How Must Landlords Demand Rental Arrears Before Eviction?

Introduction

Before a landlord may file an unlawful detainer case based on unpaid rent, the tenant must generally receive a proper demand to pay the rental arrears or comply with the lease and to vacate the premises. The demand is not merely a courtesy. In an unlawful detainer action, compliance with the demand requirement is ordinarily a jurisdictional prerequisite to filing the case.

A landlord who files suit without making the required demand, or who gives an unclear and incomplete demand, risks dismissal of the eviction case. The demand should therefore identify the lease violation, state the amount claimed, require payment or compliance, expressly require the tenant to vacate, and allow the period required by the Rules of Court to expire.

What Law Governs the Demand?

Section 2, Rule 70 of the Rules of Court provides that, unless otherwise stipulated, an action by the lessor may be commenced only after demand is made upon the lessee to pay or comply with the conditions of the lease and to vacate.

For leased land, the tenant must be given 15 days to comply. For leased buildings, the period is 5 days. The period is counted from the tenant’s receipt of the demand, or from valid service upon the person found on the premises or by posting when no person is found there.

The Rules of Court also provide that forcible entry and unlawful detainer cases are generally governed by the summary procedure, regardless of the amount of damages or unpaid rentals claimed, except in cases covered by agricultural tenancy laws or another law expressly providing otherwise. These rules are found in the 2019 Amendments to the 1997 Rules of Civil Procedure, particularly Rule 70, Sections 2 and 3.

What Must the Landlord Prove?

In Zaragoza v. Iloilo Santos Truckers, Inc., G.R. No. 224022, 2017, the Supreme Court identified the essential matters that must be shown in an unlawful detainer case:

• Initial lawful possession: The tenant originally possessed the premises by virtue of a valid and subsisting lease.
• Loss of the right to possess: The tenant’s possession became unlawful because of nonpayment, breach of the lease, or termination of the tenancy.
• Continued withholding of possession: The tenant remained in possession despite the landlord’s right to recover it.
• Proper demand: The landlord demanded payment or compliance and demanded that the tenant vacate, and the case was filed within one year from the last demand.

The landlord should ordinarily present the lease contract and evidence of the tenant’s violation. A demand letter alone does not establish the entire cause of action if the landlord cannot prove the lease and the alleged default.

What Should the Demand Letter Contain?

A proper demand letter should contain the following information:

• The names of the landlord and tenant;
• The complete address and description of the leased premises;
• The lease agreement or the basis of the tenancy;
• The specific months or periods for which rent remains unpaid;
• The amount of rental arrears, together with any properly chargeable amounts under the lease;
• The contractual provision or obligation allegedly violated;
• A definite demand to pay the arrears or comply with the lease;
• A definite demand to vacate and surrender possession; and
• The applicable period for compliance—15 days for land or 5 days for buildings.

The letter should also state that failure to comply within the stated period will result in the filing of an unlawful detainer case and claims for unpaid rent, damages, attorney’s fees, and costs when legally supportable.

Why Must the Demand Include Both Payment and Vacation?

For an unlawful detainer case based on unpaid rent, the landlord must generally demand both payment or compliance and vacation of the premises. The two demands serve different purposes.

The demand for payment or compliance informs the tenant of the alleged default and gives the tenant an opportunity to cure it. The demand to vacate, followed by the tenant’s refusal to surrender possession, establishes the unlawful withholding of possession.

In Limbauan v. Acosta, G.R. No. 148606, 2008, the Supreme Court held that the demand required by Section 2, Rule 70 is a jurisdictional requirement in an unlawful detainer case based on nonpayment of rentals. The Court emphasized that the action may be commenced only after the tenant fails to comply with the demand within 15 days for land or 5 days for buildings.

Must the Letter Use the Word “Vacate”?

The safest practice is to use the word “vacate” and to demand the surrender of possession expressly. However, the Supreme Court has recognized that the word need not be used in a talismanic manner if the letter, read as a whole, clearly communicates the landlord’s intention to recover possession and institute ejectment proceedings.

In Siapian v. Court of Appeals, G.R. No. 111928, 2000, the Court stated that the demand must communicate the landlord’s demand for payment and the intention to institute legal action for ejectment if the tenant fails to comply. Nevertheless, landlords should avoid relying on implied language because an ambiguous letter may be challenged as insufficient.

Why Must the Demand Be Definite?

The demand must not leave the tenant uncertain about what must be done. A letter that merely threatens legal action, asks the tenant to negotiate, or gives an indefinite alternative may not satisfy Rule 70.

In Union Bank of the Philippines v. Philippine Rabbit Bus Lines, Inc., G.R. No. 205951, 2016, the Supreme Court found insufficient a notice stating that the tenant had 15 days to vacate, after which the account would still be referred for appropriate legal action. The Court held that the wording did not amount to the final and definite demand contemplated by Section 2, Rule 70.

Similarly, a demand that gives the tenant the option to renew an expired lease or vacate may be inadequate where it does not make a definite demand for surrender of possession. The landlord should therefore avoid conditional or open-ended wording.

