DTI issues guidelines on rent

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Landlords cannot evict tenants for non-payment of rent during the quarantine period, according to the Department of Trade and Industry (DTI)

In its supplemental guidelines on rent concessions dated June 2, 2020, the DTI said in return lessors are not obliged to refund residential and commercial rents paid by the lessees before or during the period of the enhanced community quarantine (ECQ) or any of its versions.

The DTI guidelines provide a 30-day grace period for paying the rent starting from the lifting of the covered community quarantine or from the date that the tenant is allowed to resume employment or business operation, whichever comes first, without incurring interests, penalties, fees, and other charges.

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The grace period may be availed of by the residential lessees who have lost their income during any of the community quarantines, or whose employer/s or business/es were not allowed to operate by laws/regulations/ordinances relevant to any covered community quarantine.

The DTI said the grace period may likewise be availed of by a commercial lessee whose business is among those not permitted to operate pursuant to laws/regulations/ordinances relevant to any covered community quarantine.

The cumulative amount of rents falling due within any of the covered community quarantine, shall be equally amortized in six months following the end of the 30-day minimum grace period, without interest, penalties, fees and charges, the guidelines said.

The DTI encourages lessors of commercial rents for micro, small and medium enterprises to totally or partially waive the commercial rents that are falling due during the covered community quarantine or grant reprieve or discounted amount or commercial rents due after the covered community quarantine.

It also enjoins the lessors to renegotiate the Lease Term Agreements with the lessees.

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