Lease Law Philippines: Lease Terms, Landlord and Tenant Rights

Short answer: A Philippine lease is governed mainly by the Civil Code (Arts. 1642 to 1688) and, for lower-priced residential units, the Rent Control Act (RA 9653). A good lease agreement names the parties and the property, fixes the rent, the term, the deposit and advance, and allocates repairs, utilities, subleasing and termination. Leases longer than one year must be in writing to be enforceable and should be registered to bind a later buyer. The landlord must deliver the property in usable condition, make necessary repairs and keep the tenant in peaceful possession; the tenant must pay rent, use the property with care and return it in the condition received. Neither side may end a fixed-term lease early without a contractual or legal ground, and a tenant can only be removed through the courts.

This page is the overview. Each section links to a detailed guide in the Lease and Rental Disputes hub.

Which laws govern a lease in the Philippines?

Law	What it covers
Civil Code, Arts. 1642 to 1688	All leases of things: rights and obligations of lessor and lessee, implied renewal, improvements, ejectment grounds
Rent Control Act of 2009 (RA 9653) and NHSB resolutions	Covered residential units: limits on advance and deposit, rent increase caps, ejectment grounds, no ejectment because the unit was sold
Rules of Court, Rule 70	Unlawful detainer and forcible entry cases to recover possession
Katarungang Pambarangay (RA 7160)	Barangay conciliation before most lease disputes between residents of the same city or municipality
PD 471 and RA 7652 as amended by RA 12252	Maximum lease periods for private land leased to foreigners

What should be included in a lease agreement?

A lease can be oral, but a written lease prevents most disputes, and one longer than a year must be in writing to be enforced in court (Art. 1403(2)(e)). That rule mainly protects against suits on purely oral, unperformed agreements: it is waived if the other side does not object to oral evidence or has accepted benefits under the lease, such as rent paid and received (Art. 1405). The clauses below are the ones that decide most cases.

Clause	What to state	Why it matters
Parties	Full names, addresses, IDs; the owner’s authority or the agent’s written authority	An agent needs a special power of attorney to lease real property for more than one year (Art. 1878(8))
Property	Address, unit number, title or tax declaration number, inclusions such as parking and furniture	Defines exactly what must be delivered and returned
Term	Start date, end date, and whether and how it may be renewed	Without a fixed term, the period follows the rent cycle (Art. 1687)
Rent	Amount, due date, mode of payment, late charges, and any escalation clause	The landlord cannot raise rent during a fixed term without a basis in the contract; covered units are also subject to rent-control caps. See rent increases during the lease
Advance and deposit	Amounts, where the deposit is kept, permitted deductions, and the refund timeline	For covered units, no more than one month advance and two months deposit (RA 9653, Sec. 7). See security deposit rules
Use	Residential, commercial or mixed; occupancy limits; pets; business registration	The tenant must use the property only for the agreed purpose (Art. 1657)
Repairs and maintenance	Which repairs each side handles, how to report them, and emergency access	By default the landlord makes necessary repairs (Art. 1654(2)) and the tenant must report the need for them promptly (Art. 1663). See who pays for repairs
Utilities and dues	Who pays electricity, water, internet, association dues and real property tax	Unpaid utilities are a common deposit deduction
Sublease and assignment	Whether either is allowed and on what conditions	Assignment always needs the landlord’s consent (Art. 1649); covered residential units also need written consent to sublease (RA 9653, Sec. 8)
Entry and inspection	Notice period and reasons for entry	Protects the tenant’s peaceful possession. See landlord entry
Improvements	Whether alterations are allowed and who keeps them	Otherwise the default reimbursement rule in Art. 1678 applies
Pre-termination	Notice, penalties and forfeiture if either side ends early	See tenant leaving early and landlord terminating early
Turnover	Move-out inspection, condition report and key return	Evidence for deposit disputes
Signatures	Both parties, witnesses, and notarization for long or registrable leases	A notarized lease can be registered and annotated on the title

Short-term vs long-term lease: what changes?

The Civil Code does not define “short-term” or “long-term,” but the one-year mark changes several rules, and the maximum term for any lease of things is 99 years (Art. 1643).

