Dear PAO,
I am having a problem with my landlord. I have been leasing his lot for 10 years now. With his permission, I built a little house on his lot.

Now, he wants me to leave the property but I demand for some compensation for the improvements I constructed. He refused my demand. When I offered to pay my monthly rent to him, he refused to accept it without saying any reason. Is it ok if I don’t pay the rent?
Thea

Dear Thea,
You still have to pay the rent. Under Article 1657 of the Civil Code, the lessee is obliged to pay the price of lease. If your landlord refuses to accept the rent, you may fulfill your obligation by consigning the rent. Consignation is the act of depositing the amount due with the proper court.

The process of consignation involves four steps: (1) there must be tender of payment or offer to pay the rent which was unjustly refused; (2) notice to the creditor before consignation; (3) the amount is deposited with the court; and (4) a second notice is given to the creditor after the consignation (Insular Life Assurance Company, Ltd. v. Toyota Bel-Air, Inc., G.R. No. 187884, August 8, 2001).

· You mentioned that you have offered to pay the rent to your landlord and he refused it so you are done with the first step. The next thing you have to do is to send a notice to your landlord that you will consign the rent. Then you have to file a petition in court to deposit the rent. If the court grants your petition, you have to send a second notice to your landlord that the rent has been consigned in court. After you complete the consignation, you will be considered to have complied with your obligation to pay rent.

• Please be reminded that you have to strictly comply with the procedures of consignation especially the two-notice requirements. Otherwise, your consignation will be invalid.

If you are worrying about the expenses you might incur in consigning the rent, according to Art. 1259 of the Civil Code the expenses of consignation, when properly made, shall be charged against the creditor. In your case, the expenses will be charged to your landlord.

• On the other hand, under Republic Act (R.A.) No. 9653 or the Rent Control Act of 2009, the rent may be deposited with the barangay chairman or in a bank in the name of the lessor and with notice to him within one (1) month after his refusal to accept payment. The lessee shall thereafter deposit the rent within ten (10) days of every current month (Sec. (b)). This will not require the filing of a petition for consignation in court.

• However, take note that the Rent Control Act applies only in lease of residential units with monthly rent not exceeding P10,000.00 for the National Capital Region and other highly urbanized cities, and not exceeding P5,000.00 for all other areas (Sec. 5).

We hope that we were able to answer your queries. Please be reminded that this advice is based solely on the facts you have narrated and our appreciation of the same. Our opinion may vary when other facts are changed or elaborated.