We’ve all heard the horror stories about foreigners not getting their security deposits back despite leaving the place in pristine condition. Unfortunately with foreigners, the perception here is that ‘he’s rich, he can afford it’. Considering the average income here is $350 that’s true but it doesn’t make it sting any less when your deposit is…let’s keep it real…stolen.
How to Get Your Security Deposit Back in the Philippines
An informal survey of expats regarding their deposits:
I’m normally an easygoing guy. I let small overcharges slide, but not my security deposit. When it comes to my security deposit for some reason I just can’t let it go!
I mean we’re talking about $500-$2000 which is not a small amount of money! I’ve rented many places here and most of the time I’ve gotten my security deposit back minus inflated damages. I’ve only had 2 landlords that refused to give it back and here’s what I did.
Step 1: Be a Good Tenant
I pay my rent on time, I’m friendly, I don’t bug my landlords over small things. Building a good relationship with your landlord goes a long way in Asia and you’ll have a stronger moral ground for the return of your deposit.
Whenever I’m about to move I have the place cleaned and I take a video and send it to the landlord.
Most of the time that’ll be enough to get them to cough up your deposit.
Step 2: Get it in Writing
When I move out I send the video along with a text asking when I should expect to receive my deposit back. Notice I said ‘when’ not ‘if’. The language is important so they know I expect to get my deposit back.
If she doesn’t respond after 24 hours I’ll send the same message again, then again, and again. I’m being polite but letting her know I’m not going to drop this and I want my deposit back.
If she says there’s damages I’ll ask or a receipt and a phone number of the person who did the work so I can call them. If the amount she’s deducting is small then just go with it. Fighting for small amounts will drive you crazy here.
90% of landlord/tenant deposit disputes will end here but in case it doesn’t we go to step 3.
Step 3: Send a formal demand letter
Many tenants will threaten to sue but landlords know that most of the time it’s an empty threat.
Sending a formal demand letter will let her know that you mean business. Make sure you include relevant statutes and that you’ll take legal action if your deposit isn’t returned. Your letter should look something like this:
Dear [Landlord’s Name],
I am writing to formally demand the return of my security deposit in the amount of ₱[Amount], which I paid upon signing the lease agreement for the property located at [Rental Address].
As you are aware, the lease contract ended on [Lease Termination Date], and I have vacated the premises in compliance with our agreement. I have fulfilled all my obligations under the lease, including full payment of rent and utilities, and I returned the unit in good condition, subject only to normal wear and tear.
Under Article 1659 of the Civil Code of the Philippines, a landlord is required to return the deposit to the tenant after the lease terminates, except for amounts deducted to cover unpaid rent or damages beyond reasonable wear and tear. Additionally, Article 1169 provides that when an obligation involves the delivery of a sum of money, it must be performed without delay. Given that a reasonable period has passed since my move-out date, I request the full return of my deposit without further delay.
Please consider this as my final demand for the return of my security deposit. I expect the amount to be remitted via [Preferred Payment Method] within [Reasonable Timeframe, e.g., 7 or 10] days from receipt of this letter. If you fail to comply, I will be left with no option but to escalate this matter to the Barangay for mediation in accordance with the Katarungang Pambarangay Law (Presidential Decree No. 1508), and if necessary, file a small claims case to recover the amount due.
I hope to resolve this matter amicably. Kindly confirm receipt of this letter and provide your response at your earliest convenience.
Sincerely,
[Your Full Name]
[Your Contact Information]
Step 4: Take Her to the Barangay
However, if she’s recalcitrant (because she spent it) you’ll have to file a complaint with the appropriate barangay. It’s easy and it costs 50 pesos. This is what I did. To prepare make sure you print out and highlight the appropriate statutes. Stay calm, she may try to play victim like my landlord did. If you’re prepared and professional the punong will see through that.
I filed my claim on a Thursday and it was heard the following Tuesday if memory serves me. The hearing took about an hour. What’s really nice is in the Philippines the barangay decisions are legally binding.
That’s what I did and she agreed finally to pay:
Step 5: Decide How Far You Want to Take This
I’ve never gone beyond the barangay. If she still won’t agree to pay then you’ll have to go to court which can be costly. You may have to hire a lawyer. For $2000 yeah I’d do it but think about how much a lawyer is going to cost you.
Also, if she’s willing to go all the way to court she could just be recalcitrant or just doesn’t have the money. If that’s the case you’ll get a piece of paper that says you won. Whoopie do. You can try to put a lien on her property but that’ll just cost more money and that still doesn’t guarantee repayment.
Some things I do to protect myself is I never pay more than 2+1 (two months advance one month deposit) in Makati and 1+1 outside of Makati. That’s a key negotiating point and if they won’t agree to it I move on.
Step 6: Go to Small Claims Court
Alright, so you’ve decided that you have a lot of time on your hands and/or you just can’t let her get away with stealing your deposit. Great so now it’s time to go to court.
You may go to the Metropolitan or Municipal Trial Court (MTC) where the property is located and file a Statement of Claim with your lease agreement, demand letter, receipts, and any other proof that you’re owed the money. The process is pretty straightforward, and cases are usually resolved in one or two hearings.
If you have clear evidence and she has no valid reason to keep your deposit, you’ll most likely win.
The bad news? If she doesn’t have the money or just refuses to pay, you’ll have to go through another process to enforce the ruling
Step 7: Enforce the Judgment
Remember the OJ Simpson case? It was pretty much open and shut. The Goldman’s got their judgment. However, since the celebration was over they discovered that winning and getting money are two very different things. Unfortunately, it can be the same in the Philippines.
Once you win in Small Claims Court some landlords will suddenly ‘remember’ they have the cash when they see legal action moving forward, If not you can file for a Writ of Execution from the Metropolitan Trial Court (MeTC) or Municipal Trial Court (MTC), which gives the court authority to enforce the ruling. The court can order the garnishment of bank accounts, levy personal property, or even place a lien on real estate if the landlord has assets.
However, if they claim they have no money or assets and they’re underwater with their mortgage enforcing the judgment can be tricky—you might just end up with a piece of paper saying you won.
Insights/tips:
Here’s how it’ll go down most of the time:
You: I want my deposit back
Landlord: [excuses] you’re not getting it back
You: I’ll file a case if you don’t give it back
Landlord: Go ahead
You: [File the case]
Landlord: Okay here’s your deposit back
- They almost always threaten to call immigration when you are in a legal dispute. As long as you’re clean don’t worry about that
- Ask them if they have their receipts for the BIR proving that they’re paying taxes on the rent. (Most landlords aren’t paying taxes on the rent)
- I don’t bluff. I don’t threaten to do something unless I intend to do it
