Coverage of the Rent Control Law in the Philippines

If you search the internet, there are various write-ups on the rule that any rent increase should not be more than 7% per year. It’s not surprising, however, that some landlords or lessors have increased rents by an amount higher than 7%. So, what is the coverage of the existing rent control law?

Coverage of Rent Control Act of 2009 (Republic Act 9653)

This law is Republic Act (R.A.) No. 9653, otherwise known as the “Rent Control Act of 2009,” the effectivity of which has been extended by the Housing and Urban Development Coordinating Council (HUDCC) until 31 December 2015.

The law is meant to protect housing tenants in lower income brackets and other beneficiaries from unreasonable rent increases. Hence, under Section 5 of the Rent Control Act of 2009, the law covers only certain residential units:

  • (a) when the total monthly rent does not exceed P10,000 in the National Capital Region and other highly urbanized cities; and
  • (b) when the total monthly rent does not exceed P5,000 in all other areas. Monthly rent in this case does not include utilities and other charges.

Residential units which fall under R.A. No. 9653’s coverage have limits on annual rent increases. Under Section 4 of the law, the monthly rent shall not be increased by more than 7% percent annually for the same lessee. To illustrate, if a condominium unit located in Paranaque City, which is within the National Capital Region, charges a rent which does not exceed P10,000, the lessor may not increase the rent by more than 7% annually. However, if the monthly rent exceeds P10,000, the lessor may increase the rent by 10% percent annually.

P&L Law

36 thoughts on “Coverage of the Rent Control Law in the Philippines

  1. AvatarGary

    Thanks for the publication on rent control law. I wish to be enlightened further if for example the lessor leases out three units: p4k, p12k, 10k. Does the rent control law on increase of 7% cover the whole three or only the p4k unit? Is the p10k covered by the rent control law? Thank you.

    Reply
    1. AvatarNho

      Sir, I just want to ask if our contract is for 1year, but the tenant left after 3 months only, but i told them before that i ‘m not accepting for a short term period , but they agreed so our contract is for 1year. Can their 1month deposit ( net amount of deductible charges ) be forfeited for pre- termination of our contract?
      Note: I have not stipulated in the contract in case of pre-termination.
      Looking forward for your advice regarding this matter.
      Thank you very much

    2. AvatarLen

      Nag lilimas kami for several days & nights due to clogged drainage because of poorly designed water disposal facilities in our apt. (Same scenario since we occupied the unit 5 yrs ago). Since then, we are shouldering all the expences for repairs & maintence ( as stated in the owner-favorable contract) we called the attention of the owner to discuss the matter hopng that this time she will do her share in repair expences after all she made a 24.5% increase in our monthly rental last year. (from 9k to 11k) She replied.. “busy pa mga gagawa… itago nyo na lang muna yong mga gamit na masisira”
      I said “Meron naman po kami na kausap nagagawa, sana po ibawas na lang sa upa” .. “Ay Hindi pwede!” , she replied.
      I said, “Mahirap po pag umulan na naman!”.
      “KUNG HINDI KA MAKATIIS, EH D UMALIS KA! she exclaimed. (The usual answer she gives when ever we requested for the repair)
      By the way, when move in this apt. We paid for all the expences for cleaning and major repair (re painting of the entire 2-story apt, lights installation and bulb replacement, tiles and toilet bowl replacement, including dirty kitchen, cabinets repair and almost all necessary repairs just to make this place habitable) now i wonder why the previous tentant turned the unit into a huge trash because this is how the landlord treated her tenatants.

  2. AvatarCherlee

    Good day!

    Since the said Rental Control Law will expire by December this year, is it allowed to have a 10% increase or more reasonable increase to a tenant/lessee that will renew its contract by 16th December?
    Thank you.

    Reply
  3. AvatarChux

    Hello there,

    I was looking around if there is an existing law in the Philippines regarding short term rentals- below 6 months rent period?

    Reply
  4. Avatarapril

    hi sir… i rent commercial space…worth 10,000 for monthly..
    then i pay 2months deposit and o1 month advance..as my contract… it will be ended by this coming month of april… but ive talked herw already that im.not continue my contract…and i want to use my deposit and advance..but as she said onlu deposit can be used..and the advance is for her.. for damage..but as my shop..tjeres no damage. franklu speak i make her shop more beautifull becoz the paint i put… anyway..is there a law for that…or what will i do, should i jeed to give up my 10,000 .. ?? pls help me..

    Reply
  5. AvatarPat

    Is there an law that covers rented units with monthly rent exceeding PhP 10k? I have an issue with the return of my full deposit but since the monthly rent is PhP 13k, looks like this is not covered by rental control law of 2009.

    Reply
  6. AvatarBong

    Pls need help for advise. Is a contract between landlord and tenant binding even if the landlord operates without necessary permits and without bir receipts

    Reply
  7. AvatarRicky

    Good day sir madam: I ask about this problem , I rent almost 5 months now in the appartment of 15,000 a month I have 2 months deposit and 1 month advance but I plan to find anther lower price of rental appartment and I didn’t pay for this month cause I use my deposit , but the owner he don’t like it just because of government rules ,, so he said to me I cannot use my 2 months deposit so . Maybe you can help about this matter cause I have no money already , and also I don’t have a sign contract thanks.

    Reply
    1. AvatarJosefina

      Tenants have been renting for more than 5 years and they only have initially signed their 1st year contract with us. (I understand that it is understood that it is auto-renewal). Landlord now wants to implement an Php800 increase so they sent last March 1, 2017 to all tenants that it will take effect by May 1. Landlord requested if they can all advise in 30 days (April 1) by indicating on the received letter their conformity or non-conformity. All tenants received the letter but did not indicate if they agree or not. ***Tenant A inquired shouldn’t his rent increase take effect on his anniversary date? Meaning if his lease started on January which auto-renewed every year for 5 years, shouldn’t his rent increase take effect also on January already of the following year? Landlord wants to increase May this year and tenant’s point if his lease had already started from January to December 2017. So just rightful for Tenant A to get his rental increase by January 2018 already? ***The landlord only gave 2 months notice to increase the rent. Is this legal or is there a number of months for landlords to advise their tenants of any rental increase? And what if the 2 months had lapsed, does the landlord have the right to implement the increase of Php800/month already even if they only received the letter and no agreement was reached? These tenants have been renting for about 5 years and lesser for others but have never received any increase on their rental. Just want to clarify 1. If the 2months notice given by the Landlord is legal? 2. And if rental increase should only take effect after their yearly contract has expired? (In this case they all have expired contract but we believe lease contracts auto-renews if the Landlord agreed to still keep them and vice versa). Hope you can give us some advise. Thank you so much.

  8. AvatarGlen

    hi just want to ask for a legal advice. I am renting a house which is not registered as a rental property for 5 years now. My landlord send me a message thru facebook saying that he already sold the house to another person an he wants me to vacate the property in one month time. Is this legal? and what should I do or what are the legal rights I have because its not that easy to look for another house to rent specially that I have 2 kids that are studying in a school near the house I am renting now.

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.