Issue	One year or less	More than one year
Form	Valid and enforceable even if oral	Must be in writing to be enforceable (Art. 1403(2)(e))
Who may sign for the owner	An agent with general authority	An agent needs a special power of attorney (Art. 1878(8))
Effect on a buyer of the property	A buyer of land under an unrecorded lease may generally terminate it unless the deed of sale says otherwise or the buyer knew of the lease (Art. 1676)	Same rule, which is why long leases should be registered and annotated on the title (Art. 1648)
Covered residential units	The tenant cannot be ejected because the unit was sold or mortgaged, registered or not (RA 9653, Sec. 10)	Same protection
Leases to foreigners	Generally no special issue	Up to 25 years, renewable once for 25 (PD 471); registered foreign investors up to 99 years in aggregate (RA 7652 as amended by RA 12252)
Practical drafting	Simple renewal and notice clauses	Rent escalation, insurance, real property tax, improvements, assignment and dispute resolution

When no period is fixed, the lease runs from year to year if rent is annual, month to month if monthly, week to week if weekly, and day to day if daily. A court may fix a longer term for a month-to-month tenant who has occupied the property for more than a year (Art. 1687).

How does Philippine law protect landlords and tenants?

Landlord’s obligations and tenant’s rights	Tenant’s obligations and landlord’s rights
Deliver the property in a condition fit for its intended use (Art. 1654(1))	Pay the rent on the agreed terms (Art. 1657(1))
Make the necessary repairs to keep it suitable for that use (Art. 1654(2))	Use the property with the diligence of a good father of a family and only for the agreed purpose (Art. 1657(2))
Keep the tenant in peaceful and adequate enjoyment for the whole term (Art. 1654(3))	Notify the owner promptly of needed repairs or of any usurpation by a third person (Art. 1663)
If urgent repairs last more than 40 days, reduce rent in proportion, counting the first 40 days (Art. 1662)	Return the property as received, except for deterioration from age or unavoidable causes (Art. 1665)
Tenant may suspend payment of rent if the landlord fails to make necessary repairs or to maintain peaceful possession (Art. 1658)	Answer for deterioration unless the tenant proves it happened without fault (Art. 1667)
Reimburse half the value of useful improvements made in good faith, or let the tenant remove them (Art. 1678)	No assignment of the lease without consent (Art. 1649)
No removal of the tenant without a court order. See eviction without a court order	Seek ejectment through the courts on a lawful ground (Art. 1673; RA 9653, Sec. 9); for non-payment, start with a written demand to pay and vacate

If either side breaches, the other may ask the court to rescind the lease with damages, or claim damages only and keep the lease in force (Art. 1659).

Extra protections for rent-controlled residential units

RA 9653 covers residential units, including boarding houses, dormitories, rooms and bedspaces, within the rent ceilings set by the housing authority. The National Human Settlements Board sets the coverage threshold and the maximum yearly increase by resolution; the current resolution covers 2025 to 2026 for units renting at ₱10,000 a month or less. Under NHSB Resolution No. 2024-001, increases were capped at 2.3% for 2025 and at 1% for 2026, for units still occupied by the same tenant; once a unit is vacated, the landlord may set the rent for the next tenant (DHSUD release via PIA; RA 9653, Sec. 4). Check the latest DHSUD resolution before applying an increase. For covered units:

Rent is paid in advance within the first five days of the month unless the lease sets a later date, and the landlord may demand no more than one month advance and two months deposit, which is kept in a bank with interest returned to the tenant (Sec. 7).
Sublease, assignment and taking in boarders need the landlord’s written consent (Sec. 8).
Ejectment is allowed only on the grounds listed in Sec. 9, including three months of rent arrears, unauthorized sublease, the owner’s legitimate need to repossess for family use with three months’ notice after a fixed term expires, condemnation repairs, and expiration of the lease.
The tenant cannot be ejected because the unit was sold or mortgaged (Sec. 10).
Violations are punishable by a fine of ₱25,000 to ₱50,000, imprisonment, or both (Sec. 13).

How does a lease end?

Expiration of the term. If the tenant stays for 15 days after the term ends with the landlord’s acquiescence and no notice to the contrary, an implied new lease arises on the old terms but for the period set by Art. 1687, usually month to month (Art. 1670). See lease expired but tenant refuses to leave.
Non-payment or breach. Lack of payment, violation of the lease conditions or improper use are grounds for judicial ejectment (Art. 1673). See tenant stops paying rent.
Agreed pre-termination. Only on the terms the lease allows, or by mutual agreement.
Court action. The landlord must first demand that the tenant pay or comply and vacate; the case may be filed only if the tenant fails to comply within 15 days for land or 5 days for buildings, unless the lease provides otherwise (Rules of Court, Rule 70, Sec. 2). The unlawful detainer case is filed in the Municipal Trial Court within one year from the unlawful withholding of possession (Rule 70, Sec. 1; Civil Code, Art. 1147), usually after barangay conciliation.

