Working from home has become increasingly common. Some people take on freelance projects, others run online stores, and some even set up cameras in their bedrooms to livestream and earn money.
But when landlords find out, they might start worrying: Isn't a rental property supposed to be for residential use only? Could running a business from home affect property taxes or violate residential-use restrictions?
Meanwhile, tenants might wonder, "I'm just working on my computer at home. I'm not even running a physical store. Why should my landlord be able to stop me?"
The truth is, earning money from a rental property doesn't automatically turn it into a commercial space. What really matters is the lease agreement, how the property is actually being used, and whether those activities affect the property or neighboring residents.
What Does the Law Say?
Civil Code Article 421:
“1. A lease is a contract whereby the parties agree that one of them shall let the other party use a thing or collect profits therefrom and the latter shall pay a rental for it.
2. The rental specified in the preceding paragraph may consist of money or of profits of the thing leased.”
✨ Plain Explanation: Once tenants pay rent, they have the right to use the property according to their lease agreement. Landlords cannot interfere with tenants' everyday activities simply because they own the property.
For example, writing code, designing graphics, or editing videos at home doesn't automatically become an unauthorized business activity just because the tenant earns money from it.
⚖️ Legal Source: Civil Code Article 421 – Law.moj.gov.tw
Civil Code Article 423:
“The lessor shall be bound to deliver to the lessee the thing leased in a condition fit for the stipulated use or for the collection of profits as agreed upon. He shall be also liable to keep it up in such a condition as to be fit for such use or collection of profits during the continuance of the lease.”
✨ Plain Explanation: Landlords must provide a property suitable for its agreed purpose and respect tenants' right to use it normally.
If a tenant is quietly freelancing or attending online meetings without violating the lease or disturbing neighbors, the landlord generally cannot demand that the tenant stop simply because the work generates income.
⚖️ Legal Source: Civil Code Article 423 – Law.moj.gov.tw
Civil Code Article 438:
“1. A lessee shall use and derive benefits from the leased property in accordance with the agreed manner of use; where no such manner has been agreed upon, such use and enjoyment shall be conducted in a manner consistent with the nature of the leased property.
2. Where a lessee uses or derives benefits from the leased property in violation of the preceding paragraph and continues such use despite the lessor's objection, the lessor may terminate the contract.”
✨ Plain Explanation: Tenants have the right to use their rental property, but they must also follow the lease agreement.
If the lease clearly states that the property is for residential use only, but the tenant turns it into a warehouse, commercial filming studio, or physical business location, that could violate the lease.
If the landlord objects and the tenant continues violating the agreed use, the landlord may have grounds to terminate the lease under this provision. Simply discovering that a tenant works from home is not enough to demand an immediate move-out.
⚖️ Legal Source: Civil Code Article 438 – Law.moj.gov.tw
Does Freelancing, Livestreaming, or Running an Online Store Violate Residential-Use Restrictions?
Not necessarily! The real question isn't whether the tenant earns money, but how the rental property is actually being used.
Here are some common situations:
- Freelancing from home: Writing code, translating documents, or designing graphics on a computer is generally compatible with ordinary residential use.
- Livestreaming from home: Gaming streams or casual livestreams don't automatically violate a lease, provided they don't create excessive noise, involve unauthorized renovations, or disturb neighbors.
- Running an online store: Taking orders online and having suppliers ship products directly to customers doesn't necessarily change the property's residential use, especially when there is no large-scale inventory storage or regular customer traffic.
However, things become different when livestreams repeatedly disturb neighbors or a tenant fills the entire apartment with merchandise while delivery drivers constantly come and go.
Landlords can reasonably address activities that violate agreed property-use restrictions or affect safety and residential peace, rather than imposing a blanket ban on working from home.
Can Landlords Refuse Business Registration at a Rental Address?
This is one of the biggest concerns for landlords.
First, working from home doesn't always require business registration, but operating entirely online doesn't automatically exempt someone from registration either. Whether commercial, company, or tax registration is required depends on the actual business activities and applicable regulations in Taiwan.
