Question & AnswerQ&A (Republic Act No. 9653)
The short title of Republic Act No. 9653 is the "Rent Control Act of 2009."
The State shall encourage the development of affordable housing for lower income brackets and other beneficiaries and protect housing tenants in these groups from unreasonable rent increases.
‘Rent’ means the amount paid for the use or occupancy of a residential unit whether payment is made on a monthly or other basis.
All residential units in the National Capital Region and other highly urbanized cities having monthly rent from P1.00 to P10,000.00, and all other areas with monthly rent from P1.00 to P5,000.00 as of the act’s effectivity date, including apartments, houses, dormitories, rooms, and bedspaces, except motels and hotels.
No increase shall be imposed for one year from effectivity. After that, up to December 31, 2013, rent increases are limited to not more than 7% annually for the same lessee. Boarding houses may increase rent only once per year.
No. The lessor cannot demand more than one (1) month advance rent and no more than two (2) months deposit which must be kept in a bank under the lessor's name during the lease term.
No. Assignment of lease or subleasing in whole or in part without written consent of the owner/lessor is prohibited.
Grounds include unauthorized assignment or subleasing, arrears in rent for three months, legitimate need of the owner or immediate family for the property, necessary repairs with permit, and expiration of lease contract.
No. The Act prohibits ejectment on the basis of sale or mortgage of the leased premises.
Violators may be fined between P25,000 to P50,000 or face imprisonment from one month and one day to six months, or both.
Every three (3) years from the effectivity of the Act, HUDCC must review implementation and submit recommendations to Congress on continuing regulation or deregulation.
At the lessor's option, a written rent-to-own agreement may be executed transferring ownership to the lessee, and such agreement is exempt from the Act's rental coverage limits.
Rent is due in advance within the first five days of the month or as stipulated. Deposits must be placed in a bank account under the lessor’s name and interest returned to lessee after lease ends unless forfeited due to damages or arrears.
Immediate family includes the spouse, direct descendants, or ascendants by consanguinity or affinity of the lessee or lessor.
The deposit and accrued interest may be forfeited to the lessor commensurate with the pecuniary damage caused by the lessee.