To make the rental market more transparent and reduce disputes, Taiwan’s Ministry of the Interior has issued two sets of standard residential lease agreement templates since 2017. These templates provide clear legal guidelines for different types of landlords:
- "Mandatory and Prohibited Clauses in Standardized Lease Contracts" – for corporate landlords
- "Required and Prohibited Terms in Residential Lease Agreements" – for individual landlords
This article focuses on the second template, which applies to individual landlords, who are usually private individuals renting out property occasionally, rather than as a business.
What Are “Required Terms”?
These are terms that must be clearly stated in the lease agreement. Even if they are not explicitly written in the contract, as long as they fall within the scope of these provisions, they are automatically considered part of the contract and carry legal effect.
What Are “Prohibited Terms”?
These are clauses that are explicitly forbidden by law from being included in a lease agreement. Even if both parties sign the contract, these clauses are considered invalid and legally unenforceable. In serious cases, they may even violate the law.
22 Required Terms Every Individual Landlord Must Include
Here are the 22 essential terms that should be clearly defined in the lease agreement:
- Lease Object: The address of the property, areas included, and any attached facilities must be clearly stated.
- Lease Term: Clearly specify the start and end dates (except for short-term leases under 30 days).
- Rent and Payment: Amount of rent, due dates, and payment method.
- Security Deposit and Refund: Maximum of two months’ rent; include refund conditions.
- Expense Sharing: Specify who is responsible for various expenses during the lease period (e.g., utilities, management fees).
- Taxes: Landlord must bear property tax and land value tax.
- Usage Restrictions: Clearly state whether subleasing is allowed, and that it requires the landlord’s written consent.
- Property Repairs: Landlord is responsible for basic repairs.
- Interior Renovations: If the tenant wishes to make any renovations, they must notify and obtain the landlord’s prior approval.
- Landlord’s Obligations: Ensure the property is safe, habitable, and complies with legal obligations.
- Tenant’s Obligations: Pay rent on time, maintain cleanliness, and use the property properly.
- Partial Loss or Damage: How will responsibilities and compensation be handled in case of partial damage?
- Early Termination Conditions: Under what circumstances can either party terminate early (e.g., damage, overdue rent)?
- Move-Out and Property Return: Inspection of the property, clearing of fees, and return of the property.
- Ownership Transfer: "Sale does not terminate lease" should be clearly stated to protect the tenant’s rights.
- Landlord’s Right to Terminate Early: Only allowed under legally permitted situations.
- Tenant’s Right to Terminate Early: If legally justified, the landlord cannot claim damages.
- Left-Behind Property: How to handle items left behind after move-out must be clearly stated.
- Notice Method: Both parties must agree on how notices are to be delivered (e.g., written, SMS, WhatsApp).
- Other Agreements: For example, notarization or enforcement by court.
- Contract Attachments: Rental advertisements, equipment lists, etc., are part of the contract.
- Basic Information of Both Parties: Name, ID number (or business number), address (or business registration), and contact details.
8 Prohibited Terms Landlords Must Not Include in the Contract
Even if signed by both parties, the following clauses are invalid and should not appear in the contract:
- Stating Advertisements Are "For Reference Only": Rental ads carry legal weight and cannot be dismissed as non-binding.
- Restricting Expense Reporting: Tenants have the legal right to claim rental expenses for tax purposes.
- Prohibiting Household Registration: Tenants have the right to move their household registration to the rental address.
- Shifting Taxes to Tenants: Taxes such as property or land value tax must be paid by the landlord.
- Waiving Responsibility for Property Defects: Landlords cannot escape liability for undisclosed property issues.
- Demanding Return of Signed Contract: Tenants are entitled to retain a signed copy of the lease agreement.
- Notice by Phone Only: Notices must be verifiable—via written documents, text messages, or email.
- Violating Mandatory Legal Provisions: Any content that contradicts mandatory or prohibitive legal rules is invalid.
How Can Individual Landlords Avoid Legal Trouble?
Although landlords are not required to list every “required term” one by one, the lease content must be clear, comprehensive, and free of any prohibited clauses. As long as both parties agree and the content is legal, the contract is enforceable.
Reminder: Even if both parties sign a contract that contains a prohibited clause, it is still legally invalid. Including such clauses may not only render them unenforceable but could also serve as evidence of legal violation.
