The Rent Control Act of 2009 (Republic Act No. 9653) regulates rent increases for low-income tenants in the Philippines, limiting annual hikes to 7% for residential units with monthly rents of P10,000 or less in Metro Manila/urban areas and P5,000 or less elsewhere, provided the same lessee occupies the unit.
Key provisions of the Rent Control Act of 2009 include:
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- Coverage & Limits: Covers apartments, houses, and boarding houses/rooms with monthly rentals of PHP 1.00 to PHP 10,000.00 in Metro Manila and other highly urbanized cities, and PHP 1.00 to PHP 5,000.00 in other areas.
- Rent Increases: Annual increases for existing tenants are capped at 7%. When a unit becomes vacant, the landlord may set a new, higher rate for the next tenant
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- Deposits & Payment: Security deposits are limited to a maximum of two (2) months’ rent, and advanced rent cannot exceed one (1) month.
- Eviction Grounds: Landlords can only evict for specific reasons: owner needing the unit for personal use, unit needing repairs, or non-payment of rent for three months.
- Validity: The law is subject to review every three years to adjust to economic conditions.
- Penalties: Violations of this Act are punishable by fines of ₱25,000 to ₱50,000 or imprisonment of one month and one day to six months.
The law aims to prevent unreasonable rent increases and protect, in particular, tenants in the lower-income brackets.
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