Know Your Rights as a Foreign Tenant in The Philippines

If you’re an expat or a foreigner moving to The Philippines it’s highly likely you’ll be renting your domicile. That’s why it’s of the utmost importance that you know your rights as a tenant.

Note: regardless of what the written law states please remember that you’re still in a developing country. As such the enforcement of the law may not be what you’re used to back home.

One phrase you’ll hear almost anytime you have a dispute with a landlord will be, ‘in the Philippines we do [insert lie]’, as an excuse. But what are your rights? In this article, I will go over which responsibilities fall on whose shoulders when renting in The Philippines.

The Rent Control Act of 2009

Rent Increases

In 2009 the Philippine legislature passed and the President signed into law the Rent Control Act of 2009. The law expires in 2020. This regulates rent increases throughout the country for nearly all domiciles excluding motels & hotels. As such the law caps rent increases at 4% per year for rents up to 3,999 pesos and 7% for rents between 4,000 to 10,000 pesos.

Your Security Deposit

Legally, your landlord may require up to 3 months advance rent, including the security deposit, prior to signing the lease. The deposit is to be kept in a bank account and if no damages have been incurred the landlord is required to return the deposit plus any interest that has accured.

Upon exiting the domicile if the landlord wishes to keep some of the deposit he must document any damages that have been incurred and provide estimates and receipts for repairs. Technically speaking if your landlord tries to keep your deposit without the proper documentation she can be jailed for 6 months and face a fine from 25,000-50,000 pesos.

Subleasing

You must obtain written permission from your landlord prior to subleasing. In general, subleasing is frowned upon by most landlords in The Philippines and can potentially ruin an otherwise healthy landlord/tenant relationship. If you must sublease please do your due diligence on who you will sublease to and be prepared to pay for any damages your landlord says the sub-lessee caused.

Evictions

In general your landlord can kick you out for the following reasons

If you haven’t paid your rent for three months
You subleased the unit without their consent (get it in writing!)
If they decide they want to use the property for their personal use. The landlord is required to give you 3 months written notice.
The need of your landlord to make necessary repairs. The evicted tenant; however, retains first preference to rent the same unit.

How to Settle Disputes

If you have a dispute with your landlord that can’t be solved amongst yourselves then the first step is to file a complaint at the barangay hall. If the case isn’t resolved you can then take your landlord to court. Please note that trials in The Philippines are long and expensive. There’s a reason the Philippine judicial system was ranked one of the 5 most ineffective in the world. It’s slow and bribery is common.

The Reality

A 10-year-old boy was playing outside his home in Sinait when a man drove up in his motorcycle. When the boy asked who he was, the man brandished his gun and shooed him away. The boy told his father what happened but was brushed off.

A few minutes later Reginald “Rene” Hodgens was shot in the head in front of his residence by a known ‘murder-for-hire’ gunman. The 70-year-old Australian surfer had no wife or children and lived alone in the Philippine province of Ilocos Sur.

According to a friend of the deceased, Mr. Hodgens was in the process of vacating the house he rented due to a dispute with his landlord. Apparently, the dispute became physical at one point because the friend said that the victim ended up with a black eye.

As a foreigner, your rights are limited–even more so if you’re just on a tourist visa. That’s why if you’re unhappy with your landlord the best thing to do is shake hands and part ways. That’s what I did.

If you try to file a case against a local landlord not only will you most likely lose but your landlord could have you branded as an ‘undesirable alien‘ if she knows someone important. This would bar you from ever coming back to The Philippines. In the most extreme cases, you could end up losing your life as Mr. Hodgens found out.

Could this really happen? Here’s one Quora answer…

Yes, if the complainant has political contacts more so. My friend who is a friend of a congressman had his tenant blacklisted for not paying rent. Poor guy went on a vacation and found out he could not go back. The landlord, my friend, confiscated the poor guy’s car, personal belongings, appliances etc for back rent
Quora Answer

Further reading: Living in The Philippines: The Real Pros & Cons