Quick answer

As of 2026, a landlord may generally increase residential rent only when the increase complies with both the current rent-control rules and the lease agreement.

For a residential unit rented at ₱10,000 or less per month in 2025, the maximum increase in 2026 is 1% if the same tenant continues occupying or renews the lease. The rule applies nationwide from 1 January to 31 December 2026 under National Human Settlements Board Resolution No. 2024-01, which is listed as active by the Office of the National Administrative Register.

A higher increase may be lawful when the unit is outside the current rent-control coverage, the increase is allowed by a valid lease provision or agreed for a new lease term, and no other law is violated. A landlord ordinarily cannot rewrite a fixed-rent lease unilaterally while its term is still running.

The 2026 rent cap

The current cap applies when all of these are true:

The premises are a covered residential unit.
The monthly rent in 2025 was ₱10,000 or less.
The person continuing or renewing in 2026 is the same lessee.
The proposed increase does not exceed 1% of the previous lawful monthly rent for 2026.

Examples:

Previous lawful monthly rent	Maximum 1% increase	Maximum resulting rent
₱8,000	₱80	₱8,080
₱9,900	₱99	₱9,999
₱10,000	₱100	₱10,100

If a landlord makes more than one adjustment during 2026, the adjustments should not be used to evade the annual ceiling. The total increase imposed for the covered period cannot exceed the applicable 1% limit.

The 1% rule is specific to 2026. The cap was 2.3% for covered tenancies in 2025. Older figures—such as 4% or the original 7% stated in the 2009 law—should not be used for a 2026 increase. The current figures and coverage are confirmed in the DHSUD’s official explanation published by the Philippine Information Agency.

What counts as a covered residential unit?

The Rent Control Act of 2009, Republic Act No. 9653, broadly includes:

Apartments and houses;
Residential portions of buildings;
Boarding houses and dormitories;
Rooms and bedspaces offered for rent; and
Land on which another person’s dwelling is located.

A place partly used for a home industry, retail store, or another business may still qualify when the owner and family actually live there and principally use it as a dwelling.

Hotels, hotel rooms, motels, and motel rooms are excluded. A genuine written rent-to-own agreement that will transfer ownership to the tenant is also treated differently under the Act. Premises principally leased for commercial use require separate analysis even if someone occasionally sleeps there.

The ₱10,000 threshold now applies nationwide

The original 2009 statute used different thresholds: ₱10,000 in Metro Manila and other highly urbanized cities, and ₱5,000 elsewhere. The NHSB has authority under Section 6 of the Act to adjust the coverage and allowable increases.

For 2026, the operative resolution uses ₱10,000 or less for covered residential units without retaining the former ₱5,000 provincial threshold. Applying the old two-tier threshold may therefore produce the wrong answer.

When an increase may exceed 1%

The unit was above ₱10,000 in 2025

A residential unit whose monthly rent already exceeded ₱10,000 in 2025 is outside the 2026 special cap. That does not give the landlord an unrestricted right to change the rent at any time. The lease still controls.

Under Articles 1159 and 1306 of the Civil Code, contractual obligations have the force of law between the parties, and lease terms are valid only when they are not contrary to law, public policy, or public order.

A genuinely vacant unit is rented to a new tenant

When a unit becomes vacant, the landlord may set the initial rent for the next tenant. A new unit being offered for rent for the first time may likewise have its initial price set by the landlord.

“Vacant” should mean an actual end of the former tenancy—not merely a paper renewal, change of owner, or replacement contract signed by the same tenant. If the same lessee remains, calling the document a “new lease” does not by itself remove the rent cap.

The lease contains a valid adjustment clause

For a unit outside rent control, an escalation clause may authorize a future increase if its wording, timing, and formula cover the proposed adjustment. The clause must be read carefully. A landlord cannot rely on a clause that does not apply yet, use a different formula, or impose an amount contrary to law.

