Rent Control Law in the Philippines (2009)

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On July 14, 2009, President Gloria Macapagal-Arroyo signed into law the Rent Control Act of 2009 supposedly meant to protect millions of Filipinos renting houses.

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.

Here is a summary of the important provisions of this new law.

Salient Provisions of the new Rent Control Act

  • 1. The law covers all residential units in Metro Manila with rent of one peso (P1.00) to ten thousand pesos (P10,000) per month and all units in other urban cities with rent of P1 to P5,000 per month.
  • 2. 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.
  • 3. There is a one-year moratorium on rent increases from the time the law takes effect, meaning, from 2009 until 2010, there should be no increases in the rent prices of affected units.
  • 4. From 2010 until December 31, 2013, the increase in rent should not be more than 7% percent annually.
  • 5. Boarding houses, dormitories, rooms and bedspaces offered for rent to students can only increase their rents once a year.
  • 6. Owners of residential units cannot demand more than one-month advance rent and more than two-months deposit.
  • 7. 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.

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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.

Join the PMT Forum: Property and Real Estate Discussion

  • franz eiram fabie

    tanung ko lng po, is it necessary na ung ini-issue dpat nun landlord na resibo sa mga tenants nya is BIR accredited or may TIN dpat? Since may kontrata syang pinapapirmahan sa mga tenant nya which is also notarized by attorney, pede ba na ung iissue nyang resibo is ung nabibili lang sa recto? And d ba dpat may fire exit ung apartment? Panu kung walang fire exit?

    • Atty. Dy

      oo franz dpat may resibo with stamp BIR ,at fire exit depending on what type building it is. But its better n mag look k n lng ng place mo n the landlord is providing all your needs. Recibo de BIR and fire exit.beyond that magagiging magulo abala at magastos para s yo kung ipipilit mo ito s kasalukuyang kinatatayuan mo…

    • Prince

      I have a question atty. i have been staying in the apartment for more than years. The lessor wanted to increase are rental fee from 10,000 to 12,000 monthly. Is it right for the lessor to have 20 percent increase for our rental? What if the lessor insisted? How much increase should it be?

  • franz eiram fabie

    ngbara lang ung lababo, namintang na na sinisira ung apartment nya? ngpabarangay pa, eto malala ipapahold daw nya ung pinsan ko paalis ng bansa… pede ba nyang gawin un???

    • Atty. Dy

      1st of all franz ikaw mismo ung gumagamit ng facility, and ikaw lng ang pwedeng mkasira dyan s apartment..the owner itself does nt know how u care/ maintained it.kung nag kabara ung pvc line its your faults.kalat mo ung nag stuck dun.. 2nd..but sana nag try ka nalang bumili ng liquid SOSA very effective ung, s bara…and un hot water pour it s main pvc line solve n problem mo…

  • jay

    hi atty. ask ko lng po.nagreserve po kmi ng 3 friends ko ng isang room. pero before pa po kmi naka move in, may nkita po kming mas maayos na place. so rinequest po nmin kung pede pong marefund yung reservation fee nmin. sinagot lng po kmi na, at saka na daw pag may nagrent na para daw fair. . . so we bargained and sabi nmin, magsestay na lng kmi ng 1 month to consume yung reservation fee na ibinayad nmin. ayaw nya rin kcdapat daw po bayad talaga ng 1 month adv and 2 months deposit. plsadvise …salamat

  • Jessica Jones Daluz

    Hello po Atty,am about to leave sa condo na tinitirhan q at lumipat nalang sa cavite.Kaso am worried about may balance.May balance pa po aqNakaissue na po aq ng postdated checks.pwede po ba aqng moveout na dala ung gamit q?O ihohold po ba nila ung gamit q?Am actually hoping na okay na ung checks.