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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
TWENTIETH CONGRESS 
1st Regular Session 
House Bill No. ________ 
Introduced by Representatives ERIC G. YAP AND EDVIC G. YAP 
EXPLANATORY NOTE 
The rise of online short-term residential rental (STRR) platforms such as Airbnb has 
significantly altered the landscape of urban housing in many parts of the Philippines, 
especially in tourist-centric areas like Baguio City and La Trinidad. While STRRs have 
expanded tourism options and generated income for property owners, they have also 
contributed to the rapid conversion of long-term residential units into more profitable 
short-term accommodations. This shift has resulted in a noticeable decline in the 
availability of affordable rental housing, particularly affecting low and middle-
income families, students, and workers. 
Recent trends show that property owners are increasingly opting out of long-term 
lease agreements to take advantage of the higher rates offered by short-term rentals. 
As a consequence, rental prices for traditional apartments have surged, leaving many 
locals unable to find suitable housing within their communities. The monthly 
apartment rents in key locations in Baguio range from ₱5,000.00 to ₱15,000.00, while 
equivalent Airbnb listings in the same areas can fetch an Average Daily Rate of 
₱3,059.00 or an Average of Monthly Revenue of ₱41,327.00 (Airbtics, 2025)1. This rental 
disparity incentivizes landlords to convert long-term rental units into STRRs, 
exacerbating housing scarcity and affordability crises. 
This proposed measure does not seek to ban or stifle innovation in the tourism 
economy. Rather, it aims to strike a responsible balance between supporting local 
tourism and ensuring that long-term residents, especially middle-class and low-
income earners, are not displaced or priced out of their communities. The bill 
establishes a regulatory framework that includes registration, zoning controls, permit 
caps, taxation, platform accountability, and housing affordability protections. 
Through empowering local government units (LGUs) to monitor and manage STRR 
activity, and requiring transparency and cooperation from digital platforms, this bill 
ensures that tourism development does not come at the expense of livable, inclusive, 
and sustainable urban communities. The passage of this legislation is a timely and 
1AIRBTICS. 2025. Airbnb Revenue in Baguio, The Philippines: 2025 Short-Term Rental Data & Insights. Retrieved from https://airbtics.com/ 
annual-airbnb-revenue-in-baguio-philippines/#:~:text=Average%20Airbnb%20Revenue%20in%20Baguio,active%20Airbnb%20listings%20in 
%20Baguio. Retrieved in June 30, 2025. 
August 18, 2025
1:38 pm
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necessary step toward protecting the right to adequate housing and preserving the 
social fabric of cities heavily impacted by short-term rental proliferation. 
In view of the foregoing, consideration of the passage of this bill is respectfully urged. 
HON. ERIC G. YAP 
HON. EDVIC G. YAP


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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
TWENTIETH CONGRESS 
1st Regular Session 
House Bill No. ________ 
Introduced by Representatives ERIC G. YAP AND EDVIC G. YAP 
AN ACT REGULATING SHORT-TERM RESIDENTIAL RENTAL PLATFORMS, 
PROVIDING GUIDELINES FOR THEIR OPERATION, PROTECTING 
RESIDENTIAL HOUSING SUPPLY IN HIGH-DENSITY TOURIST AREAS, 
AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. Short Title. This Act shall be known as the "Short-Term 
Residential Rental Regulation and Housing Protection Act of 2025." 
SEC 2. Declaration of Policy. It is the policy of the State to ensure a balance 
between promoting tourism and preserving access to affordable, long-term housing 
for local residents. The proliferation of short-term residential rentals (STRRs), such as 
those facilitated through online platforms like Airbnb, has resulted in significant 
distortions in housing availability and affordability, particularly in high-tourism 
urban areas. This Act seeks to regulate the operation of STRRs to prevent the 
displacement of long-term residents and safeguard the rights of middle- and low-
income families, students, and workers. 
SEC 3. Definition of Terms. As used in this Act, the following terms shall be 
defined as follows:  
a) Short-Term Residential Rental (STRR)- refers to the lease of a residential
dwelling or room for a period not exceeding thirty (30) consecutive days.
b) Host- refers to the person, property owner, lessee, or authorized manager
who offers a dwelling or unit for STRR use.
c) Platform Operator- refers to any entity, including digital platforms like
Airbnb and Vacation Rentals by Owner (VRBO), that facilitates STRR
listings and bookings.
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d) Primary Residence- means the dwelling where the host resides for at least 180 
days per calendar year. 
 
e) Long-Term Lease- means a residential lease agreement with a duration 
exceeding 30 consecutive days. 
 