For a covered unit, a contractual clause cannot override the statutory cap. A provision calling for a 10% annual increase, for example, cannot justify a 10% increase in 2026 when the tenancy is subject to the 1% ceiling.

The parties negotiate a new term

When an existing lease expires, the parties may negotiate renewal terms. If the tenancy is covered and the same lessee remains, the 1% cap still applies to the rent increase for 2026.

If the unit is not covered, the parties may agree on a new rent for the renewal. The tenant is not automatically bound merely because the landlord proposed it. Acceptance, the lease wording, and the parties’ conduct may matter.

Fixed-term and month-to-month leases

A fixed-term lease generally ends on the date stated in the agreement. During that term, a fixed rent ordinarily cannot be increased unless the lease contains an applicable adjustment clause or the parties validly agree to amend it.

If no lease period was fixed and rent is paid monthly, Article 1687 of the Civil Code generally treats the lease as month-to-month. A landlord may propose different terms for a future period, subject to rent control and the existing agreement. The landlord should not backdate the increase or treat a disputed amount as automatically due.

If a tenant remains for at least 15 days after a fixed lease expires, with the landlord’s acquiescence and without prior contrary notice, Article 1670 may create an implied new lease. Most original terms are revived, but not the original fixed period. Whether this occurred depends on the parties’ notices, payments, receipts, and conduct.

Renewal is not a guarantee of permanent occupancy

The rent cap limits how much rent may be increased; it does not give a tenant a perpetual right to renew.

Expiration of the lease period remains a possible ground for judicial ejectment. If the landlord agrees to continue or renew the tenancy, however, the landlord cannot treat the same tenant as a new occupant merely to avoid the cap.

A sale or mortgage also does not automatically end a covered tenancy. Section 10 of the Rent Control Act states that sale or mortgage, by itself, is not a ground to eject the tenant. A change in ownership therefore does not automatically create a vacancy or reset the rent.

Special rule for student accommodation

For boarding houses, dormitories, rooms, and bedspaces offered to students, rent may not be increased more than once a year.

This restriction matters even when a room becomes vacant or the increase would otherwise remain within the percentage ceiling. Keep the date and amount of every adjustment because changing tenants does not necessarily permit repeated increases during the same year for student accommodation.

Is advance notice required?

Neither the Rent Control Act nor the current NHSB resolution establishes one universal notice period for every rent increase. The lease may contain a notice requirement, and that requirement should be followed.

A proper notice should be prospective and should identify:

The current rent;
The proposed new rent;
The effective date;
The basis or lease clause relied upon; and
The calculation showing compliance with the cap, when applicable.

Do not confuse rent-increase notice with the separate three-month formal notice required when a landlord seeks to recover a covered unit for the legitimate residential use of the landlord or an immediate family member under Section 9 of the Act.

Charges that may be disguised rent

The Act defines rent as the amount paid for the use or occupancy of the residential unit, whether paid monthly or on another basis. A landlord should not evade the cap simply by relabelling part of an increase as a “service,” “administrative,” or similar mandatory occupancy fee.

Not every additional charge is automatically rent. Separately measured utilities, association dues, parking, internet service, or optional services may be governed by the lease and their actual nature. Whether a charge is really disguised rent depends on the documents, how the charge is calculated, whether the tenant can decline it, and what service is actually provided.

What a tenant should do after receiving an increase

1. Check the controlling documents and dates

Collect the signed lease, extensions, addenda, house rules, receipts, bank records, and all notices. Determine:

The rent actually payable in 2025;
Whether it was ₱10,000 or less;
Whether the named lessee is continuing in 2026;
Whether the lease is still within a fixed term;
Whether it contains an escalation or notice clause; and
Whether another increase has already been imposed during the year.

2. Calculate the lawful amount

Multiply the previous lawful monthly rent by 1%. Add that amount to the existing rent. Do not calculate the cap from a previously demanded but unlawful figure.

3. Respond in writing

Ask the landlord to correct an increase that exceeds the cap or conflicts with the lease. State the current rent, your calculation, and the rule you rely on. Keep proof that the response was delivered.