Common lease disputes and where to go next

Dispute	Guide
Unpaid rent	What happens if a tenant stops paying rent
Deposit not returned	Security deposit return and deductions
Rent increase mid-lease	Can a landlord increase rent during the lease?
Repairs	Who pays for repairs
Landlord entering	Can a landlord enter without permission?
Lockout or utilities cut	Eviction without a court order
Leaving or terminating early	Tenant leaving early and landlord terminating early
Holdover after expiry	Lease expired but tenant refuses to leave

Your options and what to do next

Most lease problems are settled at the first or second step below. Court comes last, and for most disputes between individuals it comes only after the barangay.

Step	What to do	Where	Legal basis
1. Check the lease and the law	Read the clause on the issue; check whether the unit is rent-controlled (₱10,000 a month or less)	Your copy of the lease	Civil Code, Arts. 1654 and 1657; RA 9653
2. Written demand	State the breach, the remedy you want and a deadline; keep proof of receipt	Delivered to the other party	Art. 1659; Rule 70, Sec. 2 for ejectment
3. Barangay conciliation	File a complaint; attend mediation; get a settlement or certification to file action	Barangay where the property is located	RA 7160, Secs. 409(c) and 412
4a. Landlord: ejectment case	Unlawful detainer for non-payment, breach or expiry	Municipal Trial Court	Rule 70, Secs. 1 and 2; Art. 1673
4b. Tenant: damages or rescission	Claim for a deposit, repairs or disturbance of possession	The court with jurisdiction over the amount claimed	Arts. 1658 and 1659

If you are the tenant

Report needed repairs to the landlord in writing and keep a copy (Art. 1663). If necessary repairs are not made or your peaceful possession is disturbed, you may suspend rent (Art. 1658), but put the reason in writing first.
If the landlord refuses to accept rent, a covered tenant may deposit it by consignation in court, with the city or municipal treasurer, the barangay chairman or a bank within one month of the refusal, and keep depositing it monthly (RA 9653, Sec. 9).
If you are locked out or your utilities are cut without a court order, document it and go to the barangay at once; see eviction without a court order.
Bring: the lease, receipts, the deposit acknowledgment, photos or a condition report at move-in and move-out, and your messages with the landlord.

If you are the landlord

Do not padlock the unit, remove belongings or cut utilities; removal needs a court judgment.
Serve a written demand to pay or comply and to vacate, then wait the 15-day (land) or 5-day (building) period before filing (Rule 70, Sec. 2).
Go through barangay conciliation where it applies, then file unlawful detainer in the Municipal Trial Court within one year (Rule 70, Sec. 1).
Bring: the lease, the title or proof of your right to lease, the rent ledger, the demand letter with proof of service, and the barangay certification to file action.

Barangay first: where both parties are individuals living in the same city or municipality, a lease dispute generally must go through the lupon before a court case can be filed. Filing there interrupts prescription for up to 60 days, and conciliation does not apply where one party is a corporation (RA 7160, Secs. 408, 410 and 412). If you cannot afford a lawyer, the Public Attorney’s Office (PAO) assists litigants who pass its indigency test.

First action today: find your lease and the last rent receipt, write down exactly what went wrong and when, and send the other party a dated written message stating what you want done.

Frequently asked questions

Is a verbal lease valid in the Philippines?

Yes, a lease is valid without a writing. But a lease for more than one year cannot be enforced in court unless it is in writing (Art. 1403(2)(e)), and an oral lease is harder to prove on rent, term and deposit. See oral agreements.

Does a lease have to be notarized?

Not to be valid between the parties. Notarization makes the lease a public document that can be registered and annotated on the title, which matters for long leases because an unrecorded lease may not bind a later buyer (Arts. 1648 and 1676).

Can a tenant sublease the property?

Under the Civil Code, a tenant may sublease unless the lease expressly prohibits it, while remaining liable to the landlord (Art. 1650). For residential units covered by the Rent Control Act, subleasing or taking in boarders without the landlord’s written consent is prohibited and is a ground for ejectment (RA 9653, Secs. 8 and 9).

What happens to my lease if the owner sells the property?

For a rent-controlled residential unit, the sale is not a ground to eject you (RA 9653, Sec. 10). For other leases, the buyer may generally terminate an unrecorded lease unless the deed of sale preserves it or the buyer knew of the lease (Art. 1676). Registering a long lease protects the tenant.

Primary legal sources

Sources rechecked as of: October 4, 2026

This guide provides general Philippine legal information and is not legal advice for a particular lease. Rent-control coverage and caps change by NHSB resolution; confirm the current rules with DHSUD before relying on them.

Lease Law in the Philippines: What a Lease Must Include, Short vs Long-Term Leases, and Landlord and Tenant Rights