The Department of Trade and Industry (DTI) released the guidelines on the concessions on residential rents, and commercial rents of Micro, Small and Medium Enterprises (MSMEs) that have ceased operations due to the Enhanced Community Quarantine (ECQ). Memorandum Circular No. 20-12 aims to provide Filipinos and businesses, particularly MSMEs, economic relief during the Coronavirus Disease 2019 (COVID-19) public health emergency (see Amended Supplemental Guidelines under DTI Memorandum Circular No. 20-31).
Note: IATF Resolution No. 33 dated 6 May 2020, and the Revised Omnibus Guidelines (as approved in Resolution No. 37 dated 11 May 2020) contains three revisions:
- The grace period is available in ECQ, MECQ and GCQ areas;
- In addition to residential and MSME rental payments, “sectors not permitted to operate during the said period” are now entitled to the 30-day grace period; and
- The grace period is: (a) 30 days from the last due date; or (b) until such time that the community quarantine is lifted, whichever is longer.
The minimum grace period is thirty (30) calendar days following the last due date of the rent which fell due within the ECQ (added: updated quarantine classifications). This is in accordance with Republic Act No. 11469, also known as the Bayanihan to Heal as One Act, authorizing a 30-day grace period for both loans and rents. In the Implementing Directives earlier issued by the President, the Department of Finance (DOF) was tasked to implement the 30-day grace period for loans (see DOF Implementing Rules and Regulations), while the DTI was tasked to implement the 30-day grace period for rents. MC 20-12, issued by the DTI on 4 April 2020, covers two types of rental payments: (a) residential; and (b) commercial.
A. 30-day Grace Period for Residential Rent
“Residential rent” means any amount paid for the use or occupancy of a residential unit, regardless of the mode and terms of payment. “Residential unit” refers to bedspaces, rooms, dormitories, apartments, houses, buildings, and/or land on which another’s dwelling is located used principally for residential or dwelling purposes.
A grace period, for a minimum of 30 days, is granted on residential rents falling due within the period of the ECQ, without incurring interests, penalties, fees, and other charges. The cumulative amount of rents falling due within the ECQ shall be spread out or equally amortized in the six (6) months following the end of the ECQ, and shall be added to the rents due on those succeeding months, without interest, penalties, fees, and charges.
[See also: COVID-19 Lockdown: Fortuitous Event or Force Majeure Exemption from Obligations]
B. 30-day Grace Period for Commercial Rent
“Commercial rent” means any amount paid for the use or occupancy of any other property used principally for commercial purposes, which denote any activity for which profit as the main aim or revenue is received. RA 11469 explicitly mentions only residential rent, and to cover commercial rents for MSMEs, the DTI cited the law’s declared policy on the “provision of safety nets to all affected sectors” and Republic Act No. 6977, otherwise known as the “Magna Carta for Micro, Small and Medium Enterprises (MSMEs)”.
A grace period, for a minimum of 30 days, is granted on commercial rents falling due upon MSMEs that have temporarily ceased operations within the period of the ECQ, without incurring interests, penalties, fees, and other charges. The cumulative amount of rents due within the ECQ shall be spread out or equally amortized in the next six (6) months following the end of the ECQ, and shall be added to the rents due on those succeeding months, without interests, penalties, fees, and charges. In summary, a business enterprise is entitled to the 30-day grace period if ALL the following are present:
- (1) The lease contract must principally be for commercial purposes, which denote any activity for which profit as the main aim or revenue is received.
- (2) The rent must fall due within the period of the ECQ.
- (3) The lessee must have temporarily ceased operations because of the ECQ.
- (4) The business enterprise must be a MSME, which refers to any business activity or enterprise engaged in industry, agribusiness and/or services, whether single proprietorship, cooperative, partnership or corporation whose total assets, inclusive of those arising from loans by exclusive of the land on which the particular business entity’s office, plant and equipment are situated, must have value of not more than P100 Million. To be specific: (a) micro enterprise – not more than P3,000,000; (b) small enterprise – P3,000,001 to P15,000,000; and (c) medium enterprise – P15,000,001 to P100,000,000. [See also: Micro, Small and Medium Enterprises: What Businesses are Considered MSMEs]
- (5) The MSMEs must have signified to their respective lessors their request for assistance by providing supporting documents, such as, but not limited to, financial statements as proof of enterprise size, and/or lease contracts as proof of tenancy.
