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FOURTEENTH CONGRESS OF THE REPUBLIC 
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OF THE PHILIPPINES 
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Second Regular Session 
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introduced by Senator Ramon "Bong" Revilla, Jr. 
EXPLANATORY NOTE 
The global financial crisis which started from a faraway country has slowly, but 
surely, made its impact felt in our shores. Presently, the economy is but merely being 
cushioned by remittances coming from Overseas Filipino Workers (OFW). However, too 
much reliance on OFW remittances may prove to be misplaced for they too are in a very 
vulnerable and unstable position as of the moment as a lot of them have also lost or are 
under the threat of losing their jobs. Others, while able to keep their jobs are also 
suffering from reduced working hours. 
Locally, a perusal of current data will yield the result that many have joined the 
statistics of jobless Filipinos. Using. the original National Statistics Office (NSO) 
definition of employment and assuming a labor force participation rate of 66.1% in 2008, 
the IBON Foundation, Inc. has estimated at least 10.7 million Filipinos who are 
unemployed and underemployed as of 2008. Approximately 415,000 Filipinos will join 
the jobless statistics in 2009, increasing the numbers to an enormous I 1  million or 
more. These numbers could increase even more as a lot of corporations also suffer 
from the blows they sustained because of the current financial crisis, the employment 
situation being much worse than the 1997 Asian financial crisis. Some companies were 
already forced to close shop and most of those that were fortunate enough to weather 
the effects of the crisis had to reduce manpower and implement revised work 
arrangements to continue production at reduced costs. 
How do these numbers translate to a common Filipino? This would mean that the 
income of an average or below-average Filipino family will be much less than it already 
is. And this income will be distributed and apportioned according to their needs, the 
most basic of which are food, clothing and shelter. An average of about 1.6 million 
Filipinos are dependent on rented housing units for their dwelling, not to mention Small 
and Medium Enterprises (SMEs) that do not have enough capital to lease more 
expensive commercial units for their operations. 
Previously, Republic Act 9341, otherwise known as the Rent Control Act of 2005, 
provided protection to the millions of Filipinos who are renting residential houses/units. 
With the expiration of R.A. 9341 on 31 December 2008, this could pave the way for 
unreasonable and unconscionable increases in rent being imposed by unscrupulous 
landlords in utter disregard of the financial capability of their tenants, or the impairment 
thereof, which may well be attributed to the effects of the financial crisis. Needless to 
say, the already marginal income of these Filipino families will further be burdened by 
higher rentals, instead of the same being used for food, education and medicine. 
While others may argue that the solution to this problem is not through rent 
control but by encouraging the public to avail of low cost and socialized housing units, 
the fact remains that these housing units are still inaccessible by reason of their 
distance to areas in the country where most of the commercial and industrial centers 


are concentrated. Relocating to such areas where low cost and socialized housing units 
are erected will also impose further suffering by reason of the distance one has to 
travel, traffic congestion, additional transportation expenses, and even the lack of 
modes of transportation to and from these areas to their place of livelihood. 
Hence, the need for the revival of the Rent Control Act could not come at a more 
appropriate time than this. Through this measure, it is intended to allow the common 
Filipino to stay afloat despite the tumult brought about by the economic and financial 
woes the country is presently hurdling. Though unable to completely solve the already- 
existing housing problem, this bill seeks to prevent more Filipinos from being homeless 
by allowing the housing units they are currently renting to continue being within their 
economic reach. 
Furthermore, extending the protection being provided by the Rent Control Law to 
SMEs leasing commercial landlunits for their operations will also aid in stimulating 
commercial activity in urban areas. Considering the financial crisis, economic activity in 
the grass roots level will be a key component in helping the country endure the current 
economic storm. 
Passage of this bill is therefore earnestly sought. 


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I 
FOURTEENTH CONGRESS OF THE REPUBLIC 
Second Regular Session 
) 
OF THE PHILIPPINES 
1 
1 
9 FED -2 i'h :yj 
Introduced by Senator Ramon "Bong" Revilla, Jr. 
AN ACT REGULATING THE RENT OF CERTAIN RESIDENTIAL AND COMMERCIAL 
UNITS AND SPACES, PROVIDING MECHANISMS AND PENALTIES FOR 
VIOLATIONS THEREOF 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress, assembled: 
SECTION 1. This Act shall be known and cited as the "Rent Control Act of 
2009." 
