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Rent Control Act of 2009 (R.A. 9653) Explained

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Rent Control Act of 2009 (R.A. 9653) Explained

Classes are going to resume in a few days and a number of students are looking for apartments, boardinghouses or bedspace. They would look for units that are safe, with the necessary amenities, near their school and where the rent is reasonable.

Once they have selected the right unit, they would transfer and enjoy their new pad.

After a few months, their lessor would come knocking and telling them that they have to increase the rent. The ordinary lessee/ tenant would just pay new rent without examining whether this is allowed by law. Meanwhile, the intelligent lessee would look for the law which governs his or her rights.

For this reason I decided to write this article on the Rent Control Act of 2009 to guide lessees/ tenants (and also lessors) regarding their rights under the law. This article is not just for students but even for office workers and other individuals who are either looking for a units to rent or are already occupying one.

What is the limit on the increase in rent?

From August 2009 until 31 December 2013 the rent of a residential unit shall not be increased by more than 7% annually, as long as the unit is occupied by the same lessee.

John leased a commercial unit starting from 01 June 2012 at the rate of Php10,000 per month, can Paul the lessor increase the rent by Php5,000 for a total of Php15,000/month on 01 January 2013?

Yes. Because the law covers only residential units. Commercial units are not covered by this law.

John leased a residential unit starting from 01 June 2012 up the present at the rate of Php10,000 per month, can Paul the lessor increase the rent by Php700 on 01 June 2013?

Yes. Because the increase does not exceed the 7% annual increase limit.

May Paul the lessor increase the rent by 01 May 2013?

No. Because he must wait for one year from the time of the effectivity of the lease contract before he could increase the rent.

May Paul the lessor increase the rent in 01 June 2013 by Php800 for a total of Php10,800 monthly?

No. Because Php800 is an 8% increase from the rent and this is already beyond the 7% limit set by the law.

Supposing John ended the lease by 01 May 2013, can Paul set a rate of Php10,800 to Mark, the new lessee?

Yes. Because the unit is no longer occupied by the same lessee (John). When the residential unit becomes vacant, the lessor may set the initial rent for the next lessee.

Is the above rule applicable to boarding houses, dormitories, rooms and bedspaces offered for rent to students?

No, because the rule is stricter. For boarding houses, dormitories, rooms and bedspaces offered for rent to students, no increase in rental more than once per year shall be allowed. Thus, even if a new boarder replaced the previous boarder, if there was already an increase in 2013 there can be no further increase on the same year.

Robert, who works at a nearby construction company was told by his landlord – the owner of the bedspace for construction workers – where he resides, that the rent will be increased from Php1,500 to Php2,000 per month starting on 01 March 2013, Robert terminated the bedspace contract in 01 April 2013, may the landlord set a price of Php2,500 to the next tenant who will occupy in 01 May 2013?

Yes. Because the strict rule applies only to boarding houses, dormitories, rooms and bedspaces offered for rent to students. If these units are offered for rent to construction workers or other individuals who are not students, then the lessor may increase the rent twice or more in a year as long as the original lessee is no longer occupying the unit.

What is the coverage of this Rent Control Act of 2009?

All residential units in NCR and other highly urbanized cities, the total monthly rent ranges from Php1 – 10,000.

All residential units in all other areas, the monthly rent ranges from Php1- 5,000

John leased a unit in Makati starting from 01 June 2012 up the present at the rate of Php11,000 per month, can Paul the lessor increase the rent by Php1,000 in 01 June 2013?

Yes, because this is beyond the coverage of the Rent Control Act. When the rent is beyond Php10,000 in the National Capital Region, this law no longer applies and so the lessor may increase the rent of the residential unit.

When should the rent be paid?

Rent shall be paid in advance within the first five (5) days of every current month or the beginning of the lease agreement unless the contract of lease provides for a later date of payment. (Sec. 7)

May the lessor demand 2-months advance rent?

The lessor cannot demand more than one (1) month advance rent. (Sec. 7)

May the lessor demand 3-months deposit?

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 shall accrue therein shall be returned to the lessee at the expiration of the lease contract. (Sec. 7)

May the lessor use the deposit to settle rent, electric, telephone, water or such other utility bills or destroys any house components and accessories?

Yes. (Sec. 7)

Supposing the total of the unsettled bills is Php15,000, may the lessor forfeit a deposit which totals Php20,000?

No. The deposits and interests therein shall be forfeited in favor of the lessor in the amount commensurate to the unsettled bills or damage done by the lessee.

May John the lessor sublease his unit to his friend?

As a general rule, he cannot.

Is there an exception?

Yes, there must be a written consent

John subleased his unit to his friend, he informed the lessor through a telephone call, and the lessor agreed, is the sublease valid?

No. There must be a written consent, oral consent is not sufficient.

When may a lessor legally eject a tenant?

a)    Assignment of lease or subleasing of residential units in whole or in part, including the acceptance of boarders or bedspacers, without the written consent of the owner/lessor

b)   Arrears in payment of rent for a total of three (3) months

c)    Legitimate need of the owner/lessor to repossess his or her property for his or her own use or for the use of any immediate member of his or her family as a residential unit

d)   Need of the lessor to make necessary repairs of the leased premises which is the subject of an existing order of condemnation by appropriate authorities concerned in order to make the said premises safe and habitable

e)    Expiration of the period of the lease contract

May a lessor eject the lessee upon the ground that the leased premises have been sold or mortgaged to a third person?

No. This is prohibited by Sec. 10.

What if the sale or mortgage has been registered, can he now eject the lessee based on any of these grounds?

The rule is applicable regardless of whether the lease or mortgage is registered or not.

What are the penalties for people violating this rent control law?

A fine of not less than Twenty-five thousand pesos (Php25,000.00) nor more than Fifty thousand pesos (Php50,000.00) or imprisonment of not less than one (1) month and one (1) day to not more than six (6) months or both shall be imposed on any person, natural or juridical, found guilty of violating any provision of this Act.

What is the rule after 31 December 2013?

The HUDCC is mandated to conduct every 3 years from the effectivity of this Act to submit to Congress its recommendation on whether a continuing regulation is still necessary or deregulation is already warranted.

129 Comments

  • wilfred says:

    Glad to have read your article sir. Very useful information with definite sample situations to provide a clearer picture. Keep it up po. Thanks, just when you need it.