The commercial rent for MSMEs is not waived even if they are not doing business during the ECQ. The payment period is merely extended, spread out over six months. Nevertheless, the lessors of commercial rents for MSMEs may, purely on a voluntary basis, extend greater generosity by:
- a. Totally or partially wave the commercial rents that are falling due during the ECQ.
- b. Grant reprieve or discounted amount of commercial rents due after the ECQ.
- c. Open for renegotiation the Lease Term Agreements with the lessees.
- d. Use other recourse to mitigate the impact of the ECQ to the MSMEs.
Lessors shall consider the liquidity and capability to pay rent of MSMEs in negotiating assistance to be granted. MSMEs may present their financial statements, cash flow projections, among others, as supporting evidence.
Common Provisions
No Refund on Rents Already Paid. Lessors are not obligated to refund residential and commercial rents paid by the lessees during the period of the quarantine. In such case, the lessor shall grant a minimum of 30-day grace period from the next due date of the residential/commercial rents without incurring interest, penalties, fees, and charges. [See discussion on post-dated checks: Bouncing Checks, Grace Periods and the Enhanced Community Quarantine]
Recognition of Voluntary Waiver from Lessors. Existing waivers on rental payments due provided by lessors, such as those in recognition of the closure of their lessees’ businesses during the ECQ, shall continue to be honored.
Non-Enforcement of Evictions. No eviction for failure to pay the residential or commercial rent due may be enforced within the 30-day period after the lifting of the Enhanced Community Quarantine.
Investigation and Penalties. Lessors who shall refuse to provide 30-day grace period to lessees shall be penalized with imprisonment of not less than 2 months or a fine of not less than P10,000, or both.
The DTI, through the Fair Trade and Enforcement Bureau (FTEB) or DTI Regional Offices, motu propio or upon complaint, shall issue a Notice of Violation against a lessor. The process may be initiated by a complaint filed before the DTI, either in person or electronically. The complaint shall contain the following information: (1) Complete name, residence address, and contact number of the lessor and the lessee; (2) Complete address of the residential or commercial unit concerned; (3) Date when the rental payment became due; (4) Narration of the relevant and material facts; and (5) Submission of documentary evidence, if any.
If the DTI finds merit in the complaint, it shall issue the Notice of Violation to the lessor, who will be required to submit a written reply within five (5) working days from receipt of notice, containing the following: (a) An explanation why or how the violation occurred or, if contested, the basis for disputing the violation; (b) Corrective actions that have been taken and the results achieved; (c) The date/s of when corrective action/s was/were fully achieved; and (d) Corrective actions to be taken to prevent recurrence.
Upon determination of the violation, appropriate criminal charge/s shall be filed against the lessor with the Department of Justice (DOJ), without prejudice to the filing of other administrative cases. [Full text of Memorandum Circular No. 20-12]
Our apartment Lessor refuse to provide 30-day grace period. They insist that we pay our due now since this only applies on government owned properties. Where can I report this?
The DTI. The article above has been revised to include the process of investigation and filing of complaint.
My lessor requires a security bond in the contract for the year. But unfortunately i cannot continue my operations due to lack of funds. I have a balance rent which is still debatable before ECQ. Can the security bond bail me out if i will stop operation after the Quarantine is lifted? I have no money to pay for the remaining balance which is around 60k the security bond is worth 168k.
Hi Robert. Please check your lease contract. Check the provisions on pre-termination, security deposit, and events of default. Normally, the contract provides that the security deposit is forfeited in case pre-termination is not allowed. Also, the usual provision provides that the security deposit cannot be used to pay for rents. Still, the lessor and the lessee are not prohibited from agreeing that the security deposit will be used to pay the remaining rent. You may also want to read this post: https://pnl-law.com/blog/covid-19-lockdown-fortuitous-event-or-force-majeure-exemption-from-obligations/
Good luck.
What about leasee(s) who are not updated in rent?
If the leasee(s) is behind by more than three months, can the lessor request that the 30 days grace period be denied?
This is for residential/ commercial property
The grace period applies to the ECQ period, that much is clear. It is demandable as a matter of right, so long as the requisites are present. The issue on previous arrears is different, which is probably why the guidelines also prohibit the enforcement of evictions within 30 days from lifting of the ECQ.
I have a question regards to this: “The cumulative amount of rents falling due within the ECQ shall be spread out or equally amortized in the six (6) months following the end of the ECQ, and shall be added to the rents due on those succeeding months, without interest, penalties, fees, and charges.”