SEC 4. Registration and Permits. In order to ensure accountability, promote 
transparency, and support the equitable use of residential properties, all individuals 
or entities engaged in operating short-term residential rentals (STRRs) shall be 
required to secure the necessary registration and permits from the appropriate local 
government units (LGUs) prior to the listing, advertisement, or actual rental of such 
properties. All STRR operators shall register with their respective LGUs and obtain a 
Short-Term Residential Rental Permit, which shall be renewed annually. Only units 
with a valid STRR Permit may be listed or advertised on online booking platforms. To 
qualify for a permit, STRR operators must present a barangay clearance, proof of 
ownership or lease agreement, and valid certificates demonstrating compliance with 
applicable fire safety, health, sanitation, and building standards. 
 
SEC 5. Zoning and Permit Caps. To maintain the balance between tourism 
development and residential housing needs, local government units (LGUs) shall 
have the authority to regulate the number, type, and location of short-term residential 
rentals (STRRs) within their jurisdictions through zoning ordinances and permit caps. 
Such measures shall be guided by assessments of local housing availability, 
infrastructure capacity, and the potential impacts on communities. STRRs shall be 
limited to primary residences unless the LGU authorizes otherwise through the 
issuance of a zoning clearance. Furthermore, STRR activity within primary residences 
shall be capped at ninety (90) nights per year, unless the operator is granted an 
extended-use permit. LGUs may also impose geographic restrictions and density 
limits based on housing vacancy rates, zoning classifications, and the preservation of 
neighborhood character. Full-time commercial STRRs, such as entire buildings or 
multiple units operated by a single owner or entity, shall be prohibited in residential 
zones unless explicitly approved by the local zoning board. 
 
SEC 6. Housing Affordability Protections. To prevent the displacement of 
long-term residents and ensure the continued availability of affordable housing for 
middle- and low-income families, local government units (LGUs) shall implement 
safeguards that limit the conversion of residential units into short-term residential 
rentals (STRRs). LGUs shall conduct annual assessments evaluating housing 
availability, affordability, and the impact of STRR activity on the local rental market. 
In the event that long-term residential vacancy rates fall below five percent (5%), the 
LGU may exercise its authority to temporarily suspend the issuance of new STRR 
permits, require property owners to prioritize long-term rental arrangements before 
converting units to STRRs, and implement a quota system to ensure that a minimum 
percentage of the existing housing stock remains accessible for long-term rental 
purposes. These measures aim to preserve residential stability and protect vulnerable 


 
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communities from housing scarcity driven by unregulated short-term rental 
proliferation. 
 
SEC. 7. Taxation and Revenue Reporting. To ensure accountability and proper 
contribution to public revenues, all short-term residential rental (STRR) hosts shall be 
registered with the Bureau of Internal Revenue (BIR), issue official receipts, and pay 
the appropriate income and business taxes. Platform operators, such as Airbnb and 
similar hosting services, shall be required to withhold applicable value-added tax 
(VAT) and income tax from host revenues in accordance with existing tax laws.  
 
Platform operators must submit quarterly reports to both the BIR and 
concerned local government units (LGUs), detailing the total number of active listings, 
total bookings and revenue per listing, as well as the names and permit numbers of 
active hosts. In addition, all hosting platforms shall be required to submit a 
comprehensive summary report to the Department of Tourism (DOT) every six (6) 
months. This report shall contain aggregate booking data, occupancy rates, and total 
gross revenues per LGU. This mechanism shall serve as an independent verification 
tool to support the accuracy of host-reported data. 
 
To ensure consistency and cross-verification, LGUs shall also require STRR 
hosts to submit semi-annual tax reports reflecting their gross earnings, rental 
activities, and permit information. The DOT shall consolidate the platform data and 
share it with LGUs and the BIR to enable triangulation between host-reported income, 
platform-reported bookings, and local permit records. The DOT shall develop a secure 
electronic reporting system to receive data from platform operators and facilitate 
information sharing with LGUs and tax authorities. This multi-agency reporting 
mechanism shall promote transparency, improve tax compliance, and prevent 
underreporting or illicit STRR operations. 
 
SEC. 8. Local Fees and Charges. Local government units (LGUs) may impose a 
short-term residential rental (STRR) regulation fee and a tourism impact fee, provided 
that the combined amount does not exceed three percent (3%) of the gross rental 
revenue generated by STRR operators. The proceeds collected from these fees shall be 
specifically earmarked to support programs that address housing affordability, 
implement urban renewal initiatives, and develop or improve tourism-related 
infrastructure. 
 
