When Can a Landlord Evict a Tenant in the Philippines: The Month-to-Month Lease Rule

---

When a tenant pays rent monthly but has no written lease contract, can the landlord simply ask the tenant to leave? This question is common in Philippine residential leasing, and the Supreme Court addressed it clearly in Consolacion de Vera v. Court of Appeals (G.R. No. 110297, August 7, 1996). The ruling explains how courts determine the period of an oral lease and when a landlord may lawfully evict a tenant.

The Facts of the Case

Consolacion de Vera leased an apartment unit in Manila in 1967 from its original owner. She paid rent monthly, starting at P150.00 and eventually rising to P924.00 by 1990. The lease was oral, with no fixed term stated.

In 1990, the property was sold to Quayalay Realty Corporation. The new owner notified de Vera that the month-to-month lease would not be renewed upon its expiration on December 30, 1990, and asked her to vacate by January 5, 1991. When she refused, Quayalay Realty filed an ejectment case.

De Vera argued that because her lease was oral and had no definite period, it could not simply expire at the end of the month. She claimed that only a court, upon proper request, could fix the term of her lease.

The Issue

The central question was whether an oral lease with monthly rental payments is considered a lease with a definite period—specifically, a month-to-month lease that expires at the end of each month—or a lease with an indefinite period that continues until properly terminated.

The Supreme Court's Ruling

The Supreme Court ruled against de Vera and affirmed the ejectment. The Court held that her lease was on a month-to-month basis, which is a lease with a definite period under Philippine law.

The basis for this ruling is Article 1687 of the Civil Code, which provides that when the period for a lease has not been fixed, the lease is understood to be from month to month if the rent is paid monthly. Because de Vera paid rent monthly, the law itself fixed her lease period as month-to-month. The Court clarified that it was not the courts that fixed the period—it was Article 1687 that did so automatically.

The Effect of Rent Control Laws

De Vera also invoked the Rent Control Law (Batas Pambansa Blg. 877), arguing that none of its enumerated grounds for ejectment applied. The Court disagreed.

The Court noted that the Rent Control Law expressly includes the expiration of the period of the lease contract as a ground for ejectment. The Court also observed that the earlier law, B.P. Blg. 25, referred to the expiration of a "written lease contract," but B.P. Blg. 877 removed that distinction. Therefore, even an oral month-to-month lease may be a ground for ejectment upon expiration.

The Court also addressed the suspension of certain Civil Code provisions under the Rent Control Law. The law suspended Article 1673 (which allows a lessor to eject a tenant upon expiration of the lease) for residential units covered by the law. However, Article 1687 was not suspended—it continues to apply for determining the period of a lease.

In practical terms, this means that while a landlord cannot eject a tenant based solely on the expiration of the lease under Article 1673 during the effectivity of the Rent Control Law, the expiration of the lease period under Article 1687 remains a valid ground for ejectment under the Rent Control Law.

What This Means for Landlords and Tenants

The ruling establishes an important principle: the manner of paying rent determines the period of an oral lease. If rent is paid monthly, the lease is month-to-month and expires at the end of each month. The landlord may terminate it by giving notice and demanding that the tenant vacate.

For tenants, this means that an oral lease with monthly payments does not grant indefinite security of tenure. The landlord may validly terminate the lease at the end of any month, provided proper notice is given.

For landlords, the case confirms that a valid ejectment may be based on the expiration of the lease period, even without any fault on the tenant's part, as long as the requirements of the Rent Control Law are satisfied.

Practical Takeaways

• Monthly rent means a month-to-month lease. Under Article 1687 of the Civil Code, if no period is stated and rent is paid monthly, the lease is deemed month-to-month and expires at the end of each month.
• Expiration of the lease is a valid ground for ejectment. The Rent Control Law allows ejectment based on the expiration of the lease period, whether the lease is written or oral.
• Proper notice is essential. The landlord must notify the tenant of the termination and make a demand to vacate before filing an ejectment case.
• Article 1687 remains in effect. The Rent Control Law suspended only Article 1673 of the Civil Code; Article 1687 continues to govern how courts determine the period of a lease.
• A new owner is not bound by an expired lease. Once the lease period expires, there is no existing lease that a buyer of the property must respect.

This article is general information and not legal advice. For your specific situation, consult a lawyer or ask ASG Legal AI.