Residential/Commercial lessees are allowed to amortized their due payment for 6 months without penalties/interest etc. but how about Loan Borrowers & Credit card billings etc. Can we also do that?
Because I’ve read the regulations issued by DOF for Banks & Loans but there’s no such thing for borrowers.
Example: I’m a landlord. I will follow the grace period and after that I will allow our tenants to staggard their payment for 6 months, however, my loans were just extended and I may incur interest/penalties after that ECQ period if don’t pay in full.
The period for loans is actually much longer. The amortization covered by the grace period cannot be lumped in the next month’s amortization, for this runs counter to the intent of the law. Perhaps you missed the discussion in the previous post, here: https://pnl-law.com/blog/grace-period-for-loans-already-in-effect-implementing-rules-and-regulations-issued-by-dof/
I have a lessse, who have 2 months over due from jan to feb 29, 2020. This is after the quaratine law was implemented. Can I still ask for the payment within quarantine period for this over due accounts. How will I request them the paymen after the extended quaratine.
Hi Abel. Please see the answer to Eileen’s question, above. Good luck.
Yes, i missed it. Thank you for clarifying!
“The IRR explicitly provides that the ACCRUED INTEREST — without interest on interest, penalties, fees and other charges — shall be paid by the borrower on staggered basis over the REMAINING LIFE OF THE LOAN. “
Hi po! Question: If there is still payment of Student Dormitories or Apartment that falls on Quarantine Period up to April 30 , since these Dorms were not actually utilized/occupied because of the suspension of classes and falls under the implementation/duration of Enhance Community Quarantine?
This is a question frequently asked by parents being affected on their livelihood and the means of cost of living.
Hi Rey. The government policies try to strike a balance between giving amelioration programs and respecting private contracts. If the lease contract does not provide for rent payments during “vacations” (no classes), then there should be no problem. If the lease contract provides for lease payment even during vacations, then the general rules applies — the payment is merely spread out in the next months, as discussed in the article. Good luck.
Pano po yon pag nangungupahan kayo, then pinagbayad parin kayo kahit due to ECQ. Pwede po ba e.report yon? QC po kami resedential rent.
Hi Shena. Nakasaad sa regulations na pwede i-report sa DTI. Baka kulang lang sa paliwanag. Good luck.
What if the contract of the lessee is only good for 3 months? Can the landlords only allow to stagger lessee’s rents falling due within the ECQ for three (3) months instead of equally amortizing their due rent for six (6) months following the end of the ECQ,
Hi Julita. Tough question because there’s no express provision for past overdue rents.Subject to interpretation. Perhaps you can make that inquiry with DTI to make it official. Nevertheless, by way of general information, here’s a theory: overdue rents are also considered “due” together with the rent for the period falling during the ECQ. In other words, all those rents (including overdue) fall “due” during the ECQ period, which means that the entire amount is covered by the 6-month staggered payment terms. Good luck.
Hi! Hope this can add to the information listed here. As per your suggestion, I already asked DTI regarding my question, here’s their response: “On short term leases, said MC is still applicable po. DTI has no prescribed mode of payment, so long as lessor is paid. As for payment period, we leave it to your internal arrangement, but we advise to have a signed contract for this so we can side with aggreived party should the need arise. Thank you.”
Hi Julita. Thank you for sharing the information.
Question po,on the basis of the Force Majeure event,can a tenant lawfully seeks suspend payment of rent under a lease (like Jolibee Corporation) during COVID-19 pandemic? Please advise.
Thank you.
Hi Cris, that question was raised before, a really good question. A bit tricky; we were thinking of discussing it in a future post. Let’s see if we can find time to write that post.
Hi Cris. Please see this related discussion on force majeure and the lockdown: https://pnl-law.com/blog/covid-19-lockdown-fortuitous-event-or-force-majeure-exemption-from-obligations/
Good luck.
Are HOA and Condo Association dues included in the moratotorium?
Thank you.
Hi Rick. Please see our discussion (in the Comments section) of this post: https://pnl-law.com/blog/grace-period-for-rents-residential-and-msmes-during-the-enhanced-community-quarantine/
Good luck.
1. Rent of 12k is Due on the 1st of every Month. So w/ the 30d grace period plus the 6 mos. amortization, for the April 1 Rent, Lessee will only be obliged to pay 14k starting on May 1 until October 1?
