Everything seems fine with a rental until a tenant decides to apply for a government rental subsidy. Suddenly, the landlord says, "Apply for rental assistance, and the rent goes up!" Some even demand that tenants move out.
Certain lease agreements explicitly state that tenants cannot apply for rental subsidies, leaving renters worried about violating their lease or losing their home.
These situations raise several common questions:
- Can landlords legally prohibit tenants from applying for rental subsidies?
- What happens if a landlord raises the rent or demands an early move-out?
- Will a landlord face a tax investigation if a tenant receives rental assistance?
The good news is that applying for rental subsidies is a tenant's legal right in Taiwan, and landlord approval is not required. The law also provides protections against unfair restrictions.
What Does the Law Say?
Mandatory Provisions to be Included in and Prohibitory Provisions of the Standard Form Rental Housing Contract:
“A provision prohibiting the lessee from applying for rental subsidies shall not be included in the contract.”
✨ Plain Explanation: Taiwan's rental housing regulations clearly prohibit landlords from including clauses that prevent tenants from applying for government rental subsidies.
Even if a lease states that applying for a subsidy constitutes a breach of contract or requires early termination, such provisions cannot legally take away a tenant's right to apply.
⚖️ Legal Source: Ministry of the Interior – Residential Lease Standard Contract Regulations
Consumer Protection Act, Article 17, Paragraph 4:
“Where a standard form contract violates the provisions announced pursuant to Paragraph 1, the standard form contract clauses thereof shall be null and void. The validity of such standard form contract shall be determined in accordance with the preceding Article.”
✨ Plain Explanation: If a standard form residential lease contains terms that are expressly prohibited by law, those terms are legally invalid.
For example, even if both parties sign a lease stating that tenants cannot apply for rental subsidies, the landlord cannot rely on that clause to force a tenant to give up rental assistance.
⚖️ Legal Source: Consumer Protection Act Article 17 – Law.moj.gov.tw
Civil Code, Article 442:
“In the case where the leased property is immovable property, either party may apply to the court for an increase or reduction of the rent on account of a rise or fall in its value. However, this shall not apply where the lease is for a fixed term.”
✨ Plain Explanation: If a lease has a fixed term, a landlord cannot use this provision to ask the court to increase the rent simply because property values have risen.
Taiwan's standard residential lease regulations also prohibit rent increases during the lease term. This means landlords cannot unilaterally raise the agreed rent just because a tenant applies for a rental subsidy.
⚖️ Legal Source: Civil Code Article 442 – Law.moj.gov.tw
Can Landlords Prohibit Tenants from Applying for Rental Subsidies?
No! Tenants do not need their landlord's permission to apply for rental subsidies.
Even if a landlord verbally prohibits an application or asks a tenant to sign a waiver giving up rental assistance, that does not automatically make the restriction legally enforceable.
For example, suppose a lease states that tenants must pay a penalty if they apply for government rental subsidies. Such a clause may be invalid because it unlawfully restricts the tenant's rights.
However, having the right to apply does not guarantee eligibility or approval. Applicants must still satisfy the income, housing, and other requirements of the relevant government subsidy program.
What If a Landlord Raises the Rent or Asks a Tenant to Move Out?
The first thing to check is simple: Is the lease still in effect?
1. Landlords Cannot Unilaterally Raise Rent During the Lease Term
Suppose a tenant signs a one-year lease with monthly rent of NT$15,000. Three months later, the tenant applies for a rental subsidy.
The landlord suddenly says, "Since you're getting government assistance, you'll have to pay another NT$2,000 per month!"
In this situation, the landlord cannot unilaterally increase the monthly rent from NT15,000toNT17,000. The tenant has the right to reject the improper rent increase.
2. Applying for Rental Assistance Is Not Grounds for Early Eviction
Suppose a tenant still has six months remaining on the lease, but the landlord demands that the tenant move out immediately after learning about the subsidy application.
As a general rule, a landlord cannot terminate a lease early solely because a tenant applies for rental assistance.
However, if the tenant has failed to pay rent, unlawfully used the property, or committed another qualifying breach, the landlord may have lawful grounds for termination, depending on the circumstances and applicable legal requirements.
