Coverage of Boarding Houses Under the Rent Control Act of the Philippines

Are boarding houses included under RA 9653 if the total rent for the whole house is 30,000 PHP and there are 10 boarders?

The Rent Control Act of 2009 (Republic Act No. 9653) aims to regulate the rental prices of certain residential units in the Philippines to protect both landlords and tenants from unreasonable rent increases. This law includes specific provisions that cover various types of residential rental units, including boarding houses, dormitories, and rooms for rent.

Definition and Scope of RA 9653

RA 9653 applies to all residential units in the National Capital Region and other highly urbanized cities where the monthly rent does not exceed a specified amount, initially set at PHP 10,000 for Metro Manila and PHP 5,000 for other areas. The law primarily aims to control rent increases and provide security for tenants.

Boarding Houses and RA 9653

Boarding houses, dormitories, and rooms for rent are explicitly mentioned under RA 9653. The Act covers these types of accommodations if the monthly rent per room or bedspace falls within the specified limits. Therefore, the coverage is not determined by the total rent for the entire property but rather by the individual rent amounts paid by each boarder or tenant.

1. Individual Rent Calculation: For a boarding house to fall under the scope of RA 9653, the rent per individual boarder should be considered. If each boarder pays less than PHP 10,000 per month in Metro Manila or less than PHP 5,000 per month in other areas, then the boarding house is covered by the Rent Control Act.

2. Aggregate Rent Not Applicable: In the given scenario, where the total rent for the entire house is PHP 30,000 and there are 10 boarders, it is essential to look at the rent each boarder pays individually. If each boarder pays PHP 3,000 per month (which is PHP 30,000 divided by 10 boarders), the boarding house falls within the coverage of RA 9653 since the individual rent amount is below the specified threshold.

Provisions for Rent Increases

Under RA 9653, landlords can only increase the rent by a maximum of 7% annually for covered residential units. This provision helps ensure that rent increases are reasonable and predictable for tenants. Additionally, the law prohibits landlords from demanding more than one month's advance rent and two months' deposit.

Legal Protections for Tenants

1. Rent Increase Limitations: Tenants in covered boarding houses are protected from excessive rent increases. Any rent increase beyond the 7% limit is illegal and can be contested by the tenant.

2. Eviction Safeguards: RA 9653 provides safeguards against unjust eviction. Tenants can only be evicted for specific legal reasons, such as non-payment of rent or violation of the lease agreement terms.

Conclusion

Boarding houses are indeed covered under RA 9653 if the rent per boarder is within the specified limits of PHP 10,000 in Metro Manila or PHP 5,000 in other areas. The total rent for the entire property is not the determining factor; rather, it is the individual rent amount per boarder that matters. Landlords and tenants must understand these provisions to ensure compliance with the Rent Control Act and to protect their respective rights and obligations.