Relief On Commercial And Residential Rents During the ECQ

The Department of Trade and Industry (DTI) has issued Memorandum Circular No. 20-12, Series of 2020 (DTI MC 20-12) to provide economic relief for individuals and businesses during the existence of the Enhanced Community Quarantine (ECQ). In the DTI MC 20-12, landlords for residential areas and lessors for commercial spaces rented to Micro, Small and Medium Enterprises (MSMEs) are directed to grant their lessees a thirty (30)-day grace period, six (6) months amortization, and no eviction during and/or following the period of the ECQ.

30-DAY GRACE PERIOD

Landlords for residential areas and lessors for commercial spaces rented to MSMEs are directed to grant a thirty (30)-day grace period for payment of rents falling due within the period of the ECQ, without incurring interests, penalties, fees, and other charges. 

The thirty (30)-day grace period shall be computed as thirty (30) calendar days from the last due date of the rent due within the ECQ. However, in case the lessees have already paid their rents despite the grant of the grace period, landlords/lessors are not obligated to refund the said paid rents.

SIX (6) MONTHS AMORTIZATION ON ACCUMULATED RENTS

Further, said landlords and lessors are likewise directed to allow payment of accumulated rents falling within the period of the ECQ in equal amortization or installments for six (6) months after the ECQ is lifted, still without incurring interests, penalties, fees, and other charges.

PROHIBITION AGAINST EVICTION

Within thirty (30) days after the ECQ has been lifted, landlords/lessors are also prohibited to evict their respective lessees due to failure to pay rents.