What Does the Philippines’ Rent Control Law Says
Aimed at safeguarding tenants form a sudden price increase to their rent, the Republic Act 9653—also known as the Philippines’ Rent Control Law—is a law designed to be with inherent scope and limitations.
Here’s a brief look at what this law entails:
What kind of housing it covers?
According to the law, R.A. 9653 covers all residential units within and outside Metro Manila whose monthly rental fee does not exceed P10,000 and P5,000, respectively.
How much price increase is allowed?
All residential units that charges not more than P4,999 per month are not allowed for a price increase of more than 2% per year. Price increase is still allowed but it should not exceed 2% based on the current monthly rate.
For residential units which charges an amount set between P5,000 and P7,999, a price increase exceeding 7% is not permitted, with the caveat that the unit is under rent by a tenant.
Lastly, for residential units whose charging monthly rate is set between P9,000 and P10,000, no further price increase is allowed past the derived 11% from the monthly rate.
Are commercial properties like motels or hotels included in this law?
No, they are not as they are not classified as “residential units,” but rather are commercial properties of only similar purpose but not share the same extent.
Are rent spaces for students affected by this law?
The law did not specify the maximum limit by how much dormitories, boarding houses, etc. can have a price increase. But it explicitly stated that it can only be done once per year.
How about the 1-month advance, 2-month deposit principle?
By this law, any other term that go against the “one-month advance, 2-month deposit” is considered illegal.