4. Continue tendering the undisputed lawful rent

Do not simply stop paying. Nonpayment can create a separate ejectment risk even when the increase is disputed. Tender the rent on time and preserve proof of every attempt to pay.

Under Section 7 of the Act, rent is generally payable in advance within the first five days of the month unless the contract allows a later date.

5. Use the statutory deposit procedure if lawful rent is refused

For a covered tenancy, if the landlord refuses the agreed rent, Section 9 allows the tenant to deposit it:

By consignation in court;
With the city or municipal treasurer;
With the barangay chairperson; or
In a bank in the landlord’s name and with notice to the landlord.

The initial deposit must be made within one month after the refusal. The tenant must then deposit rent within 10 days of each current month. Failure to deposit for three months can become a ground for ejectment.

Because an incorrect deposit, missing notice, or late payment may not protect the tenant, obtain legal advice promptly before relying on this procedure.

6. Request barangay mediation where applicable

DHSUD encourages tenants and landlords to use the Barangay Justice System for mediation or amicable settlement. Prior barangay conciliation may be a condition before court action when the parties are individuals who actually reside in the same city or municipality, subject to statutory exceptions. Corporations, parties residing in different non-adjoining cities or municipalities, and cases requiring urgent legal action may fall outside that requirement. The applicable exceptions are summarized in Supreme Court Administrative Circular No. 14-93.

An unresolved dispute may ultimately require court proceedings. An inquiry or barangay complaint does not automatically suspend rent deadlines, lease expiration, or a court summons.

Evidence worth preserving

Keep original or reliable copies of:

The lease and every renewal or amendment;
Rent receipts and payment ledgers;
Bank-transfer confirmations and returned payments;
The increase notice and envelope or delivery record;
Text messages, emails, and chat screenshots;
Proof of continuous occupancy;
Advertisements or listings suggesting a false vacancy;
Records of utility disconnection, denied access, or changed locks;
Barangay complaints, notices, minutes, and settlement documents; and
Any demand letter, summons, or court filing.

Use screenshots that show the sender, date, time, and complete conversation. Back up important files outside the phone on which they were received.

Common mistakes

Applying the old 4% or 7% figure instead of the 1% cap for 2026.
Using the former ₱5,000 threshold outside Metro Manila despite the current nationwide ₱10,000 coverage.
Assuming a renewal document automatically makes the same lessee a “new tenant.”
Treating a sale of the property as an automatic vacancy.
Believing the cap guarantees renewal after a fixed lease expires.

Quick answer

A residential rent increase is legal in the Philippines only if it complies with both the current rent-control rules and the lease agreement.

For calendar year 2026, the maximum increase is 1% for a residential unit that:

Was rented for ₱10,000 or less per month in 2025;
Remains occupied by the same lessee; and
Is continuously occupied or renewed by that lessee in 2026.

The ₱10,000 threshold currently applies nationwide. A covered lease cannot lawfully impose a higher increase merely because the contract provides for one. The current rule comes from National Human Settlements Board Resolution No. 2024-01, which remains in force through 31 December 2026. Its official registration is available from the Office of the National Administrative Register.

If the unit is outside rent control—such as a unit rented above ₱10,000 per month in 2025—the increase is not automatically legal. The landlord must still follow the existing lease. A fixed rent generally cannot be changed in the middle of a fixed term unless the contract contains a valid adjustment clause or both parties agree.

The 2026 rent cap

The 1% limit is calculated from the previous lawful monthly rent:

Monthly rent in 2025	Maximum 2026 increase	Maximum resulting rent
₱8,000	₱80	₱8,080
₱9,900	₱99	₱9,999
₱10,000	₱100	₱10,100

If a landlord makes several adjustments during 2026, their combined effect cannot be used to exceed the applicable annual ceiling. The government’s official explanation confirms that the 2026 limit applies to tenants who paid ₱10,000 or less in 2025 and continue occupying or renew the unit in 2026. It also confirms that units above that threshold in 2025 are excluded from the cap. See the DHSUD guidance published by the Philippine Information Agency.

