In Taiwan, most rental agreements have a fixed term—commonly one year—known as a fixed-term lease. Simply put, if the lease clearly specifies the start and end dates, it’s a fixed-term lease. On the other hand, if no specific duration is stated or if the lease expires without a new agreement being signed, it may automatically convert into a non-fixed-term lease.
Once a lease enters this non-fixed status, both parties can terminate the agreement at any time. However, this flexibility also brings legal risks and uncertainty for both landlords and tenants.
According to Taiwan’s Civil Code, if the lease term exceeds one year, a written agreement is mandatory. This requirement is designed to protect both parties and prevent future disputes. Without a written lease—even if both sides verbally agree—the contract will still be deemed a non-fixed-term lease. Therefore, signing a written agreement is essential for both landlords and tenants.
👻 Related reading: What is a non-fixed-term lease?
How Early Should You Notify Before a Lease Ends?
To avoid the lease becoming a non-fixed-term agreement, it’s crucial to confirm renewal intentions in advance. If the original contract does not specify how far in advance non-renewal should be communicated, it's best for both the landlord and tenant to proactively check in with each other about renewal plans at least one month before the lease ends.
If both parties wish to renew, they can arrange to sign a new written contract ahead of time to prevent the lease from being implicitly renewed into a non-fixed-term agreement. On the other hand, if both sides decide not to renew, the landlord will still have enough time to advertise the vacancy and smoothly transition to a new tenant, minimizing the risk of a vacant property.
How to Avoid Implied Renewal?
If a landlord wants to prevent the lease from automatically becoming non-fixed-term, specific clauses can be added to the original agreement, such as:
“Upon expiration of this lease, if no written renewal agreement is signed, the contract shall automatically terminate and not be subject to Article 451 of the Civil Code regarding implied renewal.”
or
“After this lease expires, neither party may claim renewal or implied extension.”
In addition, as the lease approaches its end, the landlord should issue a written notice to the tenant stating that the lease will not be renewed. This effectively blocks the lease from being automatically extended under implied renewal rules and avoids future disputes.
Risks and Tips Regarding Non-Fixed-Term Leases
A non-fixed-term lease is a double-edged sword:
- For landlords, if the tenant continues living in the property and hasn’t violated the agreement, it becomes difficult to end the lease or reclaim the property.
- For tenants, although there is more flexibility, they may face the risk of sudden termination, making their housing situation unstable.
The safest solution is to sign a new written agreement before the current lease ends, clearly defining the terms of the next rental period and protecting both parties’ rights.
So, next time your lease is nearing its end, both landlord and tenant should proactively confirm whether to renew.
- For landlords, this allows time to plan ahead and minimize vacancy.
- For tenants, a new contract provides housing stability and peace of mind.
That way, both sides can move forward with confidence and clarity in their rental relationship.
