Home-based business

Dear Atty. Chris,

I am a former OFW. I used to work in Bahrain but then Covid happened and I had to go home. Now, I am renting a one-bedroom apartment with my daughters. I landed a job as a contractual employee and for extra income, I decided to sell ice candies, ice, and ice water in our apartment and only cater to my neighbors.

However, one of my neighbors seemed not to be happy about my very small business and threatened to have me ejected by informing our landlord. According to him, I altered the “residential” space to a “commercial” space by selling ice.

What should I do? Please help me.

Agnes

***

Dear Agnes,

Pertinent provisions of Republic Act (RA) 9653, or the Rent Control Act of 2009, define the term “residential unit” as “an apartment, house and/or land on which another’s dwelling is located and used for residential purposes and shall include not only building houses, dormitories, rooms and bed spaces 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” (Section 3 (b), Ibid.).

Based on this definition, we believe that the nature of the apartment you are leasing was not altered by the mere fact that you are selling ice, ice candy and “ice water” in your apartment, provided that you and your daughters are living therein, and your principal use of such apartment is still for dwelling.

Regarding your ejectment from the subject property, we submit that the same may only be done if it has been specifically stated, as a condition in your contract of lease, that you are not supposed to sell products that you are selling at present or anything similar thereto, or if you have devoted the property to a use or service that is not stipulated in your contract that has caused the property’s deterioration. This is for the reason that Article 1673 of the New Civil Code states:

“The lessor may judicially eject the lessee for any of the following causes:

x x x

(3) Violation of any of the conditions agreed upon in the contract;

(4) When the lessee devotes the thing leased to any use or service not stipulated which causes the deterioration thereof; or if he does not observe the requirement in No. 2 of Article 1657, as regards the use thereof.”

On the contrary, if there is no mention in your contract prohibiting you from selling ice, ice candy, and “ice water” in your apartment, or any other product similar thereto, or your activity of selling those products has not led to the deterioration of your leased apartment, then we do not see any cogent reason for your lessor to lawfully evict you, save if you have committed any other ground for judicial ejectment that is specifically mentioned under Article 1673 of the New Civil Code and Section 9 of RA 9653, such as (a) expiration of the period agreed upon or that which is fixed under Articles 1682 and 1687 (Article 1673 (1), Id.), (b) assignment of lease or sub-leasing thereof, (c) arrears in payment of rent for a total of three months, (d) legitimate need of the owner/lessor to repossess the leased property, (e) lessor’s need to make necessary repairs of the leased property and (f) expiration of the period of the lease contract (Section 9, RA 9653).

Please keep in mind that this is solely based on your story. I hope this helps.

Atty. Chris Liquigan