Philippine security-deposit rules depend first on whether the tenancy is covered by the Rent Control Act framework. For covered residential units, RA 9653 limits the security deposit to two months’ rent and advance rent to one month. Do not automatically apply that ceiling to every higher-rent condominium lease outside current rent-control coverage.
Rules reviewed: August 18, 2026. Current 2026 rent-control coverage should be checked against the applicable NHSB resolution.
Security Deposit: Decision Snapshot
| Question | Answer |
|---|---|
| Covered unit deposit limit | Up to two months’ rent under RA 9653 framework |
| Covered unit advance limit | Up to one month advance |
| Can landlord deduct anything? | Deductions should correspond to legitimate unpaid obligations or tenant-caused damage, supported by the lease and evidence. |
| Normal wear? | Ordinary deterioration from normal use should not be invented into a damage charge. |
1. Covered Rent-Control Units
Under RA 9653, the lessor may collect not more than one month advance rent and two months deposit for covered units. The deposit is intended to answer for unpaid rent, utilities and damage attributable to the lessee as provided by law.
See our 2026 Rent Control Act guide for the current coverage threshold and rent-increase rule.
2. Units Outside Rent-Control Coverage
For higher-rent units outside the current rent-control threshold, deposit terms are primarily governed by the lease and general law. The contract should state the amount, permitted deductions, documentation and refund procedure.
3. Document Condition at Move-In and Move-Out
- Signed inventory
- Dated photos/video
- Meter readings
- List of existing defects
- Keys/access cards issued
- Move-out inspection record
4. Good Deduction Practice
Separate unpaid rent/utilities from physical damage. For repairs, keep photos, contractor invoices or receipts and show how the amount relates to the tenant-caused condition. Do not use the deposit as a penalty fund merely because the relationship ended badly.
5. Deposit Handling for Rent-Control-Covered Units
RA 9653 also requires the security deposit for covered units to be kept in a bank under the lessor’s account for the duration of the lease. Accrued interest is to be returned to the lessee at the end of the lease, subject to lawful deductions for unpaid rent, utilities or tenant-caused damage. This requirement is another reason to separate statutory rules for covered rentals from contractual terms used in higher-rent leases outside current rent-control coverage.
6. Renter Checklist Before Paying
- Verify the landlord/authorized representative.
- Read the written lease.
- Record the exact deposit amount and purpose.
- Get proof of payment.
- Complete a move-in condition report.
- Keep utility and rent payment records.
- Request an itemized accounting if deductions are made.
