Philippines National Residential Rent Increases Laws

Disclaimer: This guide provides general legal information for educational purposes only and does not constitute legal advice. Always consult a licensed attorney in the Philippines for advice specific to your situation. Information last verified: March 2026.

One of the most critical aspects of residential property management in the Philippines is understanding the strict limits placed on rent increases by Republic Act No. 9653 (the Rent Control Act of 2009). For covered units, landlords cannot arbitrarily raise rent, regardless of inflation or market rates, as long as the same tenant remains.

This guide details the statutory caps on rent increases and the rules for implementing them.

Is Your Unit Covered?

Rent control applies to residential units renting at or below the following monthly rates:

• Metro Manila and Highly Urbanized Cities: ₱10,000 or below
• Other Cities and Municipalities: ₱5,000 or below

Note: For units above these amounts, there are no statutory caps on rent increases. Such increases are governed solely by the stipulations agreed upon in the lease contract.

Rent Increase Caps

While the original RA 9653 specified a flat 7% cap, the law granted the National Human Settlements Board (NHSB) under the Department of Human Settlements and Urban Development (DHSUD) the authority to periodically review and adjust these rates based on economic data.

[!WARNING] Always verify the current year's resolution published by the DHSUD. Over the past several years, the NHSB and DHSUD have maintained tiered caps based on the rental amount.

Typical DHSUD Tiered Caps (Subject to Annual Renewal):

• Rent below ₱4,999: Capped at 4% to 10% depending on a single year vs accumulated increases.
• Rent from ₱5,000 to ₱8,999: Capped at 7% to 10%.
• Rent from ₱9,000 to ₱10,000: Capped at 11%.

Key Rules for Rent Increases

If the unit is covered by the Rent Control Act, these rules are mandatory:

1. Frequency Limit: Rent may not be increased more than once a year, provided the same tenant continues to lease the premises under an expiring contract.
2. Same Tenant Restrictions: As long as the same occupant leases the property, the caps apply.
3. Student Dormitory Exemption: Boarding houses, dormitories, rooms, and bedspaces catered to students cannot increase rent more than once a year even if a new boarder occupies the space within the same year.
4. Notice Period: While RA 9653 does not explicitly define a rigid notice period for rent increases at the time of renewal, standard practice and the Civil Code imply reasonable notice (typically 30 days) before the expiration of the current lease term.

Resetting Rent on Vacancy

If the residential unit becomes vacant—for example, the tenant formally ends the lease, abandons the property, or is legally evicted—the restrictions are temporarily lifted.

The landlord is free to set the initial rent for the next incoming tenant without regard to the statutory caps. However, once the new tenant signs the lease, any subsequent rent increases during their continued occupancy will again be limited by the Rent Control Act.

See our Lease Requirements guide for how to formalize the initial lease term.

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Stay Compliant with Landager

Calculating tiered rent increases based on DHSUD guidelines can be confusing, and applying the wrong percentage risks serious penalties. Landager helps track your property's rent history, automating allowable rent increase notifications to ensure you remain compliant with the latest RA 9653 resolutions.

Back to Philippines Landlord-Tenant Laws Overview.