Davao calculator

RA 9653 Deposit & Rent-Increase Checker — Davao

Under the Rent Control Act (RA 9653, extended through Dec 31, 2026) a Davao landlord can ask for a maximum of 1 month advance plus 2 months security deposit, and raise rent no more than 1% per year on same-tenant renewals of covered units (≤ ₱10,000/mo). Enter what you are being asked for and see whether it is legal.

Data as of April 2026 · RA 9653 (Rent Control Act of 2009, extended)

Renewing a lease? Check the annual increase

Legal under RA 9653

Asked total: ₱36,000 · Legal max: ₱36,000

Legal max advance

₱12,000

1 month rent

Legal max deposit

₱24,000

2 months rent

What this means

  • The deposit terms match the RA 9653 standard (1 month advance + 2 months deposit). Total asked: ₱36,000.
  • Because the rent exceeds ₱10,000/month (the Davao City HUC ceiling for RA 9653 coverage), the annual rent-increase cap does not formally apply — but the 2+1 deposit convention is still the Davao market norm. Civil Code Articles 1654–1688 still govern deposit return and valid deductions. Landlords in premium Lanang / Bajada condos follow 2+1 by convention even though the law does not strictly require it at this rent level.

Your next steps

  1. Get the deposit terms into the signed contract exactly as stated here.
  2. Ask where the deposit will be held — RA 9653 requires a bank account under the landlord's name, earning interest that belongs to you.
  3. Request a joint move-in inspection and timestamped photos of every room and fixture.
  4. Confirm the return deadline (30 days from vacating is standard).
Methodology, formula + sources

How this is calculated

RA 9653 caps what a landlord may collect upfront at 1 month advance rent + 2 months security deposit. The tool sums what you are being asked for, compares it to that legal total, and reports any overcharge. For covered units (≤ ₱10,000/mo in Davao, a Highly Urbanized City) it also checks the same-tenant annual-increase cap, set at 1% for 2026 (below the 7% statutory ceiling).

Formula

legalTotal = rent×1 (advance) + rent×2 (security)
asked = rent×adv + rent×dep + extraCharges
overcharge = max(0, asked − legalTotal)
maxLegalRent = lastYearRent × (1 + 0.01)   // covered units, same tenant

Constants + data sources (each dated)

Value used Source As of
Deposit cap: 1 month advance + 2 months security RA 9653 §7 (Rent Control Act) 2026-04
Regime in force through: 2026-12-31 (NHSB Resolution 2024-01) National Human Settlements Board (under DHSUD) resolution extending RA 9653 through Dec 31, 2026 2026-04
Davao covered ceiling: ₱10,000/mo (HUC ceiling) RA 9653 + DHSUD 2026-04
2026 annual-increase cap: 1% (statutory ceiling 7%) PIA / DHSUD — NHSB capped the 2026 annual increase for same-tenant renewals at 1% (below the 7% statutory ceiling) 2026-04
Small-claims ceiling: ₱1,000,000 Supreme Court Rules on Expedited Procedures in First Level Courts (A.M. No. 08-8-7-SC as amended) 2026-04

Worked example (reproduce this by hand)

Rent ₱12,000. Landlord asks for 1 month advance + 3 months deposit + ₱5,000 "cleaning fee".

  1. legalTotal = 12,000 + 12,000×2 = ₱36,000
  2. asked = 12,000×1 + 12,000×3 + 5,000 = ₱53,000
  3. overcharge = 53,000 − 36,000

→ Overcharge ₱17,000 — the 3rd deposit month and the cleaning fee both exceed the RA 9653 cap

Assumptions

  • Cleaning deposits, reservation fees, "key money" and extra advance months all count toward the upfront cap.
  • Condo HOA move-in deposits and a separately negotiated pet deposit are billed outside the rental deposit and are not overcharges.
  • Deposit must be held in an interest-bearing bank account; interest accrues to the tenant on return.

Known limits — what this does not model

  • NHSB Resolution 2024-01 only runs through 2026-12-31 — a renewal effective in 2027 may sit under a changed or lapsed cap.
  • Above the covered ceiling the rent-increase cap no longer applies; Civil Code Arts. 1654–1688 still govern deposit return.
  • Does not file your claim — recovery path is written demand → barangay mediation → small claims.
Last verified 2026-05-19 · Next review Next NHSB resolution (current expiry 2026-12-31)

Why the 1+2 rule exists

Before RA 9653, landlords commonly demanded 6–12 months of rent upfront, locking out lower-income tenants entirely. The 2009 law established a single national ceiling: 1 month's rent in advance, 2 months in deposit. Subsequent extensions (most recently via the ongoing 2024–2026 extension period) keep the framework in force. Davao City does not have a local ordinance that varies the cap — the national rule is the only rule here.

