Dear Attorney,

I hope you can provide guidance regarding my current situation as a tenant. Recently, we were given a 60-day notice to vacate our rented home because the landlord plans to renovate the property. Given that we have already paid one month of rent in advance and have deposited two months’ worth of rent, we were wondering if we are still obligated to pay rent for the current month. Could these deposits be applied to our final rental payments, so we are no longer required to make additional payments before moving out?

I look forward to your advice on how to proceed.

Sincerely,
Concerned Tenant

Insights

In your case, it is essential to review your lease agreement first, as this document typically governs the rules on rent payment, deposits, and notices of eviction.

Notice Period for Eviction:
The 60-day notice given by your landlord is generally acceptable as the Philippines' law under Republic Act No. 9653 or the Rent Control Act of 2009 mandates that tenants must be given notice at least three months in advance in cases of major renovations that require the property to be vacated. Since your landlord provided 60 days, this timeframe might not comply with the law. You could potentially request a longer notice period.
Utilizing Advance and Deposit Payments:
The advance and deposit payments you’ve mentioned (commonly referred to as "1-month advance and 2-month deposit") have specific purposes. Typically:
- The 1-month advance is meant to cover the first month of your tenancy.
- The 2-month deposit is often held by the landlord to cover any unpaid rent, damages to the property, or utility bills left unpaid after the lease ends.
If you are nearing the end of your stay and have complied with all the requirements of the lease (e.g., no property damage, all utilities paid), you could negotiate with your landlord to use the deposit to cover the final months of rent. However, this is not an automatic right. You would need to obtain the landlord's agreement, as many landlords prefer to return the deposit after a final inspection of the property.
Legal Right to Withhold Rent:
Under Philippine law, tenants cannot unilaterally withhold rent payments. Any arrangement to apply the deposit or advance payments in lieu of rent during the last months of tenancy must be mutually agreed upon between the landlord and tenant. If no such agreement is reached, failing to pay rent could result in legal action by the landlord.
Negotiation and Resolution:
In practice, many landlords are open to discussions about applying the advance and deposit payments towards the final rent, especially if the relationship between the tenant and landlord has been amicable. However, if your landlord refuses, you would still be legally obligated to pay rent until the end of your notice period. After that, the deposit could be refunded (subject to inspection and clearance).

Should you and the landlord fail to reach an agreement on this matter, you may consider mediation as an alternative solution. The Housing and Land Use Regulatory Board (HLURB), now known as the Department of Human Settlements and Urban Development (DHSUD), may offer mediation services for landlord-tenant disputes.