  • Lor says:

    Thank you for your post. I have read the four legal reasons the lessor can eject a tenant. But I have also read in another link that a tenant can terminate the lease agreement anytime. Is this correct? I want to know the legal basis for this. Our situation is this: We are now renting inside an apartment compound that has 3 units. It is fully fenced and gated. Before we signed the agreement, there were no pets in the area. For some reason, the door 2 tenants decided to have a cat which they allow to roam freely in the complex. It pees, poos, and sits on our flower beds. We complained about this and about the possibility of us or our son being bitten by it to the door 2 tenants and the owners. Unfortunately, they are all unwilling to address our concerns, even after we proposed two options to the owner; 1. for the door 2 tenants to make sure to keep the cat in their house or 2. get rid of the cat. This problem has led to a recent argument and the owner told us that if we can’t stand having the cat around, then we should just leave. We have just renewed our contract which will end on February 1, 2015. After the argument and because of the many issues we have with them, we are willing to accept their proposal. In this case, can the owner decide as to when we should move out and can the owner declare our 2-month security deposit be forfeited? Thank you in advance for your time and help.

    • Atty. James Biron says:

      Lor, this will really depend on what is written on your lease contract. What does it say about pre-termination? Read it and it will tell you whether you can do what you intend to do.

    • Jc samaniego says:

      Atty.james,question po.may nirent akong 1bedroom na bahay last may 10 2014 nag expire yung contract may 10 2015,bago po mag expire yung contract,i asked our lessor to renew our contract sabi niya ok irenew namin,tapos biglang may kapatid siya na dumating from states at pinaalis yung lessor namin at siya na daw ang bagong mamamahala.wala pong formal endorsment na nangyari,ngayon hinihingan kami ng 1000 pesos na additional sa rent namin na dating 3000pesos,sobra po yun sa maximum na 7% annualy,tapos bumalik na siya ng states.ngayon nakatanggap na lng ako ng DEMAND TO VACATE within 15 days,ano po dapat gawin ko?updated din po ako sa mga payments wala akong utang sakanila.may advance po ako at deposit sakanila.ano po dapat kong gawin?

  • lhene says:

    hi sir, i’m a commercial tenant for past 13 yrs.in commercial unit in taft avenue below lrt.Im started renting from an amount of 3k per month until last year 2013 im rented out the commercial in amount of 11,200 included evat. They make it interest up to 10% interest per month. They have also rate us a renewal fee which is every year increases also.It started from 20K until now it increases now for a Renewal of our Contact as 45K included also some additional deposits of 12k ryt now. We have our initial deposit with them as much as around 50K if im correct coz every year they make us incease the renewal fee and add some additional deposit.Ive read carefully read our contract with them,and i have seen anything renewal fee in the contract..and we are feared that all we have paid to them will go us bubbles..but very embarrassing for me is there additional of 25% interest for us this coming contract for our monthly rentals, from 11,200 last year they make it now 14K not yet including the administrative charges and evat with a totaled of 15,897. per month. How can we disagree for this if we have no law regarding Commecial Rental Law.In the contract in their rental adjustment,they can increase only a 15%,do we have fingd a loop hole on this..ive planned to fight for them thrue demand in court but im afraid that they will closed our store with is our green pasteur. I have no money to demand them..but i have planned to go to PAO. I want to get our all money disposed to them like renewal fee and deposits with until now..were not used because were renewing our contract.I hope u cn give me a good advice.

  • Abu says:

    Hi Sir,
    We are currently renting an apartment in Makati. Our Landlady recently informed us that we need to leave due to a planned “renovation” of the said unit. However, she did gave us 3-4 months to look for another place or unit to transfer to. My question is, is she allowed to ask us to leave due to a planned “renovation” of the unit? There were rumors as well, that the main reason for the “renovation” is to increase our rent. Based on the reasons to eject a tenant, renovations is not included in the list. Can you enlighten me on this matter please. We just want to make sure that everything is being done legally. Btw, we don’t have any contract with the owner of the unit. Thanks and more power!

  • emie conde says:

    sir good day! Residential and area is in the province. The space is rented since 2012. No increase until now. Is is possible to have an increase more than 7%? or rule does not apply since outside ncr and place is not highly urbanize. Many thanks.

  • ace says:

    Good Day Atty!

    just wanna ask, what if the rented space is own by the government (technically) but the land is occupied by a soldier. so we pay COMMERCIAL rent to them 9k per month. do they have rights to terminate the contract agreement in a way that the contract is expired already and the space will be allotted to another person (w/c their friend) and they wont allow us to renew the contract ? by the way the said space is really not fully in scope of their property coverage. some of it is already part of the street. please advice thank you so much!

    • Atty. James Biron says:

      Good day too, Ace. If the contract already expired then they have a right to rent it to another person.

  • Uzime says:

    Good day Atty. Biron. Ask ko lang po kung ang 3 months na arears ay grounds para ma-evict ang tenant, ang ibig sabihin po ba nito ay may karapatan silang hindi na magbayad ng 3 months? Wala na po silang advance rent na 5k kasi ay pinagamit ko na po sa kanila on their first month of stay. Ang 2 mos deposit na 10k na lang po ang nasa akin na nakatabi sa bank, pero nag-aalala po ako dahil ang utility bills na dapat nilang bayaran tulad ng meralco, ay kulang pa na pambayad ang 10k deposit nila sa 1 month bill nila, Atty., ano po ang dapat na legal na paraan tungkol dito. Maraming salamat po and God bless.

  • Dave valcarcel says:

    Hi sir our land is being rented by 8 families and they pay only less than five hundred a month

    Now we need the said property for we are selling it in our contract with them it stated “the the lessor had full and exclusive authority and shall exercise full discretion to cancel and terminate the leased contract for whatever reason without need of any court action … And that lessee shall peacefully and immediately vacate the leased property and return possession……”

    With these statements can we ask them to vacate within 30 days or 3months?
    What is our recourse when notice has already been given to them and the still dont vacate? Unlawful detainer?

  • Louieric says:

    Is it against the law if a lessor imposes increase twice in one year period (January and October)? The increase is also a fix amount regardless of the type of dwelling (airconditioned and non-airconditioned) and it’s more than the allowed 7%. I’ve been renting here in Mandaluyong City for more than 2 years now and working in a BPO.

