Getting The Deposit Back-An Dear Pao Article

[Call me bubba]

Have read an article in the manila times(,net) online edition about 1 family having a problem

of getting back their deposit, I thought this MAY be useful to those that are planning to move here shortly or now renting and have a deposit "waiting" to be returned back to them,

Dear Pao,

We are currently renting a studio apartment in Quezon City owned by a Chinese businessman. We are going to transfer to our new house which I loaned from Pag-ibig.

My landlord told us that we cannot consume our two months deposit but he will give us a fair discount of paying half of the rent which I think isn’t fair.

In other words, our deposit will be forfeited in their favor. They insisted that we have to stay for one year for us to be able to refund the deposit as per the contract.

But there was no contract to speak of, not even a verbal one. Now they are telling that if we don’t pay the rent, they will padlock our things. I just want to ask if they have the right to padlock our things and not allow us to consume our deposit which is equivalent to P13,000?

I am just an ordinary employee and earning just enough money and losing that amount is quite a big thing for me.

Grace

Dear Grace,

The lease contract you entered into with the Chinese businessman is covered by

Republic Act No.9653 or the Rent Control Law of 2009

Under the said law, the amount you deposited with your lessor shall not be forfeited in his favor unless there were utility bills which you left unpaid or there were broken parts of the apartment that is attributed to you. Section 7 of the said law clearly states:

“SEC. 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 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.”

Thus, in the absence of the conditions mentioned in the aforesaid law, you may still recover the amount you deposited. The claim of your lessor that since the contract was terminated prior to the original period agreed upon thus you can no longer recover the deposit is of no moment, for this was not really agreed upon and that it is contrary to the abovementioned law.

On the other hand, if your lessor will seal off the apartment if you will not pay rent, he may be held liable for coercion under the Revised Penal Code of the Philippines.

http://www.manilatimes.net/index.php/dear-pao/31865-rent-deposit-is-not-forfeited-in-favor-of-landlord

[i am bob]

Wow! I guess that answers a few questions like - can they ask for 1 years worth of rent up front? But before we all get really comfy thinking that we don't have to do more than the 1 month rent / 2 months deposit, I think we should double check to make sure this covers all situations!

Thanks Mr Pittman in Saigon! (I still like the old name better... hehe! :mocking: )