The 2025 cap was 2.3%. That earlier rate should not be used for an increase taking effect in 2026.

What residential units are covered?

The Rent Control Act of 2009, Republic Act No. 9653, broadly defines a residential unit to include:

Apartments and houses;
Rooms and bedspaces;
Boarding houses and dormitories;
Land on which another person’s dwelling stands; and
Premises partly used for a home industry, retail store, or other business when the owner and family actually live there and principally use it as their dwelling.

Hotels, hotel rooms, motels, and motel rooms are excluded. A genuine written rent-to-own agreement that will transfer ownership to the occupant is also treated differently under the Act.

Classification depends on the property’s actual use and the documents—not simply on what the landlord calls it.

When a higher or newly set rent may be legal

A genuinely new tenancy

When a unit becomes vacant, the landlord may generally set the initial rent for the next tenant. The same-lessee cap does not give a person who has not yet rented the unit a right to the former tenant’s rate.

A paper change intended only to make a continuing tenant appear “new,” however, should not automatically defeat the protection. Continuous occupancy, payment records, renewals, and the identity of the named lessee may matter.

A newly built or newly offered unit

The owner may set the initial rent when a residential unit is first built or first offered for lease. Once the parties enter a lease, the contract and any applicable rent-control issuance govern later changes.

A unit above the coverage threshold

A unit rented above ₱10,000 per month in 2025 is outside the special 2026 percentage cap. The owner and tenant have greater freedom to negotiate, but the landlord cannot disregard an existing contract.

Under Articles 1159 and 1306 of the Civil Code, contractual obligations have the force of law between the parties, while contractual terms cannot be contrary to law or public policy.

An increase authorized by the lease

For an uncovered unit, a mid-term increase may be enforceable if the signed lease clearly provides a lawful escalation formula, date, or amount. The landlord should apply that provision exactly. A vague demand, a retroactive charge, or an amount inconsistent with the formula may be disputed.

For a rent-controlled unit, an escalation clause cannot be used to exceed the statutory ceiling. A contract cannot override a mandatory legal limit.

A mutually agreed renewal

When a fixed-term lease ends, the parties may negotiate renewal. If the unit remains covered and the same lessee continues, the 1% ceiling still applies in 2026.

If the unit is not covered, the parties may agree on a new renewal rate. The proposed amount does not become binding merely because one side announced it; consent, the written lease, payment, and the parties’ conduct may determine whether a new agreement was formed.

Special rule for student accommodations

For boarding houses, dormitories, rooms, and bedspaces offered to students, rent may not be increased more than once a year. This restriction remains relevant even when a vacancy would otherwise allow the owner to set an initial rent for the next occupant.

Owners and students should record the date and amount of every adjustment because frequent tenant turnover can make the annual history difficult to reconstruct.

Fixed-term and month-to-month leases

A fixed-term lease normally ends on the date stated in the contract. Article 1669 of the Civil Code says that a lease for a determinate time ceases on the date fixed, without need of a demand.

The rent cap limits increases; it does not guarantee perpetual renewal. Expiration of a lease remains a possible ground for judicial ejectment under the Rent Control Act.

If no lease period was fixed and rent is paid monthly, Article 1687 generally treats the lease as month-to-month. A landlord may propose terms for a future period, subject to rent control and any contractual requirements. The tenant should not assume that paying monthly creates a permanent right to stay.

If a tenant remains for at least 15 days after a fixed lease expires, with the landlord’s acquiescence and without prior notice to the contrary, Article 1670 may create an implied new lease. The original terms are generally revived, except for the original period and security provided by third persons. Whether this happened depends on the parties’ notices, acceptance of rent, and conduct.

Is advance notice required?

Neither Republic Act No. 9653 nor the current NHSB resolution establishes one universal notice period for every rent increase. The lease may require written notice a specified number of days before an adjustment or renewal, and that requirement should be followed.