  • Franchesca De Guzman says:

    Hi Atty, what if po the rent is above 10k so it’s not covered na under RA 9653. Our rent po is 14k. We made a payment of 2 mos adv, 2 mos deposit prior to moving in last July 2014. Nagamit na po namin ang 2 mos adv. Sept po ang first payment namin but we paid 6 days late (with interest as per contract). This oct, late po ulit kmi dapat makakabayad, we offered 10k partial but the lessor did not accept. After a few days, we were verbally informed na we have to move out by Nov 5 and that the lessor wants to use the 1 mo security deposit as our rental payment for Oct instead. We were informed also that the remaining 1 mo security deposit will be non refundable AND cannot be used to settle our unpaid utility bills. Confirm ko lang po kung legally pwede po kami paalisin agad and without a 30 day notice? At kung tlga pong non refundable ang deposit namin. Sa contract po, nakalagay na kung kami ang voluntarily na aalis, hindi na nila ibabalik. Wala pong nakasulat if it’s the other way around. Please help po. Thank you.

  • sheila dawn secuya says:

    i need advice po how to email you?

  • Dru says:

    Atty. Good evening. I just want to know if the said law, “The Rent Control Act of 2009” is still in effect at present Nov. 2014. Thanks

    • Atty. James Biron says:

      Dru, it was set to expire last December 2013, but it was extended for 2 more years, thus the law will expire in December 2015.

  • Chryzaika says:

    Hello Atty. Biron,

    Thanks for this very helpful post.

    May I just inquire about my current situation?

    I transferred to a room with 4k rate when I inquired. But I asked the landlady if I can have it for just 3500. I started styaying here since June 2014. Just yesterday, she informed me that there’s a possibility for the rental fee to return to 4k. And that sounds unfair to me because they did not inform me of that possibility before I moved in. If they did, I should have searched for another room.

    Now, I want to resolve the problem just between us before last week of November. But she is not talking to me. So I sent her a text message that if they will increase it to 4k , I can’t afford to pay that so I need to know their decision before this coming week so I can move to a new room before our review classes starts. And if I will not receive a confirmation before this coming week, that means my rent will be as is until I leave in June 2015.

    Will you be able to enlighten me on how I will be able to resolve this matter? Or if there is anything I can do to defend my rights?

    Bec. for me, it’s either they’ll let me leave before Dec 2014 and give me back my deposit, OR they let me stay still with the same rate until I leave on June 2015. I don’t want my review to be disrupted by the possible room transfer that may occur between Dec 2014 to June 2015.

    Thank you for your legal advice.

    Chryz

  • Brandon says:

    Tanong lng sir. Paano po kung existing tenant na kami at walang written contract. After 2 years, binigyan kami ng contract which increases my current rent, P6,000 to 7,000. And then nakalagay din sa contract na magdedeposit pa daw kami to reflect the increase. Illegal po ba ito?

  • PTP3ALMA says:

    after expiry of this Law on Dec. 31, 2013. what will happen now? what law applies now? How Rental Act law originates?

  • Daniella says:

    Good Day Sir.

    Meron po akong mga pinapaupahan na units dito sa Makati. Naiwan po ito sa akin ng lola ko (deceased) at papa ko ( nasa province kasama si mama ko.) So ako po yung iniwan nilang magmanage. Wala pong mga kontrata itong mga tenant ko sa lola ko. Gusto ko po sana sila gawan ng Contract. Kasi karamihan po sa kanila laging late magbayad, allowed po ba ako (apo ng may ari) na gumawa ng kontratang ito?

  • TES P. CONCEPCION says:

    Our company is renting a condo at 65,000 per month. We are required to pay a one-time payment equivalent to 12 months rent. This is stipulated in the contract between the lessor and lessee. Accordingly, this is a standard practice in the realty industry. For the monthly PDC is an acceptable terms — it may vary though depending on the agreed term but the 12 months one time payment, is definitely absurd. Is this legally acceptable?

  • Meo says:

    Good day Atty. Biron!

    I sent you a private message. Thanks in advance. God bless!

  • Wilson Morano says:

    Sir question, If my lease contract ends for example April, Am I still entitle to grace period? If so, what will be the reckoning period? My rent is 5,000.00

  • Atty Biron.,

    Good day.!

    Just want to ask if a lessor can eject the tenant for 8 years (same house) and give only 2 months to vacate the apartment.?

    Apt price: Php 2,500.00
    Place: Laguna

    and just being advice verbally…

    Looking forward to your response.

    Thank you!

  • Lito Acid says:

    Good Afternoon po Atty!

    Manghihingi po sana ako ng advice. Eto po yung situation ko.

    Nagre-rent po ako since 2011 for 4000 pesos. Up to now hindi pa nag increase ang lessor ng rent pero next month, lessor informed me na magiging 4500 pesos na ang rent ko. Lumalabas po na 12.5% ang increase. Naaayon po ba ito sa RA 9653? Sabi po kasi ng lessor, allowed daw siya ayon sa attorney niya kadi hindi naman daw siya nag increase since 2011. Sa Quezon City po ako nagre-rent.

    Thanks in advance. God bless po!

    – Lito

  • Lito Acid says:

    Hi Atty!

    Idagdag ko po sa post ko above yung text message ng caretaker sa akin.

    “Kuya d me mkkapnta ng umaga,cge s tx n lng,sbi n mdam pg bnasa m dw ung rep. Act 9653 nkalagay dun 7% annualy,e more than 3 years n nga kaung d inincreasan,mas mlaki p nga rw ang aabutin ng increase kng taon2 pnapatupad nya ung increase n 7%,e ngaun lng nman dw cia nag increase. 2 atty nya cia ngtnong rgardng d2,sbi nla pwd rw yn kc d nman c mdam nag iincrease yearly,kng d rw ok s inyo yn nsa inyo n rw yn”

  • Lito Acid says:

    Good morning Atty Biron!

    Just want to ask if what my lessor’s telling me is true.

    My lessor informed me that she will increase the rent next month from Php 4000 to Php 4500. She has not increased my rent since April 2011 and that is the reason why she is increasing it by Php 500 (12.5% increase). She told me that she is allowed to do that since it has been a while that she has not increased the rent. Is this true?

