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Under the Rent Control Act of 2005 (R. A. 9341 – approved: 21 December 2005), lessees of residential units who pay a monthly rentral of not more than P10,000 (in highly urbanized cities) and P5,000 (in other areas) [Sec. 11] enjoy the following: (a) non-increase of rentals beyond 10% [Sec. 3]; (b) non-ejectment for unpaid rentals unless the total arrears amount to at least three (3) months [Sec. 7 (b)]; (c) right of first preference to lease the premises after vacating the same for purposes of repairs ordered by authorities [Sec. 7 (d)]; and (d) non-ejectment by reason of mortgaged or sale of the leased premises [Sec. 8].

If the property is to be vacated by the lessee for the use of immediate family members, the following conditions must be complied: (i) lease contract has expired; (ii) formal notice to vacate of at least three (3) months in advance; and, (iii) prohibition to lease the same property to a third party for a period of one year from the time lessee vacates the premises [Sec. 7 (c)].

Violations of the law carry a criminal penalty of fine of between P5,000 to 15,000 or imprisonment of not more than six (6) months [Sec. 12].

NOTE: The law expired on 31 December 2008 and deliberations whether to extend it or not are still pending in Congress.