RENT control has been a divisive and prone-to-argument issue since the time of President Bongbong Marcos’ father some 50 years ago, and controversies between tenants and landlords have contributed much to our national jurisprudence by way of hundreds of cases decided by the courts.
The issue of residential rentals continues to clog court dockets despite the various laws and implementing rules and regulations on the matter. One reason for this is the continuing lack of houses and residential buildings or condominiums especially for the masses, something that various administrations before President Ferdinand Marcos Jr. tried to remedy but failed.
The latest law governing rent is Republic Act 9653, or the Rent Control Act of 2009.
In pursuance of this measure, the National Human Settlements Board (NHSB) has set a maximum 2.3 percent increase in rental for residential units with a monthly rate of P10,000 or less, down from last year’s 4 percent cap.
‘… apartment owners have opposed the implementation of the new policy as “arbitrary.”’
An announcement by the board said the maximum increase in monthly rentals for subject residential units is effective from Jan. 1 to Dec. 31, 2025, based on NHSB Resolution No. 2024-001.
The NHSB, as the sole policy-making body responsible for providing overall policy directions and program development to various key shelter agencies, acting on the recommendation of the National Economic and Development Authority, passed the new resolution in December 2024.
“The rental cap applies to residential units currently occupied by the same tenants as of 2024, who pay P10,000 or less per month, and who will continue to occupy or renew their lease in 2025. Units with rents exceeding P10,000 per month are exempted from this restriction,” the NHSB said.
Residential unit refers to “an apartment, house and/or land on which another’s dwelling is located and used for residential purposes and shall include not only buildings, part or units thereof used solely as dwelling places, boarding houses, dormitories, rooms and bed spaces offered for rent by their owners, except motels, motel rooms, hotels, hotel rooms, but also those users for home industries, retail stores or other business purposes if the owner thereof and his or her family actually live therein and use it principally for dwelling purposes.”
Undersecretary Henry Yap signed the resolution for the Department of Human Settlements and Urban Development, representing Secretary and NHSB Chair Jose Rizalino Acuzar.
While the rental cap seeks to safeguard housing tenants in lower-income brackets and other beneficiaries from excessive rent increases, apartment owners have opposed the implementation of the new policy as “arbitrary.”
Property owners said they were not consulted on the order, pointing out that like any businessman, they are reeling from the hard business climate these days. They also have to contend with vacant units, additional expenses in fire protection and warning systems, business and property taxes, and a fire inspection certificate which in the city of Manila is paid twice, one at the Bureau of Fire Protection and another at city hall.
Where will these apartment owners get the money to pay the government, but from increased rent. And then again, how can officials accede to rent increases during an election year?
Rent remains a balancing act that is hard to do.
