Rent Control Act: What Are Your Rights as a Tenant in the Philippines?

Consumers are entitled to rights that can protect them from abusive business practices and can make sure that they are not taken advantage of. The country has laws that cover everything from basic goods to gadgets and even homes and properties. For renters, tenant rights have been established in the Philippines in the form of Republic Act (R.A.) No. 9653 or the Rent Control Act of 2009.

The Rent Control Act of 2009 primarily aims to protect Filipino tenants in the lower income category from unwarranted increases in rent. The law was approved and implemented in 2009 and has recently been extended until December 31, 2020 [1]. This law limits the amount of the increase depending on the price of the rent.

Residential units that are covered by this law are as follows:

The rent indicated here pertains to the housing rent and does not include other charges such as electricity, water, utility, and other fees [2].

According to this law, housing units that charge up to PhP4,999 monthly are not allowed to increase the rental price above two percent annually. Meanwhile, those that charge PhP5,000 to PhP8,999 are only allowed to have an increase rate by seven percent annually if the unit is occupied by the same tenant. Lastly, units with rents ranging from PhP9,000 to PhP10,000 can only increase by eleven percent per year [3].

Units that are offered to students such as bed spaces, boarding houses, and dormitories can also only increase rents once a year even if a new boarder occupies the same unit in the same year.

However, not all rentable units are covered by this law. Exempted from this are commercial spaces, hotels, hotel rooms, motels, motel rooms, and rent-to-own units [4].

Another right that tenants must know is that their landlords can’t demand more than one-month advance in rent and more than a two-month deposit. If the landlord demands more than what is allowed by the law, it can be reported as illegal. Landlords who have violated the Rent Control Act will face a fine ranging from PhP25,000 to PhP50,000. It can also lead to an imprisonment of one month and a day up to six months. In some cases, it can be both [5].

Tenants should also know where to file complaints if a problem arises. Those who are currently having issues covered by the Rent Control Act can submit their formal complaints to the metropolitan trial court, municipal trial court in cities, municipal trial court, and municipal circuit trial courts [6].

After the complaints have been filled, the tenants should know the procedures that will be undergone. If the tenant has unresolved issues with his or her landlord, the tenant can submit a Statement of Claim along with valid evidences accompanied by a Certification Against Forum Shopping, Splitting a Single Cause of Action, and Multiplicity of Suits. The tenant must pay the legal fees needed before the start of the case hearing. If the complaint is found meritable, then the court will summon the defendant. The defendant must then have all the needed evidence and verified response at least 10 days since he or she has been summoned by the court. The complainant and the defendant must be both present at the hearing, but if they can’t appear for themselves, they can have an authorized representative who should not be a lawyer.

If the two parties can’t settle, the case will proceed. Within 24 hours of the hearing, the decision will be written and it will be non-appealable, final, and executory [7].