Quick answer

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

The tenant paid ₱10,000 or less per month in 2025;
The same tenant continues occupying or renews the lease in 2026; and
The increase is permitted by the lease and does not take effect earlier than the contract allows.

This nationwide ceiling applies from January 1 to December 31, 2026 under National Human Settlements Board Resolution No. 2024-01. A unit rented for more than ₱10,000 per month in 2025 is outside this special cap. The 2025 ceiling of 2.3% should not be used for a 2026 increase. NHSB Resolution No. 2024-01; official DHSUD guidance published by the Philippine Information Agency.

The 1% figure is a maximum—not an automatic increase. A landlord cannot disregard a fixed rent stated in an existing lease merely because the government permits an increase of up to 1%.

The 2026 rent ceiling

For a covered continuing tenant, the maximum increase is 1% of the previous lawful monthly rent.

Monthly rent in 2025	Maximum 2026 increase	Maximum resulting rent
₱5,000	₱50	₱5,050
₱8,000	₱80	₱8,080
₱9,500	₱95	₱9,595
₱10,000	₱100	₱10,100

A tenant paying exactly ₱10,000 in 2025 is within the stated coverage. The fact that a lawful 1% increase produces a 2026 rent of ₱10,100 does not by itself invalidate that increase.

Several smaller increases cannot be used to evade the annual ceiling. Their combined effect during the regulated period must remain within the applicable maximum. For boarding houses, dormitories, rooms, and bedspaces offered to students, rent may not be increased more than once a year.

Which residential units may be covered?

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

An apartment or house;
A building, part of a building, or unit used as a dwelling;
A residential condominium unit;
A boarding house or dormitory;
A room or bedspace offered for rent; and
Land on which another person’s dwelling is located.

Some mixed home-and-business premises may qualify when they are principally used as the family dwelling. Their treatment depends on the property’s actual use, not simply the label in the lease.

Hotels, hotel rooms, motels, and motel rooms are excluded. A genuinely commercial or industrial lease is also outside residential rent control.

When an increase is legal

The same covered tenant continues in 2026

An increase may be legal if it stays at or below 1% and takes effect at a time allowed by the lease.

For example, if a one-year lease fixes the rent at ₱8,000 until September 30, 2026, the landlord cannot necessarily impose an ₱80 increase in January. The rent remains governed by the fixed-term agreement unless it contains a valid adjustment clause or the parties make a lawful new agreement.

A contractual escalation clause also remains subject to rent control. If the clause calls for a 5% increase but the unit and continuing tenant are covered by the 1% ceiling, the landlord should not impose the excess.

The unit becomes vacant

When an existing unit becomes vacant in 2025 or 2026, the owner may set the initial rent for the next tenant. The protection follows the continuing lessee; it does not require the owner to offer the former tenant’s rate to an unrelated new occupant.

A change of name on paper does not necessarily establish a genuine vacancy or new tenancy. If the same person remains in possession and the supposed replacement is only a device to avoid the cap, the actual documents, payments, and occupancy will matter.

For student boarding houses, dormitories, rooms, and bedspaces, the rule limiting increases to once per year still applies.

The residential unit is newly constructed

NHSB Resolution No. 2024-01 states that rental regulation does not apply to new residential units constructed after the resolution’s approval. Owners of these units may set their initial rent, subject to their contracts and other applicable laws.

Whether an extensively renovated unit is legally “new” is fact-dependent. Renovation, repainting, or a change of owner does not automatically make an existing unit newly constructed.

The rent was above ₱10,000 in 2025

A residential unit rented for more than ₱10,000 per month in 2025 is outside the special 1% ceiling for 2026. That does not mean the landlord may change the rent at any time or in any amount.

Under the Civil Code, contractual obligations have the force of law between the parties and must be performed in good faith. The parties may agree on lease terms only when those terms are not contrary to law or public policy.

For an uncovered unit:

A fixed rent normally controls until the fixed term expires, unless the lease contains an enforceable adjustment clause.
At renewal, the landlord may propose a new rate and the tenant may accept, reject, or negotiate it.
A mid-term increase generally requires authority in the contract or a new agreement between the parties.
Any contractual notice requirement must be followed.

There is no single nationwide rule in the Rent Control Act requiring exactly 30 days’ notice for every rent increase. The lease may provide a notice period. Different statutory notice requirements apply to other matters—for example, repossession for the owner’s residential use involves separate conditions and advance notice.

