RENTAL REFORM ACT OF 2002
Download as PDF
Download as Word
Collections
Create new Collection
Overview
Full Text
Details
Case
Agency Issuance Number
Published Date
RENTAL REFORM ACT OF 2002
Republic Act No. 9161
December 22, 2001
Case Overview and Summary
Summary of the Rental Reform Act of 2002Declaration of Policy (Section 2):
- The State shall undertake urban land reform and housing to provide affordable decent housing and basic services to underprivileged and homeless citizens.
- The State shall establish reforms in the regulation of rentals of certain residential units.
Monthly Rental and Maximum Increase (Section 3):
- From January 1, 2002, to December 31, 2004, the annual rental increase for residential units shall not exceed 10%.
- In the National Capital Region and highly urbanized cities, the monthly rental shall not exceed P7,500.
- In all other areas, the monthly rental shall not exceed P4,000.
Definition of Terms (Section 4):
- "Rental" refers to the amount paid for the use or occupancy of a residential unit.
- "Residential unit" includes apartments, houses, boarding houses, dormitories, rooms, and bedspaces offered for rent, except motels, hotels, and hotel rooms.
- "Immediate members of family" are limited to the spouse, direct descendants or ascendants, by consanguinity or affinity.
- "Lessee" is the person renting a residential unit.
- "Owner/Lessor" includes the owner, administrator, or agent of the owner of the residential unit.
- "Sublessor" is the person who leases or rents out a residential unit leased to them by an owner.
- "Sublessee" is the person who leases or rents out a residential unit from a sublessor.
- "Assignment of lease" is the act contemplated in Article 1649 of the Civil Code of the Philippines.
Rental and Deposit (Section 5):
- Rental shall be paid in advance within the first five days of every current month or the beginning of the lease agreement, unless the contract provides for a later date.
- The lessor cannot demand more than one month's advance rental and two months' deposit.
Assignment of Lease or Subleasing (Section 6):
- Assignment of lease or subleasing of the whole or any portion of the residential unit, including the acceptance of boarders or bedspacers, without the written consent of the owner/lessor is prohibited.
Grounds for Judicial Ejectment (Section 7):
- Assignment of lease or subleasing without the owner/lessor's written consent. (Section 7a)
- Arrears in payment of rent for a total of three months. (Section 7b)
- Legitimate need of the owner/lessor to repossess the property for their own use or for the use of any immediate family member as a residential unit, provided that the lease for a definite period has expired, the lessor has given the lessee formal notice three months in advance, and the lessor is prohibited from leasing the residential unit or allowing its use by a third party for at least one year from the time of repossession. (Section 7c)
- Need of the lessor to make necessary repairs of the leased premises which is the subject of an existing order of condemnation by appropriate authorities in order to make the said premises safe and habitable, provided that after said repair, the lessee ejected shall have the first preference to lease the same premises, and the new rental shall be reasonably commensurate with the expenses incurred for the repair. (Section 7d)
- Expiration of the period of the lease contract. (Section 7e)
Prohibition Against Ejectment by Reason of Sale or Mortgage (Section 8):
- No lessor or their successor-in-interest shall be entitled to eject the lessee upon the ground that the leased premises have been sold or mortgaged to a third person, regardless of whether the lease or mortgage is registered or not.
Rent-to-Own Scheme (Section 9):
- At the option of the lessor, they may engage the lessee in a written rent-to-own agreement that will result in the transfer of ownership of the particular dwelling in favor of the latter.
- Such an agreement shall be exempt from the coverage of Section 3 of this Act.
Application of the Civil Code and Rules of Court of the Philippines (Section 10):
- Except when the lease is for a definite period, the provisions of paragraph (1) of Article 1673 of the Civil Code of the Philippines, insofar as they refer to residential units covered by this Act, shall be suspended during the effectivity of this Act.
- Other provisions of the Civil Code and the Rules of Court on lease contracts, insofar as they are not in conflict with the provisions of this Act, shall apply.
Coverage of this Act (Section 11):
- All residential units in the National Capital Region and other highly urbanized cities with a total monthly rental not exceeding P7,500.
- All residential units in all other areas with a total monthly rental not exceeding P4,000.
- The coverage is without prejudice to existing contracts.
Penalties (Section 12):
- A fine of not less than P5,000 nor more than P15,000 or imprisonment of not less than one month and one day to not more than six months, or both, shall be imposed on any person, natural or juridical, found guilty of violating any provision of this Act.
Information Drive (Section 13):
- The Department of the Interior and Local Government and the Housing and Urban Development Coordinating Council, in coordination with other concerned agencies, are mandated to conduct a continuing information drive about the provisions of this Act.
Transition Program (Section 14):
- The Housing and Urban Development Coordinating Council is mandated to formulate, within six months from the effectivity hereof, a transition program which will provide for safety measures to cushion the impact of a free rental market.
Amends
n/a
Amended by
n/a
Tags
Statutes
Republic Acts
rental reform
residential units
rental increase
rental deposit
ejectment grounds
rent-to-own scheme
rental regulation
housing reform
urban land reform
rental laws
rental contracts
lease agreements
rental limits
rental arrears
repossession
rental repairs
lease expiration
rental penalties
rental information drive
transition program
Law
RENTAL REFORM ACT OF 2002
Republic Act No. 9161
•December 22, 2001
Congress of the Philippines
Twelfth Congress
REPUBLIC ACT NO. 9161 December 22, 2001
AN ACT ESTABLISHING REFORMS IN THE REGULATION OF RENTALS OF CERTAIN RESIDENTIAL UNITS, PROVIDING THE MECHANISMS THEREFOR AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:
Section 1. Short Tittle. – This ACT shall be known and cited as the "Rental Reform Act of 2002"
Section 2. Declaration of Policy. – The State shall for the common good, undertake a continuing of urban land reform an housing which will make available at affordable cost decent housing and basic services to underprivileged and homeless citizens in urban centers and resettlement areas.
Toward this end, the State shall establish reforms in the regulation of retails of certain residential units.
Section 3. Monthly Rental and Maximum Increase. – Beginning 01 January 2002 and for a duration of three (3) years thereafter ending on 31 December 2004, the monthly rentals of all residential units in the National Capital Region and other highly urbanized cities not...
Login to see full content
Amends
n/a
Amended by
n/a