3. Can Landlords Raise Rent After the Lease Expires?
Rent increases during an active lease and rent negotiations after expiration are two different matters.
When a lease expires and both parties are considering renewal, they can generally negotiate new rental terms, including the monthly rent.
If they cannot reach an agreement, whether the tenancy continues depends on the original lease terms and applicable laws.
In other words, landlords cannot simply raise rent during an existing lease, but that does not mean rent must remain unchanged forever.
Will Landlords Face a Tax Investigation If Tenants Apply for Rental Subsidies?
Some landlords oppose rental subsidy applications because they worry that their rental income will become visible to tax authorities, potentially leading to additional taxes or an investigation.
However, a tenant's rental subsidy application does not automatically mean the landlord will face back taxes.
Rental information may be used by tax authorities for lawful verification purposes, but whether additional taxes are owed depends on the landlord's actual tax reporting circumstances.
There may even be tax benefits available. Property owners who qualify and are recognized as public-interest landlords (公益出租人) may be eligible for:
- Individual Income Tax: Tax exemptions on qualifying rental income, subject to applicable limits.
- House Tax: Preferential tax rates for eligible rental properties.
- Land Value Tax: Potential tax reductions under applicable local government regulations.
In other words, a tenant applying for rental assistance does not necessarily increase the landlord's tax burden. In some cases, it may even provide valuable tax advantages.
Can Landlords Be Fined for Violating These Rules?
If a landlord includes clauses prohibiting rental subsidy applications, unlawfully raises rent, or transfers additional taxes that should be paid by the landlord to the tenant, the tenant may collect evidence and file a complaint with the local government.
Under Consumer Protection Act, Article 56-1, competent authorities may order businesses that violate mandatory or prohibited standard form contract requirements to correct the violations within a specified period.
- Failure to correct the violation within the initial deadline: A fine ranging from NT30,000toNT300,000 may be imposed.
- Failure to comply after a second correction order: A fine ranging from NT50,000toNT500,000 may be imposed, with additional penalties for repeated noncompliance.
However, a landlord is not automatically fined simply for verbally refusing a subsidy application once. Enforcement depends on the specific facts, applicable laws, and procedures followed by the competent authority.
How Can Tenants Protect Themselves If a Landlord Interferes?
If a landlord suddenly demands higher rent, additional tax payments, or early termination of the lease, there is no need to immediately agree or escalate the situation into a confrontation.
Start by keeping copies of the lease agreement, rent payment records, LINE conversations, text messages, and written notices. Evidence showing that the landlord demanded the withdrawal of a subsidy application or an increase in rent can be particularly important.
If discussions do not resolve the dispute, tenants may file a complaint with the relevant local government authority or call Taiwan's 1950 Consumer Service Hotline for assistance.
Mediation and legal consultation are also available to help clarify the rights and obligations of both parties.
🕯️ Related Reading: Can Tenants Claim Rent on Taxes in Taiwan? Can Landlords Forbid or Restrict It?
🐛 Related Reading: Can a Landlord Raise Rent During the Lease Term in Taiwan? What Are the Legal Requirements?
🐸 Related Reading: Can Landlords Terminate a Lease Early in Taiwan? What Situations Count as Legal Termination?
🖤 Related Reading: Can a Landlord Require a Tenant to Return the Lease in Taiwan?
Conclusion: Rental Subsidy Applications Are a Tenant's Right, and Landlords Cannot Arbitrarily Restrict Them
Landlords cannot prohibit tenants from applying for rental subsidies through residential lease agreements. They also cannot unilaterally increase rent or arbitrarily demand that tenants move out during an active lease simply because they have applied for assistance. Even if a lease contains such restrictions, that does not necessarily make them legally valid.
For landlords, rental subsidies are not necessarily a disadvantage. Those who qualify as public-interest landlords may even benefit from tax incentives. Understanding these rules can help avoid unnecessary disputes and unlawful contract terms.
For tenants, the best approach when facing unreasonable demands is to preserve evidence, understand the legal effect of the lease, and seek assistance through the appropriate legal channels to protect their housing rights.
