Quick answer

In 2026, a landlord may increase the rent of a covered residential unit by no more than 1% if:

The monthly rent was ₱10,000 or less in 2025;
The same tenant continues occupying or renews the lease in 2026; and
The unit is not within a recognized exception.

The 1% limit applies through December 31, 2026 under National Human Settlements Board Resolution No. 2024-01, issued under the continuing authority of the Rent Control Act of 2009.

The cap is a maximum—not an automatic increase. A landlord must still honor a fixed rent, escalation clause, notice requirement, or renewal provision in the lease. For units outside rent control, an increase is generally legal only when allowed by the existing contract or accepted as part of a new or renewed lease.

The 2026 rent cap at a glance

Rental situation	General rule
Rent was ₱10,000 or less in 2025 and the same tenant continues in 2026	Maximum 1% increase during 2026
Rent was above ₱10,000 in 2025	Outside the 2026 percentage cap; the lease and Civil Code govern
Unit becomes genuinely vacant and is rented to another tenant	Landlord may set the next tenant’s initial rent
Newly constructed residential unit covered by the resolution’s new-unit exception	Ordinary 1% cap does not apply
Student boarding house, dormitory, room, or bedspace	Rent may not be increased more than once a year
Hotel or motel accommodation	Excluded from the Rent Control Act’s definition of a residential unit
Purely commercial premises	Ordinary residential rent control does not apply

The DHSUD’s official explanation confirms that the 2026 limit applies to continuing tenants who paid ₱10,000 or less in 2025, while units already renting above ₱10,000 in 2025 are excluded. See the government’s 2025–2026 rent-control guidance.

How to calculate the maximum increase

Multiply the tenant’s 2025 monthly rent by 1%.

2025 monthly rent	Maximum increase	Maximum resulting rent
₱4,000	₱40	₱4,040
₱6,500	₱65	₱6,565
₱8,000	₱80	₱8,080
₱9,500	₱95	₱9,595
₱10,000	₱100	₱10,100

For example, increasing a continuing tenant’s rent from ₱8,000 to ₱9,000 in 2026 is a 12.5% increase. If the tenancy is covered, the maximum increase is ordinarily ₱80, making the maximum monthly rent ₱8,080.

The fact that an allowed increase raises the resulting rent slightly above ₱10,000 does not erase coverage where the tenant was paying ₱10,000 or less in 2025 and remained the same tenant in 2026.

Which homes may be covered

The Rent Control Act broadly defines a residential unit to include:

Apartments and houses;
Residential rooms and bedspaces;
Boarding houses and dormitories;
Land on which another person’s dwelling is located; and
Certain mixed-use premises used principally as a family dwelling.

A condominium unit is not automatically excluded. It can qualify if it is rented as a residence and meets the current rent and tenancy requirements. In practice, many condominium rentals are outside the cap because their monthly rent exceeds ₱10,000.

Hotels, hotel rooms, motels, and motel rooms are expressly excluded. A purely commercial office, warehouse, shop, or industrial space is also outside ordinary residential rent control. Actual use matters more than the label placed on the contract.

The lease contract still matters

Fixed-term leases

Suppose a written lease states:

Rent: ₱18,000 per month;
Term: January 1 to December 31, 2026; and
No rent-escalation clause.

The landlord ordinarily cannot announce a higher rent halfway through that term. Contractual obligations have the force of law between the parties and must be performed in good faith under Articles 1159 and 1306 of the Civil Code.

The landlord may propose a different rent when the lease expires, subject to any renewal clause and any rent-control rule then in force. The tenant may accept, reject, or negotiate the proposed renewal.

Escalation clauses

A lease may contain a provision allowing an increase on a stated date or according to a clear formula. Such a clause may be enforceable, but it cannot override a mandatory rent-control ceiling.

For a covered unit, a clause allowing a 10% increase in 2026 cannot lawfully enlarge the current 1% maximum. If the clause provides a lower increase, or the lease fixes the rent without an increase, the landlord cannot treat the statutory cap as permission to charge more than the contract allows.

Ambiguous clauses should be reviewed in the context of the entire agreement, payment history, renewal documents, and communications between the parties.

Verbal or month-to-month arrangements

A lease does not become unregulated merely because it is verbal. Under Article 1687 of the Civil Code, a lease with no fixed period is generally understood to run from month to month when rent is paid monthly.

For an uncovered tenancy, the landlord may propose a new rate for a future rental period, but a higher charge does not automatically become binding merely because it was announced. The parties’ agreement, conduct, payments, and acceptance of those payments may determine whether the lease was renewed or modified.

For a covered continuing tenant, the 1% ceiling still applies despite the absence of a written contract.

When the 1% cap does not apply

A genuinely new tenant after vacancy

When the existing tenant leaves and the unit becomes vacant, the landlord may set the initial rent for the next tenant. That amount should be agreed upon before occupancy and recorded in writing.

Replacing the paperwork while the same tenant continuously occupies the unit does not necessarily establish a genuine vacancy. Lease records, receipts, utility records, messages, and actual occupancy may determine whether there was really a new tenancy.

