Question & AnswerQ&A (BATAS PAMBANSA BLG. 877)
The maximum allowable increase is 10 percent during this period.
A 'residential unit' refers to apartments, houses, or land on which a dwelling is located used for residential purposes, including units used for home industries or retail stores where the owner lives and uses principally for dwelling, with specific conditions on capitalization and employment.
Rentals must be paid in advance within the first five days of every current month or at the beginning of the lease agreement, unless a later payment date is specified in the contract.
No, the lessor cannot demand any advance rental but may ask for a deposit not exceeding one month’s rental.
Assignment of lease or subleasing is only allowed with the written consent of the owner/lessor, and no higher rental than that charged by the owner/lessor may be charged by the sublessor or assignor.
Grounds include unauthorized subleasing or boarding, arrears in payment of rent for three months, legitimate need of the owner/lessor or immediate family to repossess, lessee’s ownership of another dwelling unit in the same locality, necessary repairs with condemnation orders, and expiration of the lease contract.
The lessee may deposit rental payments by consignation with the court, city or municipal treasurer, or bank in the name of the lessor, and failure to deposit for three months constitutes a ground for ejectment.
No, the Act does not apply to new residential units constructed or offered for rent for the first time during its effectivity.
A fine of not less than two thousand pesos nor more than five thousand pesos shall be imposed on any person, natural or juridical, violating Sections 1 or 4 of the Act.
The other sections or provisions not affected by the declaration shall continue in full force and effect due to the separability clause.
The Act took effect immediately upon approval, June 12, 1985, and remained in force until December 31, 1987.
Immediate members of family are limited to the spouse, direct descendants or ascendants, by consanguinity or affinity.
No, the lessor or successor-in-interest cannot eject the lessee on the ground of sale or mortgage, regardless of registration.