What the deposit actually covers

The deposit is a security instrument for three specific categories: unpaid rent, unpaid utilities (DLPC, DCWD, internet) recorded in the tenant's name, and damage to the unit beyond normal wear. That is it. Normal wear — faded paint after 2 years, scuffed flooring from foot traffic, small nail holes from hanging frames — is not deductible. Repainting to re-let the unit is not deductible. Appliance depreciation from normal use is not deductible.

How to protect your deposit before there is a problem

  • Get the exact deposit amount and return terms into the signed lease. Never pay before signing.
  • Ask for an official receipt (OR) for every payment. A GCash screenshot is proof of transfer, not proof of legal receipt.
  • Take timestamped photos / video of every room, fixture, and appliance on move-in day. Email them to yourself to create a dated record.
  • Report any existing damage in writing and get the landlord's acknowledgment before you move in a single box.
  • Keep all utility receipts. Unpaid utilities are the one legitimate deposit deduction you cannot argue away.

If you already paid an illegal amount

Do not panic. A lease signed under illegal terms is not unenforceable as a whole — but the specific overcharge is recoverable. Send a written demand letter citing RA 9653, keep proof of every payment, and escalate through barangay mediation if the landlord refuses. In Davao, barangay mediation resolves most deposit disputes without reaching small claims court because landlords know the law is clear and court time is expensive.

Frequently asked questions

What is the legal maximum deposit in the Philippines?
RA 9653 caps residential deposits at 1 month advance rent + 2 months security deposit — a total of 3 months' rent upfront, nothing more. The law explicitly prohibits additional "cleaning deposits," "reservation fees," or extra months framed as advance payments. The only exception is brand-new residential units during their first occupancy.
Is RA 9653 still in force in 2026?
Yes. RA 9653 was extended through December 31, 2026 via NHSB Resolution 2024-01 (issued by the National Human Settlements Board under DHSUD). The 1+2 deposit rule and the annual-increase cap both remain in effect.
Does RA 9653 cover my Davao rental?
For deposit caps, yes — the 1 month advance + 2 months deposit rule applies to all residential leases in the Philippines regardless of rent level. For the annual rent-increase cap specifically, coverage applies up to ₱10,000/month in Davao City (which is a Highly Urbanized City, so the HUC ceiling applies, not the ₱5,000 non-HUC ceiling used elsewhere in Mindanao). Above ₱10,000/month, the rent-increase cap falls away but Civil Code Articles 1654–1688 still govern lease terms and deposit return.
How much can my landlord raise the rent in 2026?
For same-tenant renewals of covered units (≤ ₱10,000/mo in Davao), DHSUD's NHSB capped the 2026 annual increase at 1% — significantly below the 7% statutory maximum under RA 9653 itself. When a new tenant signs, the landlord may set any starting rent subject to market conditions. Above the coverage ceiling, no formal cap applies.
What if I already paid more than the legal maximum?
Send a written demand to the landlord citing RA 9653 and requesting the overpayment back within 15 days. If they refuse, file at your barangay (Katarungang Pambarangay mediation is free and is a required first step before court). If mediation fails, small claims court handles amounts up to ₱1,000,000 per Supreme Court A.M. No. 08-8-7-SC (as amended) and does not require a lawyer.
Can a landlord charge a separate "pet deposit" on top of 2+1?
Pet deposits sit in a legal grey zone — not explicitly regulated by RA 9653. In practice Davao landlords charge ₱2,000–5,000 lump sum or ₱500–1,500/month extra pet rent. These are negotiable and should be written into the lease. A pet deposit in addition to the legal 2+1 is not automatically illegal, but it is negotiable and must be documented.
Is the condo association move-in fee part of my rental deposit?
No. Condo association move-in deposits (₱5,000–15,000) are billed by the condominium corporation, not your landlord, and are governed by the condo corp's own rules — separate from RA 9653. They are typically refundable when you move out, same as rental deposits.

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These estimates are for budgeting. Confirm current rates and legal terms with your provider or a Davao-based lawyer for binding decisions.