If tenants want to register a company or business using their rental address, they should first check the lease terms and whether the landlord's consent is required. Paying rent doesn't automatically give tenants unrestricted permission to use the address for business registration.
As for property taxes, business registration doesn't necessarily mean a major tax increase.
Under Taiwan's Ministry of Finance guidance, a property used for online sales may continue to qualify for residential house tax rates if transactions take place entirely online and the property isn't otherwise used for business purposes, such as office operations or inventory storage.
However, if part of the property is actually used to store commercial inventory, that portion may be subject to business-use house tax rates. Land value tax treatment and other tax benefits also depend on the specific circumstances.
What landlords really need to consider is the registered business address, how the property is actually used, and the potential tax consequences, rather than assuming every tenant who sells products online is violating the law.
Can Landlords Intervene If Tenants Disturb Their Neighbors?
Yes, but it depends on the circumstances.
For example, a tenant might livestream loudly every night, leading to repeated complaints from neighbors. Another tenant might turn the living room into a large inventory warehouse, creating fire safety concerns or violating building management rules.
These situations go beyond ordinary working from home and may involve lease violations, disturbances to residential peace, or breaches of other regulations.
Landlords can first notify tenants of the problem, request corrective action, and keep records of relevant complaints or communications. If tenants continue using the property in violation of the agreed terms despite the landlord's objection, termination may be possible under Civil Code, Article 438, and other applicable laws.
However, a landlord cannot simply change the locks, shut off water or electricity, or forcibly evict a tenant based only on neighbor complaints or the discovery of an online business.
What If Tenants Use the Rental Property for Illegal Activities?
Things become much more serious if tenants use a rental property for fraud, drug trafficking, illegal gambling, or other criminal activities instead of legitimate work.
Landlords are not automatically criminally responsible simply because they own and rent out the property. However, landlords who knowingly participate in or actively assist criminal activities may face legal liability.
If there are concrete signs of illegal activity, landlords should prioritize personal safety, preserve evidence obtained lawfully, contact the police when necessary, and then address the lease through appropriate legal procedures.
Even when illegal activities are suspected, landlords cannot simply enter the property without legal authorization or forcibly remove tenants.
How Can Landlords and Tenants Avoid Disputes Before Signing a Lease?
The easiest approach is to make expectations clear from the beginning.
Landlords can include reasonable lease provisions covering permitted property uses, business registration, inventory storage, noise, and visitor traffic. However, these restrictions must still comply with applicable laws.
Tenants who plan to livestream regularly, operate an online business, or register a business address should also explain their intended activities in advance to avoid misunderstandings after moving in.
Most importantly, both parties should understand the difference between ordinary online work and using a residential property as an actual commercial establishment.
🧟♂️ Related Reading: Can Tenants Register Their Household in Taiwan? Can Landlords Refuse?
🧟♀️ Related Reading: Can Tenants Renovate Their Rental in Taiwan?
⚰️ Related Reading: Can Tenants Register a Company, Studio, or Business at a Rental Property in Taiwan?
🏚️ Related Reading: What If There Are Cockroaches, Rats, or Termites in a Rental Property? Can a Tenant Terminate the Lease or Ask for a Rent Reduction in Taiwan?
Conclusion: Earning Money from Home Doesn't Automatically Violate a Lease!
Landlords cannot assume that tenants are violating their lease simply because they freelance, livestream, or operate an online store from home. If the activities are ordinary online work, don't violate enforceable lease terms, and don't threaten property safety or disturb neighbors, they generally aren't sufficient grounds for demanding that the tenant stop or terminate the lease.
However, business registration, changes in actual property use, excessive inventory storage, or persistent noise disturbances may require a closer look at the lease agreement and applicable regulations. In those circumstances, landlords may have legitimate grounds to request corrective action.
Ultimately, Taiwan's laws protect both tenants' rights to reasonably use their rental homes and landlords' rights to manage their properties according to the lease. Clear expectations, reasonable agreements, and open communication can help both sides avoid unnecessary rental disputes.
