What Happens to a Lease When Flooding Makes a Property Unusable?

During the rainy season, flooding can make a rented house or commercial space temporarily or completely unusable. This raises an important question: Does the tenant still have to pay rent when the leased property can no longer be used?

Under Article 1654 of the Civil Code of the Philippines, the lessor has the obligation to maintain the lessee in the peaceful and adequate enjoyment of the lease for the duration of the contract. On the other hand, Article 1659 allows either party to judicially ask for the rescission of the lease when the other party fails to comply with the obligations under the lease.

More importantly, Article 1655 of the Civil Code provides that if the thing leased is totally destroyed by a fortuitous event, the lease is extinguished. If the destruction is only partial, the lessee may choose between a proportional reduction of the rent and rescission of the lease.

Thus, if flooding completely destroys the leased property, the lease may be extinguished. If the property is only partially damaged but remains usable, the tenant may have grounds to seek a proportionate reduction of rent, depending on the circumstances.

What Should Tenants Do?

If flooding makes a rental property unusable, tenants should:

- Immediately inform the landlord about the flooding and damage.

- Take photographs and videos of the condition of the property.

- Check the lease contract for provisions on flooding, repairs, force majeure, and termination.

- Discuss rent adjustments or suspension with the landlord.

- Keep written records of all communications and expenses.

- If the property is completely destroyed or the parties cannot agree, seek proper legal advice before terminating the lease or withholding rent.

In the end, flooding that makes a rental property unusable may affect the parties’ obligations under the lease, but it does not automatically terminate the agreement. The proper remedy will depend on the extent of the damage, the terms of the lease, and the applicable law. Both landlords and tenants should understand their rights before taking action, and when in doubt, consult a lawyer to determine the appropriate legal remedy.