AN
ACT REGULATING RENTALS OF DWELLING UNITS OR OF LAND ON WHICH ANOTHER'S
DWELLING IS LOCATED AND FOR OTHER PURPOSES.
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Section
1. Authority to Increase
Rentals. — Upon the effectivity of this Act and for a duration of five
years thereafter the monthly rentals of all residential units not
exceeding
three hundred pesos shall not be increased, for any one year period, by
more than ten percent (10%) of the monthly rentals existing at the time
of the approval of this Act..chan
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The
yearly increases authorized herein shall be cumulative..chan
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Sec.
2. Definition of Terms.
— Unless otherwise indicated wherever in this Act, the following terms
shall have the following meaning:
a. Rental
— shall mean the amount paid for the use or occupancy of residential
units
whether payment is made on a monthly or other basis..chan
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b. A
residential unit — refers to an apartment, house and/or land which
another's
dwelling is located used for residential purposes shall include not
only
buildings, parts or units solely as dwelling places, except motels,
motel
rooms, hotels, hotel rooms, boarding houses, dormitories, rooms and
bedspaces
for rent, but also those used for home industries, retail stores or
other
business purposes if the owner thereof and his family actually live
therein
and use it principally for dwelling purposes: Provided, That in the
case
of a retail store, home industry or business, the capitalization
thereof
shall not exceed five thousand pesos (P5,000.00): and Provided,
further,
That in the operation shall not require industry or business, the owner
thereof shall not require the services of any person other than the
immediate
members of his family..chan
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c. Immediate
members of family of the lessee or lessor shall be limited to his
direct
ascendants or descendants, and collateral within the second civil
degree
by consanguinity or affinity..chan
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d. Lessee
— shall mean the person renting a residential unit..chan
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e. Owner/Lessor
— shall include the owner or administrators or agents of the owner of
the
residential unit.
f. Sublessor
— shall mean the person who leases or rents out a residential unit
previously
leased to him by an owner.
g. Sublessee
— shall mean the person who leases or rents a residential unit from a
sublessor..chan
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h. Assignment
of lease — shall mean that act contemplated in Article 1649 of the New
Civil Code.
Sec.
3. Advance Rental and Deposit.
— Advance rental intended to cover the initial month's rent may be
demand
by the lessor or sublessor but not to exceed one month's rental..chan
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Deposit
may also be demanded but not to exceed one month's rental..chan
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Sec.
4. Subleasing or Assignment
of Lease. — Subleasing or assignment of lease of the whole or any
portion
of the residential unit without the written consent of the owner lessor
is prohibited. In no case shall the sublessor or assignor charge
rentals
higher than the rental charged on the property by the owner lessor:
Provided,
That if the subleased or assigned area in less than the total area
originally
leased, the rental shall be proportionately reduced..chan
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Sec.
5. Grounds for Judicial
Ejectment. — Ejectment shall be allowed on the following grounds:.chan
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a. Subleasing
or assignment of lease of residential units in whole or in part,
without
the written consent of the owner/lessor: Provided, That in case of
subleases
or assignments executed prior to the approval of this Act, the
sublessor/assignor
shall have sixty days from the effectivity of this Act within which to
obtain the written approval of the owner/lessor or terminate the
sublease
or assignment..chan
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b. Arrears
in payment of rent for three (3) months at any one time: Provided, That
in case of refusal by the lessor to accept payment of the rental agreed
upon, the lessee shall either deposit, by way of consignation, the
amount
in court, or in a bank in the name of and with notice to the lessor..chan
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c. Need
of owner/lessor to repossess his property for his own use for the use
of
any immediate member of his family as a residential unit, such owner or
immediate member not being the owner of any other available residential
unit: Provided, however, That the period of lease has expired:
Provided,
further, That the lessor has given the lessee notice three months in
advance
of the lessor's intention to repossess the property: and Provided,
finally,
That the owner/lessor or immediate member stays in the residential unit
for at least one year, except for justifiable cause..chan
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d. Ownership
by the lessee of another residential unit which he may use as his
residence:
Provided, That the lessee shall have been notified by the lessor of the
intended ejectment three months in advance..chan
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e. Need
of the lessor to make necessary repairs of the leased premises which is
the subject of an existing order of condemnation by the appropriate
administrative
authorities concerned in order to make the said premises safe and
habitable:
Provided, That after said repair, the lessee ejected shall have the
right
of first refusal of the lease of the same premises.
f. Expiration
of the period of a written lease contract..chan
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In
no case shall the lessor or his successor-in-interest be entitled to
eject
the lessee upon the ground that the leased premises has been or
mortgaged
to a third person..chan
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Sec.
6. Application of the Civil
Code and Rules of Court of the Philippines. — Except when the lease is
for a definite period, the provisions 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..chan
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Sec.
7. Coverage of the Act.
— All residential units the total monthly rental of which does not
exceed
three hundred pesos (P300.00) as of the effective date of this Act
shall
be covered by this Act and shall continue to be so covered
notwithstanding
that the monthly rental shall have already exceeded the three hundred
peso-limit
as a result of the application of section one hereof: Provided,
however,
That this Act shall not be applicable to new residential units
construed
during its effectivity..chan
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Sec.
8. Penalty Clause. — Any
person violating any provision of this Act shall be punished by
imprisonment
of not less than three (3) months or more than two (2) years and a fine
of not less than one thousand pesos (P1,000.00) nor more than two
thousand
pesos (P2,000.00). Where the offender is a corporation or a juridical
entity,
the President or General Manager thereof shall suffer penalty, without
prejudice to the imposition of the fine on such corporation or
juridical
entity..chan
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Sec.
9. Separability Clause.
— If for any reason, any section or provision of this Act is declared
unconstitutional
or invalid, the other sections or provisions hereof which are not
affected
thereby, shall continue in full force and effect..chan
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Sec.
10. Repealing Clause. —
Presidential Decree Numbered Twenty and all laws, decrees, orders or
parts
thereof inconsistent with the provisions of this Act are hereby
repealed
or modified accordingly..chan
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Sec.
11. Effectivity. — This
Act shall take effect immediately upon its approval and shall remain in
force for five (5) years thereafter.
