Taiwan’s rental market is growing, and landlords have various options to choose from when deciding how to rent out their properties. From self-management to professional agency services, each approach comes with its own advantages and disadvantages. Below are four common rental options for landlords to consider.
1. Self-Renting and Self-Managing
Self-renting is the most direct and flexible approach. Landlords can independently set rental prices, find tenants, and manage lease agreements. In this model, the landlord has full control and can handle any issues directly with the tenant. However, this method requires a significant amount of time and effort for managing daily affairs, including maintenance, rent collection, and dealing with tenant disputes. If a landlord is unfamiliar with relevant regulations or lacks the time to manage the property, they may experience pressure from the responsibilities involved.
2. Renting Through a Real Estate Agent
For landlords who lack time or prefer not to deal with the details of renting, hiring a real estate agent is a common option. Agents can assist with tenant screening, lease signing, rent collection, and more. This reduces the landlord’s burden, and agents, who are familiar with market trends, can help rent the property more efficiently. However, agents typically charge a commission, usually a percentage of the monthly rent.
3. Entrusting a Leasing Company for Master Leasing and Property Management
Master leasing and property management is a more advanced form of outsourcing, where the landlord grants full authority to a leasing company to manage the property. The company acts as a master tenant (also known as a sublessor) by leasing the property from the landlord and then subleasing it to other tenants. In this arrangement, the landlord does not need to worry about tenant turnover or late payments, as the leasing company guarantees a fixed rental income. However, the rent may be set lower than market value to ensure the company can maintain a profit margin during the subleasing process. In this model, the leasing company essentially functions as a professional sublandlord.
4. Entrusting a Social Housing Management Company
In recent years, the government has promoted social housing policies, and landlords can choose to entrust their properties to a company that manages social housing. This option provides landlords with stable rental income while participating in government social housing initiatives and may include rent subsidies or tax benefits. This model is particularly suitable for landlords seeking stable income and wishing to support social welfare programs. However, the rental target will primarily be social housing applicants, which could limit rent flexibility.
In conclusion, landlords should choose the most suitable rental option based on their needs, available time, and management capacity. Whether opting for self-renting or professional management, each method offers varying degrees of convenience and profitability.