2. What if the Lease is expiring between May 1 and September 30 and they don’t renew? Are we Lessor’s still obliged to pro rate to (6) months?
3. Now that the ECQ is extended to May 15, back to above pt.1 example, is the May 1 Rent also to be extended 30d and divided to (6) Months, so that only a Total of 2k will actually be due on May 1?
Kindly clarify, Thank you.
Hi Lydia.
1. Note that the ECQ has been extended to May 15. The 30-day grace period is counted after that date.
2. The scenario is obvious not provided in the guidelines, so there’s no way of knowing how the DTI will resolve the issue. Nevertheless, we can look at the analogous situation for loans, under the rules issued the BSP. The prorating is spread out for the remaining term of the loan. If the remaining term is only for 3 months, then the pre-rating is limited to that period.
3. See item no. 1.
Good luck.
What if our contract of lease will expire on April 30, and our lessor oblige us to vacate after ECQ. We have no pending unpaid rentals and utility bills. What will we do?
Hi Eula. The issue on renewal of lease contract is generally governed by the contact/agreement between the lessor and lessee. Good luck
Good evening Atty. Last March 30, we started moving out from our apartment although our supposed last day of rent is May 1, 2020. Halos 25% nalang po ng gamit namin ang natira sa apartment. Naabutan Lang ng lockdown Kaya hindi na nahabol ung iba. I told the landlady that we will try to get a vehicle pass Para matransfer mga gamit namin from Dalaguete to Oslob. But the LGU of Oslob didn’t provide us vehicle pass if not for medical reason. Today, the landlady asked me if we pursued the moving day today. But I told her we can’t coz it is impossible to get a vehicle pass if not for medical reason. Are we still going to pay our monthly rent Atty? What if the ECQ keeps on extending? Are we still obliged to pay eventho we are not staying there anymore?
Hi Maria. There are general provisions regarding rent, day-to-day or month-to-month extension, as the case may be. However, it might be counterproductive to get into those details. You may want to discuss this with the lessor and agree on an interim arrangement. Think of hotels, which allow, for a limited duration, guests to leave their baggage after checkout. Good luck.
Hi! We were supposed to leave our condominium here in Manila last April 7 because it was when our 1-year lease contract expired and we didn’t have any intention of renewing. On the same day, we were scheduled to transfer to a new apartment in QC which was already paid for with PDCs 1st week of March. Unfortunately, the ECQ was implemented and we weren’t able to relocate. After May 15, assuming Metro Manila transitions from ECQ to GCQ, are we then allowed to transfer to our new apartment (lipat bahay)? TIA for your reply.
Hi Eugene. That kind of movement should be allowed during GCQ (like when it was first declared in NCR in March). Still, we wait for updates from the IATF and other government agencies. Good luck.
Hi! My question is now that the ecq is extended until may 15 (let’s assume that the ecq will be lifted after may 15), and the 30 day grace period will run after that date. Meaning the billing for March – May will spread out for the next 6 months starting june – november (monthly rental plus the pro-rated billing from march-may)? Thanks in advance!
Hi Riz. The guidelines provide that all rent amounts falling due during the ECQ shall be covered by the grace period. If the ECQ covers 2 months, then the rent falling due in those two months will be pro-rated. Good luck.
Hi Atty,
Our landlord is difficult to deal with despite expressing our request (to discount our rental payment).
Further to this, our pdc is usually on the 29th of every month. Surprisingly, he deposited the check during ecq period. Can you please advise on how we can go about this?
Thank you in advance.
Shar
Hi Sharie. Please see this separate post: https://pnl-law.com/blog/bouncing-checks-grace-periods-and-the-enhanced-community-quarantine/
Good luck.
Hi atty, I am a lessor and our province ended its ECQ last April 30, hence we are now in GCQ. Only 1 rental fee fell inside the ECQ and the supposedly due date was April 5.
As per the memo “cummulative amount of rents..”. Is the memo still applicable even though there was only 1 unpaid rent? Can we also already ask our tenants to pay for their monthly fee considering the 30 day grace period for the month of April? Can we also ask them to pay for their May’s rent? Our tenants are mostly working from home and the fee is only around 3k per month.
I have already raised these questions to DTI however the answers I get seem to be just computer-generated ones.
Hoping for your answers atty. Thank you so much.