    The apartment I am renting is located in Quezon City.

    Looking forward to your response.

    Thank you and God bless!

  • Lito Acid says:

    Good morning Atty Biron!

    Just want to ask if my lessor is allowed to increase my rent by Php 500. From Php 4000 since April 2011 to Php 4500 beginning next month. That’s a 12.5% increase. Her reason is that she has not implemented an increase for 4 years. Is this true? Is she allowed to do that?

    Apartment is in Quezon City.

    Looking forward to your response.

    Thanks in advance and God bless!

  • Ronald Malit says:

    Dear Atty. Biron:

    I’m glad i found this site, I’ve been looking for answers to my problems with my new landlord. I’ve been staying in a dormitory near the school where I teach, for more than two years now. Back then, I paid the required advance rent and deposit to a former lessor which summed up to P5,800 and the monthly rental, which I regularly paid, was P2,900. But unfortunately, I was not given a contract and I did not bother to ask since I did not foresee this problem to come. I don’t have official receipt either for I have that much trust and it was a big mistake. The new lessor demands for another payment of advance rent and deposit since according to her, nothing has been handed over and I have no lease contract to provide. I want to know if I have any legal right to refuse.

    Meanwhile, I made no payment for the current month, March 2015, and informed my lessor, that it’s my last month and that I am consuming the deposit which is our subject of dispute, But just thus morning, the caretaker has informed me, that I have to leave immediately should I make no payment right away. Can they actually do that without giving me prior notice or grace period?

    Please help for I might get evicted anytime soon.

    Thank you so much in advance, more power and God bless.

  • Josie santos says:

    Good pm … Im renting a residential unit amounting 10k ,for 5years , since then theres no increases happen,. My question is can my lessor increase my rental up to 12k, need your legal advice for this matter, thank you so much

  • Josie santos says:

    Gud pm atty james biron! Im renting a unit in manila amounting 10k, for 5 years my lessor did not increased my rental, my question is .? Can my lessor increase my renatal from 10k to 12k, is she doing the right thing for that matter? By the way this unit is acresidential, do i had my right to refuse not to pay her 20% .. It is not fault if she didnt made an increase after the first year of my contract, please help! Thank you

  • George Banderas says:

    Dear Atty Biron,

    Nagstart po kami mag rent ng business space since March 15, 2013.
    meron pong contract of lease. Last March 2014, noong nang-hihingi kami ng
    contract for 2014, hindi kami binigyan. Ang sagot nila basta wag kaming
    pumalya sa pag-babayad. This March 5, 2015, pina-receive kami ng letter na
    kami ay pina-aalis ng March 15, 2015. Sa pagbabayad namin, hindi sila
    nagbibigay ng tamang amount ng resibo, 15,000 ang bayad namin 5,000
    lang nilalagay sa resibo.

    Registered ang business namin with business permit, with BIR registration,
    two years kaming nagbabayad ng taxes sa BIR na dapat ang landlord namin ang
    dapat magbayad.

    Ano po ang dapat naming gawin,

    Maraming Salamat po.

  • Sheryl Panganiban says:

    Hi Attorney,

    Seeking for advice and help, we have rented a Commercial Space amounting 26,000ph since 2012 and vacant it last June 2014, until now we did not receive the 2 months security deposit yet, she told she need to itemize the tiles damage on bathroom (till now no email yet of list of itemize damage) there’s new tenant occupying that space already and she wanted us to open a bank account in BPI so she can transfer the money there. Landlord residing at U.K. I gave Bank account of my sister and she did not accepted it, she wanted under my name since I’m the one signed on the contract. So much hassle for me to open new bank account, i mean she can send to my sister bank account right? Please tell what is the best thing to do to get the refund, how will i solve this problem.

    Will highly appreciate your reply. Thanks a lot!

  • Wallace says:

    Hi Atty,

    I have a residential tenant who’s monthly rent is P3K. He has no more deposit, no more advance and is in rental arrears for 42 days as of this writing. He made so many verbal promises and I heeded his pleas out of humanitarian consideration.
    Meralco already cut his electricity for non payment of bills. The electric meter is in my name. A week ago, Meralco sent a “Notice of Contract Termination” which means they will pull out the meter anytime soon and will apply the meter deposit to the amount unpaid by the tenant.

    I gave the tenant notice to vacate the unit in three(3) days and to pay the arrears in rental as well as the outstanding Meralco bill and any charges that Meralco shall apply for the reconnection. The tenant refused to sign and receive the Notice so I posted it on the door of the unit.

    We have no written agreement or Contract of Lease

    My Questions:
    1. I wrote the Notice to vacate in 3 days myself and hand-carried it to the tenant. Is this allowed and legal even if it was not thru Registered Mail?
    2. Can I go directly to MTC to file Unlawful Dewtainer/ Ejectment case against the tenant or do I still need Barangay clearance before going to court?
    3. Does the three-month notice rule to vacate apply in my instant case where the tenant has consumed all his advance, deposit and even already in arrears for more than a month?
    4. I’m afraid he might leave the unit withoput paying his outstanding rent and Meralco bills. Is there any other legal remedy or law aside from RA 9653 that I can use to sue and make him pay even on staggered basis?
    5. Are there any legal processess that I should have done or should be doing to enforce my rights as lessor?
    What are his remaining legal rights given the circumstances?

    Thank you so much Atty Biron for your much needed reply.

    Wallace

  • Xy Beltran says:

    Hi Atty. Biron,

    Thank you for this very informative article. I have a question though.

    I am purchasing a condominium unit with an existing tenant. The seller’s contract with the unit owner is going to end in October 2015. With the Rental Control Act, I understand that I need to honor the existing lease contract between the seller of the condo unit I am going to purchase and his tenant. However, I have an issue regarding the rental fee. As per seller, he gave the tenant a special price of P8,000 per month as the tenant is his friend. However, the average rental fee in that area is P12,000. The tenant has expressed his intention to renew the lease agreement after October 2015. My questions are these:
    1. When the title of the unit gets transferred to my name this May, am I obliged to enter into a contract (with the same terms as with the previous owner of the condo unit) with the lessee for another year from May or until October 2015 only?
    2. Will I be able to increase his rental from P8,000 to P12,000 per month since I am a new lessor or will the 7% max increase in rent apply?

    Will greatly appreciate your response.

