When renting a home in Taiwan, many people come across what is known as a “non-fixed-term lease.” The most common scenario is when the lease expires, but neither the tenant nor the landlord clearly expresses whether they want to renew. If the landlord does not object to the tenant continuing to live there, the original lease is automatically converted into a non-fixed-term lease — a rental agreement with no specific end date.
Once this happens, the tenant can legally continue living in the property, and the landlord cannot ask them to move out at will — unless it meets certain legal termination conditions.
Do You Have to Sign a Written Lease Agreement?
Legally speaking, a rental contract does not have to be in written form. As long as both parties reach a verbal agreement, the lease is considered valid. However, to avoid future disputes, it is strongly recommended that both the landlord and tenant sign a written contract.
Important reminder: According to Article 422 of the Civil Code, if the lease term exceeds one year, it must be in writing. Without a written agreement, it will be considered a non-fixed-term lease, and the rights and obligations of both parties may differ from what they expected!
🧙♀️ Related reading: Is a rental agreement always necessary in Taiwan?
What Is a Non-Fixed-Term Lease? What Does “Implied Renewal” Mean?
When the lease expires and the landlord continues to collect rent without explicitly stating disapproval of the tenant staying on, this may result in a non-fixed-term lease, also known as implied renewal.
According to Article 451 of the Civil Code:
"If, after the lease term expires, the lessee continues to use the property and the lessor does not express opposition within a reasonable time, the original contract terms remain unchanged, and the lease becomes a non-fixed-term lease."
In other words, the key issue is not whether rent is collected, but whether the landlord clearly expresses opposition. If no objection is made within a reasonable period, the lease is automatically renewed and converted into a non-fixed-term agreement.
Why Can’t the Landlord Evict the Tenant When the Lease Ends?
Once the lease becomes a non-fixed-term lease, the landlord cannot unilaterally terminate the agreement or ask the tenant to vacate at will. According to Article 100 of the Land Act, a landlord may only legally terminate the lease and reclaim the property under the following conditions:
- The landlord needs the property for personal use or plans to rebuild
- The tenant subleases the property without permission
- The tenant is behind on rent for more than two months
- The tenant engages in illegal activities
- The tenant seriously violates the lease agreement
- The tenant damages the property and refuses to repair or compensate
In other words, as long as the tenant pays rent on time and doesn’t breach the agreement, the landlord cannot unilaterally end the contract. Non-fixed-term leases provide some legal protection for tenants, but they also limit the landlord’s freedom to reclaim the property.
How Can Landlords Avoid Implied Renewal?
If a landlord wants to prevent the lease from unintentionally becoming a non-fixed-term lease, advance planning is key. Consider including the following clauses in the lease:
- “This contract shall terminate upon expiration unless a new written agreement is signed. It shall not be automatically renewed.”
- “Upon the expiration of this contract, it shall terminate automatically. Neither party may claim extension or implied renewal.”
Additionally, as the lease approaches its end, the landlord should proactively issue a written notice to the tenant stating that the lease will not be renewed. This helps avoid the application of Article 451 of the Civil Code regarding implied renewal.
Conclusion: Re-signing Is the Safest Option
A non-fixed-term lease can be a double-edged sword. For landlords, it may mean difficulty reclaiming their property; for tenants, it offers some protection but also comes with the risk of termination at any time.
The most reliable approach is for both parties to sign a new, clear agreement before the lease expires, ensuring well-defined rights and responsibilities. That way, both sides are protected—tenants can live with peace of mind, and landlords can rent with confidence.
So, next time your lease is nearing its end, make sure to check whether it might automatically become a non-fixed-term lease. Better yet, take the initiative to renegotiate the terms so that both sides have a clear understanding and avoid unnecessary misunderstandings or disputes.
