Currently, my cousing is leasing an apartment unit in Negros Oriental for Php 4,000/month. The landlord is planning to impose an additional Php 1,000 a month on the current rental rate.
I just happen to browse thru the net and saw this provision from the Rent Control Act of 2009:
"For a period of one (1) year from its effectivity, no increase shall be imposed upon the rent of any residential unit covered by this Act.. Provided, that after such period until December 31, 20l3, the rent of any residential unit covered by this Act shall not be increased by more than seven (7%) annually as long as the unit is occupied by the same lessee..."
My cousing has been leasing the apartment unit since 2008, before the new rental law was enacted.
If my calculation is correct, 7% of Php 4,000 is around Php 280. Therefore, would it be legal to impose a sudden increase of Php 1,000 on my cousin's current monthly rental rate of Php 4,000?
Thank you for your time reading this message. I look forward to your response.