Hi Monica. Perhaps it would suffice to say that the grace period now covers both GCQ and ECQ. Please see the update in the post. Good luck.
Hi Atty. for a commercial unit, the rental payment is due every 28th of the month. My tenant provided me a notice to leave and terminate contract effective March 27. He was not able to move out because of ECQ. He moved out on April 27. He did not pay March 28th rent due to DTI’s 30-day grace period. Since he left on April 27, can I use his security deposit to cover the unpaid rent from March 28-April 27? or do I have to refund him his security deposit and bill him for the one month unpaid rent after ECQ/GCQ? Please advise. Thanks. Cynthia
Hi Cynthia. You have to check the lease contract. In general, a lease contract usually says the security deposit cannot be used to cover rent. Some lease contracts also provide that the security deposit covers any unpaid amount at the end of the lease contract, which may include any unpaid rent. Good luck.
Good morning Atty. The rent payment of my tenant for commercial unit is due every 1st of the month. The lease agreement will expire November 2024. The lessee provided me a letter that she wants to terminate contract on June 15 due to no business during this Covid19 pandemic. She has not paid her May 1 lease yet due to DTI’s grace period of 30days.
1. If I accept the termination, can I charge her for all the lease payment due thru November 2024? Is Covid19 part of fortuitous event and any damages in the unit?
2. If it considered a fortuitous event, on June 15, when she leaves, can I still use her security deposit for unpaid rent from May 1 to June 15 plus other damages in the unit?
Please let me know. Thanks.
Ben Ong
Hi Ben. You have to check the provisions of your lease contract. In our experience, lease contracts may or may not have a pre-termination clause (if pre-termination is not allowed, it usually states that the security deposit is forfeited). There should also be a provision on security deposit (the provision varies, but it usually covers all amounts due upon termination of the lease). Good luck.
Hi, Atty,
Halimbawa ay nagrerent po ako sa isang dormitory. Ang contract ay from January 5 to May 5, 2020. Meron po akong binayaran na 1 month deposit at 1 month advance. Since 1 month advance rent payment ang scheme,so bale nagbayad po ako nyan last nung March 5 (covering the period of March 5 to April 5).
Ngayon, nagdeclare ng ECQ nung March 17, e umuwi po muna ako temporarily sa aming bahay para di abutan ng lockdown (yung mga gamit ko ay iniwan ko muna to sa dorm at nasa akin parin po ang susi sa dorm na tinitirhan ko po niyan).
Eto po ang aking katanungan:
1. Marerefund ko pa ba yung advance rent payment ko na di naconsume from March 17-April 5 due to ECQ dahil umuwi na po ako sa amin nun ng March 17?
2. Yun po bang April 5 to May 5, babayaran ko pa po ba? considering na di po ako nag stay sa dorm.
3. Yung deposit ko po ba ay masosoli pa ba sa akin?
4. Just in case e yung lessor po ay magdemand ng payment para April 5- May 5, pwede po ba magamit na i-cover na pambayad yung 1 month deposit na ibinayad ko po?
5. Since ang ECQ po ay na extend ng until May 15, need ko pa po bang bayaran ang rent ko from May 5 onwards?
6. Kung babayaran ko po ng after ECQ, 6 months ko po ba ito babayaran via installment? considering e May 5 po ang expiration ng contract ko po?
Please enlighten me po Atty. Thank you po.
Hi Cris. Hindi rent condonation ang grace period. Kumbaga, naka-postpone lang ang pagbabayad ng rent. Mas mainam siguro na basahin mo rin ito: https://pnl-law.com/blog/covid-19-lockdown-fortuitous-event-or-force-majeure-exemption-from-obligations/
Good luck.
Hi! ECQ will be lifted on May 15 and GCQ will start on May 16.
I would like to ask if not allowed to open establishments, bars or beer houses etc, are still obliged to pay after 30 day grace period.
Thank you
Hi Nana. Perhaps you missed reading the Note in the second paragraph of the article. Good luck.
Hi! Thanks! Sorry I just want to be sure…
Does it mean that eg. last due date was May 4, 2020 30 days grace period will be given falling on June 3, 2020 unless it is not allowed to operate during GCQ then the 30 days grace period will start once it is allowed to operate?
Thank you.
Hi Nana. Whichever is longer: (a) 30 days from last due date; or (b) end of quarantine. The 30 days is counted from the due date, not the end of the quarantine.
i see thank you so much!!
