Rent increases capped at 2.3% in 2025

The National Human Settlements Board (NHSB) has approved a resolution that caps any increase in rent at 2.3% for monthly rents of P10,000 and below, a decrease from the previous 4% cap.

This means that if an individual rents a place for P10,000 a month, their landlord can only increase the rent by P230, and only once for the entire year.

In Dano Tingcunco’s report on 24 Oras on Monday, Lea Guevarra has been renting her unit since 1993. From P1,500 a month, her rent has increased to P2,500 a month for the past three years.

She said she is okay with a rent increase as long as it is reasonable and if there are renovations done to the unit.

The new rental hike cap is effective from January 1, 2025 until the end of the year.

NHSB Undersecretary Henry Yap said the 2.3% cap only applies to existing renters who will extend their contract in 2025.

“Pag January 31 umalis ka na doon sa unit na yun, pwedeng nang paupahan yung unit na yun ng more than 2.3%, higher than the previous rate,” Yap said.

(If you move out of the unit, the landlord can increase the rent by more than 2.3% for the next renter, higher than the previous rate.)

But this does not mean that a landlord can kick a tenant out so that he can raise the rent for a new renter; Yap said the landlord and the tenant must settle their disagreement with the barangay captain, or file a court case.

If the landlord is found guilty, he may face a P25,000 to P50,000 penalty or six months to a year's imprisonment, or both.

Landlady Janet Santos said she has no problem with a less rental increase, as she was also once a renter.

“Kung maganda naman ang ano ng renter mo, bakit mo aanuhan. Kesa naman layasan ka na walang bayad, mas maganda na yun,” Santos said.

(If your renter pays diligently, why make it difficult for them? Rather than evicting renters who did pay their rent, this is much better.) — Mariel Celine Serquiña/BM, GMA Integrated News