Rent Control Law in the Philippines
July 16, 2009
On July 14, 2009, President Gloria Macapagal-Arroyo signed into law the Rent Control Act of 2009 which will supposedly protect millions of Filipinos renting houses around the country.
Republic Act (RA) 9653, “An Act Establishing Reforms in the Regulation of Rent of Certain Residential Units, Providing the Mechanisms Therefore and For Other Purposes,” effectively extended the old Rent Control law (RA 9341) that expired on December 31, 2008.
Salient Provisions of the new Rent Control Act
- The law covers all residential units in Metro Manila with a monthly rent of P1 to P10,000 and all units in urban cities with a monthly rent of P1 to P5,000.
- Rented units which are used as motels, motel rooms, hotels and hotel rooms are not covered. Units under the rent-to-own scheme are also not covered.
- There is a one-year moratorium on rent increases from the time the law takes effect, meaning, from now until next year, there should be no increases in the rent prices of affected units.
- After such period until December 31, 2013, the increase in rent should not be more than 7% percent annually.
- Boarding houses, dormitories, rooms and bedspaces offered for rent to students can only increase their rents once a year.
- Owners of residential units cannot demand more than one-month advance rent and more than two-months deposit.
- Violators face a fine of P25,000 to P50,000, or imprisonment of one month and a day up to six months, or both.
Although the law is commendable, we believe its effectiveness may be hampered because of three things.
First, tenants must be made aware that such a law exists so that they will know their rights.
Second, tenants who may have complaints about their landlors must know the proper avenue where they can air their grievance.
Lastly, complaints must be dealt with swiftly and properly so that justice will be served for both the landlord and tenant.
We hope the law will really benefit millions of Filipino families still renting houses.
PMT Forum: Property and Real Estate Discussion
April 6th, 2010 at %I:%M %p
I am renting a house in Manila for 3,300 to 2 families. How much can I increse a year? Is it 10% or 20%?
June 12th, 2010 at %I:%M %p
hello..were currently renting amounting to 10thou..at me nagpunta dito homeowners association at singil kami monthly dues..kasi homeowners daw nagbbyad ng street lights at sa garbage collector..dapat ba talaga magbayad ang mga nagrerent lang..legal po ba un..
need an answer asap.thanks.Godbless
August 25th, 2010 at %I:%M %p
nagrent po ako ng house sa c-5 bago pinaayos ang space ng store at house nagkasundo kami ng lessor na di ibabawas ang magagastos pero titira ako hanggat kaya kong magbayad kaya nagkasundo kami na gagawa ng contract after a month pinalow-up ko ang contract of lease to sign pero ng ipadala nya sa bahay ng contract nagulat ako kasi 1yr lang ang inilagay nya at nilagay pa na all expenses are deducted sa rent kaya di ako nag sign, nagalit sya at ngaun pinapaalis na kami sa house, tama po ba ako na ipaglaban ko ang karapatan kong sundin ang napagkasunduan namin ,,saan po ako dapat mag complain sa ginagawa sa amin ng leassor ,, pls, reply,, tnx
August 29th, 2010 at %I:%M %p
im a tenant in one of the prestigious school here in davao city with an area 1.75x .3 meters in the amount of 9,900 based in weeks not in monthly cycle so that amount covered only in 4weeks which only covered by 28days,we are not close in contract but by monthly renewal,the options for this is up to the tenant if they are able to renew or not after a month we have only sign a M.O.A for this and not notarized by a lawyer. is this policy is acceptable by the law? i really looking legal advice for this,thank you