Apartment rent regulation

Dear PAO,

I am looking for a vacant apartment for lease in

Quezon City since I recently transferred to another company. The owner of the apartment wants to collect a one-month advance rent and two months’ deposit. He told me that I needed to pay him P30,000 before I could move to his apartment and pay P10,000 every month. Can the owner collect P30,000 from me before I can transfer to his apartment?

Apollo

Dear Apollo,

To answer your question, we shall refer to the provisions of Republic Act 9653 or “An Act Establishing Reforms In The Regulation Of Rent Of Certain Residential Units, Providing The Mechanisms Therefor And For Other Purposes.”

“Section 7. Rent and Requirement of Bank Deposit. — Rent shall be paid in advance within the first five (5) days of every current month or the beginning of the lease agreement unless the contract of lease provides for a later date of payment. The lessor cannot demand more than one (1) month advance rent. Neither can he/she demand more than two (2) months deposit which shall be kept in a bank under the lessor’s account name during the entire duration of the lease agreement. Any and all interest that shall accrue therein shall be returned to the lessee at the expiration of the lease contract.

“In the event however, that the lessee fails to settle rent, electric, telephone, water or such other utility bills or destroys any house components and accessories, the deposits and interests therein shall be forfeited in favor of the latter in the amount commensurate to the pecuniary damage done by the former.”

Applying the aforecited law in your case, it is clear that the owner of the apartment can collect a one-month advance rent and two months deposit from you, which shall also be returned to you at the expiration of the lease contract. Thus, the owner of the apartment can collect P30,000 from you before you can transfer to his apartment. This is understandable since the advance rent and deposit which the lessor will require from you may be used to answer for your unsettled rent, electric, telephone, and water bills or in case you destroy any part of the house.

It is likewise apropos to reiterate here that the owner of the apartment shall allow you to recover the excess on the deposit and the advance rent you paid at the beginning of your contract of lease once your contract of lease is terminated, bills are paid and repairs are made.

This opinion is solely based on the facts you have narrated and our appreciation of the same. Thus, the opinion may vary when the facts are changed or further elaborated. We hope that we were able to enlighten you on the matter.