An Act to Regulate Rentals for Two Years, of Dwelling Units or of Land on Which Another's Dwelling is Located and Penalizing Violations Thereof, and for Other Purposes

June 14, 1971

REPUBLIC ACT NO. 6359

AN ACT TO REGULATE RENTALS FOR TWO YEARS, OF DWELLING UNITS OR OF LAND ON WHICH ANOTHER'S DWELLING IS LOCATED AND PENALIZING VIOLATIONS THEREOF, AND FOR OTHER PURPOSES

SECTION 1.  No lessor of a dwelling unit or of land on which another's dwelling is located shall, during the period of one year from the effectivity of this Act, increase the monthly rental agreed upon between the lessor and the lessee as of the effectivity of this Act when said rental does not exceed three hundred pesos (P300.00) a month. Thereafter, for the next year the rentals may not be increased more than ten (10%) per centum. cd i

SECTION 2.  Definition of Terms— Rentals shall mean the amount paid for the use of dwelling units or land on which another's dwelling is located whether payment is made on a fifteen-day, monthly or other basis.

A dwelling unit refers to a house and lot used for residential purposes and shall include not only buildings, parts or units thereof used solely as dwelling places, except motels, hotels, or hotel rooms; but also those used for home industries or retail stores if the owner thereof and his family actually live therein and use it principally for dwelling purposes: Provided, That in case of retail store the capital thereof does not exceed five thousand pesos. acd

Land refers to the lot leased by one who owns the dwelling thereon and used principally for such dwelling and not mainly for business.

Lessees shall mean the persons and/or their families renting the dwelling place, as well as sub-lessees.

Lessor shall include owners of the dwelling place and/or the residential site or the administrator or agent of such owners, as well as sub-lessors.

SECTION 3.  For two years from the effectivity of this Act, no lessor of a dwelling unit or of land on which another's dwelling is located may demand a deposit, for any purpose, of any amount in excess of two month's rental in advance.

SECTION 4.  Except when the lease is for definite period, the provisions of paragraph (1) of Article 1673 of the Civil Code insofar as they refer to dwelling unit or land on which another's dwelling is located shall be suspended for two years from the effectivity of this Act; but other provisions of the Civil Code and the Rules of Court of the Philippines on lease contracts, insofar as they are not in conflict with the provisions of this Act, shall apply.

SECTION 5.  Any person violating any provisions of this Act shall be punished by imprisonment of not less than three months nor more than two years and a fine of not less than one thousand pesos nor more than two thousand pesos.

SECTION 6.  This Act shall take effect upon its approval.

Approved: June 14, 1971 cd i

Published in the Official Gazette, Vol. 68, No. 1, p. 4 on January 3, 1972