Question & AnswerQ&A (Republic Act No. 9341)
The short title of Republic Act No. 9341 is the 'Rent Control Act of 2005.'
The main policy objective is to encourage the development of affordable housing for lower income brackets and to protect housing tenants in these brackets from unreasonable rent increases.
The rent for any residential unit shall not be increased by more than 10% 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 without the 10% increase limitation.
Rent is defined as the amount paid for the use or occupancy of a residential unit whether payment is made monthly or otherwise.
It includes apartments, houses, and/or land with dwellings used for residential purposes, including boarding houses, dormitories, rooms, and bedspaces offered for rent, except motels and hotels. It also covers units used for home industries or retail stores if the owner and family actually reside and principally use it for dwelling.
Rent must be paid in advance within the first five days of the month or at the start of the lease unless otherwise agreed. The lessor cannot demand more than one month advance rent and no more than two months deposit, which must be kept in a bank account in the lessor's name. Interest earned must be returned to the lessee at the lease's expiration.
Assignment of lease or subleasing of the whole or any portion of the residential unit without the written consent of the owner/lessor is prohibited.
Grounds include unauthorized assignment or subleasing, non-payment of rent for three months, legitimate need of the owner or immediate family member to repossess for residential use with proper notice, necessary repairs under an order of condemnation, and expiration of the lease period.
No, no lessor or successor-in-interest shall be entitled to eject the lessee on the ground that the leased premises were sold or mortgaged, regardless of registration.
Violators face a fine of not less than PHP 5,000 but not more than PHP 15,000, or imprisonment from one month and one day to six months, or both.
It covers all residential units in the National Capital Region and other highly urbanized cities whose total monthly rent does not exceed PHP 10,000, and all other areas whose monthly rent does not exceed PHP 5,000 as of the Act's effectivity date.
They must formulate a transition program within six months from effectivity to cushion the impact of a free rent market, and conduct continuing information drives on the Act's provisions.
At the lessor's option, a written rent-to-own agreement may be entered into which results in ownership transfer to the lessee. Such agreements are exempt from the Rent Control Act's limitation on rent increases.
The deposits and interests may be forfeited in favor of the lessor in amounts commensurate with the pecuniary damage caused by the lessee.