If you rent out property in the Philippines, the Rent Control Act is the one law you should understand before you set a price or sign a tenant. It caps how much advance and deposit you can collect, how often you can raise rent, and how you can end a lease, for covered units. Here is what it means in plain language.
What is the Rent Control Act (RA 9653)?
The Rent Control Act of 2009 (Republic Act No. 9653) protects tenants of lower-priced residential units from unreasonable rent increases and unfair eviction, while still letting landlords run a fair business. It has been extended and adjusted several times since 2009, so the exact thresholds can change, always confirm the current rules.
Which rentals are covered?
The law applies to covered residential units, generally those with a monthly rent of:
- ₱10,000 or less in Metro Manila and other highly urbanized cities, and
- ₱5,000 or less in all other areas.
Units priced above those amounts are typically not covered, though good practice (a written contract, fair terms) still applies. Because later extensions have adjusted coverage, check the latest issuance from the Department of Human Settlements and Urban Development (DHSUD) for your area.
How much advance and deposit can you collect?
For covered units, a landlord may demand no more than:
- One (1) month advance rent, and
- Two (2) months deposit.
The deposit is meant to cover unpaid bills or damage beyond normal wear and tear, and any unused portion (plus interest, where it applies) should be returned when the tenant leaves and settles their obligations. Collecting more than this for a covered unit is not allowed.
How much can you increase the rent?
Two rules matter here for covered units occupied by the same tenant:
- No increase during the first year. You cannot raise the rent within the first 12 months of the same tenant's stay.
- A yearly cap after that. Once the first year is over, increases are limited to a set percentage per year (historically up to 7% for covered units, as long as the same tenant stays). The cap has varied across extensions, so confirm the current figure.
When a unit becomes vacant, the landlord may set a new market rent for the next tenant.
When can you ask a tenant to leave?
The law lists specific grounds for ejectment, with proper notice, such as:
- Subleasing or assigning the unit without the landlord's written consent.
- Arrears of three (3) months of rent.
- The owner's legitimate need to repossess the unit for personal or family use, subject to conditions.
- The need for necessary repairs ordered by authorities, or expiry of the lease period.
You cannot simply lock out a tenant. Eviction follows a legal process, so keep clear records of rent, notices, and communication.
What this means for you as a landlord
- Put it in writing. A clear lease that states the rent, due date, advance, and deposit protects you under the law. See our free lease template.
- Collect the right amounts. For covered units, stick to 1 month advance and 2 months deposit.
- Plan rent increases properly. No increase in year one, then within the cap, with notice.
- Keep records. A clean history of payments and receipts is your best protection in any dispute.
RA 9653 if you are an OFW landlord
The Rent Control Act protects tenants the same way whether you live next door or work overseas, so as an OFW landlord you are bound by the same rules: the rent-increase cap, the deposit and advance limits, and the grounds for ejectment all still apply to your unit.
The practical difference is enforcement. If you need to raise rent within the legal cap, refund a deposit, or start an ejectment for a covered unit, you cannot do it from abroad in person. Give a trusted representative a Special Power of Attorney so they can act on your behalf while staying inside what RA 9653 allows.
Frequently asked questions
Does RA 9653 apply to my unit?
If the monthly rent is within the covered thresholds (around ₱10,000 in Metro Manila, ₱5,000 elsewhere), it likely applies. Confirm the current figures for your area.
Can I collect more than two months deposit?
Not for covered units. The limit is one month advance and two months deposit.
Can I raise the rent every year?
Not in the first year. After that, only within the allowed cap, and with proper notice, while the same tenant stays.
How do I evict a non-paying tenant?
Arrears of three months is a ground for ejectment, but you must follow the legal process and give notice. Document everything.
The Rent Control Act is there to keep renting fair for both sides. Follow it, put your terms in writing, and keep good records, and you will avoid the disputes that catch most landlords off guard. ArmaRenta makes the paperwork and record-keeping easy, and you can start free with your first unit.
Sources & further reading
- Republic Act No. 9653 (Rent Control Act of 2009), full text on LawPhil and the Supreme Court E-Library.
- Current rent-control coverage and extensions, Department of Human Settlements and Urban Development (DHSUD).
- Handling these rules as an overseas landlord, the OFW landlord guide.
This article is general information for Filipino landlords, not legal advice. Rent-control thresholds and caps change through extensions, confirm the current rules or consult a lawyer.
Eli is the founder of ArmaRenta, the property management app built for Filipino landlords. He writes about running a paupahan the smart way, clear contracts, on-time rent, and staying compliant without the spreadsheets and group chats.