Rent Control Act of 2009: Know Your Rights as a Tenant

Renting a house or apartment, whether it’s your first time or not, can be an exciting experience and comes with lots of conveniences. Aside from bringing you closer to work or school, it gives you a sneak-peek of what independent living is while creating harmonious relationships with your co-renters and landlord.

However, let’s admit it, no matter how you try to avoid it, there will be instances where you and your landlord will disagree or argue over something. Disagreements are common that’s why it is important to you to know your rights as a tenants under the Philippine law.

What is Republic Act 9653?

Also known as Rent Control Act of 2009, this law is drafted to protect tenants from unreasonable rent price increases while at the same time providing parameters that safeguards the landlord’s rental property business from delinquent dwellers. It also has eviction guides and rules that both parties should follow and observe.

This law covers all rental properties like apartments, bedspaces, boarding houses, dormitories, rooms for rent, houses and/or land with a monthly rent of up to P10, 000 in Metro Manila and other urbanized cities throughout the country.

For rents that exceeds P10, 000, both parties can discuss and negotiate the specifics of their agreement. The middle and luxury segments of the rental property business are not covered by this law as it is targeted to make property renting more accessible for the general public

What are the Tenant Rights under this law?

1. Protection from Unreasonable Rent Price Increase

The Housing and Urban Development Coordinating Council (HUDCC) in accordance to the Rent Control Act of 2009 set up rent price increase limits to protect tenants from exploitative landlords imposing unreasonable rent increases. However, with the Rent Control Act, landlord can only implement rent price increase annually under these conditions:

· If the monthly rent is P4, 999 and below — not more than 2% of the monthly rent

· If the monthly rent is between P5, 000 — P8, 999–7% (as long as the property is occupied by the same tenant)

· If the monthly rent is between P9, 000 — P10, 000 — (as long as the property is occupied by the same tenant)

So, before you sign your lease agreement, make sure to check these provisions first and ensure that they are within the parameters of the law.

2. No Charging of Excessive Deposit and Advance Rent

As part of the country’s campaign to make property leasing more amenable to the general public, the Rent Control Act also states that landlords can only ask for a deposit not exceeding two months’ worth of rent. Consequently, he can also ask for an advance rent not going over one month worth of rent.

Also, under this law, landlords are required to deposit these advance payments in a bank account under the lessor’s name, and if it happens that it accumulates interest at the course of its deposit in the bank, the landlord is obliged to return the deposit along with the accumulated interest at the end of the lease agreement.

However, the landlord can use the deposit and advance rent to cover loss or damage due to the tenant’s delinquency to pay rent/utility bills. Repairs for physical damages done by the tenant to the property shall also be deducted from the said deposit.

3. No eviction without legal ground

Your landlord shouldn’t instruct you to leave the property without providing any legal reason or proof as to why you should. Tenants shouldn’t be evicted because of unjustified reasons.

Here are the reasons why a tenant like you is asked to vacate the property:

· Subleasing- you landlord may ask you to vacate the property if you are renting out the property to other tenants without asking his permission.

· Overdue rents- if you haven’t paid you rent for three months then expect your landlord to tell you to pack your bags and stuff.

· Owner’s Personal Use of the Property- If in case the landlord decides to use the property as a residential (example, for his family), he should notify the tenant first three months in advance and can only move out after the lease expires.

· Necessary house repairs- The property will be undergoing repair and maintenance

· Lease contract expiration- need to say more?

As an addition, if the landlord decided to sell the property to a third party, the new owner has no right to evict the current tenants.

Aside from the mentioned above, there should be no other reasons as to why a tenant is forced to leave the unit.

As for the tenant’s part, he should still adhere to the landlord’s property rules and regulations even with the existence of these provisions. The landlord may ask for the authorities’ help and file a complaint for ejectment in forcing to evacuate delinquent tenants. If a resolution hasn’t reached yet, the lessor may opt to file an unlawful detainer case against the lessee.

Can I Take Full Ownership of the Property I’m Currently Leasing?

The answer is. The Rent Control act also allows tenants and landlords to enter into a rent-to-own agreement, provided the landlord agrees to this kind of scheme.