The national government has set a rental cap for any increase in the monthly rent of residential units in a move to protect low-income earners from exorbitant rental increases this year, the Department of Human Settlements and Urban Development (DHSUD) said.
From the four percent increase last year in monthly rent, DHSUD Secretary Jose Rizalino Acuzar said the price cap was lowered to 2.3 percent this year, but will only cover monthly rent of P10,000 and below for residential units.
“The rental cap is being implemented to safeguard housing tenants in lower-income brackets and other beneficiaries from excessive rent increases. It 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,” said Acuzar, citing a resolution approved by the National Human Settlements Board (NHSB) which he chairs.
The NHSB is the sole policy-making body responsible for providing overall policy directions and program development to various key shelter agencies.
Acuzar said the measure was enacted pursuant to Republic Act No. 9653, or the Rent Control Act of 2009, and is effective from Jan. 1 to Dec. 31, this year.
But according to the NHSB Resolution, if a residential unit becomes vacant in 2025, the lessor may increase the rent of a new tenant beyond the set limit since the new tenant is not covered by the resolution.
However, in the case of boarding houses, dormitories, rooms, and bedspaces, only one rent adjustment is allowed within the 2025, even if the increase limit has not been reached.
The NHSB Resolution also allows owners of new residential units built and/or leased out in 2025 to set their own rent.
It also sets a new limit of one percent to units occupied by the same tenants as of 2025 and are paying P10,000 or less per month, and who will continue to occupy/renew their lease in 2026.
Residential units with rents above P10,000 per month in 2025 are excluded from the 2026 rental cap.
In case of misunderstanding, the DHSUD encourages tenants to seek alternative dispute resolution with his landlord or lessor through the Barangay Justice System’s mediation/amicable settlement process.
It said only if the same cannot be settled will it be adjudicated before the court.
“Eventually, if the lessor is found guilty, he could face a fine of not less than P25,000 nor more than P50,000 or imprisonment of not less than one month and one day to not more than six month or both, depending on the court’s decision,” the Resolution read.