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DTI amends rental grace period rules

Published Jun 2, 2020 12:00 am
By Bernie Cahiles-Magkilat The Department of Trade and Industry (DTI) has amended the guidelines on the grant of a minimum of 30-day grace period on residential and commercial rents. Based on the supplemental guidelines on the concessions on residential and commercial rents, the DTI has amended Sections 3.2 and 3.6 of the Memorandum Circular 20-29 to reflect the changes. Under the previous circular, the 30-day grace period will be determined as 30 calendar days following the last due date of the rent that fell within the enhanced community quarantine (ECQ). Under the amended circular, payment of the rents shall begin 30 days following the date of the lifting of the community quarantine or at the resumption of the business or has gone back to work. Section 3.2 now states that the grant of a minimum 30-day grace period shall commence 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. For Section 3.6, it provides that if a residential lessee’s employer or a commercial lessee’s business has been permitted to operate pursuant to a presidential proclamation, IATF Resolution and/or relevant ordinances notwithstanding the imposed community quarantine, the commencement of the grace period shall be from the date that such employment or business was allowed to resume. This shall apply regardless of whether or not the lessee opts to go back to work or resume business operation. However, the 6 months concession during period of covered community quarantine shall continue to apply to rents, which due date is not earlier than March 17, 2020 and not later than the date of the issuance permitting lessee’s employer or business to operate.
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