At minimum, a proposed increase should be communicated clearly before it takes effect. The notice should identify:

The present rent;
The proposed rent;
The amount and percentage of the increase;
The legal or contractual basis;
The effective date; and
Whether the proposal concerns the existing term or a renewal.

A landlord should not backdate an increase or claim months of additional rent when the tenant was never informed and did not agree.

Do not confuse an increase notice with the separate three-month formal notice required when an owner seeks to repossess a covered unit for the owner’s residential use or that of an immediate family member. That special ground also requires the expiration of a definite lease and prohibits reletting the unit to a third party for at least one year after repossession.

Sale of the property does not automatically reset the rent

Selling or mortgaging the property is not, by itself, a ground to eject a tenant covered by the Rent Control Act. A transfer of ownership also does not turn a continuously occupying lessee into a new tenant simply so the rent can be reset.

The new owner should obtain the lease, payment history, deposits, and rent-adjustment records before demanding a different amount.

Additional fees and “relabelled” increases

Changing the name of a charge does not necessarily remove it from scrutiny. A new mandatory “administration fee,” “maintenance charge,” or similar amount may be treated differently from rent only if it represents a genuine, separately agreed expense.

Whether a charge is actually disguised rent depends on such matters as:

What the lease says;
Whether the charge is optional or mandatory;
Whether it pays for a distinct service;
Whether the tenant previously paid it;
How the landlord computes it; and
Whether the charge is imposed to avoid the cap.

Separately metered utilities, condominium dues, parking, and services may be governed by their own contractual arrangements. Their treatment cannot be determined from the label alone.

What a tenant should do after receiving an increase notice

Check the 2025 rent and your continuity of occupancy. Determine whether the rent was ₱10,000 or less and whether the same named lessee remains in possession.
Read the entire lease. Check the term, renewal provisions, escalation clause, notice requirement, fees, deposit, and dispute provisions.
Calculate the percentage. Divide the increase by the previous lawful rent and multiply by 100. In 2026, a covered increase above 1% should be challenged.
Reply in writing. State the amount you believe is lawful, explain the calculation, and ask the landlord to correct the notice. Keep the message factual and respectful.
Continue tendering the undisputed lawful rent on time. Do not simply stop paying. Nonpayment can create a separate ejectment risk even when the increase is disputed.
Request an official receipt or written acknowledgment. Keep bank records, transfer confirmations, and returned payments.
Use barangay mediation when applicable. DHSUD encourages landlords and tenants to try the Barangay Justice System before court proceedings. Prior barangay conciliation may be legally required when the parties are natural persons who actually reside in the same city or municipality, subject to exceptions. The governing exceptions are summarized in the Supreme Court’s Circular No. 14-93.
Get legal advice before deducting an overpayment from future rent. A unilateral offset can be characterized as arrears if the right and amount are disputed.

If the landlord refuses to accept the lawful rent

For a unit covered by the Rent Control Act, refusal to accept the agreed lawful rent does not mean the tenant should keep the money without further action.

Section 9 allows the tenant, within one month after the refusal, to deposit the rent:

By judicial consignation;
With the city or municipal treasurer;
With the barangay chairperson; or
In a bank in the landlord’s name, with notice to the landlord.

The tenant must thereafter make the deposit within 10 days of every current month. Failure to deposit rent for three months can itself become a ground for ejectment.

Because defective consignation or incomplete notice may not protect the tenant, obtain legal help promptly and preserve proof of every tender, refusal, deposit, and notice.

Evidence worth preserving

Keep copies of:

The original lease and every renewal or addendum;
Rent receipts and payment ledgers;
Bank statements and electronic-transfer confirmations;
The increase notice and envelope, if delivered by mail;
Emails, text messages, and chat screenshots;
Proof of the rent paid during 2025;
Proof of continuous occupancy;
Advertisements or listings showing an attempted rent reset;
Notices to vacate, demand letters, and barangay documents;
Proof that the landlord refused payment;
Consignation or deposit receipts and proof of notice; and
Records of utility disconnection, changed locks, property removal, threats, or damage.