Rent above ₱10,000

A residential unit renting above ₱10,000 per month in 2025 is outside the 2026 special cap. This does not give the landlord an unrestricted right to change the price during an active lease. The contract, the Civil Code, and the parties’ agreement continue to govern.

Certain newly constructed units

NHSB Resolution No. 2024-01 excludes new residential units offered for lease that are constructed after the resolution’s approval. Whether a property qualifies may depend on its actual construction and completion dates, not merely the landlord’s description of it as “new.”

Relevant evidence may include the occupancy permit, completion certificate, building records, utility activation records, and first lease documents.

Student accommodations

For boarding houses, dormitories, rooms, and bedspaces offered to students, rent may not be increased more than once a year. This frequency restriction remains important even when a vacancy or new-tenant situation affects the amount that may initially be set.

Rent-to-own and unusual arrangements

A written rent-to-own agreement receives special treatment under Section 11 of the Rent Control Act. Mixed residential-commercial arrangements, employer-provided housing, bundled service contracts, and leases with purchase options may also require document-specific analysis. The ordinary residential cap should not be assumed to apply—or not apply—without examining the agreement and actual use of the property.

Is advance notice required?

The current rent-control issuance establishes the percentage ceiling but does not create a single universal notice period for every rent increase. The parties should first check the lease for:

A required number of days’ notice;
A renewal deadline;
An escalation date or formula;
A required written form; and
A procedure for accepting or rejecting renewal terms.

A landlord should give written notice identifying the existing rent, increase, percentage, new amount, effective date, and legal or contractual basis. A tenant should not rely solely on a verbal conversation when the amount is disputed.

Do not confuse notice of a rent increase with the separate three-month formal notice required when a landlord seeks to recover a covered unit after the definite lease period has expired because the owner or an immediate family member legitimately needs it as a residence.

What a landlord should do before increasing rent

Identify the correct tenancy. Confirm the tenant’s identity, occupancy history, 2025 rent, and whether the unit was genuinely vacant.
Check current coverage. Determine whether the unit is residential, whether the 2025 rent was ₱10,000 or less, and whether an exception applies.
Read the entire lease. Review the term, renewal clause, escalation formula, notice requirements, and included charges.
Calculate from the correct base. For a covered continuing tenant in 2026, calculate 1% from the applicable 2025 monthly rent.
Give a written proposal or notice. State the exact amount and effective date. Do not represent the 1% ceiling as a compulsory increase.
Document any exception. Preserve vacancy records, turnover documents, completion records, and the new tenant’s lease.
Do not use self-help eviction. A disputed increase does not authorize changing locks, removing belongings, using threats, or physically forcing a tenant out. Ejectment requires the proper legal process.

What a tenant should do if the increase appears excessive

1. Check the numbers and documents

Gather the lease, renewal agreements, receipts, bank transfers, deposit records, and the landlord’s written notice. Confirm:

What the rent was in 2025;
Whether you are the same continuing tenant;
Whether the increase exceeds 1%;
Whether the lease permits any increase on the stated date; and
Whether the landlord claims a vacancy or new-unit exception.

Ask the landlord in writing for the calculation and legal basis.

2. Respond in writing

State that you are willing to pay the undisputed rent and explain why the additional amount appears inconsistent with the lease or current rent-control rule. Keep the tone factual and propose barangay mediation if direct discussion fails.

Do not assume that disputing an increase allows you to stop paying altogether. Accumulated arrears can create a separate ejectment risk.

3. Tender the lawful or agreed rent on time

Keep proof that payment was offered. Use a traceable method when possible and preserve screenshots, deposit slips, receipts, returned transfers, or messages showing that the landlord refused payment.

For covered units, rent is generally paid in advance within the first five days of the current month or at the beginning of the lease, unless the contract provides a later payment date.

4. Act promptly if the landlord refuses payment

Section 9 of the Rent Control Act provides a special protective procedure when a landlord refuses the agreed rent. Within one month after the refusal, the tenant may deposit the amount:

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

The tenant must thereafter deposit the rent within 10 days of each current month. Failure to deposit rent for three months may become a ground for ejectment.

Because legal consignation and the alternative statutory deposits have strict requirements, obtain legal advice immediately rather than simply placing the money in a personal account.

5. Use barangay conciliation when applicable

The DHSUD encourages landlords and tenants to seek an amicable settlement through the Barangay Justice System. Barangay conciliation is also a legal precondition before some court actions when the dispute and parties fall within the lupon’s authority under Sections 408 and 412 of the Local Government Code.

It is not mandatory in every case. Residence, the parties’ legal status, the type of claim, urgency, and statutory exceptions can affect whether prior barangay proceedings are required. Obtain a Certificate to File Action if conciliation is required but no settlement is reached.

A written barangay settlement should clearly state the lawful monthly rent, effective date, treatment of disputed payments, and any refund or credit agreed upon.

6. Seek official guidance or legal assistance

For housing-policy guidance, contact the appropriate DHSUD Regional Office. DHSUD can explain the current regulation, although disputes over payment, contract interpretation, damages, or possession may ultimately require barangay proceedings or court action.

