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. JAKE

    Last March 2016, my landlady went to the barangay and filed a complaint against me for not paying the rental bill of 7 weeks or roughly 2 months. The rent is 7 thousand a month here in Mandaue City. i did gave her a 1 month deposit and 1 month advance which would legally make it a month late if the 1 month advance is included. I explained to my landlady and the barangay council about the Rent Control Act that she cannot eject me legally unless my arrears are 3 months. To my surprise, the entire Barangay council DID NOT acknowledge the Rent Control Act. They have known each other their entire lives. It was very unjust on me, just a month of arrears and I am being ejected. By next week, due to the opening of the school season I probably can not pay her again in time. It would be the exact predicament again. 7 weeks of not paying less the 1 month advance which makes it 3 weeks of arrears or roughly 1 month.
    Obviously the barangay is unfair on me. My question is which Philippine government agency should I ask for help?
    What else can i do about this?

    Reply
  2. Mar

    I have a tenant for 3 years now, rent is 10,000, and have not increased their rent since the start. Is it possible for me to increase their rent 21% for the accumulated 3 yrs, ( 7%, 7%, 7%) for 2,100 pesos?

    Reply
  3. Glen G.

    Good Day,my wife rent for her sari-sari store and she was asked for 1 month deposit and 2 months advance.Rent was started last month July 21,2016.Lessor remind her for this month payment. Do we have to pay the rent for this month?What is our(lessee) protection regarding this deposit and advance payment?(No written contract,only verbal) Please help us for enlightenment and knowledge to this matter.Thank you very much and more power.

    Reply
  4. Jose

    Just need your legal advise.

    We are a condo unit owner and Our tenant is foreigner Husband and Filipina Wife. Our contract is six months. During last month of their stay, they silently unable to deposit the rent to our designated bank account. Since we are very busy we forgot to check our bank account. 2 weeks have past for the last of six month contract, we try to check bank account and To our surprise no deposit have been made. I try to contact the tenant, but this time they insist that they will use the security deposit as the rent. I never agree and they too insist they will use the security deposit. Our contract clearly states the security deposit cannot be use as rent. When I ask regarding the they told us regarding republic act. My question are, 1. Is the republic act is applicable in our case for condominiums ? Owner cannot even evict the tenant even no payment has made made for 3 consecutive months? They even threaten us regarding legal matters.

    Reply
  5. michael

    i would like to know if i can break a lease because the landlord will not fix water and electrical problems that are hazard to my family. i did ask then and they said no,i also mentioned about the roof leaking.

    Reply
  6. Nigel

    Is rent control law can help me even if I did not sign any contract with the the house care taker not a home owner but she is letting people to rent the house, then she will just terminate the tenant for no reason just her personal reason without any offence. Please I need help with this cause this care taker is not paying taxes with this business and she is using the house for her own profit but the house is not under her or his partners name. Can I file a case against it.

    Reply
  7. gymser

    Mam/Sir,ask ko lang po…covered po ba dito ang nasa squatters area? No land title po itong paupahan.. Samakatuwid po hindi kanila ang lote kinatatayuan ng paupahan…
    Ang tumatayong may-ari po ay nakatira sa isang subdivision…ano po ang maaari naming gawin?
    Thanks po…

    Reply
  8. Richard

    I am currently leasing a 3 bedroom unit in Angeles City and the landlord is carrying out renovations in the complex where he has a total of 12 units My current rent is 8.750 pesos per month. He wants to relocate me within the complex to a similar 3 bedroom unit that is vacant unit where he has completed the renovations and increase the rent to 15,000 pesos per month.I know the renovations to the units he is renovating has cost him approximately 50,000 Is this legal?

    Reply
  9. Ronald

    i have a tenant who did not pay for 72mos and we have an agreement in Barangay that they will vacate until Mar 2015. Then they ignore it they continue renting. Now, that i follow Up my case they reply me that they will not leave my Apartment. Now may Quetion is Do they have the right not to pay rent it is now in 3months now.

    Reply

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