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by Atty. Gabriel Ablola 🇵🇭

Tag: Implied New Lease

  • My Landlord is Charging Too Much Rent After My Lease Ended, What Can I Do?

    Dear Atty. Gab,

    Musta Atty! I hope you can shed some light on my situation. My name is Gregorio Panganiban, and I rented a small commercial space in Malolos, Bulacan for my bakery business. The 3-year lease contract ended last March 31, 2024. Due to some delays in renovating my new location, I stayed an extra month until April 30, 2024.

    My landlord, Mr. Santos, seemed okay with it initially. Back in early April, he sent me a letter demanding payment for the last month’s rent (March) which was P15,000, plus P15,000 for the extra month (April), and some interest he calculated, totaling around P32,000. I admit I haven’t paid that yet because funds were tight with the move.

    Now, just last week, I received a formal demand from his lawyer asking for P60,000! They claim I owe not just the March rent but also double rent (P30,000) for April because I was ‘trespassing’, plus higher interest and attorney’s fees. This feels incredibly unfair. My contract didn’t say anything about penalties for overstaying, just the monthly rent.

    Can he really charge me double rent just like that? And can I use his first letter, where he only asked for P32,000, to argue that the new P60,000 demand is excessive? I’m confused about my obligations for the extra month and the interest. I want to pay what’s fair, but P60,000 seems wrong. What are my rights here?

    Thank you po for your time and guidance.

    Respectfully,
    Gregorio Panganiban

    Dear Gregorio,

    Thank you for reaching out. I understand your concern regarding the significantly increased demand from your landlord after you had already received an initial calculation of your dues. It’s stressful to face such discrepancies, especially when dealing with business and moving expenses.

    Your situation touches upon key aspects of Philippine lease law, particularly regarding obligations after lease expiration, the concept of an implied new lease, and how previous communications, like the first demand letter you received, can impact subsequent claims. Let’s explore the legal principles involved.

    Navigating Obligations When You Overstay Your Lease

    When a lease contract expires and the tenant continues to occupy the property with the landlord’s tolerance, the law doesn’t simply leave the situation unregulated. Philippine law addresses this through the concept of an implied new lease or tacita reconduccion. This means that even without a formal renewal, certain terms of the original lease might continue, specifically regarding the payment of rent for the period of continued stay.

    The Civil Code provides guidance here. Article 1670 states:

    “If at the end of the contract the lessee should continue enjoying the thing leased for fifteen days with the acquiescence of the lessor, and unless a notice to the contrary by either party has previously been given, it is understood that there is an implied new lease, not for the period of the original contract, but for the time established in Articles 1682 and 1687. The other terms of the original contract shall be revived.” (Article 1670, New Civil Code of the Philippines)

    This means that by staying beyond March 31st with Mr. Santos’s apparent initial consent (or lack of immediate objection), an implied lease was likely created, typically on a month-to-month basis if your rent was paid monthly. This establishes your obligation to pay rent for the extra month (April) you occupied the space. The rate would generally be based on the previous rent (P15,000), unless a different agreement was made or specific penalties were clearly stipulated in the original contract for holding over.

    Regarding the first demand letter you received asking for approximately P32,000, this document could be significant. Presenting evidence, such as a demand letter from the opposing party that states a lower amount owed, can sometimes be interpreted as an admission by that party, or at least strong evidence regarding the amount due at that specific time. As established in jurisprudence:

    “A demand letter presented in evidence by a lessee to prove a lesser liability for unpaid rentals than that awarded by the trial court constitutes an admission of liability to the extent of such lesser amount.”

    By presenting the first letter where Mr. Santos calculated your dues at P32,000 (covering March rent, April rent, and some interest), you are effectively acknowledging liability up to that amount based on his own computation at that time. It weakens his later claim for a much higher sum unless he can provide a solid justification for the increase, such as additional damages proven or contractual penalties you might have overlooked.

    Interest on unpaid rent is also a factor. If the contract doesn’t specify an interest rate for delays, the legal interest rate applies. Article 2209 of the Civil Code states:

    “If the obligation consists in the payment of a sum of money, and the debtor incurs in delay, the indemnity for damages, there being no stipulation to the contrary, shall be the payment of the interest agreed upon, and in the absence of stipulation, the legal interest, which is six percent per annum.” (Article 2209, New Civil Code of the Philippines)

    Currently, the legal interest rate under Bangko Sentral ng Pilipinas Circular No. 799, series of 2013, is 6% per annum, calculated from the time of demand (either extrajudicial, like the demand letter, or judicial, upon filing a case). Your landlord’s claim for interest is valid in principle, but the rate and calculation must be correct.

