Wednesday, July 15, 2009 | MANILA, PHILIPPINES [ BusinessWorld Online ]
PRESIDENT Gloria M. Arroyo yesterday signed into law Republic Act 9653, or the Rent Control Act of 2009, which slaps a one-year moratorium on rent increases for covered residential units and limits annual hikes from then to 7% until 2013.
The law is aimed at protecting an estimated 1.6-million low-income tenants in the country, a Palace statement read.
Covered by the law are all residential units in Metro Manila and other highly urbanized cities where monthly rental does not exceed P10,000, and P5,000 for other areas.
Excluded are residential units which are under a rent-to-own scheme.
In case of boarding houses, dormitories, rooms and bedspaces offered for rent to students, increase in rental is allowed only once a year.
The law also prohibits lessors or owners of residential units from imposing an advance rent of more than one month as well as deposit of more than two months.
Violators face a fine of P25,000-P50,000, or imprisonment of as long as six months, or both.
The Housing and Urban Development Coordinating Council was also authorized to study if the industry should remain regulated after 2013. — BSSD
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