QuestionsQuestions (Republic Act No. 9653)
It is known as the “Rent Control Act of 2009.” The policy is to encourage affordable housing development while protecting covered tenants from unreasonable rent increases.
Rent is the amount paid for use or occupancy of a residential unit, whether monthly or other basis. Residential unit refers to an apartment/house/land where another dwells for residential purposes, including certain home-industry/retail/business premises if the owner and family actually live therein and use it principally for dwelling, and including dormitories, rooms, and bedspaces offered for rent, but excluding motels, motel rooms, hotels, and hotel rooms.
For one (1) year from effectivity, no increase shall be imposed upon the rent of any residential unit covered by the Act.
From the end of the first-year freeze until December 31, 2013, rent may not be increased by more than seven percent (7%) annually as long as the unit remains occupied by the same lessee.
When the 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 such student-occupancy accommodations.
In NCR and other highly urbanized cities: covered if monthly rent ranges from P1.00 to P10,000.00. In all other areas: covered if monthly rent ranges from P1.00 to P5,000.00 as of the Act’s effectivity date, without prejudice to existing contracts.
The HUDCC is authorized to continue rental regulation, determine the period and extensions, determine covered units, and adjust allowable limits considering among others NSO census on rental units, prevailing rental rates, monthly inflation rate on rentals of the immediately preceding year, and rental price index.
Rent is paid in advance within the first five (5) days of every current month (or beginning of lease agreement unless contract provides later). The lessor cannot demand more than one (1) month advance rent, and cannot demand more than two (2) months deposit kept in a bank under the lessor’s account name during the lease; interest accrues to and must be returned to the lessee at lease expiration.
If the lessee fails to settle rent, electric/telephone/water bills, or destroys house components and accessories, the deposits and interests may be forfeited in an amount commensurate to the pecuniary damage done.
No. Assignment of lease or subleasing (including acceptance of boarders/bedspacers) without written consent of the owner/lessor is prohibited.
Grounds include: (1) assignment/subleasing (or accepting boarders/bedspaces) without written consent; (2) arrears in rent for a total of three (3) months (with rules on consignation/deposit when the lessor refuses acceptance); (3) legitimate need of lessor to repossess for own use or for immediate family, with conditions: definite lease expiry, 3-month advance formal notice, and prohibition from leasing to a third party for at least one (1) year from repossession; (4) need of lessor to make necessary repairs due to an existing condemnation order, with first preference to the ejected lessee and a “reasonably commensurate” rent rule (and no first preference if unit is condemned or completely demolished); and (5) expiration of the lease contract period.
The lessee may consign/deposit in court, or with the city/municipal treasurer (as applicable) or barangay chairman, or in a bank in the name of and with notice to the lessor, within one (1) month after refusal; thereafter, the lessee must deposit rent within ten (10) days of every current month. Failure to deposit for three (3) months constitutes a ground for ejectment.
No. RA 9653 prohibits ejectment on the ground of sale or mortgage to a third person regardless of whether the lease or mortgage is registered.
At the option of the lessor, parties may enter a written rent-to-own agreement that results in transfer of ownership to the lessee. Such agreement is exempt from coverage of Section 5 (the rent increase limits).
Except when the lease is for a definite period, paragraph (1) of Article 1673 of the Civil Code, insofar as it refers to residential units covered by this Act, is suspended during effectivity of RA 9653; other Civil Code and Rules of Court provisions on lease not conflicting with the Act continue to 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.