AN ACT TO REGULATE RENTALS FOR TWO YEARS

Case Overview and Summary

Summary of Republic Act No. 6359

Rental Regulation for Two Years
- No lessor shall increase the monthly rental for dwelling units or land where the rental does not exceed ₱300 per month for one year from the law's effectivity. (Section 1)
- For the next year, rentals may not be increased by more than 10%. (Section 1)

Definitions
- Rentals: Amount paid for the use of dwelling units or land, whether payment is made bi-weekly, monthly, or otherwise. (Section 2)
- Dwelling unit: A house and lot used for residential purposes, including those used for home industries or retail stores if the owner and family live there and use it principally as a dwelling, provided the capital of the retail store does not exceed ₱5,000. (Section 2)
- Land: The lot leased by one who owns the dwelling thereon and used principally for such dwelling and not mainly for business. (Section 2)
- Lessees: The persons and/or their families renting the dwelling place, as well as sub-lessees. (Section 2)
- Lessor: Owners of the dwelling place and/or residential site or the administrator or agent of such owners, as well as sub-lessors. (Section 2)

Deposit Limit
- For two years from the law's effectivity, no lessor may demand a deposit exceeding two months' rental in advance. (Section 3)

Suspension of Civil Code Provision
- For two years from the law's effectivity, the provisions of paragraph (1) of Article 1673 of the Civil Code, insofar as they refer to dwelling units or land on which another's dwelling is located, shall be suspended. (Section 4)
- Other provisions of the Civil Code and the Rules of Court on lease contracts shall apply if not in conflict with this Act. (Section 4)

Penalties
- Any person violating any provision of this Act shall be punished by imprisonment of not less than three months nor more than two years and a fine of not less than ₱1,000 nor more than ₱2,000. (Section 5)

Effectivity
- This Act shall take effect upon its approval. (Section 6)