    Thank you!

  • Jovi says:

    Hello Sir,

    Good day to you Sir and thank you in advance.

    My question is regarding my wife’s current issue with the lessor.
    She rented a flat and signed a contract. Unfortunately, most people tend to sign papers without actually understanding what’s written on it or what the consequences are by taking it for granted. She said she is no longer happy with their stay, since the toilet is always clogged and the water pressure is always weak and the lessor doesn’t clean the water tank even after numerous complaints.

    She found another place and I am ready to send her money for the advance and deposit. The problem is that the current lessor will not return her two months advance since she did not finish the contract. Is it really legal for the lessors to incorporate such a clause in the contract saying you cannot withdraw your advances if you pre-terminate a contract or anything similar to that essence? This kind of contract clause seems to be proliferating everywhere in Manila nowadays.

    Regards,
    Jovi

  • maria gracia santiago says:

    hello po Atty. hingi po ako Legal advice. nagrerent po ako sa isang commercial space worth 4000.00/monthly. Dapat po expired na contrata namin nung january 2015, humihingi po ako ng bagong kontrata pero pinaghintay kami ng 4mos up to now wala pa din. pero kinausap kami nung 3rd week ng april na sa May 2015 e mag iincrease daw from 4000.00 to 6000.00, 50% ang hinihinging increase. tanong ko lang po pwede po ba ito o dapat 10% annualy lang ang dapat na dagdag?

    Kasi may nabasa akong ginawa ni Sen Mirriam Santiago S.B. No1850, rights ng mga leesee, approved po ba eto?pwedeko po etong basehan? thank you po

  • Lyndon says:

    Hello po Atty. hingi lang po sana ako nang legal advice. nag rerent po kami for two months now and we are planning to move out na dahil sa mga mga patakaran nang may ari. wala kaming written contract and when we informed the owner they said, that daw muna naming tapusin ang 1 year para magamit ang 2 months deposit namin. pero wala po kaming written agreement. Please advise po if we it is legal for us to leave and force to use the 2 months deposit.

    Thank you po!

  • kaye reyes says:

    this page is cool! Ayos ng pagkkdstribute per section, ang linaw! Thank you so much Atty. James Biron!
    Will surely contact you in the future. to God be the glory! You’re a blessing!

    • Atty. James Biron says:

      Kaye, thank you for the nice comment. I will revamp the appearance to make it even better, but I’m still busy right now to work on it. I hope to do it by next week

  • Joe-Mar says:

    Hi Sir,

    What is the Rent Law applicable if the rent is more than PHP10,000?
    How is eviction executed? Is it legal to padlock the residential place upon notice of eviction?

    Appreciate your reply.

    Many thanks,
    Joe-Mar

  • Lourdes Tolentino says:

    Hi sir, I just read your article and I have a questions to ask. We were renting a residential unit in makati for about 8 years now. we moved june 27, 2008 and our rent at that time was 5,000 a month with a contract that our due date is on every 30th of the month and a grace period of 3days. After a year the owner/lessor increased our rent of 500 pesos so it became 5,500 a month. Last 2012 the lessor gave the management of residential units to her sister as lessor and made a new lease contract but unfortunately it was not read and understand fully by my husband who signs the contract, it was only now that I read again the contract dated oct. 2012 and it says there that our due date is every 1st of the month and with a grace period of 5 days and if we were not able to pay after the grace period we will have a penalty of 10per cent for every day of delay. At first it was not followed actually cause my daughter and my husband was not aware that the due date was every 1st of the month what they understood or they know was that as long as they have not lapse the one month period they were able to pay the rent and it goes but not until this june, 2015 rent that the lessor gave them a notice that the payment for the rent for the period june 1-30,2015 was already delayed and that they will have a penalty of 10 percent which is 550 and the total to be paid is 6,050. I talked to the owner and told her why we have to be penalized wherein the one month period of june hasn’t lapse yet. We were used to pay the rent within a month period and now we have to adjust or double pay within a month for us not to have a penalty of 10percent every month. With the rent control act, it says there that the lessor cannot make an increase of more than 7 percent per annum but are they allowed to gave a penalty of 10 percent a month for every delay of payment? If we do not agree with the terms, do they have the right to eject us? Thank you in advance and your help.

  • nelfa cabrera says:

    good evening po atty.

    have a question regarding the increase our lessor wishes to impose. we rent his house for 15k in 2009.it has not been increased since then.now,he is informing us that he will add 5k to make it 20k per month.its more than 30 percent increase in one shoot.is this legal po? he avers that for almost 7years,wla naman daw increase…we need your advice po…we have contract lease for one year only.no renewal transpired but we religiously paid rental of 15 k per month.tyvm ahead po

  • jenjen says:

    Hello po atty.question lang po.nagamit na po kasi namin ung 1month advance and 2 months deposit. Hinaharass kami ng landlord,mga salitang di naman dapat dahil technically pera parin namin ang ginagamit.nagbabayad kami ng 1 monthpero ayaw nyang tanggapin dahil ibinawas ko ung kuryente at tubig na inabonohan ko na usage ng dating nakatira. Ang sabi nya labas daw cya dun.hanggang sa nag sigawan na kami. Pinabaranggay nya ko at gusto na kami umalis sa apartment. Ang tanong ko po pwede ba nya kami paalisin agad agad kahit nag babayad naman kami?

  • sam says:

    good day atty. here is my case. i have a tenant renting my apartment for 5,000. only verbal contract. during his first week stay in the premises, he had an altercation with other tenants so the latter decided to left as they were threatened by this new tenants this matter was referred to brgy. hence, thru mediation with the bray captain we were able to reach into a compromise agreement wherein he agreed that he will leave the premises after a month. when the due date came, we sought to enforce the agreement under brgy law. under the irr of the bray law, the brgy has the right to oust the tenant to deliver the possession to the owner. however after many attempts, still the tenant refused to vacate the premises. so what are my other options. can i file motion for execution before mtc for the enforcement of the agreement even before the lapse of 6 months period? it should be noted that under the brgy law the execution shall be made before the brgy within 6 months or file an action before mtc after the lapse of 6 months. I’m just thinking if i need to wait the lapse of 6 months or immediately file the case before the mtc as waiting for 6 months would entail more damages on our part. on the other hand, we cannot file ejectment case since the situation is not one of the grounds mentioned in the rent control act. however, can we used art 1687 as aground for ejectment? what are my options atty. tnx!

