MANILA — The National Human Settlements Board (NHSB) has set a maximum of 2.3-percent increase in rental for residential units with monthly rate of P10,000 or less–down from last year’s four percent cap.
Based on NHSB Resolution No. 2024-001, the maximum increase in monthly rentals for subject residential units is effective Jan. 1, 2025 up to Dec. 31, 2025.
The NHSB, as the sole policy-making body responsible for providing overall policy directions and program development to various key shelter agencies, acting upon the recommendation of the National Economic and Development Authority (NEDA), passed the new resolution last December.
Department of Human Settlements and Urban Development (DHSUD) Secretary Jose Rizalino Acuzar is the chair of NHSB. Undersecretary Henry Yap, who represents the housing chief in the board, signed the resolution for DHSUD.
The rental cap is being implemented to safeguard housing tenants in lower-income brackets and other beneficiaries from excessive rent increases. The measure was enacted pursuant to Republic Act No. 9653, commonly known as the Rent Control Act of 2009.
The rental cap applies to residential units currently occupied by the same tenants as of 2024, who pay P10,000 or less per month, and who will continue to occupy or renew their lease in 2025. Units with rents exceeding P10,000 per month are exempted from this restriction.
Residential unit refers to “an apartment, house and/or land on which another’s dwelling is located and used for residential purposes and shall include not only buildings, part or units thereof used solely as dwelling places, boarding houses, dormitories, rooms and bedspaces offered for rent by their owners, except motels, motel rooms, hotels, hotel rooms, but also those users 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.”
If the unit becomes vacant in 2025, the lessor may increase the rent of a new tenant beyond the set limit. This increase is permitted because the new tenant is not covered by the aforementioned resolution. However, in the case of boarding houses, dormitories, rooms, and bedspaces, only one rent adjustment is allowed within the 2025, even if the increase limit has not been reached.
New residential units built and/or leased out in 2025, on the other hand, may set their own rent.
A new limit of one percent shall apply to units occupied by the same tenants as of 2025, paying P10,000 or less per month, and who will continue to occupy/renew their lease in 2026. Residential units with rents above P10,000 per month in 2025 are excluded from the 2026 rental cap.
The tenant is encouraged to to seek alternative dispute resolution with his landlord or lessor through the Barangay Justice System’s mediation/amicable settlement process. Only if the same cannot be settled will it be adjudicated before the court.
Eventually, if the lessor is found guilty, he could face a fine of not less than P25,000 nor more than P50,000 or imprisonment of not less than one month and one day to not more than six month or both, depending on the court’s decision. (DHSUD)