First preference to old lessees under Rent Control Act

First preference to old lessees under Rent Control Act "My old mother in Manila owns an apartment complex in an ancestral compound. However, she was required by the authorities to make major renovations on several room units occupied by her bedspacers to comply with the city’s safety regulations. Consequently, most bedspacers were asked to temporarily move out. When the renovation was completed and the apartment complex was ready for occupancy, my mother decided to increase the amount of rent from P7,000 to P9,500. Some of the previous bedspacers wanted to rent again but insisted on paying the old rent rates. My mother told me that she’d rather rent it to new bedspacers with the increased rent . Most of the previous bedspacers claimed they have the legal right to be prioritized in renting bedspace for the old price. We want to know if they have a legal basis in claiming this. Is my mother required to prioritize them in renting out bedspaces for the old rent price?Joni Dear Joni,Republic Act 9653, known as the “Rent Control Act of 2009” provides for the regulations and guidelines in the rent of residential units and this includes bedspaces offered for rent (Section 4, RA 9653). There is also a specific provision therein that is applicable to your situation regarding increase of rental rates due to repairs, and the preference given to previous lessees. According to Section 9, par. d, of the said law: “xxx“(d) Need of the lessor to make necessary repairs of the leased premises which is the subject of an existing order of condemnation by appropriate authorities concerned in order to make the said premises safe and habitable: Provided, That after said repair, the lessee ejected shall have the first preference to lease the same premises: Provided, however, That the new rent shall be reasonably commensurate with the expenses incurred for the repair of the said residential unit and: Provided, finally, That if the residential unit is condemned or completely demolished, the lease of the new building will no longer be subject to the aforementioned first preference rule in this subsection xxx” (Emphasis supplied). Following this cited provision, in situations where a rented unit is required to be renovated due to necessary repairs, ejected lessees are given first preference to lease again the repaired unit once the repair is completed. It is important to note, however, that while ejected lessees are entitled to be given first preference to lease their renovated unit, this does not mean that they are entitled to the old rental rates. This is because the law explicitly allows lessors to increase their rental rate to defray their expenses on the necessary repairs made. In other words, while RA 9653 requires lessors to give preference to ejected lessees, lessors can still increase their rental rates even to their previous lessees to cover the expenses for the repair of the leased units.Considering this, your mother’s old bedspacers are right in claiming that they are legally entitled to be given first preference in leasing the renovated bedspace units. But at the same time, they may be charged with a higher rental rate that is commensurate to the expenses in the repairs made. In case the previous bedspacers fail to agree on the terms of the lease with the increased rent amount, then your mother may now offer to lease the bedspaces to other people. We hope that we were able to answer your queries. Please be reminded that this advice is based solely on the facts you have narrated and our appreciation of the same. Our opinion may vary when other facts are changed or elaborated.Editor’s note: Dear PAO is a daily column of the Public Attorney’s Office. Questions for Chief Acosta may be sent to dearpao@manilatimes.net" - https://www.affordablecebu.com/