The limit is not a custom and it is not negotiable for the units it covers. It is two sentences of statute.
For units at ₱10,000 and below
“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)”
“The lessor cannot demand more than one (1) month advance rent. Neither can he/she demand more than two (2) months deposit”
One month advance, two months deposit. Asking for more on a covered unit is not a stronger position — it is an unenforceable one, and Section 13 attaches a fine and possible imprisonment to violations of the Act.
Above that line
No statutory cap. What you write in the contract is what governs — which cuts both ways. A term you did not write down is a term you do not have.
Write what the deposit may be used for and when it is returned. That single sentence is what the argument on move-out day turns on, and vague wording loses it more often than it wins it.
What the law already puts on you
These apply at any rent, whether or not the contract repeats them. Only (2) can be moved by a written stipulation.
“The lessor is obliged: (1) To deliver the thing which is the object of the contract in such a condition as to render it fit for the use intended; (2) To make on the same during the lease all the necessary repairs in order to keep it suitable for the use to which it has been devoted, unless there is a stipulation to the contrary; (3) To maintain the lessee in the peaceful and adequate enjoyment of the lease for the entire duration of the contract.”
This page quotes the law and links to the source. It is information, not legal advice, and it is not written for any one person’s situation. For your own case, go to your barangay or to a lawyer.
Law text checked 2026-08-08