How do rental contracts and deposits work in the Philippines in 2026?

A usable contract states monthly rent, lease length, renewal rules, early termination penalties, who pays association dues, water, electricity, and internet, and how the security deposit will be returned. Many owner-drafted leases are short. Add inventory lists and move-in photos as annexes so “damage” disputes do not rest on memory: How to rent a home.

Notarisation is common for longer stays and can help enforcement, though practice varies by landlord and city. Keep passport and stay copies with the file: ACR I-Card. English contracts are widely used in BGC, Makati, and Cebu IT Park corridors: Living in Manila and Living in Cebu.

The Rent Control Act caps collections at two months’ security deposit plus one month’s advance rent. Requests far above that ceiling deserve pushback or a walk-away, especially when the unit is otherwise ordinary. Guides also note the deposit should be held in a bank account under the lessor’s name for the lease term, with accrued interest returned at the end, minus legitimate unpaid rent, utilities, or damage beyond normal wear.

In practice, many landlords still hold deposits casually. Put the refund timeline, inspection process, and allowed deductions in writing before you transfer pesos: Rent in the Philippines. Prefer documented bank transfers over cash or wallet payments: Open a bank account.

Covered lower-rent units may also face periodic rent-increase rules under rent-control policy. Confirm whether your unit is covered rather than assuming every luxury tower follows the same increase math.

Association dues can be billed to the tenant even when the owner pays the master association invoice. Confirm the monthly due amount and whether it is included in “rent.” Parking, visitor rules, and pet clauses should sit in the same document if they matter to you: Where to live.

If a counterparty wants money before you see a signed draft, treat it as a red flag: Avoid rental scams.