To promote inclusivity and ensure that STRR regulation does not unduly 
burden marginalized individuals, LGUs shall adopt a tiered or income-based 
licensing and registration fee structure for STRR operators. In particular, low-income 
hosts such as those without regular employment or without other registered 
businesses shall be eligible for reduced or subsidized fees, which will be determined 
in the Implementing Rules and Regulations (IRR) of this Act. This provision aims to 
protect economically disadvantaged residents who may rely on STRR income for 
livelihood, while still ensuring compliance and equitable contribution to the local 
economy. This mechanism ensures that STRR operations contribute meaningfully to 


 
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the communities in which they operate through mitigating their impact on local 
housing supply and urban development, while enhancing tourism benefits and 
promoting fairness across economic classes. 
 
SEC. 9. Guest Guidelines and Public Conduct. In order to promote responsible 
tourism and uphold community standards, all short-term residential rental (STRR) 
hosts and platform operators shall ensure that guests are provided with a written code 
of conduct upon booking confirmation or check-in. This code shall include, at a 
minimum, relevant local ordinances pertaining to noise control, proper garbage 
disposal, and parking regulations. In areas identified as culturally sensitive, 
particularly those inhabited by indigenous peoples or heritage communities, the code 
must also include guidelines for respecting indigenous culture, traditions, and 
community values. Additionally, the code shall provide clear emergency contact 
information and disaster preparedness protocols to ensure guest safety and 
compliance with local risk reduction measures. 
 
SEC. 10. Platform Accountability and Data Sharing. To ensure effective 
monitoring and enforcement of regulations governing short-term residential rentals 
(STRRs), all STRR platforms operating in the Philippines shall be required to register 
with the Department of Tourism (DOT). As part of their compliance, these platforms 
must submit anonymized monthly data to both the DOT and the concerned local 
government units (LGUs), including information on the total number of active 
listings, booking volumes, geographic distribution of units, and frequency of bookings 
per unit. In addition, platforms shall be mandated to include the following data in 
their monthly submissions to the DOT: 
 
a. Number of nights booked per listing; 
b. Number of guests (pax) per booking; 
c. Complete city or municipal address of each STRR unit booked; 
d. Citizenship of the guest; 
e. Profession or occupation of the guest, if voluntarily disclosed. 
 
These data points shall be used by the DOT to develop comprehensive tourist 
profiles, allowing the department to better understand market trends, traveler 
behavior, and visitor demographics. Such insights will enhance tourism marketing 
strategies, improve destination management, and support the development of 
targeted tourism campaigns based on accurate and timely STRR market data. 
 
Furthermore, all platforms shall be required to delist any property that does 
not possess a valid STRR Permit within thirty (30) days of receiving official 
notification from the relevant LGU. This provision reinforces the obligation for proper 
local registration and ensures that only compliant operators may utilize hosting 
platforms to conduct short-term rental business. 
 
SEC. 11. Enforcement and Penalties. Operating a short-term residential rental 
(STRR) without a valid permit shall be subject to a fine of not less than Twenty 
Thousand Pesos (Php 20,000) per unit per year, serving as a deterrent against 


 
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unregistered operations. In addition, STRR platforms that fail to remove unpermitted 
listings after proper notice from the concerned local government unit (LGU) shall be 
fined One Hundred Thousand Pesos (Php 100,000) per quarter for each instance of 
non-compliance. Repeated violations by either hosts or platforms may result in more 
severe penalties, including the revocation of existing permits, blacklisting of non-
compliant operators, and closure of unauthorized STRR establishments, ensuring 
strict enforcement of the law and protection of community interests. 
 
SEC. 12. Public Information Campaign. Within sixty (60) days of the effectivity 
of this Act, the Department of the Interior and Local Government (DILG), in 
coordination with LGUs and DOT, shall launch a nationwide campaign to inform the 
public and affected stakeholders about the requirements and implications of this Act. 
 
SEC. 13. Implementing Rules and Regulations. The DOT, DILG, BIR, and 
Housing and Land Use Regulatory Board (HLURB), in coordination with other 
stakeholders, shall formulate and issue the Implementing Rules and Regulations (IRR) 
of this Act within ninety (90) days from its effectivity. 
 
SEC. 14. Separability Clause. If any provision of this Act is declared 
unconstitutional or invalid, the remaining provisions not affected shall remain in full 
force and effect. 
 
SEC. 15. Repealing Clause. All laws, decrees, executive orders, and regulations 
inconsistent with this Act are hereby repealed or amended accordingly. 
 
SEC. 16. Effectivity. This Act shall take effect fifteen (15) days after its complete 
publication in the Official Gazette or in at least two (2) national newspapers of general 
circulation. 
 
Approved,