The lease has ended, the property has been returned, and the move-out inspection is complete.
Yet the security deposit still hasn't been refunded.
Instead, the landlord keeps saying, "Just wait a little longer," claims there are additional deductions, or simply stops responding altogether.
In situations like this, many tenants start wondering:
Will the security deposit ever be returned?
Is there no choice but to accept the loss?
Fortunately, not necessarily.
As long as the tenancy has been lawfully terminated and the property has been properly returned, a landlord generally cannot refuse to refund the security deposit without a valid legal reason. In most cases, tenants can protect their rights through legal procedures, and going straight to court is usually unnecessary.
Let's first look at what the law says.
What Does the Law Say?
Rental Housing Market Development and Regulation Act, Article 7, Paragraph 2:
“Upon termination of the lease agreement, when the tenant has returned the rental housing and satisfied all obligations arising from the lease agreement, the landlord shall return the security deposit or, after offsetting any outstanding obligations, return the remaining balance of the security deposit.”
✨ Plain explanation: Once the lease has ended, the property has been returned, and all rent and other contractual obligations have been paid, the landlord should refund the security deposit.
If there are unpaid rent, unpaid utility charges, or damages caused by the tenant, the landlord may deduct those amounts from the deposit. However, any remaining balance must still be returned without unnecessary delay.
⚖️ Legal Source: Rental Housing Market Development and Regulation Act Article 7 – Law.moj.gov.tw
Civil Code, Article 179:
“A person who has received a benefit without legal grounds and thereby causes damage to another shall return such benefit. The same shall apply where the legal ground originally existed but has subsequently ceased to exist.”
✨ Plain explanation: If a landlord keeps a security deposit without any valid legal reason, it may constitute unjust enrichment under Taiwan's Civil Code.
In other words, once there is no lawful basis for retaining the deposit, the landlord has a legal obligation to return it.
⚖️ Legal Source: Civil Code Article 179 – Law.moj.gov.tw
Civil Code, Article 767, Paragraph 1:
“The owner may demand the return of property from any person who possesses or appropriates it without legal authority. The owner may demand the removal of any interference with ownership. Where there is a likelihood of interference with ownership, the owner may demand prevention thereof.”
✨ Plain explanation: If money or other property rights are being retained without legal authority, Taiwan's Civil Code also provides legal remedies for seeking their return.
In practice, when tenants file a lawsuit to recover a security deposit, they often rely on the lease agreement together with legal claims such as unjust enrichment.
⚖️ Legal Source: Civil Code Article 767 – Law.moj.gov.tw
What Should You Do If Your Landlord Won't Return the Security Deposit?
Many people immediately think about calling the police or filing a lawsuit.
However, most disputes are better handled step by step. Following the proper procedure often increases the chances of resolving the dispute while preserving valuable evidence.
📌 Step 1: Confirm Whether the Deductions Are Legitimate
Not every deduction from a security deposit is lawful.
Generally, a landlord may only deduct:
- Unpaid rent
- Unpaid utilities, gas, or management fees (if required by the lease)
- Repair costs for damage caused by the tenant
Normal wear and tear—such as faded paint, ordinary furniture wear, or typical floor usage—is generally not the tenant's responsibility.
Before taking further action, gather the following:
- Lease agreement
- Proof of the security deposit payment
- Photos and videos taken during move-out
- LINE conversations or other communications with the landlord
These documents can become important evidence during negotiations or court proceedings.
📌 Step 2: Send a Certified Mail Notice (Formal Demand Letter)
If the landlord still refuses to return the deposit after the move-out inspection, consider sending a certified mail notice.
The notice should generally include:
- Confirmation that the tenancy has ended and the property has been returned
- The amount of the security deposit to be refunded
- A deadline for repayment (for example, within seven days after receiving the notice)
The purpose of a certified mail notice is not to guarantee victory.
Its primary value is creating formal written evidence showing that the landlord was requested to perform the obligation.
If the dispute later reaches court, the notice can help demonstrate that proper legal demand was made.
📌 Step 3: Apply for Mediation or File a Civil Lawsuit
If the landlord still refuses to respond after receiving the certified mail notice, legal action may be appropriate.
Common options include:
- Applying for mediation through the mediation committee of the township, town, city, or district where the rental property is located
- Filing a Small Claims lawsuit with the District Court if the amount in dispute is NT$100,000 or less
- Filing an ordinary civil lawsuit for larger claims
In many security deposit disputes, a settlement is reached after the landlord receives a court notice or mediation notice, without the case ever reaching trial.
Common Scenario: The Landlord Says the Entire Property Needs Repainting or Renovation
Imagine a tenant moving out after living in the property for three or four years.
Minor wall marks or ordinary signs of use are usually considered normal wear and tear, which tenants generally are not required to pay for.
However, if there is significant wall damage, intentionally damaged furniture, or equipment broken through improper use, the landlord may have the right to seek compensation and deduct reasonable repair costs from the security deposit.
This is why taking photos, recording videos, and completing a detailed move-out inspection are often far more valuable than arguing afterward about what happened.
Important: Never Unilaterally Use the Security Deposit to Cover the Final Month's Rent
Some tenants worry that the landlord will never return the security deposit.
As a result, they decide:
"I'll just skip the last month's rent and let the landlord deduct it from the deposit."
Although this may seem like a way to protect themselves, it can actually create greater legal risks.
This is because rent and a security deposit serve entirely different legal purposes.
Rent: Payment for the use of the property and must be paid on time according to the lease.
Security Deposit: A guarantee for obligations that may arise when the lease ends, such as unpaid rent, unpaid utilities, property damage, or other compensation.
Although Taiwan's Land Act contains provisions concerning security deposits when landlords recover leased property, it does not give tenants the right to unilaterally stop paying their final month's rent.
Without the landlord's agreement, withholding rent may constitute a breach of the lease.
If repair costs later arise and the security deposit has already been used to offset unpaid rent, the landlord may still pursue compensation separately.
Unless both parties expressly agree otherwise, tenants should continue paying rent according to the lease and recover the security deposit through the proper legal process.
🐝 Related Read: What’s the Difference Between a Security Deposit and a Reservation Deposit in Taiwan?
🍯 Related Read: How Is a Security Deposit Returned in Taiwan? What Landlords Can and Cannot Deduct
🌼 Related Read: What Is a Certified Mail Notice? When Should Landlords and Tenants Send One in Taiwan?
🌳 Related Read: What Happens When a Rental Dispute Goes to Court?
Conclusion
A landlord's refusal to return a security deposit does not necessarily mean the money is lost forever.
As long as the tenancy has been properly terminated, the property has been returned, and supporting evidence has been preserved, tenants can request the return of the deposit under both the lease agreement and Taiwan law. Many disputes are successfully resolved through certified mail notices, mediation, or shortly after court proceedings begin.
The key is not rushing into litigation, but carefully documenting each step and following the proper legal procedures. Compared with withholding the final month's rent or taking other drastic actions, pursuing the claim through lawful channels provides stronger legal protection and significantly improves the chances of a favorable outcome.
