Rent Control Act Of 2009, Signed Into Law
President Gloria Macapagal-Arroyo recently signed into law the Rent Control Act of 2009, a legislation that imposes a year-long moratorium on rent increases, a move seen to provide relief for some 1.6 million renting families.
The new law, Republic Act 9653, will not allow increases in housing rental for a year and after that, it puts a cap on any increase to only seven percent until 2013.
The law will benefit some 1.6 million families renting homes across the archipelago, majority of whom pay a monthly rent of P 10,000 or less.
The Rent Control Act of 2009 came seven months after the old Rent Control Law expired in December 2008.
According to Executive Secretary Eduardo Ermita, the Rent Control Law would somehow assist or help our lesser privileged citizens, so that they will not bear the burden of uncontrollable increases of their places of abode especially during these difficult times.
For a year from the time RA 9653 takes effect, no increase will be allowed on the rent of any residential unit. After this, rent increase will be no more than 7 percent each year.
The law covers all residential units in Metro Manila with a monthly rent of P 1 to 10,000 and all units in urban cities with a monthly rent of P 1 to 5,000.
Violators face a fine of P 25,000 to 50,000, or imprisonment of one month and a day up to six months, or both.
The law states that when a unit becomes vacant, the owner may set the initial rent for the next renter. In the case of boarding houses, dormitories, rooms and bed spaces, no increase will be imposed more than once a year.
One-month advance rent and two-months deposit may be demanded by the owner. Any interest in the deposit will be returned to the renter at the end of the lease agreement.
Failure on the part of the renter to pay rent or utility bills or destruction to house property forfeits the deposit and interest in favor of the unit owner in the amount that would cover the arrears or damages.
Sub-leasing of the unit without consent of the unit owner is prohibited by the law. Failure to pay rent for three months and the owner’s need to repossess the property or make necessary repairs to make it more safe and habitable, are grounds for judicial ejectment.
However, the renter cannot be ejected on grounds that the unit has been sold or mortgaged to a third person.
The unit owner may engage the renter in a rent-to-own agreement, which will be exempt from coverage of the law.
when would this increase takes effect? will it be effective january 1, 2009 though it has been signed july 14, 2009?
we are renting since 2006 . but my landlord increases our rent from 4500 to 5500 last march 2009. are we covered on this rental law act?