Hi. My sublease contract with my sub lessee expired in Apr 18. informed her of the expiry on apr 29. GCQ in our area started May 1 till now. Though there was a renewal clause, but since my pricipal lessor disallowed me to sublease further in my next contract, i did not renew my sublease contract with my subleasse. I advised her to vacate the premise May 11 but she refused. She said i could notdo that because of the bayanihan act. Did i violate it?
Hi Ben. Please check the article again and check the portion on the one-month “no eviction” period. Good luck.
Magandang araw po, tatanung ko lang po kung papaano po pala sa commercial space na computer gaming business, kasama po kaya kami sa mga i waive ang payment sa rent, maraming salamat po, stay safe po,
Hi Ronaldo. Salamat, stay safe din. Hindi waiver ang grace period. Extended lang at spread out ang payment terms. Good luck.
Hi! Just like to know if we can request for pre termination of our rent during the ECQ? All business been down and corporators agreed that we can no longer sustain at the moment the rent expense of our organization. We,re actually a starting NGO who depends solely on donations to fund our services. Is there any law on this that can help us out.
Hi Ms. Maga. This is primarily contractual in nature. Lease contracts usually have provisions on pre-termination and security deposit. The pre-termination clause may: (a) allow pre-termination for any reason, without any liability, provided there is notice; (b) allow pre-termination, but the security deposit is forfeited; or (c) does not allow pre-termination, and provides that the entire balance for the remaining lease period shall be due and demandable. We really don’t know how your lease contract looks like. Nevertheless, it is always best to discuss the matter with the lessor. They will understand, hopefully. You may also want to read this related post: https://pnl-law.com/blog/covid-19-lockdown-fortuitous-event-or-force-majeure-exemption-from-obligations/
We hope the lease discussion goes well. We also hope your NGO recovers. Good luck.
Sir I have a question a po, kung dalawa po kaming may work po kailan po ba namin bayaran agad nang bou yung upa sa bahay po? Samantalang kami nahinto din naman po kami sa pag ta trabaho simula nang ipatupad ang ECQ noong kailan lag kami nakapag trabaho ulit. Gusto kase pabayran nang bou agad2 yung upa sa bahay eiy.
Hi Marilou. Malinaw naman sa regulations na dapat staggered ang payment sa 6 months pagkatapos ng quarantine. Good luck.
pano naman po if the situation is we have no past due on our rent and meron pa nga kaming 1 month security deposit then starting last march 25 umalis kami ng said rental room dahil sa ECQ and lockdown and decided to just stay at our parents place and hindi namin na consume ang room for the months of April and May and the landlady said we should still pay for April and May even if di namin na consume and di na kami babalik. Ano po ba ang karapatan namin? kasi those months kasi of April and May even if we choose to get our things on our rented place it’s not possible kasi bawal ang movement from far away places only if you will buy food or medicine. and most definitely even though di namin siya na inform ahead of time na i susurrender na lang namin ang room namin we couldn’t tell her namn since we never thought na sobrang hahaba ang ECQ and ma uubos ang savings namin specially na no work no pay pa kami since april and may. Ano po ba ang karapatan namin? may karapatan bang i hold ng landlady ang gamit namin as collateral para magbayad kami or photocopy of valid id’s will just do? nagrarason kasi ang landlady na if we could have let her known na aalis na lang kami di sana bakante sana ang kwarto for a prospective renter na gusto mag rent. Pero questionable sa part namin kasi since April and May bawal ang movement at “mas uunahin pa ng mga tao ang maghanap ng marerentahan kahit halos lahat naka focus na maka survive ang family nila and to think na bawal ang movement kaya it’s close to impossible din na makakuha sila ng bagong renter na papalit dahil lang sa Pandemic issue” plus wala pa kami legal contract of agreement. please i really needed your counsel on this.
Hi Haiver. First off, we cannot give any legal advice. By way of general information, it is always best to negotiate the matter with the lessor. Worst-case scenario, the complaint/matter can always be referred to the DTI. Good luck.
Hi Atty.,
I would like to ask when will the grace period start? For example, we held all rental payments for April and May. We told our clients that we will arrange a deferred payment schedule for the months covered by the ECQ/MECQ which will start by July 2020 and the payment for June will be deposited as scheduled.
However, one of our clients is contesting the deposit of the payment for June. They said that according to the memo by DTI, they should be given 30 days (starting June 1) before we can deposit the payment for June. Meaning, we can only deposit their payment on July 1.