People who cannot afford private counsel may inquire about eligibility for assistance from the Public Attorney’s Office or contact the Integrated Bar of the Philippines National Center for Legal Aid.

Ejectment cases are heard in first-level courts under the Supreme Court’s Rules on Expedited Procedures. Court deadlines can be short, so do not ignore a demand letter, summons, barangay notice, or pleading.

Evidence to preserve

Keep copies of:

Every lease, renewal, addendum, and house rule;
Rent receipts, bank transfers, electronic-wallet records, and ledgers;
Proof of the 2025 monthly rent;
Advance-rent and security-deposit records;
The increase notice and any computation supplied by the landlord;
Text messages, emails, chat messages, and letters;
Proof that lawful payment was tendered or refused;
Barangay complaints, summonses, minutes, settlements, and certificates;
Photographs or video of lock changes, removed belongings, posted notices, or utility disconnections;
Utility bills and other records showing continuous occupancy; and
Documents supporting or disputing a claimed vacancy or new-construction exception.

Export important chats and keep backup copies outside the phone used for the conversation.

Common mistakes

Treating the old 7% figure as the current rule

The original Rent Control Act used a 7% ceiling for an earlier statutory period. That is not the 2026 cap. The current maximum for covered continuing tenants is 1%.

Assuming every residential rent is capped

The current ceiling does not cover every rental home. The amount of the 2025 rent, continuity of the tenant, actual use of the premises, construction status, and applicable exception all matter.

Assuming the cap guarantees a rent increase

The law sets a ceiling. It does not cancel a contract that fixes the rent at its existing amount for the entire lease term.

Using “new contract” to mean “new tenant”

Renewing or replacing a document does not necessarily end the existing tenancy. Actual vacancy and a change of tenant are factual questions.

Stopping all payments during a dispute

This may create arrears even when the proposed increase is unlawful. Tender the undisputed rent and follow the statutory deposit procedure if the landlord refuses it.

Paying cash without a receipt

Insist on written proof showing the date, amount, rental period, unit, and recipient.

Believing a sale automatically ends the lease

For a unit covered by the Rent Control Act, sale or mortgage alone is not a statutory ground for ejectment. Other grounds—such as expiration of a definite lease or qualifying arrears—may still apply.

When legal help is urgent

Consult a lawyer or legal-aid office promptly if:

You received a barangay summons, formal demand to vacate, or court summons;
The landlord refuses rent and the one-month deposit deadline is running;
Arrears are approaching or have reached three months;
Locks were changed or belongings were removed;
Utilities were disconnected to force departure;
There are threats, violence, harassment, or destruction of property;
The landlord claims an exception based on vacancy, new construction, or rent-to-own documents;
You are being asked to sign a waiver, surrender, settlement, or backdated lease;
The lease has expired and continued possession is disputed; or
A filing deadline or prescriptive period may expire.

For immediate threats or violence, prioritize personal safety and contact the barangay or police. Preserve evidence only when it is safe to do so.

Frequently asked questions

Can a landlord increase rent by 10% in 2026?

Not for a covered unit occupied by the same continuing tenant. The 2026 ceiling is 1%. A 10% increase may be proposed for an uncovered tenancy at renewal, but it must still be consistent with the lease and accepted as part of the new arrangement.

My 2025 rent was exactly ₱10,000. Am I covered?

Generally, yes, if you remain the same tenant in 2026 and no exception applies. A 1% increase is ₱100, producing a monthly rent of ₱10,100.

Does the cap apply if I signed a new lease with the same landlord?

It may. Signing a renewal or replacement contract does not by itself make a continuously occupying tenant “new.” The occupancy history and substance of the transaction matter.

Can the landlord increase rent in the middle of a one-year lease?

Only if the contract validly allows an increase at that time or the tenant later agrees, and the increase does not violate rent control. Without such authority, the fixed contractual rent ordinarily remains binding until the term ends.

Is there a nationwide 30-day notice rule?

The current rent-control issuance does not establish a universal 30-day notice period for every increase. Check the lease. Written advance notice remains prudent, but it does not legalize an excessive increase.

Can a landlord charge extra fees instead of calling the amount “rent”?

The answer depends on what the charge covers and what the lease says. The Rent Control Act defines rent as the amount paid for use or occupancy, whether paid monthly or on another basis. Mandatory new charges closely tied to continued occupancy should be examined together with the stated rent rather than accepted solely because they have a different label.

Can I refuse the increase and remain indefinitely?

Not necessarily. You may dispute an unlawful increase, but the landlord may still have another lawful ground for judicial ejectment, including expiration of a definite lease or qualifying arrears. Continue tendering the lawful rent and obtain advice about your right to remain.

What happens after December 31, 2026?

NHSB Resolution No. 2024-01 ends on that date. Before calculating a 2027 increase, check whether the NHSB has issued a new resolution changing the percentage, threshold, coverage, or exceptions.

Official legal sources

This article provides general legal information, not advice for a particular dispute. Coverage and remedies can depend on the lease, payment and occupancy history, property use, notices, and other documents. Official sources were checked through August 2, 2026.