One of the most frustrating things for renters is when the landlord suddenly says, “The rent will increase next month.” But can a landlord actually do that? Whether a rent increase is allowed depends entirely on the type of lease and whether the contract includes a valid adjustment clause.
Many misunderstandings come from not knowing the difference between a “fixed-term lease” and a “non-fixed-term lease,” which leads to both parties talking past each other. Here’s the clearest, no-nonsense explanation of how rent adjustments really work in Taiwan.
What Does the Law Say?
Civil Code Article 442:
“When the rental object is real property, either party may petition the court to increase or decrease the rent if the value of the property has risen or fallen. However, this does not apply if the lease has a fixed term.”
✨ Plain explanation: If it’s a fixed-term lease, the landlord cannot use this article to raise the rent during the contract period. If it’s a non-fixed-term lease, the landlord may request an adjustment, but only by applying to the court—not by deciding unilaterally.
⚖️ Legal Source: Civil Code Article 442 – Law.moj.gov.tw
Required and Prohibited Lease Terms & Mandatory and Prohibited Clauses:
“The landlord may not request a rent increase during the lease period under any circumstances.”
✨ Plain explanation: As long as the lease is still active and the contract doesn’t state how rent may be adjusted, the landlord cannot raise rent during the term. Rising market prices, increased mortgage costs, or inflation are not valid reasons for a mid-term rent increase.
⚖️ Legal Source: Ministry of the Interior – Residential Lease Standard Contract Regulations
Fixed-Term Lease: No Rent Increase Until the Contract Ends
A fixed-term lease clearly states the end date of the rental period.
Its rules are simple:
- Before the lease expires → Rent cannot be increased
- Once the lease expires → Both parties renegotiate and renew if they wish
The only exception is when the lease explicitly states a rent adjustment mechanism, such as in long-term leases:
- Annual adjustment percentages
- A preset second-year rent amount
- CPI-based adjustments
If both parties signed the contract, these clauses are legally valid.
Non-Fixed-Term Lease: Rent Increase Can Be Proposed, but Not Unilaterally Imposed
A non-fixed-term lease is usually formed when:
- A one-year lease expires
- The tenant continues to live there
- The landlord continues collecting rent
- No new contract is signed
This automatically becomes a non-fixed-term lease.
Under such leases:
- The landlord may propose a rent increase
- The tenant may agree or disagree
- If the tenant disagrees, the landlord cannot enforce the increase
If the landlord insists on adjusting rent:
→ They must apply to the court for a rent adjustment (Civil Code Article 442)
Before the court makes a ruling, the original rent remains valid.
→ In short: In a non-fixed-term lease, the court—not the landlord—decides whether a rent increase is reasonable.
📜 Related Read: What Is a Non-Fixed-Term Lease in Taiwan?
🔮 Related Read: How to Prevent Your Lease from Becoming Non-Fixed-Term in Taiwan?
🧙♂️ Related Read: Is There a Rent Ceiling in Taiwan?
What Contract Clauses Make a Rent Increase Legal?
Even with strict regulations, any clause clearly written in the contract and signed by both parties is valid.
(1) A Fixed Adjustment Mechanism in the Lease
Examples:
- Annual 3% increase
- Predetermined rent for year two
- CPI-based adjustment
Common in long-term leases.
If it’s written and signed → the adjustment is valid.
(2) Lease Allows Early Termination
The standard lease allows landlords and tenants to choose:
- ✅ Allowed to terminate early
- ❌ Not allowed
If “Allowed” is selected:
- A notice period must be followed
- Failure to give notice → Penalty up to one month’s rent
After early termination, both sides may renegotiate rent as part of a new agreement.
If early moving causes losses (internet penalty fees, moving expenses, etc.), the parties may negotiate or request mediation.
How Do Courts Determine Whether a Rent Increase Is Reasonable?
If the contract does not specify adjustment rules, both parties cannot agree, and it’s a non-fixed-term lease, the court will consider:
- Local rental market comparisons
- CPI and inflation indicators
- Repair and maintenance costs
- A balanced evaluation of both parties’ rights
Courts do not allow arbitrary increases—they determine a fair and reasonable amount.
Conclusion
Whether a landlord can raise rent comes down to three things: the type of lease, whether the contract specifies an adjustment mechanism, and whether proper legal procedures are followed. Fixed-term leases cannot be increased before expiry. Non-fixed-term leases allow discussion, but unresolved disagreements must be decided by the court.
If the contract already includes clear adjustment conditions, the parties simply follow those terms. Understanding these principles helps both landlords and tenants manage rent adjustments more smoothly and avoid unnecessary disputes.
