Can a Landlord Raise Rent Without a Written Lease? Rules on Rent Increases in the Philippines

Can a Landlord Raise Rent Without a Written Lease?

Rules on Rent Increases in the Philippines

Short answer: Yes—Philippine law recognizes oral (unwritten) leases. A landlord may raise rent even without a written contract but only at lawful times, with proper advance written notice, and subject to rent control limits (if the unit is covered). Mid-term hikes in a fixed-period lease are generally not allowed unless previously agreed.


1) Oral vs. written leases: what the law recognizes

  • Oral leases are valid. A lease is a consensual contract under the Civil Code. It can be oral or written.

  • Statute of Frauds (Civil Code, Art. 1403): an executory lease for more than one year must be in writing to be enforceable in court. But once it’s partly or fully performed (e.g., the tenant has moved in and paid), courts routinely treat it as enforceable as to what was performed.

  • No fixed period? Month-to-month. If the term isn’t fixed or the lease has lapsed but the tenant stays with the landlord’s consent (tacit renewal, tacita reconducción), the lease period follows the rent interval (Art. 1687):

    • pay monthly → month-to-month;
    • pay weekly → week-to-week, etc. Courts may, in equity, fix a reasonable term, but not beyond one year in this context.

Practical effect: In most “no written lease” situations, you’re on a month-to-month arrangement. Rent may be changed for the next period with proper notice (see §4), subject to rent control if applicable.


2) Two legal regimes for rent increases

A) Units covered by the Rent Control Act (R.A. 9653 and periodic extensions)

  • What it does: Imposes annual caps and frequency limits on rent increases for covered residential units (coverage thresholds—e.g., max monthly rent amounts and exact percentage caps—are set and periodically updated by the housing/economic authorities).

  • Key rules (stable features across extensions):

    • Increase frequency: Not more than once every 12 months for a sitting tenant.
    • Cap: A fixed maximum % per year (varies by the current extension/circular, and may be different for apartments/rooms/bedspaces).
    • Notice: Advance written notice (at least 30 days) before the increase takes effect.
    • New tenants: Initial rent for a new tenancy is generally by agreement; the cap applies only to subsequent increases after the first year of tenancy.
    • Other protections: limits on advance rent and deposits; rules against harassment (e.g., refusing lawful payment, cutting utilities), and penalties for violations.

⚠️ Numbers change. Coverage ceilings (e.g., up to ₱X rent per month) and the exact cap % are time-bound and have been periodically renewed/adjusted since 2009. Always verify the current circular in force (from DHSUD/NEDA/OP extensions) before applying a percentage.

B) Units not covered by rent control (e.g., high-rent residential, commercial spaces)

  • No statutory cap. Parties are free to agree on rent and increases.

  • But still:

    • No mid-term increase in a fixed-period lease unless there’s a valid escalation clause already agreed.
    • For month-to-month, the landlord may change rent for the next month with reasonable prior written notice (30 days is standard), not retroactively.
    • Increases must not be illegal, unconscionable, or retaliatory (general contract and public policy limits still apply).

3) When can a landlord raise rent if there’s no written lease?

Scenario 1: Month-to-month tenancy (most common with no written lease)

  • Yes, the landlord may raise rent effective next month if:

    1. The unit is not rent-controlled or the hike is within the current rent-control cap; and
    2. The landlord serves written notice at least 30 days before the new rent starts.
  • No retroactive increases. The new rate applies only to future rental periods.

Scenario 2: Oral lease with a clear fixed period (e.g., “for six months”)

  • No mid-term increase unless an escalation was agreed from the start (and can be proven).

  • At expiry, the landlord may:

    • End the lease with proper notice; or
    • Offer renewal at a higher rent (subject to rent-control limits if covered). If the tenant stays and the landlord acquiesces without a new fixed term, it usually becomes month-to-month; any new increase again needs proper advance notice.

4) Notice requirements (what “proper notice” looks like)

  • Form: Written notice (deliver personally with acknowledgment, by registered mail, or reputable courier).

  • Lead time:

    • Covered by rent control: ≥ 30 days before the effective date (statutory).
    • Not covered: The Civil Code doesn’t fix a number, but 30 days is widely accepted as reasonable for month-to-month dwellings (and helps in ejectment suits).
  • Content checklist:

    • Current rent and proposed new rent;
    • Effective date (aligned with the next rental period, not mid-month unless the period is monthly and the start date is the next month);
    • Legal basis (e.g., “outside rent control” or “within current rent-control cap of __%” if applicable);
    • Where/how to pay;
    • Consequence of non-acceptance (e.g., non-renewal).

Model notice (short form):

Subject: Notice of Rent Adjustment Dear [Tenant], Please be informed that effective [DATE], your monthly rent for [ADDRESS/UNIT] will be ₱[NEW AMOUNT] from the current ₱[OLD AMOUNT]. This adjustment is [within the current rent-control cap / for a non-covered unit] and takes effect 30 days from receipt of this notice, starting the next rental period. Kindly acknowledge receipt. For questions, contact [Lessor contact]. Sincerely, [Lessor] [Date]


5) How much can rent be increased?

