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. Bella

    Hello, I want to ask for a legal advice. I’am currently renting a space in a food court 15k/month. The foodcourt is just 2 months old. In my two months in the foodcourt the market reach is very low. There are more or less 10 people visiting the the place and we’re not making enough sales to cover all expenses on our business. Can we terminate the contract because of this problem coz we are not highly capable to shell out money. Thank you, hope you could help me on this one.

    Reply
  2. Ivo

    I have a question. I’m currently renting a house for more than a year now. Before the place was taken care by management. Now the owner is moving in into the compound. I heard from other tenants that he randomly comes in while you’re away. Is this legal ? I’m a foreigner so sometimes I will not be here. He wants that we pay an extra 500 peso while were not staying in the compound. I have serieus questions about such matters and I was wondering if there is any law with basic rights for tenants. The owner is a foreigner and comes up every time with new extra costs. Thanks in advance.

    Reply
  3. Alon

    I pay P12,000/month for house rental and suddenly they told me that they will increase the price to p15000 starting tomorrow. No contract between us. I’m living in this house for 10 years.
    is it allow to increase such amount with super short notice?

    Reply
  4. maharmi

    Same question. I want to know if the 90 days eviction notice is rent free. actually i used my advance and deposit so i only stay 17 days more. Should i pay for it? what is the law on this.

    Reply
  5. Carl

    Hello,
    The maximum increase in rent below P5,000 was set at 7% by the Rent Control Act of 2009. On line references state that later the HUDCC set the maximum of increase at 4% and more recently at 2%. We are involved in a legal challenge of overcharging us on a large increase of our rent that is much higher than 7%.
    Please help us find a reference that covers the legal allowable percentage of rent increase from 2014 to 2019.
    Thank you for any help 7n this matter.

    Reply
  6. Rudy

    We are renting an apartment for 57 years, Its a 4 door apartment, 2 storey with big compound. The rent is very much affordable since we are one of the pioneer in the apartment. We have no problem with the landlord during the previous decades and since the owner already died the grand children is now managing the property. Last year, the grand children had shown and indication of selling the property. Recently, they talk to us and told us that they need the property and we are given 3 month to vacate the apartment. May I seek some legal advice on our rights since we been renting the apartment for almost 6 decades? Can we have the right to buy the portion of the apartment that we are staying? Can we ask compensation as a humanitarian consideration to help us finance new place to live? What other option can we negotiate with the landlord. Thank you very much, hope you can help us legally with rightful option.

    Reply
  7. Elizabeth

    Good day! What is the law governing commercial lots/spaces. What is the allowable increase in commercial areas?

    Thank you

    Reply

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