unjust enrichment. The normal wear and tear principle also holds under general contract interpretation — it is not unique to RA 9653.
Mandatory section
For OFWs / Para sa OFW
If you're an OFW and your family rented a place while you were abroad — and now they've moved out with a landlord refusing to return the deposit — you are not helpless just because you're overseas. Here's how to handle it from abroad.
- Execute a Special Power of Attorney (SPA) authorizing a family member, trusted friend, or attorney to pursue the deposit on your behalf. The SPA must be notarized abroad through the nearest Philippine Embassy or Consulate and then authenticated (apostilled) for use in the Philippines.
- If the SPA is not yet in place, your family member can still send written demand letters and file a barangay complaint — they just cannot sign formal legal documents on your behalf without it.
- For amounts up to ₱400,000, the small claims process at the Metropolitan Trial Court does not require a lawyer and allows a non-lawyer representative to appear on your behalf with proper authorization.
- The one-month return deadline under RA 9653 §7 applies even if the unit was rented in your name but occupied by family. Your family's move-out date starts the clock.
- If the landlord is also an OFW managing the property remotely, the same rules apply — RA 9653 obligations do not disappear because the landlord is abroad. Their designated property manager is legally responsible for compliance.
Real Filipino scenario
Carlo Mendoza, BPO senior agent
Carlo rented a one-bedroom unit in Makati for ₱10,000/month for two years. His security deposit was ₱20,000 (two months). When he moved out in March 2026, his landlord refused to return the deposit — claiming 'renovation costs' without providing any itemization. The unit had faded paint and minor scuff marks. No windows were broken, no fixtures were missing, and Carlo had no unpaid rent.
What Carlo Mendoza should do
- Gather evidence: move-out photos, rent receipts for the full tenancy, lease contract, and any written communication from the landlord citing 'renovation costs'
- Send a formal written demand to the landlord citing RA 9653 §7 and the one-month return deadline; request an itemized deduction statement
- If no response within one week of the demand, file a complaint with DHSUD — bring all documentation
- Simultaneously file for barangay conciliation (Lupong Tagapamayapa) — this is required before going to court for civil money claims
- If mediation fails, file a small claims case at the Makati Metropolitan Trial Court — no lawyer needed, filing fee is minimal, and the process is designed to be resolved in one hearing
What most Filipinos get wrong about this
MythThe security deposit is the landlord's money once you move in.
Truth: The security deposit remains your money. Under RA 9653 §7, it must be held separately — ideally in a trust account — and returned to you after the lease ends, minus only legitimate deductions. The landlord is holding it in trust, not spending it.(RA 9653, §7)
MythLandlords can deduct anything labeled 'damages' from the deposit.
Truth: Only actual damages beyond normal wear and tear qualify as deductions. The landlord must be able to show that specific damage occurred during your tenancy and cost a specific amount to repair. Vague claims like 'general wear' or 'renovation' are not valid grounds for withholding your deposit.
MythIf I leave without completing the notice period, I forfeit the deposit.
Truth: This is partly right only in a specific sense: unpaid rent is a legitimate deduction from the deposit. If you left with two months unpaid and your deposit covers two months, the landlord may apply it. But they cannot keep additional amounts as a 'penalty' for early departure beyond actual unpaid rent — unless a specific penalty clause was in your lease.
MythA landlord can charge 3 months deposit on expensive units.
Truth: For units covered by RA 9653, the maximum is two months security deposit plus one month advance. For units above the threshold (above ₱10,000 in NCR), the parties can agree to a higher deposit — but it must be stated in the lease, and the landlord still cannot spend it during the tenancy.(RA 9653, §7)
How to get your security deposit back
Do a joint move-out inspection
Before you hand over the keys, walk through the unit with your landlord and document its condition with photos or video. If damage is disputed later, your photographic evidence carries significant weight.
Send a written demand for return of deposit
After moving out, send a written message (text, email, or letter) formally requesting the return of your security deposit and citing the one-month deadline under RA 9653 §7. Keep a copy.
Request an itemized accounting of deductions
If your landlord withholds any portion of the deposit, they must provide a written itemization of each deduction with the corresponding amount. 'Renovation costs' without specifics is not acceptable. Ask for receipts or estimates.
File a complaint with DHSUD if the landlord ignores you
Bring your lease contract, rent receipts, move-out photos, and evidence of the landlord's refusal to the nearest DHSUD regional office. DHSUD can mediate and impose sanctions for violations of RA 9653.
Use small claims court for quick civil relief
For amounts up to ₱400,000, file a small claims case at the Metropolitan Trial Court or Municipal Trial Court in Cities. No lawyer needed. The process is designed to resolve simple money disputes quickly. Filing fee is minimal.
Frequently asked questions
How much security deposit can a landlord legally collect in the Philippines?
Under RA 9653 §7, for covered residential units (monthly rent ≤ ₱10,000 in NCR/highly urbanized cities, ≤ ₱5,000 elsewhere), the maximum is two months security deposit plus one month advance rent. Collecting more than this is a prohibited practice punishable by fine and imprisonment.
When must my landlord return my security deposit after I move out?
Under RA 9653 §7, your landlord must return the deposit within one month after the end of the lease or after you vacate the unit, whichever comes later. Legitimate deductions for unpaid rent or actual damages (beyond normal wear and tear) may be made, but the landlord must return the balance within that one-month window.
Can my landlord deduct repainting costs from my security deposit?
Only if the paint damage goes beyond normal wear and tear. Faded paint, minor scuffs, and nail holes from hanging pictures are considered normal wear and tear — you cannot be charged for these. If you painted a wall a different color without permission and left it that way, that may be a valid deduction. The key question is: is this the kind of wear a reasonable tenant would cause over normal living?
My landlord is using my deposit as last month's rent. Is that allowed?
Not under RA 9653 — the security deposit and advance rent serve different purposes. However, in practice, some landlords and tenants agree to this informally. If you agree in writing to apply the deposit to your last month's rent, that is a private arrangement. Without your written consent, the landlord cannot unilaterally do this — the deposit must be returned (minus valid deductions) within one month of move-out.
What if my landlord refuses to return the deposit and ignores my messages?
Start with a written demand letter citing RA 9653 §7 and the one-month deadline. If ignored, file a complaint with DHSUD. If DHSUD mediation fails, file a civil case at the barangay level first (mandatory conciliation), then at the Metropolitan Trial Court or Municipal Trial Court in Cities. Small claims proceedings are available for amounts up to ₱400,000 and do not require a lawyer.
Sources
- 01.Republic Act No. 9653, §7 — Security Deposits (July 14, 2009) (Phil., officialgazette.gov.ph)
- 02.Department of Human Settlements and Urban Development (DHSUD, Rent Control Administration, dhsud.gov.ph)
- 03.Civil Code of the Philippines, Republic Act No. 386 (1950), Arts. 1642–1687 (Lease, lawphil.net)
About the author
Written by Irvin Abarca with research support from Claude AI. Irvin is the founder of BatasKo, based in Dumaguete City.
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