Millions to benefit from new Rent Control Law -- Recto

Millions to benefit from new Rent Control Law -- Recto
Jan 14, 2006
Updated 04:36pm (Mla time)

INQ7.net
http://news.inq7.net/express/html_output/20060114-62929.xml.html

AN estimated 15 million tenants are expected to benefit from the new Rent Control Law that is now in effect, said Senator Ralph Recto on Saturday.

In a statement, he said the new law covers a higher rent than the previous law that lapsed in December 2004. He said the newly signed law increased the covered monthly rent from 7,000 pesos to 10,000 pesos for urban areas and from 4,000 pesos to 5,000 pesos for non-urban areas.

This means that tenants renting at these amounts will face a yearly rent increase of a maximum of 10 percent, the principal author of the law at the Senate said.

Recto said the amounts specified in the law balances the needs of both investors in the housing sector and tenants.

"As much as we wanted to give greater relief to tenants, we also did not want to discourage housing builders and landlords who want to improve their properties," he said.

Recto said the new law also specifies that landlords can collect only two months deposit and one month advance rent. He said it also clarifies the grounds for judicial eviction including non-payment of rent for three consecutive months.

"The old laws generated conflicts as when landlords deceptively evicted tenants saying the units will be used by their family but actually would rent it out to others within the year,” he said.

Recto added that the 10,000-peso monthly rent covered by the new law is also exempted from the new Value-Added Tax.

Veronica Uy

©2006 www.inq7.net all rights reserved