Rent Control Extension Act

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Republic Act No. 8437: Rent Control Extension Act

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Title Source: Supreme Court: Rent Control Extension Act

Law: Republic Act No. 8437

Decision Date: Dec 22, 1997

Republic Act No. 8437 extends the rent control period in the Philippines, limiting rent increases to 15% per year, in order to protect tenants and ensure affordable housing options.

Law Summary

Duration and Effective Period

The rent control extension is effective from January 1, 1998, to December 31, 2001.

Limitations on Rent Increases

Monthly rent increases by lessors are limited to a maximum of 15% per year during the four-year period.
The maximum increase rates are as follows:
- January 1, 1998 to December 31, 1998: 15%
- January 1, 1999 to December 31, 1999: 15%
- January 1, 2000 to December 31, 2000: 15%
- January 1, 2001 to December 31, 2001: 15%

Basis for Computing Rent Increase

The starting point for computing the allowable maximum rent increase is the actual rental amount as of December 31, 1997.
This means any increase is calculated based on the rental rate before January 1, 1998.

Nature of Rent Increase

The rent increases authorized during this period are cumulative and compounded.
This indicates that each annual increase applies on top of the adjusted rental amount from the previous year.

Effectivity and Publication Requirements

The law is effective starting January 1, 1998.
Its operation is contingent upon publication in at least two newspapers with general circulation.

Legal Authority

The Act amends Batas Pambansa Blg. 877, the foundational law regulating rent control on certain residential units in the Philippines.

END