The DTI has issued a Supplemental Memorandum Circular on the concessions on residential and commercial rents.
Lessees are granted a 30-day grace period starting March 17, 2020 until the community quarantine is lifted (which includes ECQ, MECQ, GCQ, MGCQ) or; from the date that the tenant is allowed to resume employment or business operation, whichever comes first.
Thus, if a residential lessee’s employer or a commercial lessee’s business has been permitted to operate pursuant to a presidential proclamation, IATF resolution, and/or relevant ordinance, the commencement of the grace period shall be from the date of such employment or business was allowed to resume. This shall apply regardless of whether or not the lessee opts to go back to work or resume business operation.
Rents falling within the community quarantine shall be equally amortized in six (6) months following the end of the 30-day minimum grace period, without interest, penalties, fees and charges, which amount shall be added to the monthly rent due.
The Lessee shall provide the lessor a signed Promissory Note or letter, undertaking to pay the deferred rents in accordance therewith, and failure thereof shall make such deferred rents due and demandable immediately following the end of the minimum grace period of 30 days.