QuestionsQuestions (Republic Act No. 9653)
RA 9653 is the “Rent Control Act of 2009.” It regulates the increase and conditions of rent for certain covered residential units in the National Capital Region and other highly urbanized cities, and in other areas within specified rent ranges.
“Rent” is the amount paid for the use or occupancy of a residential unit, whether payment is monthly or on another basis.
A “Residential unit” includes apartments, houses, and/or land where another’s dwelling is located and used for residential purposes, including building houses, dormitories, rooms, and bedspaces offered for rent, but excluding motels, motel rooms, hotels, and hotel rooms. It also includes units used for home industries, retail stores, or other business purposes if the owner and family live there and use it principally for dwelling.
For one (1) year from effectivity, no increase may be imposed. After that until December 31, 2013, rent may not be increased by more than 7% annually as long as the unit is occupied by the same lessee.
When the residential unit becomes vacant, the lessor may set the initial rent for the next lessee.
No increase in rental more than once per year is allowed for these student accommodations.
In the National Capital Region and other highly urbanized cities: units with total monthly rent ranging from P1.00 to P10,000. In all other areas: units with total monthly rent ranging from P1.00 to P5,000, as of the Act’s effectivity date, without prejudice to existing contracts.
HUDCC may continue the regulation notwithstanding the lapse of Section 4’s period, determine the period and extensions if warranted, determine covered units, and adjust allowable limits by considering factors such as NSO census data, prevailing rental rates, monthly inflation rate on rentals, and rental price index.
Rent must be paid in advance within the first five (5) days of each month (or later if the contract provides a later date). The lessor cannot demand more than one (1) month advance rent and cannot demand more than two (2) months deposit, which must be kept in a bank under the lessor’s account name during the lease. Interest accrued must be returned to the lessee upon expiration of the lease.
If the lessee fails to settle rent, or electric/telephone/water utility bills, or destroys house components and accessories, the deposits and interest may be forfeited in an amount commensurate to the pecuniary damage caused by the lessee.
No. Assignment of lease or subleasing of the whole or any portion, including accepting boarders or bedspacers, without written consent of the owner/lessor is prohibited.
They include: (1) assignment or subleasing (or accepting boarders/bedspaces) without owner’s written consent; (2) arrears in rent totaling three (3) months (with a specific consignation/deposit procedure if the lessor refuses acceptance); (3) legitimate need of the owner/lessor to repossess for own use or immediate family’s use, subject to conditions (definite lease expiration, 3-month advance formal notice, and a prohibition from leasing to third parties for at least one year); (4) need for necessary repairs ordered by condemnation authorities to make premises safe and habitable (with first preference to the ejected lessee and rent commensurate with repair costs, and a caveat if unit is condemned/demolished); and (5) expiration of the lease contract period.
A lessor or successor-in-interest cannot eject a lessee because the premises were sold or mortgaged to a third person, regardless of whether the lease or mortgage is registered.
At the option of the lessor, a written rent-to-own agreement may transfer ownership of the dwelling to the lessee. Such an agreement is exempt from the coverage of Section 5 of the Act.
Except for leases for a definite period, the specific provision in paragraph (1) of Article 1673 (relating to termination/continuation rules) insofar as it refers to residential units covered by the Act is suspended during the Act’s effectivity. Other Civil Code and Rules of Court provisions on lease that do not conflict still apply.
A fine of not less than P25,000 nor more than P50,000 or imprisonment of not less than one (1) month and one (1) day to not more than six (6) months, or both.
HUDCC must conduct a review every three (3) years from effectivity and submit to Congress recommendations on whether continuing regulation remains necessary or deregulation is warranted.