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Saturday, January 14, 2006
Arroyo okays 10 percent house rent hike
PRESIDENT Gloria Macapagal-Arroyo has signed into law the Rent Control Act or Republic Act (RA) 9341, which limits to not more than 10 percent annually the increase in the rent of residential units.
RA 9341 was the last law signed by President Arroyo in 2005.
Under the new law, the cap in the rent increase may be availed upon as long as the same lessee occupies the unit. Once the unit becomes vacant, the lessor may set an initial rent for the next occupant.
The law covers all residential units in Metro Manila and other highly urbanized cities the total monthly rent of which does not exceed P10,000 and all residential units in all other areas the monthly rent of which does not exceed P5,000.
RA 9341 also sets the grounds for ejectment of a lessee. These are:
* The leasing or subleasing, in whole or in part of the unit, including acceptance of boarders or bed spacers without written consent of the owner or lessor;
* Arrears in payment of a total of three months. In case of refusal of lessor to accept payment, lessee may deposit by way of consignation the amount in court;
* The legitimate need of the owner or lessor to repossess his property for his own use of that of an immediate family member as residential unit provided that the lease for a definite period has expired and a formal notice of three months in advance has been given. The owner is prohibited from leasing the unit or allowing its use by a third party for at least a year from the time of repossession; and
* The need to make repairs provided that the lessee has first preference after repairs have been made.
The law also provides that a lessee cannot be ejected 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.
The lessor may engage the lessee in written rent-to-own agreement that will result in the transfer of ownership of the unit in favor of the renter.
Violations of the law will be penalized with a fine of P5,000 to P15,000 or imprisonment of one month and a day to six months. (JMR/Sunnex)
(January 14, 2006 issue)
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