  • If covered by rent control: Up to the current cap % (and no more than once every 12 months for a sitting tenant). Caps have historically been single-digit annually and sometimes higher for dorm/bedspace categories—but the exact cap and coverage change by circular.
  • If not covered: No statutory % limit. Increases must still respect notice, timing (next period), and general contract/fairness principles.

Tip: Many disputes vanish when the landlord shows the math (old rent × (1 + % increase) = new rent) and cites the current cap if covered.


6) Deposits, advances, and “disguised” increases

  • Deposits & advance rent: The Rent Control Act sets ceilings (historically: not more than one month advance and not more than two months’ deposit for covered units).
  • Deductions/return: Deposits are for unpaid rent/damages; the balance should be returned at end of tenancy after a reasonable move-out inspection.
  • No “forced charges.” Passing on association dues, taxes, or utility penalties as mandatory add-ons to skirt a cap can be challenged as a disguised rent increase for covered units. Keep rent and pass-throughs transparent and grounded in an actual agreement or metered use.

7) If the tenant disagrees or refuses to pay the increased rent

  1. Talk first. Share the computation and legal basis (rent-control coverage or not).

  2. Barangay conciliation. Most landlord-tenant disputes between natural persons in the same city/municipality require Lupong Tagapamayapa mediation under the Katarungang Pambarangay Law before going to court.

  3. If unresolved:

    • For non-payment at the old rate after a valid increase and notice (or for non-renewal upon expiry), file unlawful detainer (Rule 70, MTC).
    • Deadline: Within one (1) year from the last demand/cause of action.
    • Evidence to bring: Copy of the notice, proof of service, receipts/GCash/bank proof of prior rent and due dates, utility bills, photos, and any messages showing tenancy terms.
  4. Rent-control violations: A tenant (or authorities) may pursue administrative/criminal remedies and penalties set in the Act for over-cap increases, refusal to accept lawful rent, harassment, etc.


8) Special situations

  • Boarding houses / dormitories / bedspaces. Typically covered by rent control with their own cap and rules; check the current circular.
  • Commercial leases. Not covered by residential rent control; governed by the Civil Code and the parties’ agreement (escalation clauses are common).
  • Socialized housing & government rentals. May have program-specific rules; consult the relevant agency (e.g., NHA, LGU).
  • Utilities & lockouts. Self-help (changing locks, cutting water/power) to force an increase or eviction is illegal and can lead to liability (criminal/civil). Use lawful notice-and-case processes.

9) Evidence matters more when nothing is written

In unwritten leases, paper trails make or break cases:

  • Rent receipts (or bank/GCash confirmations),
  • Text/Chat/Email exchanges about rent,
  • Move-in photos, inspection reports, ID logs with the building admin,
  • Utility bills in the tenant’s name or tied to the unit.

These prove there is a lease, its rent amount, payment schedule, and the notice you gave.


10) Landlord and tenant checklists

For landlords

  • Determine if the unit is rent-controlled (and the current cap).
  • Time any increase to the next rent period; don’t do mid-term hikes.
  • Serve written notice (≥ 30 days) with clear effective date and computation.
  • Keep proof of service and receipts.
  • If refused, mediate at the barangay; then consider Rule 70.

For tenants

  • Ask: “Is my unit covered by rent control today? What’s the cap %?”
  • If covered and the increase exceeds the cap or comes too soon, object in writing and request compliance.
  • Keep paying what is lawfully due (to avoid default) while disputing the excess, and document everything.
  • Use barangay mediation; escalate if needed.

11) FAQs

Q: Can a landlord raise rent mid-month in a month-to-month tenancy? A: No. The increase can take effect only for the next rental period after proper written notice.

Q: We agreed verbally on a one-year rent. Can the landlord still increase mid-year? A: Generally no, absent a pre-agreed escalation you can prove. The increase may be offered upon renewal.

Q: The landlord won’t accept my payment unless I agree to the higher rent. A: For covered units, refusing lawful rent can violate the Rent Control Act. Document the tender (e.g., deposit to account) and seek barangay mediation or legal help.

Q: Is there a fixed national “30-day” rule outside rent control? A: The Civil Code doesn’t set a number, but 30 days is widely treated as reasonable for dwellings and is expressly required for covered units. Using 30 days is the safe practice.


Final notes & disclaimer

  • Core sources: Civil Code of the Philippines (lease provisions incl. Arts. 1654–1687; Statute of Frauds Art. 1403) and Rent Control Act of 2009 (R.A. 9653) plus its successive extensions/circulars.
  • Coverage ceilings and cap percentages change over time. Because you asked me not to search, I have not verified the current cap or coverage thresholds in force as of today. Before acting, confirm the latest DHSUD/NEDA/OP issuance applicable to your unit and location, or consult counsel.

This article is for general information and is not legal advice. Specific facts can change outcomes.

Disclaimer: This content is not legal advice and may involve AI assistance. Information may be inaccurate.