The lease is verbal or month-to-month

A verbal residential lease can be valid, but its terms are harder to prove. When no lease period is fixed and rent is paid monthly, Article 1687 of the Civil Code generally treats the lease as month-to-month.

This does not let a landlord ignore the 1% ceiling for a covered tenant. It does mean, however, that the owner may have the option to end the monthly lease at the appropriate time rather than renew it. The rent cap limits an increase; it does not guarantee indefinite occupancy or compel either party to enter a new lease.

Any removal of a tenant must still be pursued through lawful judicial ejectment. A disagreement over rent does not authorize a landlord to padlock the unit, remove belongings, or physically force the tenant out.

What the rent cap does—and does not—protect

The cap protects a continuing tenant against an excessive increase. It does not:

Cancel a valid ground for judicial ejectment;
Excuse nonpayment of the lawful rent;
Automatically renew an expired fixed-term lease;
Convert a commercial lease into a residential one;
Prevent the owner from setting the initial rent for a genuinely new tenant after vacancy; or
Authorize the tenant to remain without complying with other valid lease obligations.

Under RA 9653, recognized grounds for judicial ejectment of a covered residential tenant include unauthorized assignment or subleasing, three months’ rent arrears, certain legitimate owner-repossession or repair situations, and expiration of the lease period. Sale or mortgage of the property, by itself, is not a ground to eject a covered tenant.

Charges that may disguise an increase

“Rent” under RA 9653 is the amount paid for the use or occupancy of the residential unit, whether payment is monthly or otherwise. Calling an additional mandatory occupancy charge an “administrative fee,” “maintenance fee,” or similar name does not necessarily place it outside rent control.

The legal treatment depends on what the charge is actually for. Separately metered utilities, documented consumption, or genuinely optional services may be different from rent. Tenants should request an itemized written explanation showing:

The old and proposed base rent;
Every mandatory fee;
Utility rates and meter readings;
The effective date;
The contractual basis; and
The calculation of the percentage increase.

For covered units, RA 9653 also generally prohibits a landlord from demanding more than one month’s advance rent or more than two months’ deposit. The deposit must be kept in a bank under the lessor’s account, with accrued interest returned at the end of the lease, subject to lawful deductions for unpaid obligations or damage as provided by the Act.

What a tenant should do after receiving an excessive increase

1. Confirm the facts

Check:

The lawful monthly rent paid in 2025;
Whether the premises are residential;
Whether the same named tenant remains in possession;
The lease term and renewal date;
Any escalation and notice clauses;
Whether the unit was actually vacant; and
Whether the demand includes new mandatory fees.

Do not rely only on a verbal explanation.

2. Calculate the lawful maximum

Multiply the 2025 monthly rent by 1%.

For example:

₱8,500 × 0.01 = ₱85

The maximum resulting 2026 rent would ordinarily be ₱8,585 if the tenancy is covered and the contract permits the increase at that time.

3. Respond in writing

State the existing rent, the proposed amount, why the unit appears covered, and the lawful calculation. Ask the landlord to withdraw or correct the demand.

Keep the tone factual. A written response may also show that the tenant is not refusing to pay rent but is disputing only the unlawful excess.

4. Continue tendering the lawful rent

Simply stopping payment is risky. Three months’ arrears can become a ground for judicial ejectment.

If the landlord refuses to accept the agreed lawful rent, RA 9653 provides a special deposit procedure. Within one month after the refusal, the tenant may deposit the amount by way of consignation in court or with the city or municipal treasurer, barangay chairperson, or a bank in the lessor’s name and with notice to the lessor. The tenant must thereafter deposit the rent within ten days of every current month. Failure to deposit for three months can itself become a ground for ejectment.

These requirements are technical. Obtain legal advice promptly before relying on a bank deposit or consignation, because an incorrectly made deposit may not prevent a claim of nonpayment.

5. Seek barangay conciliation when applicable

The government encourages mediation or amicable settlement through the Barangay Justice System before court action. Prior barangay conciliation is often a condition before filing a case when the parties are natural persons actually residing in the same city or municipality, but exceptions and venue rules apply. Corporate parties, different residences, urgent relief, and other circumstances may change the procedure. See Sections 408–412 of the Local Government Code.

If no settlement is reached, obtain the proper certification before proceeding when barangay conciliation is required.

6. Get legal help before a deadline passes

Depending on the dispute, the next proceeding may involve collection, consignation, unlawful detainer, damages, or a criminal complaint. Ejectment cases are governed by the Supreme Court’s Rules on Expedited Procedures in the First Level Courts.

