Short answer. The usufructuary still receives the income, even though the owner is administering the property. Article 586 of the Civil Code requires the owner-administrator to deliver the net proceeds to the usufructuary after deducting agreed or judicially allowed administration costs. The usufructuary's right to income is not lost just because the owner holds the property temporarily.
What the law says
the owner may, if he so prefers, until the usufructuary gives security or is excused from so doing, retain in his possession the property in usufruct as administrator, subject to the obligation to deliver to the usufructuary the net proceeds thereof, after deducting the sums which may be agreed upon or judicially allowed him for such administration.
Civil Code, Article 586 — If Security Is Not Given. Read the full provision →
The owner takes over administration, not the income
When a usufructuary fails to give required security, Article 586 of the Civil Code gives the property owner several protective options. One of them is to take possession of the property personally, as administrator, until the usufructuary provides the required bond or is excused from doing so. But taking over administration does not mean taking the income. The law is explicit: the owner must deliver to the usufructuary the net proceeds after deducting costs. The usufructuary retains their right to the fruits of the property throughout.
What the owner may deduct
The owner-administrator is not required to hand over every peso generated by the property. Article 586 allows deductions for sums agreed upon or judicially allowed for the administration. This covers the reasonable costs of managing the property: maintenance, taxes, insurance, and the owner's own compensation for the time and effort of administration. The parties may agree on the amount, or either side may ask the court to determine what is fair. What remains after those deductions is the net proceeds that must go to the usufructuary.
Other options available to the owner
Taking over administration personally is just one remedy available under Article 586. The owner may also have immovable property placed under formal administration by a third party, have movable property sold with the proceeds invested in safe securities, or have bonds and credit instruments converted or deposited. In all these arrangements, the interest and proceeds continue to flow to the usufructuary — the mechanisms change but the usufructuary's entitlement to income remains unchanged. The owner's remedies are designed to protect the property, not to redirect its income.
When the security issue is resolved
The owner's administration is expressly temporary. Article 586 ties it to the period until the usufructuary gives security or is excused from so doing. Once the usufructuary provides the required security or the obligation to give it is excused, the basis for the owner's retention of the property disappears and the usufruct continues in its normal form. If you are the usufructuary and the owner has taken over administration, the fastest way to regain possession is to supply the required security. A lawyer can advise on what form of security is appropriate.