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Philippine Realty Listings |
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Carefree
11 Posts |
 Posted - May 22 2025 : 03:57:24 PM
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Republic Act 9653:
Republic Act 9653, known as the Rent Control Act of 2009, protects tenants from unreasonable rent increases and provides the eviction rules that both landlords and tenants must observe. The law covers housing units with a monthly rent of up to Php 10,000. The following are the specific rental properties that are covered by the Rent Control Act:
1. Apartments
2. Boarding houses, bed spaces, dormitories, and rooms for rent
3. Houses and/or land
Landlords who are proven to violate the law shall:
1. Pay a fine of PHP 25,000 to PHP 50,000, or
2. Be imprisoned from one month and one day to six months, or
3. Pay a fine AND be imprisoned.
Basic Rights of a Tenant:
1. Limit on Rent Increases:
Landlords cannot increase the rent by more than what the law allows. The Housing and Urban Development Coordinating Council (HUDCC), a government agency that regulates residential leases in the Philippines, has set the rental increase limits based on the Rent Control Act. Monthly Rent 10K Php and below, maximum rent increase for 2025: 1%
Before you sign a lease agreement, check if it has any provision on rent increase. If it does, it should be within the legal limit. Also, the Rent Control Act allows landlords to increase rents only once a year for bedspaces, boarding houses, dorms, and rooms leased to students. In this case, no rent increase can be charged more than once per year even if a new tenant moves into the unit within the same year.
2. No Charging of Excessive Deposit and Advance Rent:
Under the Rent Control Act, landlords can collect a maximum of two months' deposit and a maximum of one month's advance rent.
The rental law also requires them to keep the deposit payment in a bank account under the landlord's name throughout the duration of the lease agreement. When the contract expires (or is terminated for any reason), the deposit and the interest it earned, plus any remaining balance from the advance rent, should be returned to the tenant.
However, landlords can use the deposit and advance rent to compensate for losses they incur if tenants fail to pay the rent, settle utility bills, and/or causes damage to any part of the property.
3. No Eviction Without Legal Ground:
If your landlord tells you to vacate the house, ask for the specific reason for the eviction. You cannot be evicted for unjust reasons.
The decision to evict a tenant must be based on grounds specified by the rental law in the Philippines. The Rent Control Act allows eviction only for the following reasons:
a. Subleasing: The tenant rents out a portion or all of the unit to another person without the property owner's written consent.
b. Overdue rental payments: The tenant has not paid the rent for three months or more.
c. Owner's legitimate need to use the property: The landlord or his/her family needs to occupy the unit. In such a case, the tenant can be evicted only after the lease contract expires. The renter should also be given a formal notice to vacate three months in advance.
d. Necessary house repairs: The landlord has to do necessary repairs on the leased unit to make it safe and suitable to live in. When the repair is finished, the evicted tenant should be the priority in leasing the unit.
e. Lease contract expiration: The landlord has the option not to renew the rental agreement once it expires. This usually happens when the landlord wants to get rid of unruly or delinquent tenants.
4. When is Eviction Illegal? Renters in the Philippines cannot be asked to leave the leased property for any of the following reasons:
a. Sale or mortgage of the property: Under the Rent Control Act, if the landlord has sold or mortgaged the leased unit to a third party, the landlord or the new owner cannot evict the tenant.
b. If you're a COVID-19 patient or frontliner: If you're renting in a city with an anti-COVID-19 discrimination ordinance (such as Makati, Manila, Muntinlupa, Pasig, and Quezon City), you shouldn't be forced to leave your rented unit or be denied of leasing if you're suspected or infected with COVID-19 or any infectious disease. The same goes for healthcare and emergency workers.
False Advertising: The Housing and Land Use Regulatory Board also known as the HLURB has recently updated the advertisement laws on Philippine real estate to help protect renters and buyers. Quote: All representations in an advertisement shall form part of the sales warranties enforceable against the owner or developer, jointly and severally. Such owner or developer shall be answerable and liable for the facilities, improvements, infrastructures, or other forms of development represented or promised in an advertisement and failure to timely and completely fulfill these representations shall constitute breach of contract and warranties.
What does that mean to a renter/home buyer? That anything an advertisement claims about a property must be true - or the homeowner / realtor can be forced to make it true. If not, they can be held criminally and civilly liable.
Home Owners Associations (HOAs): Under Republic Act 9904 (the Magna Carta for Homeowners and Homeowners Associations), tenants who lack direct ownership do NOT have an automatic or mandatory right to join or vote in HOAs.
In the Philippines, HOA membership is primarily designed for property owners under R.A. 9904, the Magna Carta for Homeowners and Homeowners' Associations. Tenants, lacking direct ownership, generally do not have an automatic or mandatory right to join and vote in HOAs.
Homeowners' Associations (HOAs) have specific responsibilities and rights, as outlined in the Magna Carta for Homeowners and Homeowners’ Associations (Republic Act No. 9904). However, HOAs must respect privacy laws and can only request information that is relevant to their legitimate functions.
1. Legal Basis for Information Requests: HOAs have the right to collect information necessary for the proper management and maintenance of the subdivision or residential area. This may include ensuring security, monitoring compliance with community rules, and facilitating community engagement. However, the information requested must be reasonable and related to these functions.
2. Data Privacy Act of 2012 (RA 10173): Under the Data Privacy Act of 2012, personal information collected by any organization, including HOAs, must be handled in compliance with strict privacy and security standards. HOAs can only request personal information from renters if it is necessary for a legitimate purpose, such as security or compliance with community regulations.
Renters have the right to know:- Specific Purpose: Why is it being collected?
- How it Will be Used
- If Consent is Required, Especially for Personal Information
3. Limitation of Information Requests: Any HOA’s request for personal information of all household members must be assessed in the context of necessity. HOAs are not permitted to ask for excessive or irrelevant information, such as overly detailed personal data not directly related to the association’s legitimate concerns. Renters have the right to refuse providing personal information if it is beyond what is reasonably necessary for HOA operations.
4. Steps to Take if Requests are Excessive: If the HOA’s request for information appears excessive or violates privacy rights, renters can:
- Raise the concern with the HOA and ask for clarification on the necessity of the information requested.
- File a complaint with the National Privacy Commission (NPC) if they believe their rights under the Data Privacy Act have been violated.
Conclusion: While HOAs have the right to request relevant personal information for security and management purposes, they must comply with the Data Privacy Act and ensure that the data collected is reasonable and necessary. Renters are protected under privacy laws and can refuse to provide information that is beyond the scope of legitimate HOA functions. |
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