How Should the Demand Be Served?

Section 2, Rule 70 allows the demand to be made upon the tenant or through written notice served upon the person found on the premises. If no person is found there, the notice may be posted on the premises.

For evidentiary purposes, personal service with a signed acknowledgment is preferable. If the tenant refuses to receive or sign the letter, the landlord should document the refusal through the process server, witnesses, photographs, or other competent evidence.

Registered mail, courier service, or another permitted mode may also be used when the landlord can prove actual or legally sufficient service. The landlord should preserve the demand letter, proof of delivery, registry or courier receipts, return card, photographs of posting, and affidavits of service.

How Long Must the Landlord Wait?

The landlord must wait until the period stated in Rule 70 has expired without full compliance:

Type of Premises	Minimum Period After Demand
Land	15 days
Building	5 days

The applicable period is ordinarily determined by the nature of the leased premises. The demand should state the period clearly and should not give a shorter period than the Rules of Court require, unless a different period is validly stipulated or expressly provided by applicable law.

What If the Tenant Partially Pays?

Partial payment does not necessarily cure the default. In Zaragoza v. Iloilo Santos Truckers, Inc., the Supreme Court held that consignation must fully cover the amounts due under the lease to constitute valid compliance. Partial consignation or incomplete payment, even if made in good faith, may remain a violation of the lease.

The landlord should account carefully for all payments received and should avoid issuing a receipt or written acknowledgment that could reasonably be interpreted as a waiver of the remaining arrears or acceptance of continued possession.

What If the Landlord Refuses to Accept Rent?

If the landlord refuses to accept the rent, the tenant may have legal remedies that can affect an eviction case. Under the Rental Reform Act of 2002, R.A. No. 9161, a tenant covered by the statute could use consignation or deposit mechanisms in specified circumstances involving refusal to accept rent.

However, the applicability of rent-control statutes depends on the type of property, the amount of rent, the date of the tenancy, and the current legal status of the particular provision. A landlord should therefore verify whether the tenancy falls within a presently applicable rent-control regime before relying on the ordinary lease-default rules alone.

For agricultural leasehold relations, a separate procedure may apply. The Department of Agrarian Reform’s Revised Rules and Regulations Governing Lease Rental Payments which the Landowner-Lessor Refuses to Accept or Fails to Receive, DAR Administrative Order No. 05, Series of 2016, provides procedures involving notice, Department of Agrarian Reform intervention, and deposits through a checkless interest-bearing current account with the Land Bank of the Philippines.

When Should the Ejectment Case Be Filed?

An unlawful detainer case should be filed only after the tenant has failed to comply with the demand within the applicable period. The case must also be commenced within one year from the date of the last demand, as stated in Zaragoza v. Iloilo Santos Truckers, Inc.

If more than one year has passed from the last demand, the summary ejectment remedy may no longer be available in the same form. The landlord may need to consider another action, depending on the facts and the nature of the right being asserted.

Illustrative Example

Suppose a tenant occupies a commercial building under a written lease and fails to pay rent for January, February, and March. The landlord sends a written demand stating the total arrears, requiring payment, and directing the tenant to vacate and surrender the premises within five days from receipt.

If the tenant neither pays the full amount nor vacates after five days, the landlord may generally commence an unlawful detainer case, provided the lease, default, service of demand, continued possession, and filing within one year from the last demand can be proved.

If the same premises consist of land rather than a building, the landlord should generally allow 15 days after valid demand before filing, subject to the lease terms and any applicable special law.

Common Errors Landlords Should Avoid

• Demanding payment but not demanding that the tenant vacate;
• Demanding that the tenant vacate but not identifying the rental default;
• Giving a compliance period shorter than the period required by Rule 70;
• Using conditional language such as “vacate or we may consider legal action” without making a final demand;
• Failing to identify the premises or the months covered by the arrears;
• Filing before the demand period has expired;
• Failing to preserve proof that the tenant received or refused the demand; and
• Filing the case more than one year from the last demand.

Recommended Steps Before Filing

First, review the lease and determine whether the tenant’s default is supported by the contract and payment records. Compute the arrears accurately and separate rent from other charges that may not be recoverable in the same manner.

Second, prepare a written demand that requires both payment or compliance and vacation. State the applicable 15-day period for land or 5-day period for buildings, and serve the letter using a method that can later be proved in court.

Third, wait until the period expires and document any payment, partial payment, refusal, or continued possession. Only after these steps should the landlord assess whether an unlawful detainer case is procedurally proper and whether the one-year filing period remains available.

Conclusion

A landlord’s demand before filing an unlawful detainer case must be definite, properly served, and legally timed. It should demand both settlement of the rental arrears or compliance with the lease and the tenant’s vacation and surrender of possession.

For leased land, the tenant generally must be given 15 days to comply; for a building, 5 days. Because defective demand is a common basis for dismissal, landlords should preserve the lease, rental ledger, demand letter, proof of service, and evidence of the tenant’s continued possession before commencing suit.

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