Rent Increases in the Philippines

What Tenants Should Expect at the Start of the Year

The beginning of the year often comes with a familiar message for tenants: “We are increasing the rent.”

But not all rent increases are legal.

In the Philippines, rent adjustments—especially for residential units—are regulated by law. Knowing what landlords can and cannot do empowers tenants to protect their rights and budget accordingly.

This article explains legally allowed rent increases, the applicable law, and what tenants should watch out for.

1. The Governing Law: The Rent Control Act

Rent increases for certain residential units are governed by Republic Act No. 9653, also known as the Rent Control Act of 2009, as extended by subsequent laws.

The Rent Control Act applies to:

• Residential units (apartments, houses, dormitories, boarding houses)

• Units leased on a monthly basis

• Units with rent not exceeding the threshold set by law

⚠️ The law does not apply to commercial spaces or luxury residential units above the rent ceiling.

2. How Much Can Rent Be Increased?

Maximum Allowable Increase

For covered residential units:

• Maximum increase: 5% per year

• Applies only to:

  • The same tenant

  • After the expiration of the lease term

💡 This means a landlord cannot impose multiple increases within the same year, nor exceed the 5% cap while the tenant remains in possession.

3. Units Covered by Rent Control

As a general rule, rent control applies to residential units with monthly rent within the statutory ceiling (which varies depending on location and current extensions of the law).

If your unit falls within the rent ceiling, the landlord must comply with the 5% cap.

If your unit is above the ceiling, rent control does not apply—but other legal rules still do, such as contract law and basic principles of fairness.

4. Can the Landlord Increase Rent During the Lease Term?

No.

If you have a fixed-term lease contract, the rent:

• Cannot be increased mid-contract

• Must remain the same until the lease expires

Any rent increase:

• Must be imposed only upon renewal

• Must comply with the Rent Control Act (if applicable)

A clause allowing automatic increases during the lease term may be void or unenforceable if it violates the law.

5. Can the Landlord Evict You for Refusing an Illegal Increase?

No—refusing an illegal rent increase is not a valid ground for eviction.

Under the Rent Control Act:

• Tenants cannot be ejected for asserting their rights

• Retaliatory eviction is prohibited

Illegal eviction or harassment may expose the landlord to:

• Civil liability

• Administrative penalties

• Criminal sanctions in extreme cases

• 
  

6. Common Landlord Tactics Tenants Should Watch Out For

Tenants should be cautious of:

• Sudden “reclassification” of the unit to evade rent control

• Forced contract termination without legal grounds

• Rent increases disguised as “new charges” or “fees”

• Pressure to vacate to install a new tenant at a higher rate

📌 The law looks at substance over form—renaming a rent increase does not make it legal.

7. What Should Tenants Do If Faced With an Illegal Increase?

Tenants may:

1. Request the legal basis for the increase in writing

2. Check if the unit is covered by rent control

3. Refuse to pay illegal increases

4. Seek assistance from:

   • The Barangay

   • Local housing or rent control offices

   • A lawyer or legal aid group

Rising costs do not give landlords a free pass to disregard the law. Understanding rent control rules helps tenants stand their ground—calmly, legally, and confidently.

If you’re unsure whether a rent increase is lawful, ask questions before paying. Silence can be mistaken for consent.

Source: Ziggurat Real Estate