Question & AnswerQ&A (BATAS PAMBANSA BLG. 25)
The monthly rentals of all residential units not exceeding three hundred pesos shall not be increased by more than ten percent (10%) of the monthly rentals existing at the time of the approval of the Act for any one year period, and the yearly increases authorized are cumulative.
This Act takes effect immediately upon its approval and remains in force for five (5) years thereafter.
A residential unit refers to an apartment, house, and/or land on which another's dwelling is located, used for residential purposes, including buildings used for home industries or retail stores if the owner and family live there and use it mainly as a dwelling, with certain conditions on capitalization and family labor.
The lessor may demand an advance rental intended to cover the initial month's rent but not to exceed one month's rental, and a deposit not to exceed one month's rental.
Subleasing or assignment of lease of the whole or part of the residential unit without written consent of the owner/lessor is prohibited.
No, the sublessor or assignor cannot charge rentals higher than that charged by the owner/lessor.
Grounds include unauthorized subleasing/assignment, arrears in rent payment for three months, need of owner or immediate family for residential use, ownership by the lessee of another residence, need for necessary repairs, and expiration of lease period.
The lessee shall deposit the rental amount by way of consignation in court or in a bank in the name of and with notice to the lessor.
The provisions of paragraph (1) of Article 1673 of the Civil Code referring to residential units are suspended during the effectivity of this Act, but other provisions of the Civil Code and Rules of Court on lease contracts not in conflict with this Act shall apply.
It applies to all residential units with total monthly rental not exceeding three hundred pesos as of the effective date of the Act and continues to cover such units even if the rental exceeds three hundred pesos due to authorized increases.
No, the Act is not applicable to new residential units constructed during its effectivity.
Violators may be punished by imprisonment of not less than three months nor more than two years and a fine of not less than one thousand pesos nor more than two thousand pesos.
The President or General Manager of the corporation or juridical entity shall suffer the penalty, without prejudice to the imposition of fine on the corporation or entity itself.
No, the lessor or his successor-in-interest is not entitled to eject the lessee on the ground of sale or mortgage to a third person.
The owner or immediate family must give a three-month notice to the lessee before intending to repossess the property, the lease period must have expired, and the owner or family member must use the unit as a residence for at least one year, except for justifiable cause.