Bring the complete record to a lawyer. A financially qualified person may also inquire with the Public Attorney’s Office about assistance.

Evidence to preserve

Keep copies of:

Every lease, renewal, addendum, house rule, and inventory;
Rent receipts and acknowledgments;
Bank transfers, electronic-wallet records, and deposit slips;
The rent-increase notice and proof of when it was received;
Text messages, emails, and chat conversations;
Proof of the 2025 rental rate;
Documents showing who the tenant is and continuous occupancy;
Itemized statements for utilities and other fees;
Written tenders of payment and proof of refusal;
Notices sent after consignation or deposit;
Barangay records and certifications; and
Any demand letter, summons, complaint, or court order.

Export important chats instead of keeping only cropped screenshots. Preserve the sender, date, time, and surrounding conversation.

Common mistakes

Applying the old 7% statutory figure or the 2.3% cap used in 2025 to a 2026 increase;
Assuming every residential rental is covered regardless of price;
Assuming rent control guarantees renewal of an expired lease;
Treating the proposed new rent, rather than the relevant prior rent and tenancy history, as the only coverage test;
Stopping all payments while disputing only the excess;
Paying a higher amount repeatedly without documenting an objection;
Ignoring an escalation or notice clause in the lease;
Assuming a sale, renovation, or change of property manager automatically creates a new tenancy;
Using an informal bank transfer as a substitute for the statutory deposit process without proper notice; and
Attempting a lockout or other self-help eviction instead of using the courts.

When help is urgent

Consult a lawyer promptly if:

The landlord has refused rent and the one-month deposit deadline is approaching;
Alleged arrears are close to or have reached three months;
You receive a demand to vacate, barangay summons, prosecutor’s subpoena, or court papers;
The landlord threatens or carries out a lockout, utility disconnection, seizure of belongings, or physical removal;
The lease, receipts, and actual payments show different rental amounts;
The property is partly commercial, subleased, inherited, sold, or occupied by someone other than the named tenant; or
The landlord claims the unit became vacant or newly constructed when the facts are disputed.

Call emergency services or seek immediate police and barangay assistance if there is violence, a credible threat, or danger to a person. Preserve evidence without escalating the confrontation.

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 maximum is 1%. For a unit outside rent control, a 10% proposal may be possible at renewal or under a valid adjustment clause, but it is not automatically enforceable during a fixed term.

Can rent be increased when the lease is renewed?

Yes, but a renewal by the same covered tenant remains subject to the 1% ceiling in 2026. For an uncovered unit, the proposed renewal rate is generally a matter of contract and negotiation.

Can the landlord refuse to renew instead?

Possibly. Rent control limits increases but does not always compel renewal. The result depends on the lease period, any renewal option, notices, and whether a lawful ground for ending possession exists. Actual eviction requires proper judicial proceedings.

What if a new tenant moves in?

After a genuine vacancy, the landlord may set the new tenant’s initial rent. The parties should record the rent, included services, advance payment, deposit, term, and future adjustments in writing.

Does the 1% cap apply to a condominium?

A condominium unit used as a dwelling can fall within the broad definition of a residential unit. The 2026 cap matters only if the rental amount, tenant continuity, and other coverage requirements are satisfied.

Can a tenant agree to an increase above 1%?

The current government rule is framed as a maximum for a covered continuing tenant. An agreement or waiver should not be assumed to defeat a mandatory protective ceiling. Its validity may depend on the facts, how consent was obtained, and the controlling law; obtain legal advice before signing or paying.

Is written notice always required 30 days in advance?

RA 9653 does not establish a universal 30-day notice period for every rent increase. The lease may require written notice or a particular lead time. Written notice is nevertheless the safest practice for both parties.

Can the landlord evict a tenant for rejecting the excess?

Rejecting an unlawful excess is not the same as refusing to pay the lawful rent. The tenant should continue tendering the lawful amount and correctly use the statutory deposit process if payment is refused. A landlord may still pursue judicial ejectment on a separate lawful ground, such as expiration of the lease.

What are the possible penalties?

A person found guilty of violating RA 9653 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. A disputed increase does not automatically produce a conviction or refund; the facts and proper proceedings still matter.

Official sources

This is general legal information, not advice for a particular lease or dispute. The result may depend on the contract, payment history, notices, parties, property use, and procedural steps. Sources were checked on August 4, 2026. NHSB Resolution No. 2024-01 presently runs only through December 31, 2026, so increases taking effect in 2027 must be checked against any later official issuance.