Published — April 13, 2021
The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of your own lawyer to address your legal concerns, if any.
Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
Upon learning what is Rent Control Act, read also: SUSPENSION OF THE PAYMENT OF RENT
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There is a limitation in the increase of rent in a residential unit
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Rent is the amount paid for the use or occupancy of residential unit
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Subleasing must be with the written consent of the owner or lessor
Muhammad Ali said, “Service to others is the rent you pay for your room here on earth.”
To protect housing tenants in the lower income brackets and other beneficiaries from unreasonable rent increases, Republic Act No. 9653 or the “Rent Control Act of 2009” was enacted. The Rent Control Act is applicable to all residential units in the National Capital Region (NCR) and other highly urbanized cities, the total monthly rent for each of which does not exceed Ten Thousand Pesos (Php10,000.00). It also applies to all residential units in all other areas, the total monthly rent for each of which does not exceed Five Thousand Pesos (Php5,000.00).
What is a residential unit?
The law says:
It refers to an apartment, house, and/or land on which another’s dwelling is located and used for residential purposes. The term includes not only buildings houses, dormitories, rooms and bedspaces offered for rent by their owners but also those used for home industries, retail stores and other business purposes if the owner of the same and his or her family actually live inside and use it principally for dwelling purposes. Please take note that the term excludes motels, motel rooms, hotels and hotel rooms.
When a person (lessee) decides to temporarily stay in a residential unit, he or she is to pay the rent which represents the amount of money to be paid to the lessor.
How should the rent be paid?
The law says:
The rent shall be paid in advance within the first five (5) days of every current month or the beginning of the lease agreement. But if the lease agreement provides for a later date of payment, the rent shall be paid at such later date.
Can the lessor demand for more than one (1) month advance deposit?
The law says:
No.
The lessor cannot demand more than one (1) month advance rent. Neither can he/she demand more than two (2) months deposit which shall be kept in a bank under the lessor’s account name during the entire duration of the lease agreement. Any and all interest that will be earned by such deposit shall be returned to the lessee at the expiration of the lease contract.
However, in the event that the lessee fails to settle the rent, electric, telephone, water or such other utility bills or destroys any house components and accessories, the deposits and interests shall be forfeited in favor of the lessor in the amount commensurate to the damage done by the lessee.
May the lessor increase the amount of rent at his will?
The law says:
No.
The rent of any residential unit shall NOT be increased by:
- More than Two percent (2%) annually for those paying a monthly rent ranging from the amount of Php1.00 to Php4,999 per month;
- More than Seven percent (7%) for those paying a monthly rent of Php5,000 up to Php8,999 for as long as the unit is occupied by the same lessee; and
- More than Eleven percent (11%) for those paying a monthly rent of Php9,000 to Php10,000 for as long as the unit is occupied by the same lessee.
If the residential unit becomes vacant, the lessor may set the initial rent for the next lessee. However, in the case of boarding houses, dormitories, rooms and bed spaces offered for rent to students, no increase in rent more than once per year shall be allowed.
May the lessee sublease the leased property?
The law says:
No.
Assignment of lease or subleasing the whole or any portion of the residential unit, including the acceptance of boarders or bedspacers without the written consent of the owner or lessor is prohibited.
May a lessee be ejected? A related article will be posted in a few days.
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.
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