    The claim for double rent or ‘trespassing’ fees, and substantial attorney’s fees, usually requires a basis either in the lease contract itself (as stipulated penalties or liquidated damages) or proof of bad faith in breaching the contract. If your contract doesn’t mention such penalties for overstaying, and you vacated reasonably promptly after the extra month, claiming excessive amounts might be unwarranted. Acting in bad faith involves a conscious disregard of duty or known rights.

    “Bad faith ‘means breach of a known duty through some motive or interest or ill will.’ x x x Moral damages may be awarded when the breach of contract is attended with bad faith.”

    While your overstay was a breach, whether it constitutes bad faith justifying significantly higher damages depends on the circumstances. If the landlord seeks excessive damages without clear contractual or legal basis, it might be challenged.

    Practical Advice for Your Situation

    • Review Your Lease Contract Carefully: Check for any clauses regarding penalties, interest rates for delayed payments, or procedures for overstaying (holdover clause). This is crucial to determine if the P60,000 demand has any contractual basis.
    • Preserve the First Demand Letter: Keep the original P32,000 demand letter safe. This is your strongest piece of evidence to argue against the inflated P60,000 claim.
    • Communicate Formally: Respond to the lawyer’s demand letter in writing. Acknowledge the unpaid March rent and the rent for the April overstay (P15,000 each). State your willingness to pay this base amount plus the legally applicable interest (6% p.a. from the date of the first demand).
    • Question the Excessive Charges: Clearly state that you dispute the claim for double rent and excessive fees, referencing the absence of such penalties in your contract and the landlord’s initial lower demand.
    • Use the First Letter Strategically: Mention the landlord’s initial calculation of P32,000 as evidence of the understood liability at that time. Argue that the subsequent increase is arbitrary and lacks basis.
    • Consider Negotiation: Propose a settlement based on the undisputed amounts (March rent + April rent + calculated 6% interest). This shows good faith on your part.
    • Seek Legal Counsel for Negotiation/Response: Given that a lawyer is now involved on the landlord’s side, it would be wise to have your written response reviewed or drafted by your own counsel to ensure it is legally sound and protects your interests.

    Dealing with lease disputes can be challenging, Gregorio. By understanding your rights regarding implied leases and using the initial demand letter effectively, you can build a strong position to contest the excessive charges. Focus on paying what is clearly owed based on the contract and the law, while firmly questioning the unsubstantiated increases.

    Hope this helps!

    Sincerely,
    Atty. Gabriel Ablola

    For more specific legal assistance related to your situation, please contact me through gaboogle.com or via email at connect@gaboogle.com.

    Disclaimer: This correspondence is provided for informational purposes only and does not constitute legal advice. For specific legal guidance tailored to your situation, please schedule a formal consultation.

  • Can My Landlord Evict Me Without Proper Notice?

    Dear Atty. Gab,

    Musta Atty! I’m writing to you because I’m really confused about my rights as a tenant. I’ve been renting a small apartment in Manila for the past five years. My lease agreement expired a few months ago, but I continued to pay my rent every month, and my landlord accepted it without saying anything. Now, suddenly, I received a letter from my landlord demanding that I vacate the premises within 15 days because he wants to renovate the place for his family. He claims he doesn’t need to give me any more notice since the original lease expired.

    I’m worried because finding a new place in such a short time is going to be very difficult, especially with my limited budget. I always paid my rent on time and never caused any trouble. Do I have any legal protection in this situation, or can my landlord just kick me out like that? I would really appreciate your advice on what I should do. Salamat po!

    Sincerely,
    Fernando Lopez

    Dear Fernando,

    Kumusta Fernando! I understand your concerns about the sudden notice to vacate your apartment. Based on the details you provided, it seems you might have grounds to contest your landlord’s demand. The key issue here is whether an implied new lease was created when your original lease expired and you continued paying rent, which your landlord accepted.

    Understanding Tacita Reconduccion: An Implied Lease Renewal

    In your situation, the principle of tacita reconduccion, or implied new lease, may apply. This principle, as recognized in Philippine law, suggests that when a lease contract expires, but the tenant continues to occupy the premises and the landlord accepts rent payments, a new lease agreement is created by implication. However, the duration of this implied lease is not necessarily the same as the original contract.

