Monday, October 7, 2019

Understanding the Rent Control Law of 2009

For would be landlords or those who are interested in buying a property as investment such as residential apartments or residential condominiums to be used for the purpose of renting or leasing it to would be renter / lessee. 

In general, the Philippine housing rentals are covered by the Rent Control Act of 2009, a law intended to protect millions of Filipinos renting houses. The Housing and Urban Development Coordinating Council (HUDCC) is the government agency in charge of overseeing the implementation of the Rent Control Act, also known as Republic Act 9653 or “An Act Establishing Reforms in the Regulation of Rent of Certain Residential Units, Providing the Mechanisms Therefore and For Other Purposes.”

R.A. 9653 was approved in 2009 and its provisions have been recently extended by HUDCC for a period of three years, from January 1, 2018, until December 31, 2020.

The subject property is covered by the salient features of this law wherein houses for rent are covered because of its residential and commercial purpose.

A.) In Metro Manila with monthly rent between one peso (P 1.00) up to ten thousand pesos (P 10,000.00) per month and or;
B.) In other highly urbanized cities in the country, with monthly rent between one peso (P 1.00) and five thousand pesos (P 5,000.00).

The law applies to houses for rent in Metro Manila charging monthly rent of up to P 10,000.00 and houses for rent in other cities charging monthly rent of up to P 5,000.00. Rent refers to housing rent alone and does not include utilities (water, electricity, or other charges) to be paid by the renter. In the case of Angeles City, Mabalacat City and City of San Fernando, three cities located in Pampanga are covered by statement (B).

This shows that residential units charging monthly rent of up to Php 4,999.00 (below P 5,000.00) cannot increase the rental price by more than 2 percent  (2%) per year.

For example, from January to December 2018, the monthly rent for a house is P 3,500.00 By January 2019, the rent can only be increased by a maximum of 2 percent; that is, a maximum of P 70.00 (computed as P3,500.00 x 2 percent). Therefore, by January 2019, the new monthly rent can only be a maximum of P 3,570.00.

About the Writer

CRB Benedict Baluyut is a professional real estate broker, real estate appraiser and associate of C. F. Baluyut Realty. He is currently the Vice President for External Affairs, Real Estate Brokers Association of the Philippines, Inc. (REBAP) - Pampanga Chapter. You can get in touch with him at

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