SEC. 2. Declaration of Policy. - The State shall, for the common good, 
undertake a continuing program of encouraging the development of affordable housing 
for the lower income brackets. Likewise, the State recognizes the role of Small and 
Medium Enterprises (SMEs) in the equitable distribution of income and poverty 
alleviation. 
Toward this end, the State shall continue to protect housing tenants in the lower 
income brackets from unreasonable rent increases. Reasonable and affordable 
commercial units in the National Capital Region and other urban areas shall also be 
made available to protect SMEs from unreasonable and indiscriminate increase in rental 
rices. 
SEC. 3. Limit on lncreases in Rent, - The rent of any residential unit and 
commercial building unit covered by this Act shall not be increased by more than ten 
percent (10%) annually as long as the unit is occupied by the same lessee. When the 
aforementioned unit becomes vacant, the lessor may set the initial rent for the next 
lessee. 
SEC. 4. Definition of Terms. - The following terms as used in this Act shall be 
understood as: 
(a) "Rent" shall mean the amount paid for the use or occupancy of a residential 
unit whether payment is made on a monthly or other basis; 
(b) "Residential unit" shall refer to an apartment, house and/or land on which 
another's dwelling is located and used for residential purposes and shall include 
not only buildings, part or units thereof used solely as dwelling places, boarding 
houses, dormitories, rooms and bedspaces offered for rent by their owners, 
except motels, motel rooms, hotels, hotel rooms, but also those used for home 
industries, retail stores or other business purposes if the owner thereof and his or 
her family actually live therein and use it principally for dwelling purposes; 
(c) "Commercial Building Unit" is a commercial building or land, including parts or 
units thereof, offered for rent for business and/or residential purposes; 
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(d) "Immediate members of family of the lessee or lessor" for purposes of 
repossessing the leased premises, shall be limited to his or her spouse, direct 
descendants or ascendants, by consanguinity or affinity; 
(e) "Lessee" shall mean the person renting a residential unit; 
(9 "Owner/Lessor" shall include the owner or administrator or agent of the owner 
of the residential unit; 
(9) "Sublessor" shall mean the person who leases or rents out a residential unit 
leased to him by an owner; 
(h) "Sublessee" shall mean the person who leases or rents out a residential unit 
from a sublessor; 
(i) "Assignment of lease" shall mean the act contemplated in Article 1649 of the 
Civil Code of the Philippines. 
SEC. 5. Rent and Requirement of Bank Deposit. - Rent shall be paid in 
advance within the first five (5) days of every current month or the beginning of the 
lease agreement unless the contract of lease provides for a later date of payment. The 
lessor cannot demand more than one (1) month advance rent. Neither can he demand 
more than two (2) months deposit which shall be kept in a bank under the lessor's 
account name during the entire duration of the lease agreement. Any and all interest 
that shall accrue therein shall be returned to the lessee at the expiration of the lease 
contract. 
In the event however, that the lessee fails to settle rent, electric, telephone, water 
or such other utility bills or destroys any house components and accessories, the 
deposits and interests therein shall be forfeited in favor of the latter in the amount 
commensurate to the pecuniary damage done by the former. 
SEC. 6. Assignment of Lease or Subleasing. - 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. 
SEC. 7. Right of Tenancy of the Tenant. - As long as the tenant is religiously 
paying his monthly rental, the lessor cannot eject the tenant, unless embodied in the 
provisions of Section 8 of this Act. The tenant has the priority right over the lessor to 
extend and/or renew his contract of lease. 
SEC. 8. Grounds for Judicial Ejectment. - Ejectment shall be allowed on the 
following grounds: 
(a) Assignment of lease or subleasing of residential units in whole or in part, 
including the acceptance of boarders or bedspacers, without the written consent 
of the ownerllessor: 
(b) Arrears in payment of rent for a total of three (3) months: Provided, That in 
the case of refusal by the lessor to accept payment of the rent agreed upon, the 
lessee may either deposit, by way of consignation, the amount in court, or with 
the city or municipal treasurer, as the case may be, or in a bank in the name of 
and with notice to the lessor, within one month after the refusal of the lessor to 
accept payment. 
