Foreigners renting houses in Taiwan
update date :
2024-01-05
- Q1: In Taiwan, what does a lessee need to pay to a lessor？
A1: - Earnest money：In a case that both a lessee and a lessor are willing to rent a house, a lessor requests a sum of money in advance called earnest money, to ensure a lessee's good faith to rent a house. However, if a lessor requests a lessee to pay earnest money before viewing a house, it might be a scam. Be careful！
- Security Deposit：A sum of money which is collected by a lessor from a lessee gives a lessor security in case a lessee causes damages to the rental property or a lessor needs to dispose of goods left behind by a lessee.
- Rent：It is a lessee's regular payment to a lessor for the use of a house until the lease term is expired.
- Utility fees：The charges for the usage of water, electricity, gas, internet, management, cleaning, etc.
A lessee should ensure whether the rent includes the fees mentioned above. If the rent excludes the fees, a lessee should remember to write down clearly what to pay, when to pay and how to pay in a lease agreement.
- Q2: After paying earnest money, may it be refunded if one party changes his/her mind？
A2: Payment of the earnest money represents a lessee's good faith to perform a leasing agreement. A lessor usually requests the payment of earnest money at the time between seeing a house and signing a lease agreement, ensuring a lessee's performance of an agreement. If a lease agreement will not be performed owing to a lessee, such as adjustment of working places, and regretting to rent a house right after leaving in five minutes, a lessee cannot request to refund the earnest money. On the other hand, if a lease agreement will not be performed owing to a lessor, a lessor needs to return a double amount of earnest money back to a lessee. For example, if a lessor received NT$2,000, he/she needs to return NT$4,000 to a lessee.
- Q3: What can I do if pictures of a house online are inconsistent with real one？
A3: Under Taiwan laws, the advertisement of rental housing posted by the lessor should match the facts. It can't just be a reference. If a lessor who insists that he/she has many similar houses in the same building only allows a lessee to view the house (“house A”) which is similar to the one (“house B”) a lessee want to rent instead of house B, with an excuse that the current renters haven't moved out, a lessee should reject him/her. It is necessary to view a house's interior including its concept and decoration, and to test equipment, such as an air conditioner, toilet and lamp, making sure whether it works. If a lessee pays the earnest money due to the preference of house A he/she viewed but discovers that house B he/she rented is not as good as he/she expected, it is not easy to take the earnest money back.
- Q4: How does a lessee verify the identification of a lessor？ What do both parties need to provide when signing a leasing agreement？
A4: When a lessor claims that he/she is the owner of a house, a lessee could request him/her to provide a house's certificate of ownership and his/her identification card. If a lessor cannot provide a house's certificate of ownership, he/she can provide a house tax statement within one year instead and check if the taxpayer and the party are the same. When a lessor says that he/she is a sub-lessor, a lessee may request him/her to provide a document which represents a lessor's approval of the sublease of a house. Under Taiwan laws, a head-lessee can sublease the whole or part of a house only when a lessor approves in writing. A head-lessee also needs to provide a lessee identity documents such as a passport and identification card. If a lessee can't verify the identity of a lessor, he/she should not sign a lease agreement.
- Q5: Is it legal for a lessor to request more security deposits because I am a foreigner？
A5: Under Taiwan laws which are based on a concept of territorial principle, no matter where a lessee is from, the amount of security deposits shall not surpass the equivalent of two months' rent.
- Q6: How is the electricity price calculated in Taiwan？ How do I know if the calculation standard of electricity price by a lessor is reasonable?
A6: Usually, the electricity price is calculated by consumption units. However, the electricity unit price a lessor requested should not be higher than the highest monthly electricity unit price Taiwan Power Company announced. A lessee may request a lessor to provide the electricity bill, checking average electricity unit price last year, as a reference. A lessor should not earn profit from receiving electricity prices from a lessee because he/she just collects it for Taiwan Power Company. If a lessor receives electricity prices higher than the one Taiwan Power Company announced, a lessee could report it to the Land Administration Offices in the local city, or call 1950 reporting to Consumer Service Centers. A lessee can look up the electric energy consumption during the lease term on the official website of Taiwan Power Company ,electronic bill, or app. If a lessee discovers the electric energy consumption is abnormal, he/she may check an electricity bill or call 1911.
- Q7: Who is responsible for repairing furniture and household appliances which are provided by a lessor？
A7: Under Taiwan laws unless provided by the agreement, otherwise a lessor should make all repairs to the damages and destruction of things leased which are not caused by a lessee. However, a lessee should keep and manage the things leased with the care of a good administrator, and notify a lessor immediately after the discovery of damages and destruction of things leased, avoiding damages expanding. A lessee should be responsible for damages and destruction of things leased if he/she does not notify a lessor about them immediately. Ways of notification could be any way which can be proved, such as text message, Email, and Line that are written. In Particular, a legal confirmation letter is the best choice. Therefore, it is recommended that a lessee should confirm with a lessor which equipment's damage will be borne by him/her, and record them in the agreement.
- Q8: How much money does a lessee need to compensate a lessor if he/she has to terminate a lease agreement early due to the job transfer？
A8: Under Taiwan laws, in the case that a lease agreement made by both parties could be terminated early, a party who wants to terminate the agreement early does not need to pay liquidated damages if he/she notifies the other party before a period of time which is at least one month agreed by both parties. If a party does not notify the other party before a period of time agreed by both parties, the party needs to pay liquidated damages which should not be more than the amount of one month rent. In the case that a lease agreement made by both parties could not be terminated early, the agreement should be performed to the end of the lease term unless a lessee receives a lessor's approval and pays liquidated damages agreed by the lessor.
- Q9: What condition of the rental house does a lessee need to restore so that the security deposit will not be deducted, when moving out of it?
A9: Both parties need to clearly regulate standards of return of the rental house when signing an agreement. If both parties agree with the current condition return, a lessee may return the rental house with decoration; if both parties agree with the original condition return, a lessee should return the rental house with original condition. However, if damages are ordinary wear and tear, such as dirt on a wall caused by the usage, and bed collapse caused by lying for a long term, a lessor could not deduct any amount of security deposit.
- Q10: Where can a party ask for help when a rental dispute occurs？
A10: - Consulting： Each party can consult with the Land Administration Bureau in the local city or TSUEI MA MA Foundation for Housing and Community Services, and then negotiate with the other party and solve problems by themselves.
- Applying for mediation or negotiation： A lessee can call 1950 appealing with Consumer Service Centers in every city. Each party can apply to the municipal governments or the county (city) governments for mediation, Township/District Offices, and TSUEI MA MA Foundation for Housing and Community Services.
