Rent increase

Dear Atty. Peachy,

I am writing to ask for your advice about a situation I am currently facing with my landlord. I have been renting an apartment in Mandaluyong for about a year now, and overall, things have been manageable. However, I was recently informed that my rent will increase significantly once my contract expires next month.

While I understand that rent adjustments are sometimes part of renewing a lease, the amount of this increase feels unusually high, and I am concerned about whether I will be able to afford it. I was also told about the increase informally, and I have not received any written notice outlining the new terms.

Could you please advise me on what my rights are as a tenant in this situation? I would also appreciate guidance on the best way to approach this matter moving forward.

Shiela

Dear Shiela,

Under Philippine law, your situation may fall under Republic Act 9653 or the Rent Control Act of 2009. Whether this law applies to you depends primarily on the amount of rent your currently paying.

If your monthly rent in Mandaluyong is P10,000 or below, your unit is covered by the Rent Control Act. In that case, Section 4 of the law limits rent increases to not more than 7 percent per year, and only after the expiration of the existing lease contract. This means that while your landlord may increase the rent upon renewal, the increase cannot exceed the statutory cap. If the proposed adjustment goes beyond 7 percent, you may formally object and invoke the protection of the law. Should discussions fail, you may seek barangay mediation and, if necessary, pursue legal remedies to enforce compliance.

On the other hand, if your monthly rent exceeds P10,000, the Rent Control Act no longer applies. In that situation, the relationship between you and your landlord is governed primarily by your lease contract and the general provisions of the Civil Code on leases. Once the contract expires, the landlord is generally free to propose new rental terms as a condition for renewal. Your course of action would then depend on the wording of your lease agreement, particularly any clause on renewal or rent escalation. If there is no automatic renewal clause, the landlord may lawfully refuse renewal unless you agree to the new rate.

In both scenarios, the practical first step is to request the proposed increase in writing and review your lease contract carefully. If your rent is within the P10,000 threshold, you may invoke statutory protection. If it is above that amount, your leverage lies more in negotiation and contractual interpretation rather than in rent control limits.

Atty. Peachy Selda-Gregorio