Can you help us in clarifying this situation? Thank you very much.
Hi JV. There are two reckoning points. First, 30 days from the due date, if the due date falls during the quarantine. Second, upon lifting of the quarantine. Choose whichever is the longer period. The 30 days is counted from the due date, not the lifting of the quarantine. Good luck.
Hello Atty,
I am a college student and my roommate ended her contract with our landlady around April 2020, meaning she would stop paying rent beyond May which is the expiry date of our contract. I myself planned on renewing my contract for midyear (June-July) thinking I still needed a place for when I process my documents if ever school ensued. She was told by my landlady that her belongings were to be stored away and boxed up if she were unable to retrieve them within the first week of June. Her reason was that new tenants were about to move into her bedspace around June. I was unaware of the landlady already offering up my roommate’s bedspace because she had not notified me at all; this was worrying as my belongings are exposed in the room. The landlady’s claim of incoming new tenants made us skeptic since quarantine has made travel very difficult and for school to resume was very vague. We are residents of Manila and our dormitory is in Baguio, imagine how difficult it would be to process documents just to claim our belongings in order to meet her grace period. I then also reaffirmed that I would be ending my contract instead of renewing. I confronted her how putting our stuff away seemed like an act of eviction for no longer paying for our bedspace for the month of June and I refused for her to store away my things. She reasoned that she would have to make the bedspace available for other tenants, and said the grace period was for leaving the belongings untouched was until June 5-7th as tenants would move in shortly after that. We could then claim it whenever as long as it was stored away. It should be noted that my roommate had paid her rent full. For my case, I asked to pay in person when I retrieve my things. But still, we weren’t occupying our bedspaces to accumulate utility bills so financially we aren’t staining her. She’s a well-known landlady who owns dormitories around the city. She was open to payment adjustments but she continues to barrage her lessees with deadline reminders in our group chat in messenger, even going as far as offering alternatives as to how we could send our payment (Mhuilleier, BDO online, etc.). As far as I know, IATF implemented guidelines wherein payments should could be made after the quarantine was lifted. She is extremely insensitive on that part neglecting how her lessees’ families should be prioritizing their own bills at home and their physical and mental well-being at that worrying over the rent and our belongings.
After a few days of my confrontation with her (which ended in her offering to talk to her lawyer’s secretary), my landlady notified that everyone of her lessees we will continue on our end of contract as of May 2020, which was initially its date of expiry. She also announced that she will not be renewing any contracts as school operations will not seem to continue as of now. She has given us the whole of June as a grace period for claiming our belongings and if we fail to do so by the end of the month, they will be “inventoried and set aside for safekeeping’. If this is now the case for everyone, I question why she still has to store away our belongings when they are safe in place. This also proved my skepticism as her rejecting contract renewals meaning the aforementioned tenants had vanished into thin air.
I am inquiring to see if my situation has valid concerns of my landlady violating IATF guidelines and if her actions are valid enough to submit a complaint to DTI. Thank you so much for your time and hoping for your response!
Hi Chelsea. This is a common issue; tricky issue. We’ll be posting a separate article on this. Drop by soon.
Hi, we have a tenant who was supposed to leave during the ECQ. They expressed their desire to vacate after the Contract expiration on April 30, 2020. However, they were not able to move out since it expired on April 30, 2020 during which Metro Manila was still under GCQ. Can they legally be charged rent from May 1 until they actually vacate the premises?
Hi Kaila. This is a common issue; tricky issue. We’ll be posting a separate article on this. Drop by soon.
Hello Atty. I was reading each comment to see if my question has been raised already. I found this (see below excerpt) similar to my situation and wanted to know if there has been updated post about this inquiry. In my case, my contract ended in Apr 30 but was not able to move out after that due to quarantine, so the lessor charged me monthly rental by not returning my security deposit.
Excerpt from previous comment:
Kaila Astorga
May 30, 2020 at 3:19 pm
Hi, we have a tenant who was supposed to leave during the ECQ. They expressed their desire to vacate after the Contract expiration on April 30, 2020. However, they were not able to move out since it expired on April 30, 2020 during which Metro Manila was still under GCQ. Can they legally be charged rent from May 1 until they actually vacate the premises?
Reply ?
pnl
June 1, 2020 at 11:49 am
Hi Kaila. This is a common issue; tricky issue. We’ll be posting a separate article on this. Drop by soon.
