Just like buying properties, renting apartments, condominiums, and houses also has its own stipulated law here in the Philippines. These laws are created to solely help both tenant and renter to get the best out of their contract and deal. With tenancy laws, both parties are protected from any sign of unjust contracts.
Residential tenancy laws in the Philippines is born out of the study conducted by Statistical Research and Training Center (SRTC) that 7.2% of households in the country are renters. It might seem like a small number but these people still need to be protected. From this, Republic Act (RA) No. 9653, also known as the Rent Control Act of 2009 was born. Signed by former president Gloria Macapagal-Arroyo, this law’s aim is to establish regulations in different rental establishments. Have no idea on what this law constitutes? We listed down the basic specifications of this law for your own good.
1. Terminologies to remember
Separate properties and properties who are part of a bigger unit are all under the term residential units. Apartments and buildings used for business are considered residential units. Meanwhile, motels, motel rooms, hotel, and hotel rooms are not part of this law.
The law also defined the term “rent” as the amount paid for a residential unit monthly, based on what the tenant and the renters’ contract stipulate.
2. Coverage
This law coverage all residential units in the National Capital Region and other urbanized areas in the Philippines that has residential units that rents P10,000 or P5,000 below. What this law does not cover is the rent-to-own scheme because it has a completely different agreement between the renter and the developer. The same goes with hotel and motel establishments.
3. Increase in rent
The law states that the lessor or the landlord can only increase the rent of the unit more than 7% annually, if it is rented by the same tenant. This also goes to landlords who offer bed space and dormitories. The rent can only increase once a year.
4. The law on leasing/subleasing
Subleasing is when the tenant rents the place that he or she is currently renting to other people. According to R.A. 9653, the tenant needs to have a formal or written agreement with the original landlord. If not done properly, the landlord has the power to evict the tenant.
5. Eviction rules
The law also covers ground in which the landlord can evict the tenant. Here’s a list of them that you should be aware of:
- If the tenant fails to pay the rent for 3 months.
- Subleasing without consent.
- If the landlord or his or her family member has a legitimate reason to occupy the space that is being rented.
- If the unit is under order of condemnation or the landlord needs to make certain renovations on the unit right away.
- Expiration of the contract.
6. Rules of payment
The tenant must be able to pay the rent one-month in advance within the first five days of the month. It can also be according to what the contract or the agreement of both parties.
Meanwhile, the landlord can only ask for a one-month advance and a two-month deposit. The deposit can be forfeited to cover the damages that the renter has done in the property. If there are no damages, the renter has the power to get the deposit. Violators can face 6 months of imprisonment and a fine of P25,000 to P50,000. Read this article to find out how you can get your security deposit from a pesky landlord.
For both tenants and landlords out there, check out the tenancy laws to avoid any penalties. Communicate wisely to each other to have a fruitful renting experience.