The lessee shall thereafter deposit the rent within ten (IO) days of every current 
month. Failure to deposit the rent for three (3) months shall constitute a ground 
for ejectment. 
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The lessor, upon authority of the court in case of consignation or upon joint 
affidavit by him and the lessee to be submitted to the city or municipal treasurer 
and to the bank where deposit was made, shall be allowed to withdraw the 
deposits; 
(c) Legitimate need of the owner/lessor to repossess his or her property for his or 
her own use or for the use of any immediate member of his or her family as a 
residential unit: Provided, however, That the lease for a definite period has 
expired: Provided, further, that the lessor has given the lessee the formal notice 
three (3) months in advance of the lessor's intention to repossess the property 
and: Provided, finally, that the owner/lessor is prohibited from leasing the 
residential unit or allowing its use by a third party for a period of at least (1) year 
from the time of repossession. 
(d) 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 
concerned 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: Provided, however, That the new rent shall be reasonably 
commensurate with the expenses incurred for the repair of the said residential 
unit and: Provided, final/y, That if the residential unit is condemned or completely 
demolished, the lease of the new building will no longer be subject to the 
aforementioned first preference rule in this subsection; and 
(e) Expiration of the period of the lease contract. 
SEC. 9. Prohibition Against Ejectment by Reason of Sale or Mortgage. - No 
lessor or his 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. 
SEC. I O .  Rent-to-Own Scheme. - At the option of the lessor, he or she 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. 
SEC. 11. Application of the Civil Code and Rules of Court of the Philippines. 
- Except when the lease is for a definite period, the provision 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, but 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. 
SEC. 12. Coverage of this Act. - All residential units and commercial building 
units in the National Capital Region and other highly urbanized cities the total monthly 
rent for each of which does not exceed Ten thousand pesos (PlO,OOO.OO) and all 
residential units and commercial building units in all other areas the total monthly' rent 
for each of which does not exceed Five thousand pesos (P5,OOO.OO) as of the effectivity 
date of this Act shall be covered, without prejudice to existing contracts. 
SEC. 13. Penalties. - A  fine of not leSS than Fifty Thousand Pesos (P50,OOO.OO) 
nor more than One Hundred Thousand Pesos (P100,OOO.OO) or imprisonment of not 
less than one (1) month and one (1) day to not more than six (6) months or both shall 
be imposed on any person found guilty of violating any provision of this Act: Provided, 
however, That a fine of not less than One Hundred Thousand Pesos (PlOO,OOO.OO) nor 
more than Two Hundred Thousand Pesos (P200,OOO.OO) and imprisonment of six (6) 
months and one (1) day to not more than one (1) year shall be imposed on any person 
who has been previously found guilty of violating any provision of this or the previous 
Rent Control Act: Provided, further, That the penalty of imprisonment herein provided 
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shall be imposed upon the President, General Manager or other person of coordinate 
rank where the offender is a corporation or a juridical entity, without prejudice to the 
imposition of fine on such corporation or entity: and Provided, finally, that the damages 
to be awarded by the Court shall be in addition to the fine imposed by this section. 
SEC. 14. lnformation Drive. - The Department of the Interior and Local 
Government and the Housing and Urban Development Coordinating Council, in 
coordination with other concerned agencies, are hereby mandated to conduct a 
continuing information drive about the provisions of this Act. 
SEC. 15. lmplementing Rules and Regulations. - The Housing and Urban 
Development Coordinating Council is hereby mandated to formulate rules and 
regulations for the implementation of this Act within sixty (60) days from effectivity 
hereof. 
SEC. 16. Separability Clause. - If any provision or part hereof is held invalid or 
unconstitutional, the remainder of the law or the provision not otherwise affected shall 
remain valid and subsisting. 
SEC. 17. Repealing Clause. - Any law, presidential decree or issuance, 
executive order, letter of instruction, administrative order, rule or regulation contrary to 
or inconsistent with the provisions of this Act is hereby repealed, modified or amended 
accordingly. 
SEC. 18. Effectivity Clause. - This Act shall take effect beginning fifteen (15) 
days after its complete publication in at least two (2) newspapers of general circulation 
until five (5) years thereafter, unless otherwise provided by law. 
Approved, 
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