Hi atty,
we have lessee didnt pay rental yet since april 1 is her due date,2nd month is may is 2nd due date,it will be 3rd month on june 1,which GCq started.
are we still going to give 30days grace period atty if renter doesnt pay 3months already tomorrow.
We try to negotiate to pay this june 1 as her 3rd due date.we add the two months rental divide 6months.
but she said she cant pay.she can only pay the half rental from the basic rent.
Am i allowed to pre terminate the contract?give here notice to vacate the premises within 15days if shes not able to pay the rent?
please give me advise atty.as a am paying also many bills.
Hi nyvone. We can’t give any legal advice. Nevertheless, based on the guidelines, there is a no-eviction policy within 30 days from lifting of the community quarantine. This means that while either party can terminate the lease based on the grounds provided in the contract, no eviction can be done for 30 days from lifting of quarantine. Good luck.
Is lipat bahay from Taguig to Valenzuela allowed during GCQ ?
Thank you
Dear Sir,
As part of our requirements in renting a commercial space here in Pateros, Metro Manila, we were required to issue 12 pcs. post dated checks for monthly rentals ( January 2020 to December 2020) . But the sudden lockdown of Metro Manila prevented us to fund the checks of April and May 2020.
We have contacted them on the last week of March to tell them not to deposit the said checks until quarantine is lifted which they’ve agreed on via FB. But to our surprise we were informed just today that the checks have been already deposited on June 8, 2020 (Monday) and as expected they were bounced due to our unfunded account.
What will we do? Are we going to face penalties? How about the Bayanihan Act which stated that we are not obliged to pay rentals yet during lockdown?
I hope you can help us with this issue.
Hi Allan. That’s unfortunate to hear. Please see this post: https://pnl-law.com/blog/bouncing-checks-grace-periods-and-the-enhanced-community-quarantine/
Good luck.
This is for salon renting in my mothers building space.Their due date is supposed to be on March 20. But the province undergoes ECQ on March 16. How should they pay for its due? How about for due on Apr 20, May 20? And the for June 20..by the way June 1-june 15 our province was on MGCQ
Hi Atty.Fred/PNL, Maraming Salamat po for providing us your opinion on our concerns. Malaking tulong po ito.
1. Since the Bayanihan Law expired on June 25, 2020 are the DTI Guidelines covering Residential & Commercial Rent also expired?
2. If Yes, only the Rents Due from the ECQ March 16,2020 until GCQ June 25,2020 will be covered?
3. If Not, will the DTI Renat guidelines still be valid if and when we change to Modified-GCQ (in NCR)?
Thank you.
How about the payment for Association Dues especially in Condominiums which uses the funds to pay services such as security, housekeeping, and maintenance. Is this covered by the expanded 30 days period? We are already in GCQ and I’m wondering if it’s legal to cutoff water supply (as per policy of HOA) for those who have not paid or settled their Association dues.
Hi, we are a commercial lessor (community mall). Not related to overdue payments but can we evict a lessee who does not follow a covid preventive measures such as not wearing a mask and still allowing dine it to full capacity? Please advise
Good day,
May tenant po kame na 3months na hindi nag babayad ng rent. then the tenant was given prior notice that we will renovate the unit and the unit will be used by my nephew. the tenant is not planning on leaving and spreading rumors that is is being forced out of the unit. any advice and remedy on the situation. Thank you
what about for commercial rentals wherein early termination of contract is not permitted, what can we do about this? we are a start up company and very much affected with this pandemic.
just wanna ask i have a computer shop business.. my contract is 4yrs. i wrote a letter to the admin requesting to allow me to stay and wait for the government to allow me to operate. however, they declined my request and said they need to rent out the unit. thus, resulted in me not finishing the contract.. i still have a 100k security deposit.. can i still get it? they said i couldnt anymore..
Good day.
Ask ko lang po my contact sa condo ended last June 3,2020. As per contract, after 3 months makukuha na po ang security deposit. However, until today February 19,2021 wala pa din po and after so many follow ups and phone calls lagi reason ng condo admin wala pa daw ang cheque from their finance. Masyado na matagal and hassle na pag follow up sa kanila, good tenant naman po ako and no utang. I have also asked for the breakdown ng security deposit ko baka kasi wala na I balik saken pero to no avail din. Can I send them demand letter na po ba? Report them sa baranggay?
Thank you.