‘Invisible’ tenant

Dear Atty. Peachy,

For the past several years, I have been leasing my apartment to an elderly man who seemed like a decent tenant when he first moved in. He promised to take good care of the place, and for a while, everything went smoothly. However, over the past three years, his payment habits began to change. At first, he was just a little late, and I tried to be understanding. After all, he was an older gentleman, and I thought he might be going through some tough times.

As his payments became increasingly irregular, I found myself sending a few demand letters to remind him of his obligations. I also took the step of going to our barangay to seek mediation. At those meetings, he would promise to pay, and sometimes he did — though not consistently.

For the past seven months, I have faced nothing but silence and missed payments. This situation has really taken a toll on me because the rental income from this apartment is one of my few sources of income. I recently sent another demand letter, but it was met with the same silence. I returned to the barangay once more, but each time, it feels like I am chasing after my own shadow.

I am worried and feel helpless. What can I do next? I cannot afford to just let this slip any longer, but I also want to handle the situation fairly and legally. I really need this rental income, and I am afraid if I let it drag on, I will end up losing everything. What are my options under Philippine law to address this issue with my tenant who hasn’t paid rent for the last seven months after repeatedly failing to pay and ignoring my demands?

Arnold

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Dear Arnold,

I am sorry to hear about the difficulties you are facing with your tenant. In the Philippines, the law provides several avenues for lessors like yourself to address issues related to non-payment of rent. Start by thoroughly reviewing your lease agreement to ensure you understand all the terms, particularly those related to rent payments, late fees, and any penalties for default. Since you have already sent several demand letters, consider sending a formal final demand letter. This letter should clearly state the total amount of rent owed, specify a deadline for payment and explicitly inform the tenant that failure to pay will result in the termination of the lease and may lead to legal action. If the tenant still fails to pay, you can proceed to file an ejectment case (Unlawful Detainer) against him in the appropriate Municipal Trial Court. Under the Philippine Civil Code, you have the right to terminate the lease and seek judicial eviction due to non-payment of rent and breach of the lease agreement.

Atty. Peachy Selda-Gregorio