  • Flor says:

    good day attorney…i am renting a bedspace since June 2015. i paid 1 month advance, 1 month deposit with NO CONTRACT and the landlord did not issue receipt either. altogether, i paid 3,400.00. the rent includes water and electricity already. i share the room with my two officemates. anyway, i have filed a resignation in my office last august and i informed my landlord that i will be using my 1 month advance for the month of september since i plan to move out end of september. can i still get my deposit?

    also, i want to ask another thing. the landlord wants my other officemate to move out because of some disagreement. he had given her a notice that she can only stay there till end of september. is that lawful? i pity my officemate because she finds it hard to look for a new place at such short notice.

    i hope you can enlighten me with my concerns. thank you and Godspeed.

  • Teacher M says:

    Hello Atty. Biron. Good Afternoon.

    I have a question regarding the increase of the rental fee for commercial buildings. Our company has been renting the place here in Quezon City for more or less 20 years. Recently, the lessor sent a memorandum to all tenants that she will increase the rent to 10% starting the first month of 2016. According to her, every year, there will be an increase of 10%. Is it legal and possible to increase the rent by 10% every yea?. If that is possible, withing 10 years, the rental fee will be doubled!!! Is there any rent control law that protects the rights of the tenants? Please enlighten me about this. Thank you very much. I hope to hear from you soon.

  • eda mercado says:

    dear sir,
    I have a problem with my tenants kasi po nag deposit at advance sila nung june 13,2015, ng dalawang buwan 2,500/mo. simula ng nag advance sila ng June 13, up to now Sept. 25, 2015 hindi na sila nagbayad tapos yung kuryente nila at tubig nitong huli hindi na din sila nagbayad at kung ano anong rason sinasabi sakin so dahil hindi na din nila binayaran ilaw tubig pinutol ko na po ito kasi lagi po akong napuputulan ng kuryent kasi lagi pong kulang binabayad nila ngayon nangako sila na aalis na sila nung sept. 15, pero hanggan ngayon dipa sila uma alis… at meron daw silang karapatan mag stay ng 3mos. tanong ko lang po hindi po ba kasama sa 3 mos. ang advance at deposit nila kasi kung kasama po yon bali 1mo. and half sla palang hindi nagbabayad kasi pagkaunawa ko po ang dep. at adv. ay hindi kasama sa bilang na 3mos. na upa kasi dapat dito kinukuha ang pambayad nila ng bill at kung me masira sa bahay na inuupahan nila ano po ba ang tama kasi ako na landlord ako pa po pinabarangay nila at ako pa po ang sinisigawan at binato ng baso please help me po

    eda mercado

  • eda mercado says:

    sana po makuha ko agad ang kasagutan sa tanong ko para po me panghawakan naman ako kung mali po ba ako o tama na paalisin na sila..

    salamat po
    eda mercado

  • Gaile says:

    Hi atty,
    Is there a law for those renting above 10,000? Im still paying 11k every 8th of the month despite my contract ended 6 months ago. The owner just advised me today that they no longer want to extend which gives me 20 days to look for a new house. Can they actually evict me?

  • dina hernandez says:

    goodmorning atty,
    kapag po ba ung contract hindi na nairenew automatic po ba na monthly basis ung contract and pede ko pa sila paalisin after 3 months kng magpapadala po ako ngayon ng notice to leave the premises.
    and pano po kung ayaw nila taasan rent nila kung di daw po iissuehan ng BIR receipt. di po kasi registered ung apartment e. thank you po.

  • Jen Chico says:

    Good day Atty!
    Our store was padlocked by the owner a week before our rental schedule which is every 8th of the month. Our store was closed for a month because of the training and seminars that i need to attend to. It was padlocked when i returned to pay the bills and rent to the owner. We have an unpained bills of water and meralco bill for 1 month but we have no arears when it comes to rent. Is there a legal recourse regarding this? Is it right?
    Thank you and im hoping for your reponse. God Bless!

  • Mia Ruiz says:

    Hi sir, I sent you an email. Thank you. Hope to hear from you.

  • Melanie says:

    Hi Atty:

    I am renting a commercial space for food cart unfortunately the customers are not high that leads to low profits, which gives me negative revenue. My contract is 12 months and I am paying P20,400 total for the rent & other fixed maintenance charges such us electricity, water and etc.. I issued 10 PDC because it is part of the agreement. I cannot afford to fund the PDC anymore because the store is not profitable and I used my own salary to pay my crew amounting to P350 per day. My daily average sales is P100 only. I tried to tell my lessor about my situation but they’ve told me that i can terminate my contract anytime, which my 3 months security deposit and 2 months advance rent will be forfeited, in addition to that i still need to pay them the remaining 7 months rent. Those are included in termination clause in the contract.

    My Questions are:
    1. Is there a way for me to get out of the contract?
    2. Is there a law that can protect me from this kind of situation?
    3. I cannot fund the PDC anymore, I am aware about BP 22 law, but what will I do if i really don’t have money to pay for the rent?
    4. I am trying to negotiate with the lessor about the contract if we can shorten the term but they are hiding from me, not answering the calls nor replying to the text and emails. What are the lessor’s obligations to the lessee?

    Thank you in advance.

  • Kelly says:

    Hi Attorney,

    Ask ko lang po legal advice ninyo. We are new renters, the house we are renting is 35k per month. The landlord asked us for 2 months advanced and 2 months deposit na pumayag naman kami. It has been 2 months now since we rent the house, the owner came to the house saying, the advanced payment is meant for the last two months of rent before daw matapos ang contract which was not written to the contract. The owner is also demanding for every two month payment instead of monthly rent and is also not written in the contract we signed. Pero before we rent the house, we had a conversation na we are willing to pay the rent every two months but it was not finalized. When we get to see the house, the actual picture posted on the net was not even the same but still we accepted the house. Now, they are demanding us to pay every two months daw, ano po ba ang tama namang gawin? May batas po ba sa panggigipit na ginagawa samin ng landlord? Three months na po kaming naupa, do we have the right to demand for our security deposit and leave the house if they still insist? Thanks!