    The Civil Code addresses this situation directly, providing guidelines for determining the duration of the implied lease. It’s crucial to understand that the terms of the original lease are revived in the implied new lease, but the period is determined by law, not by the original contract. This principle is based on the landlord’s acquiescence to the tenant’s continued occupancy.

    According to Article 1670 of the Civil Code:

    Article 1670. If at the end of the contract the lessee should continue enjoying the thing leased for fifteen days with the acquiescence of the lessor, and unless a notice to the contrary by either party has previously been given, it is understood that there is an implied new lease, not for the period of the original contract, but for the time established in Articles 1682 and 1687. The other terms of the original contract shall be revived.

    Further clarification is provided by Article 1687 of the Civil Code:

    Article 1687. If the period for the lease has not been fixed, it is understood to be from year to year, if the rent agreed upon is annual; from month to month, if it is monthly; from week to week, if the rent is weekly; and from day to day, if the rent is to be paid daily. However, even though a monthly rent is paid, and no period for the lease has been set, the courts may fix a longer term for the lease after the lessee has occupied the premises for over one year. If the rent is weekly, the courts may likewise determine a longer period after the lessee has been in possession for over six months. In case of daily rent, the courts may also fix a longer period after the lessee has stayed in the place for over one month.

    Given that you paid your rent on a monthly basis, the implied new lease is generally considered to be on a month-to-month basis. This means that while your landlord cannot simply evict you without any notice, he is only required to give you a notice to vacate that corresponds to the period of the lease, which in your case, appears to be one month.

    This requirement of proper notice is rooted in the concept of due process and fairness, ensuring that tenants are not unfairly displaced from their homes. While the landlord has the right to eventually repossess the property, that right must be exercised in accordance with the law.

    Section 1. Who may institute proceedings, and when. — Subject to the provisions of the next succeeding section, a person deprived of the possession of any land or building by force, intimidation, threat, strategy, or stealth, or a lessor, vendor, vendee, or other person against whom the possession of any land or building is unlawfully withheld after the expiration or termination of the right to hold possession, by virtue of any contract, express or implied, or the legal representatives or assigns of any such lessor, vendor, vendee, or other person, may, at any time within one (1) year after such unlawful deprivation or withholding of possession, bring an action in the proper Municipal Trial Court against the person or persons unlawfully withholding or depriving of possession, or any person or persons claiming under them, for the restitution of such possession, together with damages and costs.

    It’s also important to note that the landlord’s claim of needing the property for renovation does not automatically override your rights as a tenant. The landlord must still comply with the legal requirements for terminating the lease and providing proper notice. Any attempt to forcibly evict you without a court order would be considered unlawful.

    Remember that the burden of proof lies with the landlord to demonstrate that the termination of the lease is justified and that proper notice has been given. You are entitled to assert your rights and defend your possession of the property until a court order is issued.

    Practical Advice for Your Situation

    • Document everything: Keep records of all rent payments, communication with the landlord, and any notices received.
    • Send a formal response: Respond to the landlord’s notice in writing, asserting your rights as a tenant under the principle of implied new lease and requesting clarification on the reasons for eviction.
    • Negotiate with the landlord: Explore the possibility of negotiating a longer period to vacate the premises or compensation for relocation expenses.
    • Seek mediation: Consider seeking assistance from the barangay or a mediation center to facilitate a dialogue with the landlord and reach a mutually agreeable solution.
    • Consult with a lawyer: It’s always advisable to consult with a lawyer to review your specific situation and provide legal advice tailored to your circumstances.
    • Prepare for possible legal action: Be prepared to defend your rights in court if the landlord initiates an eviction case against you.

    I hope this information clarifies your rights and empowers you to take appropriate action. Remember, you are not powerless in this situation. By understanding your rights and seeking legal advice, you can protect yourself from unlawful eviction and ensure a fair resolution to this dispute.

    Hope this helps!

    Sincerely,
    Atty. Gabriel Ablola

    For more specific legal assistance related to your situation, please contact me through gaboogle.com or via email at connect@gaboogle.com.

    Disclaimer: This correspondence is provided for informational purposes only and does not constitute legal advice. For specific legal guidance tailored to your situation, please schedule a formal consultation.