Dear PAO, I am planning to rent a house in Quezon City with a monthly rent of P4,500. However, the owner of the house is requiring an upfront payment in the sum of P 27,000, which, according to him, will be an advanced payment of the monthly rent for three months and a security deposit equivalent to the monthly rental for three months. I tried to negotiate with HIM, BUT HE REFUSED TO ACCEPT. I find the sum excessive, and would like to know if the owner is correct in requiring an upfront payment equivalent to six months of the monthly rent. Carl

Dear Carl,

Please be informed that Sections 5, 7, and 13 of Republic Act 9653, otherwise known as “Rent Control Act of 2009,” provide as follows:

“Section 5. Coverage of this Act. - All residential units in the National Capital Region and other highly urbanized cities, the total monthly rent for each of which ranges from One peso (P1.00) to Ten thousand pesos (P10,000.00) and all residential units in all other areas, the total monthly rent for each of which ranges from One peso (P1.00) to Five thousand pesos (P5,000.00) as of the effectivity date of this Act shall be covered, without prejudice to existing contracts. “xxx

“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.

“xxx

“Section 13. Penalties. - A fine of not less than Twenty-five thousand pesos (P25,000.00) nor more than Fifty thousand pesos (P50,000.00) or imprisonment of not less than one (1) month and one (1) day to not more than six (6) months, or both, shall be imposed on any person, natural or judicial, found guilty of violating any provision of this Act.” (Emphasis supplied).

Pursuant to the aforementioned provisions of the law, and for the reason that the value of the house you want to rent does not exceed P10,000, the owner of the house cannot charge you an amount exceeding one month’s advanced rent, and two months’ deposit.

Therefore, his or her demand from you for payment equivalent to a total of six months’ worth of rent is illegal, and thus, he may be made liable under the law.

We hope that we were able to answer your queries. This advice is based solely on the facts you have narrated and our appreciation of the same. Our opinion may vary when other facts are changed or elaborated on.