  • Kian says:

    Hi attorney! Where should i file a complaint if my landlord does not want to comply with the 7% maximum rent increase. I am currently living in a first class municipality. Thank you and more power!

  • Angel says:

    Hi sir, I sent a message through the contact link. Hope to hear from you soon. Thank you

  • mervin chow says:

    Hi Atty

    I would just like to ask,we rented an apartment for 9,000 per month feb 14, 2014. may contract po kami until february 14, 2015.but after po nun, wala po kami contract na narecieve so we just continued it. every 15th of the month po kami nagbabayad ng rent. Ngayon po nakarecieve po kami ng statement na on march 15 2016, ang payment po na aming babayaran na is 9500 agad samantalang march 6 na po ngayon. pwede po b yun na biglang tataasan ng mayari ang rent namin without telling us na magtataas siya ng rent. thank you atty

  • Ysel Cruz says:

    Hi Attorney,

    My mom is renting a commercial space for a water refilling station business since 2013 for P9,000. They came to a point that they’re late in paying the monthly rent so the landlady asked them to pay P500 everyday instead to complete the monthly rent. Since my mom can’t manage it anymore and end up having unpaid water and electric bills, I helped her manage it starting late December of 2015. Just yesterday, the landlady locked up the store and said that we have to pay them the unpaid 2 and a half month rent of P28,000. They said they already increase the rent (without new contract). They’re saying too that my mom also signed an addendum in their contract 2-3 weeks ago that they can lock the store up if we’ll not be able to pay them including the water and electric bill. Furthermore, they’re asking us to leave the place on March 15, 2016. We have 2 months advance deposit which they don’t want us to use.

    Questions:
    1. What legal action I could take against the landlady for locking the store? My mom is saying that she was forced to sign the addendum in the contract since they’re demanding for a payment and agreement they have was until 03/15/2016.
    2. Can i bill them for all damages caused by locking it up? We’ll definitely won’t be able to deliver to our customer and end up losing them.
    3. Can they increase the rent without new contract and just verbal notice? They’re saying that the initial contract says they can increase the rent.
    4. Is there any law covering length of time when they can evict us? It’s not easy to find new location especially with the water station equipment.

    I really appreciate your help attorney.

    Thank you very much!

  • Louie Gomez says:

    Good Day Attorney James,

    My problem is this, I recently acquired a property, well it used to be my parents house but they mortgaged it and was foreclosed by the bank, having the means to buy it back I requested to have the a loan restructured and pay twenty percent of the property and then pay the monthly amortization.

    When my parents are still alive they had a small bangketa space (sidewalk in front of the house) around 10 meters x 2-3 meters in depth, constructed with light materials for small businesses such as carinderia, bananaque, lugawan etc. They had it rented in short, with really small amount, since the 90’s without issueing any contracts, everything is verbal and no receipts are being issued. When I took ownership of the property, this renters paid me instead but again no contracts between lessor and lessee was ever made, it was by mere tolerance and goodwill that I accepted their payments, which by way only amounts to around 7,000 pesos for all 4 commercial stalls/spaces.

    Now, I wanted to remove this structures and construct a new commercial spaces, so I already gave them notice that they need to vacate the place, I gave this written notice october last year,up to now they have not vacated the place and even file a complaint in BIR that i dont give receipts and pay taxes for their rent. BTW all this stalls, do not have business permits or whatsoever, what they paid is only baranggay permits. knowing this, I already filed a complaint in the Licensing and Permits in the City Goverment to request for closure order, I also went for the City Engineers office to request for demolition since basically the property violates the the City construction by occupying the whole sidewalk, I also went for Meralco since the Meralco post is inside the illegal structure and also complained that this establishment connects directly to the meralco posts (jumper) since they do not have electricity. which is not only illegal but also poses danger of fire to the community and my property.

    I wanted to have them removed badly but worries that I will encounter repercussions if I take matter into my own hands, say if i just demolish those structure so they wont be able to occupy it anymore. It stresses me out seeing them while I pay for the monthly amortization of my property and they are enjoying having business for free and just ignores my request for them to leave.

    What other ways can I do to make them vacate the place?, I’m also having a hard time with the City Government since this is election season and those people occupying are voters. I’m also worried that an ejectment proceeding (not even sure if that applies since there’s no contract) will take so long. Please help.

    Regards,
    Luigi

  • Vicki says:

    Hi Atty.

    What are the legal provisions of rental rate increase for residential properties leased for above 10K, as this law doesn’t cover it? Basically, I’d like to know up to what percent can my landlord possibly increase our rental rate as our unit is at 15K/monthly and I’m hoping increase can still be restricted at a certain maximum. Thanks!

  • MT says:

    Good Day Atty. sent some concern at you contact link

    hoping for your response

    Thank you and God Bless

  • Grace Reyes says:

    Dear Attorney,

    What is the proper way to account the electricity charge to a VAT-exempt tenant (sub-metered) from a VAT-registered lessor (mother meter)? What is the best way to passed the VAT to a tenant who is VAT-exempt?

  • June Laurel says:

    Dear Attorney,

    Last March 2016, i could not keep up with my apartment rent bills specially at the closing of the school year with 4 kids. My problem is that my landlady want to eject me even if I have a 1 month deposit and 1 month advance. I have not paid the rent for two months. If counting only the 1 month advance excluding the 1 month deposit, it would only be counted as 1 month late payment. She reported me to the barangay chairman. No matter how I explained it to the landlady and the barangay officials, that it should take 3 months of no payment will it be legal to eject a tenant. The barangay officials does not acknowledge the rent control act. We made a settlement which I was forced to pay. I was really furious about the barangay officials decision in not acknowledging the Rent Control Act. The landlady and the officials have been friends their entire lives. As for next week, it will be the same predicament again, I will be 1 month delayed payment if i include the 1 month advance.

    My question Sir, is which part of our government should i go to? Please help me where to turn to.
    I am from Mandaue City, Cebu

  • Jen says:

    HI!
    Is it legal for landlord to lock up or eject tenants just basing on 3 months none payment of rent?
    Is there any additional information of legal process before a landlord can eject a tenant.

    Let say, like in our situtation, i lost my job so we’re not able pay our rent for 2 months,so we consumed our 1 month advance and 1 month deposit payment to the landlord.then we then asked for allowance ,so that we can find new place to live, however ,now’s 3rd month of none payment,does that give the landlord the right just to eject us to her property, or can she just lock up our apartment?will the law override any possibility of these,if let say this has been talk over with the barangay?
    Thank you.
    Hoping to hear from you soon.

