Security deposits are one of the most common sources of disputes in rental housing.
Many tenants have experienced situations like these when moving out:
"The landlord says they're deducting painting costs."
"They're also charging cleaning fees and garbage removal costs."
"They even want to deduct the cost of preparing the property for the next tenant."
So which expenses can actually be deducted? Which ones are simply part of the landlord's normal cost of renting out a property?
The truth is that a landlord cannot deduct whatever they want from a security deposit. Taiwan's laws clearly define the purpose of a security deposit, the tenant's responsibilities, and the landlord's obligations to maintain the property.
Let's start with what the law says.
What Does the Law Say?
Civil Code Article 429:
“1. The lessor shall bear the responsibility for repairs to the leased property, unless otherwise agreed in the contract or provided by local custom.
2. The lessee may not refuse any necessary acts performed by the lessor for the preservation of the leased property.”
✨ Plain explanation: If a house naturally ages over time or equipment wears out through normal use, repairing those items is generally the landlord's responsibility. These ordinary maintenance costs cannot simply be deducted from the security deposit when the tenant moves out.
⚖️ Legal Source: Civil Code Article 429 – Law.moj.gov.tw
Civil Code Article 432:
“1. The lessee shall preserve the leased property with the care of a good administrator. Where the leased property is productive property, the lessee shall also maintain its productive capacity.
2. If the lessee violates the obligation set forth in the preceding paragraph and thereby causes damage to or loss of the leased property, the lessee shall be liable for damages. However, any alteration or damage resulting from use or enjoyment in accordance with the agreed method or the nature of the property shall not be subject to such liability.”
✨ Plain explanation: Tenants must take reasonable care of the rental property. If they intentionally or negligently damage it—for example, breaking windows, damaging flooring, severely marking walls, or causing other abnormal damage—they may have to pay for the repairs.
However, ordinary wear and tear from normal living, such as naturally yellowing walls or normal floor wear, is generally not considered compensable damage.
⚖️ Legal Source: Civil Code Article 432 – Law.moj.gov.tw
Civil Code Article 455:
“Upon termination of the lease, the lessee shall return the leased property. Where the leased property is productive property, the lessee shall return it while maintaining its productive condition.”
✨ Plain explanation: When the lease ends, the tenant must return the property as required under the lease. If personal belongings are left behind or the tenant fails to properly return the property, resulting in additional expenses for the landlord, those costs may become the tenant's responsibility.
⚖️ Legal Source: Civil Code Article 455 – Law.moj.gov.tw
Rental Housing Market Development and Regulation Act, Article 3, Paragraph 13:
“Security deposit: money paid in advance by the tenant to secure compensation for damage to the rental housing and responsibility for handling leftover belongings.”
✨ Plain explanation: A security deposit is not extra income for the landlord. It serves as financial security in case the tenant causes damage, leaves unpaid debts, or leaves belongings behind after moving out.
⚖️ Legal Source: Rental Housing Market Development and Regulation Act Article 13 – Law.moj.gov.tw
Rental Housing Market Development and Regulation Act, Article 7:
“1. The amount of a security deposit may not exceed two months’ total rent.
2. Upon termination of the lease, return of the property, and settlement of obligations arising from the lease, the landlord shall return the deposit or the remaining balance after offsetting debts.”
✨ Plain explanation: Once the tenant has moved out, returned the property, and paid everything owed under the lease, the landlord should return the security deposit. If there are legitimate deductions, only the actual amount owed may be deducted, and the remaining balance must still be refunded.
⚖️ Legal Source: Rental Housing Market Development and Regulation Act Article 7 – Law.moj.gov.tw
Which Expenses Can Be Deducted from the Security Deposit?
If there is a legitimate reason and the expense is truly the tenant's responsibility, deductions are generally allowed.
Examples include:
- Repair costs for tenant-caused damage, such as pet scratches on wooden flooring, broken windows, severe graffiti on walls, or drill holes that were never repaired.
- Special cleaning costs, such as excessive garbage, heavy grease buildup, pet waste, or other unusually difficult cleaning that requires professional services.
- Removal costs for abandoned belongings, including furniture, large items, or personal property left behind after move-out.
- Outstanding payments, including unpaid rent, utilities, gas bills, management fees, or other amounts owed under the lease.
For example, if a tenant leaves an entire apartment full of furniture and trash after moving out, and the landlord must pay for cleaning or waste removal, those expenses may legitimately be deducted from the security deposit.
Which Expenses Generally Cannot Be Deducted?
Some expenses are simply part of the normal cost of operating a rental property and should not be passed on to the tenant.
Examples include:
- Painting costs resulting from naturally yellowed walls or ordinary wear and tear. However, if the walls are damaged through graffiti or other abnormal tenant-caused damage, repair costs may be recoverable.
- Ordinary cleaning costs, such as sweeping, mopping, or basic cleaning before renting the property to the next tenant. However, if the lease clearly provides otherwise and the provision does not violate applicable law, the lease terms should be followed.
- Moving costs, brokerage fees, or advertising expenses related to finding the next tenant. These costs are part of the landlord's business expenses and have nothing to do with the previous tenant.
For example, if a tenant has lived in the property for several years and only normal signs of everyday living remain, requiring the tenant to pay for repainting the entire property would often become a source of dispute.
Keep Evidence if a Security Deposit Dispute Arises
Many security deposit disputes are not caused by unclear laws—they happen because there is not enough evidence.
For example, a landlord may claim that furniture was damaged, while the tenant argues that it was already old. The landlord may say professional cleaning was necessary, while the tenant believes only ordinary cleaning was required.
For this reason, both parties should inspect the property together during the move-out inspection and keep photographs and videos as evidence. If the landlord intends to make deductions, repair estimates, invoices, or cleaning receipts should also be provided to demonstrate that the deductions are reasonable.
👨🚀 Related Reading: Who Is Responsible for Rental Repairs in Taiwan?
☄️ Related Reading: How Is a Security Deposit Returned in Taiwan? What Landlords Can and Cannot Deduct
🚀 Related Reading: What Is the Move-Out Inspection Process in Taiwan?
🌌 Related Reading: What Does “Return in Original Condition” Really Mean in Taiwan?
Conclusion
The purpose of a security deposit is to compensate the landlord for losses caused by a tenant's breach of the lease—not to finance renovations or prepare the property for the next tenant. Costs arising from normal wear and tear, ordinary cleaning, and the landlord's routine business expenses generally should not be borne by the tenant.
When both parties complete the move-out inspection according to the lease, keep photographs and supporting documents, and ensure that any deductions are supported by proper evidence, many security deposit disputes can be resolved before they escalate into negotiations or legal proceedings.
