Rental laws in the Philippines are primarily governed by the Rent Control Act of 2009 (Republic Act No. 9653). This law provides guidelines and regulations for residential rental properties, protecting both landlords and tenants. Here are some key points about rental laws in the Philippines under the Rent Control Act:
Rent Control Measures:
- Rent Increase Limitation: Landlords are not allowed to increase the rent for residential units covered by the law by more than 7% annually. This limitation applies to apartments and houses with monthly rent not exceeding Php 10,000 (please verify current rates).
- Security Deposits: The law allows landlords to collect a security deposit of up to two months’ worth of rent, which must be returned to the tenant at the end of the lease period, minus any lawful deductions for unpaid rent or damages.
- Advance Rentals: Landlords can collect advance rentals for one month.
Landlord and Tenant Obligations:
- Maintenance: Landlords are responsible for maintaining the property in a habitable condition, ensuring that necessary repairs are promptly made.
- Non-Eviction without Just Cause: Landlords cannot evict tenants arbitrarily. There must be just and valid reasons for eviction, such as non-payment of rent or violation of terms stipulated in the lease agreement.
- Tenant’s Right of First Refusal: If the landlord decides to sell the rented property, the tenant has the right of first refusal. This means the tenant has the option to buy the property under equal terms and conditions offered to third-party buyers.
Termination of Lease:
- Notice Period: Either the landlord or tenant must provide written notice at least three months before the expiration of the contract if they do not intend to renew the lease agreement.
- Legal Grounds for Eviction: Landlords can legally evict tenants for non-payment of rent, violation of terms and conditions in the lease agreement, or any other just cause as defined by law.
Please note that while the Rent Control Act covers residential properties within the specified rental rate, properties with higher rental values are not subject to these rent control measures.
It’s important to consult the latest legal resources or a legal professional in the Philippines to get the most up-to-date and accurate information regarding rental laws, as regulations and policies might have changed.