Bicameral report on new Rent Control Law ratified

MANILA, Philippines – The House of Representatives has approved the bicameral conference committee report on the proposed new rent control law.

The report puts a cap of seven percent on the annual rental increases, down from the 10 percent fixed by the old law.

Speaker Prospero Nograles authored the House version of the rent control bill.

He said a new law was needed to ease the people’s suffering brought about by the financial crisis.

Nograles said millions of people still rent apartments and other dwellings in Metro Manila and other urban areas, and even in small towns in the provinces.

The proposed new law would control rent for four years starting from the time the law takes effect 15 days after its publication in two newspapers of general circulation.

There would be no rent increase on the first year. For the succeeding three years, only a seven-percent annual adjustment would be allowed.

The proposed law would cover boarding houses, dormitories, rooms, and bed space.

Residential units to be covered would be those renting for P10,000 a month in Metro Manila and other highly urbanized cities, and those renting for P5,000 a month in all other cities and towns.

After the expiration of the proposed four-year rent control, the Housing and Urban Development Coordinating Council would be authorized to continue the regulation of dwelling units for rent.

Property owners would be prohibited from demanding advance rent of more than one month and deposit of more than two months. Renters, on the other hand, would not be allowed to assign or sublease the rented premises.

The owners may petition the court to eject renters in case the latter sublease the rented property, they are in arrears for three months or the owners need the property for themselves or immediate members of their families.

Congress first imposed rent control in 1999, which was renewed in 2002 and again in 2005 until it expired last December. Thus, apartment rentals have been regulated for the past 10 years.

Another Nograles bill that the House has approved would exempt loans of up to P10,000 from documentary stamps tax.

The Speaker said the measure would benefit people who go to pawnshops for small amounts in times of emergency. –Jess Diaz, Philippine Star