In the Philippines, residential leasing is primarily governed by Republic Act No. 9653, also known as the Rent Control Act of 2009. While the original law had a specific expiration date, its provisions have been consistently extended and refined by the Department of Human Settlements and Urban Development (DHSUD) through various resolutions to address the economic realities of Filipino renters.

1. Coverage and Scope

The Rent Control Act does not apply to all rental properties. It specifically targets the "affordable" segment of the market to protect low-to-middle-income tenants.

Geographic Scope: National (covering the National Capital Region and all other highly urbanized cities).
Property Type: Applies strictly to residential units, including apartments, houses and/or lots, building boarding houses, dormitories, rooms, and bedspaces.
Rent Threshold: The law applies only to units with a monthly rent falling below a specific cap set by the DHSUD. As of the most recent regulatory periods, this typically includes units renting for P10,000 and below in Metro Manila and other urban centers.

2. Maximum Allowable Rent Increase

The law prohibits landlords from arbitrarily doubling or significantly hiking rent. The National Economic and Development Authority (NEDA) and the DHSUD determine the annual allowable increase based on the current inflation rate and the Consumer Price Index.

Current Limits on Rent Hikes:

If the residential unit is covered by the Act, the following rules apply:

Annual Cap: Rent cannot be increased by more than the percentage officially mandated for that year (historically ranging between 4% to 7%).
Frequency: Rent may be increased only once a year.
New Tenants: Once a unit becomes vacant, the lessor is allowed to set a new initial rent for the next tenant at a market rate. However, once the new lease starts, the annual percentage caps apply again.

3. Advance Rent and Deposit Regulations

The Rent Control Act strictly limits the "upfront" costs a landlord can demand:

Advance Rent: Limited to a maximum of one (1) month.
Security Deposit: Limited to a maximum of two (2) months.
Interest and Return: The security deposit must be kept in a bank under the lessor's account name, and any interest earned shall accrue to the tenant. This deposit must be returned to the tenant within one month after the lease ends, subject to deductions for unpaid bills or damages beyond normal wear and tear.

4. Legal Grounds for Ejection

A landlord cannot evict a tenant simply because they want a higher-paying occupant. Under Section 9 of RA 9653, eviction is legal only under the following circumstances:

Subleasing: If the tenant sub-rents the unit to another party without the owner’s written consent.
Arrears: Non-payment of rent for a total of three (3) months.
Legitimate Need: If the owner has a legitimate need to repossess the unit for their own use or for the use of an immediate family member (requires 3 months' notice and a prohibition on renting it to others for at least one year).
Repairs: When the unit is the subject of an order of condemnation by appropriate authorities to make it safe.
Expiration of Lease: When the period of the written lease agreement has ended.

5. Prohibited Acts and Penalties

Landlords are legally barred from using "self-help" measures to force a tenant out, such as:

Cutting off electricity or water utilities.
Locking the tenant out of the property without a court order.
Seizing the tenant's personal belongings.

Penalties: Violators of the Rent Control Act face a fine of not less than P25,000 nor more than P50,000, or imprisonment of not less than one month and one day up to six months, or both.

6. Dispute Resolution

Disputes regarding rent increases or illegal evictions should ideally follow this hierarchy:

Barangay Conciliation: Most residential lease disputes must undergo mandatory mediation at the local Lupong Tagapamayapa before a court will entertain the case.
DHSUD: For administrative complaints regarding violations of the Rent Control Act.
Metropolitan Trial Courts: For formal ejectment cases (Unlawful Detainer or Forcible Entry).