Save original electronic files where possible. Screenshots alone may omit sender details, dates, or surrounding messages.

Common mistakes

Applying the old 7% statutory figure or the 2024 rate instead of the current 1% cap;
Using the original ₱5,000 provincial threshold even though the current resolution uses ₱10,000 for covered 2026 tenancies;
Treating a renewal by the same lessee as a completely new tenancy;
Assuming a sale automatically ends the lease or resets the rent;
Believing the rent cap guarantees renewal after a fixed term expires;
Ignoring a valid contractual adjustment for an uncovered unit;
Paying an unexplained increase without written clarification;
Stopping all rent payments while disputing only the excess;
Keeping rejected rent at home instead of following the statutory deposit procedure;
Treating a barangay complaint as automatically suspending contractual or court deadlines; and
Ignoring a summons, demand to vacate, or notice because the increase appears unlawful.

When legal help is urgent

Consult a Philippine lawyer or the Public Attorney’s Office, if eligible, without delay when:

A demand to vacate or court summons has been served;
Rent is approaching three months in arrears;
The landlord refuses payment and the one-month deposit deadline is running;
Locks have been changed or utilities disconnected;
Property has been removed or access has been blocked;
There are threats, violence, harassment, or immediate safety concerns;
The lease, receipts, and actual payment history conflict;
The tenant is being asked to sign a surrender, waiver, or backdated contract; or
The parties disagree about whether an added fee is actually rent.

A landlord seeking possession should likewise obtain advice before taking action. For covered units, Republic Act No. 9653 identifies grounds for judicial ejectment, including three months’ rent arrears, unauthorized subletting, qualifying owner repossession, necessary repairs under a condemnation order, and expiration of the lease.

A person found guilty of violating the Act may face a fine of ₱25,000 to ₱50,000, imprisonment of one month and one day to six months, or both, as determined by the court.

FAQ

Can a landlord increase rent by 10% in 2026?

Not for a covered unit occupied by the same lessee. The 2026 ceiling is 1%. For an uncovered unit, a 10% increase may be possible at renewal or under a valid lease clause, but it is not automatically enforceable during an existing fixed term.

Does the 1% cap apply if the rent becomes more than ₱10,000 after the increase?

A tenant paying exactly ₱10,000 in 2025 falls within the stated 2026 coverage. A 1% increase would produce a monthly rent of ₱10,100. The fact that the resulting amount exceeds ₱10,000 does not by itself erase the protection for that 2026 increase.

Can the landlord raise the rent when the lease is renewed?

Yes, but a renewal by the same covered lessee remains subject to the 1% cap in 2026. For an uncovered unit, the parties may negotiate a new rate.

Can a tenant agree to more than the cap?

A clause or agreement cannot safely be relied upon to defeat a mandatory rent-control ceiling. Civil Code freedom of contract applies only to terms that are not contrary to law or public policy.

Can the landlord evict a tenant who rejects an unlawful increase?

Rejecting the unlawful excess is not the same as failing to pay the lawful rent. The tenant should continue tendering the lawful amount and use the statutory deposit procedure if payment is refused. The rent cap does not, however, prevent judicial ejectment on a separate lawful ground, including expiration of a fixed lease.

Does the law require the landlord to give 30 days’ notice?

There is no single 30-day statutory rule for every residential increase. The required notice may come from the lease. Different notice rules apply to particular situations, such as owner repossession.

What happens after 31 December 2026?

The current resolution ends on that date. Landlords and tenants should check for a new NHSB or DHSUD issuance before calculating any 2027 increase; the 1% rate should not be assumed to continue automatically.

Official sources

This article provides general legal information, not legal advice for a particular lease or dispute. Outcomes may depend on the contract, payment history, notices, use of the property, identity of the lessee, and procedural steps taken. Sources were checked as of 23 July 2026.