  • mon hamim says:

    sir… nose bleed i’ll make it tagalog..
    halimbawa po sir kami ay umuupa sa isang exhibit sa isang mall.. about 5years na.. din..
    ang systema ng may ari ng exhibit company ay ganito.. annually nag iincrease sila ng renta ng pwesto…at bukod doon sa tubo nila sa renta ng pwesto ay umabot na ng 800php… at dito meron na silang tubo… bukod doon.. halimbawa sir nagka balance ka ng 15k… ito ay kanila na din tinutubuan ng 500 a month …may cpntrata po silang pina papermahan..sa amin.. na hindi authinticated at di nila kami binigyan ng kopya..nito.. anu po ang rights namin at anu ang violations na sinuway nila.. at masasabi kung ang may ari nito ay tax escaper.. po dahil sa mga legalities ng papel nila ay di totoo.ang mga naka saad don. ayon sa mga naka registered na pwesto nila mula barangay hanggang mayors permit..saan po kaming maaring lumapit.. na matutugunan ang problema..

    anu pong laban ang pwed gawin..

  • Orland Olivares says:

    Hi Atty:
    We lease a space inside the canteen of a private school in QC. The leased contract was signed last month June 6, 2016. The rent rate is Ph 10,000 per month for less than 5sqm space. We set up and bought equipment then started operating on June 13, 2016 to sell snack and lunch packs to students. We issued one year PDC’s plus the one month advance and one month deposit. BTW, the Lessor also collect 7% on our daily gross sales. Before we started the food stall this year, they already have 3 tenants selling other food items. They implement zoning. Since we started the food cart business, we are doing well. In fact as of last week about 50% of the student in canteen is buying from us.

    Yesterday, the Lessor issued us a termination letter and forcing us to vacate the space and bring out our equipment immediately. The reason stated in the termination, is that according to them there is a food poisoning case against us. We don’t have such case. We never missed out any payment, all our checks are funded. I just have unconfirmed info that the owner/lessor will put up the same concept of our food cart because they see how successful our business inside their school.

    Can they terminate the contract to that effect? Can a Lessor demand to vacate the rentable area on the same day they issued the notice? Are they violating any of our rights as a Lessee? If they are violating our rights, what can we do? what are our legal rights?

    Thank you in advance.

    Orland Olivares

  • hi atty. James. just want to know were renting a residential house PhP 12,000 so were not covered with the 7% increse. we started PhP 10K 2014 . 2015 they increas to Php 12K. then ds septmber 2016 they informing us that they will increase to PhP13,500/ so what can we do? thanks in advance hope yopu can give some ligfht on this matter.

  • Don Garcia says:

    Hi Atty Biron, i would like to seek help from you, right now i am renting a commercial space with 3 months security deposit and 1 month advance unfortunately po di ako kumikita mahina po ang mga benta ko I decided to terminate my contract and ang nka state sa contract p nmin if i decided to terminante my contract all my security deposits will be forfeited. Ok naman po ako don kaya lng po di ko na kayang bayaran ang 1 month na tumakbong rental ko kasi nga po nalugi ako. I tried to talk to the Lessor to not deposit anymore my issued check for the month but he refused sabi po nya kasi is dapat 1 month before po is nag send na ako ng formal letter na hindi ko na po nagawa kasi sobrang stressed na po ako. He told me he will deposit my issued check for the month and then pag nag bounce idedemanda ako ng estafa. Atty ano po ba ang tama kong gawin hindi pa po ba sapat ung ma forfeit ung 2 months security deposit ko? Please help me to this matter. Thank you po.

  • Vincent H. Ventosa (benjie) says:

    Dear sir, i am renting an apartment at the start of PHP 8,500.00 with a one year contract. However, during succeeding years the contract was not renewed but we continued renting without contract. We’ve been staying in that apartment for almost 7 year without contract. Last 2 years our landlord increased the rent from PHP 8,500.00/month to PHP 10,000.00/month. The 1,500.00 increase is almost 18%. Last week i found out that the rental law 9653 allows only 7% increase for those renting PHP 10,000.00 and below.
    The owner said that the increase is needed because she replaced the roof. I told her that it is her duty to spend for the roof because it is not located inside the apartment.
    Question: Can i claim the overpayment due to the increase based on the rental law?

  • Vincent H. Ventosa (benjie) says:

    Dear sir, i am renting an apartment at the start of PHP 8,500.00 with a one year contract. However, during succeeding years the contract was not renewed but we continued renting without contract. We’ve been staying in that apartment for almost 7 year without contract. Last 2 years our landlord increased the rent from PHP 8,500.00/month to PHP 10,000.00/month. The 1,500.00 increase is almost 18%. Last week i found out that the rental law 9653 allows only 7% increase for those renting PHP 10,000.00 and below.
    The owner said that the increase is needed because she replaced the roof. I told her that it is her duty to spend for the roof because it is not located inside the apartment.
    Question: Can i claim the overpayment due to the increase based on the rental law?

  • Jp says:

    Hi Sir. I’ve been renting a unit in QC for almost a year now. I pay my monthly rent through PDCs; however the lessor does not issue receipts to me. May way po ba na malaman sa BIR kung registered yun renting business nya since walang OR. Can I file complaint sa BIR? Thank you. Btw the lessor owns 8 units.

  • Gerry says:

    Good day Atty umuupa lang po ako ng kwarto sa ngayon. ang huling usapan namin ng namamahal ng paupahan, hanggang oct 19, 2016 na lang ako kasi paalis na ako abroad at nakapag bayad na ako ng last payment, kaso nga lang nagkaroon ng delay. kinausap ko yong namamahala ng paupahan na mag extend ako ng 1 month pa. pero kinagabihan nagpadala na ng letter sakin na di na raw pwede mag extend kasi hanggang oct 19 lang ang usapan at may uupa na daw kasi na bago. di po ba dapat ininform nila ako in advance kahit mga isang bwan para may time pa ako maghanap ng malilipatan? or may right pa po ba ako mag stay ng isang bwan? wala po kasi kaming written contract. nag start ako umupa sa kanila noong aug 19, 2016 lang

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