Dear Attorney,
I am a tenant currently renting a residential property, and I have a question about the security deposit I provided when I first moved in. As my lease is nearing its end, I am considering whether I can use the deposit to cover my last month's rent. Is this legally allowed?
Thank you for your advice.
Concerned Tenant
Insights
In the context of Philippine law, security deposits are often required in lease agreements, particularly for residential properties. A security deposit is an amount of money that the tenant gives to the lessor (landlord) at the start of the lease. Its primary purpose is to secure the performance of the tenant’s obligations under the lease contract, such as paying rent on time and maintaining the property in good condition.
Under the Civil Code of the Philippines, particularly Article 1657, tenants are required to pay rent and other agreed-upon charges in full. Unless otherwise stipulated in the contract, the security deposit cannot typically be used as payment for rent during the duration of the lease. It is meant to cover potential damages or unpaid obligations after the lease ends.
The landlord is obligated to return the security deposit to the tenant upon the expiration of the lease term, minus any lawful deductions for damage to the property or unpaid bills, such as utility arrears.
It is crucial to carefully review the lease agreement, as some landlords include specific clauses allowing or prohibiting the use of the security deposit for the last month’s rent. If there is no express provision in the contract, the deposit should remain intact until the end of the lease period, at which point the landlord will return it or deduct any necessary fees before doing so.
If disputes arise regarding the use of the security deposit, tenants may seek assistance from the barangay or file a case before the appropriate court, such as through the small claims procedure, if necessary. This legal process is intended to resolve disputes involving minor claims without the need for lengthy litigation.
In summary, unless explicitly permitted by the lease agreement, tenants should not expect to use the security deposit to cover their last month’s rent. Instead, they must fulfill their rent payment obligations while the security deposit is reserved for addressing post-lease concerns, such as damage repairs or unpaid utilities.