Question & AnswerQ&A (Republic Act No. 9161)
The short title of Republic Act No. 9161 is the "Rental Reform Act of 2002."
The State shall undertake a continuing program of urban land reform and housing to make available at affordable cost decent housing and basic services to underprivileged and homeless citizens in urban centers and resettlement areas, establishing reforms in the regulation of rentals of certain residential units.
For the National Capital Region and other highly urbanized cities, monthly rentals of all residential units not exceeding Seven thousand five hundred pesos (P7,500.00) shall not be increased annually by the lessor by more than ten percent (10%) from January 1, 2002 to December 31, 2004.
A "residential unit" refers to an apartment, house, and/or land with a dwelling used for residential purposes. It includes boarding houses, dormitories, rooms, bedspaces offered for rent by owners, as well as units used for home industries or retail stores if the owner and family actually live there and use it principally for dwelling.
The lessor cannot demand more than one (1) month advance rental and two (2) months deposit.
No, assignment of lease or subleasing of the whole or any portion of the residential unit, including acceptance of boarders or bedspacers, without the written consent of the owner/lessor is prohibited.
Grounds include unauthorized assignment or subleasing, arrears in payment of rent for three months, legitimate need of the owner/lessor or immediate family to repossess the property (with conditions), necessary repairs supported by an official order of condemnation, and expiration of the lease contract period.
No, no lessor or successor-in-interest can eject the lessee on the ground that the premises have been sold or mortgaged to a third person regardless of registration status.
Violators, whether natural or juridical persons, shall face a fine of not less than Five thousand pesos (P5,000.00) nor more than Fifteen thousand pesos (P15,000.00), or imprisonment from one month and one day up to six months, or both.
A rent-to-own agreement, which results in the transfer of ownership to the lessee, is exempt from the rental increase limitations under Section 3 of the Act.
Paragraph (1) of Article 1673 of the Civil Code regarding leases for a definite period is suspended during the effectivity of the Act, but other provisions on leases and Rules of Court apply insofar as they do not conflict with this Act.
The Act covers all residential units in the National Capital Region and other highly urbanized cities with monthly rentals not exceeding P7,500, and residential units in other areas with monthly rentals not exceeding P4,000, as of the effectivity date of the Act.
The lease must have expired, the lessor must give formal three (3) months advance written notice, and the lessor cannot lease the property to a third party for at least one year after repossession.
The Council is mandated to conduct a transition program within six months from effectivity to provide safety measures to cushion the impact of a free rental market.
The Act took effect on January 1, 2002, following its publication in at least two newspapers of general circulation.