Many people assume that moving out simply means packing up, returning the keys, and waiting for the security deposit to be refunded.
In reality, most rental disputes do not arise from whether the tenant moved out—but from whether the move-out inspection (handover) was properly completed.
Whether a lease expires naturally or is terminated early, both landlords and tenants are legally required to complete an important final procedure: the move-out inspection.
If this step is skipped or handled poorly, disputes over security deposits, property condition, damaged equipment, or leftover belongings can easily follow—often becoming more complicated over time.
This article explains, in plain language, what a move-out inspection legally entails and why it matters.
What Does the Law Say?
Rental Housing Market Development and Regulation Act, Article 12:
“1. Upon termination of a residential lease, the return of the rental property shall be completed through a joint inspection of the property condition and attached equipment by both parties.
If one party fails to attend the inspection after being given reasonable notice by the other party, the inspection shall be deemed completed.
2. After the inspection, if personal belongings remain in the property and the tenant fails to retrieve them within a reasonable period after notice, the items shall be deemed abandoned.
Disposal costs may be deducted from the security deposit, and any shortfall may be claimed from the tenant.”
✨ Plain explanation: When a lease ends, the landlord and tenant should jointly confirm the condition of the property and its equipment.
If one party refuses to attend, the other party may proceed after proper notice and waiting a reasonable amount of time—the inspection will still be considered legally complete.
If belongings are left behind after the inspection and are not retrieved after notice, the law treats them as abandoned. Disposal costs may be deducted from the deposit.
⚖️ Legal Source: Rental Housing Market Development and Regulation Act Article 12 – Law.moj.gov.tw
Mandatory Provisions to be Included in and Prohibitory Provisions of the Standard Form Rental Housing Contract:
“Upon termination of the lease relationship, the landlord shall promptly settle the rent and the related expenses agreed upon under Item 6, and shall jointly complete the inspection and handover of the condition of the premises and the attached equipment together with the tenant. The tenant shall return the leased residential property to the landlord and complete the removal of household registration or other required registrations.
If either party to the lease fails to attend the joint inspection, and after being given a reasonable period by the other party to do so still fails to attend, the inspection shall be deemed completed.
Where the tenant fails to return the leased residential property in accordance with the preceding paragraph, the landlord shall expressly state that the lease shall not continue as an open-ended lease and may claim from the tenant compensation equivalent to the monthly rent for the period during which the property is not returned, as well as liquidated damages calculated based on the same monthly rent (or prorated on a daily basis if less than one month), until the property is returned.
The foregoing amounts, together with any unpaid rent and related expenses agreed upon under Item 6, may be offset against the security deposit provided under Item 5, Paragraph 1. If the deposit is insufficient, the landlord may further claim payment of the outstanding balance or expenses from the tenant.”
✨ Plain explanation: The government’s standard lease contract clearly defines how the move-out and handover process should be handled. When the lease ends, the landlord must settle all rent and related expenses, while the tenant must return the property. Both parties are required to jointly confirm the condition of the premises and any attached equipment. If one party refuses to attend the inspection after being given reasonable notice, the law will treat the inspection as completed. If the tenant has moved out but fails to formally return the property, the landlord may claim compensation for the period of non-return, and the relevant amounts may be deducted from the security deposit.
⚖️ Legal Source: Ministry of the Interior – Residential Lease Standard Contract Regulations
When Is a Move-Out Inspection Required?
Many people believe inspections are only needed when a lease expires naturally. That is incorrect.
A move-out inspection is required whenever the lease relationship ends, including:
- Lease expiration without renewal
- Early termination by the tenant
- Lawful termination by the landlord
In short, the inspection is not optional—it is a necessary step when the lease ends.
What Happens During a Move-Out Inspection?
The inspection focuses on two core matters:
- Confirming the current condition of the property
- Confirming that all equipment originally provided has been returned
This is why leases often include a Property Condition Checklist at the time of move-in, documenting furniture, appliances, and their condition.
At move-out, both parties refer to this checklist to prevent disputes based on conflicting recollections.
Three Key Things Both Parties Should Pay Attention To
1. Should the Property Be Returned to Its Original Condition?
This is one of the most common misunderstandings.
Most residential leases require returning the property to its original condition, but this does not mean restoring it to a brand-new state.
Normal wear and tear—such as minor wall marks or aging equipment—does not require repair or compensation by the tenant.
🧩 “Return as-is” arrangements are more common when tenants have made approved modifications or installations.
If changes were made with the landlord’s consent and documented in the lease, the tenant may return the property in its existing condition.
However, any damage beyond normal wear—such as unauthorized drilling, renovations, or equipment damage—remains the tenant’s responsibility.
2. Utilities Must Be Settled
Water, electricity, and gas charges are almost always reviewed at move-out.
Ideally, all utility bills should be fully settled when the lease ends.
If final bills are not yet available, it is common practice to temporarily retain a reasonable amount from the deposit—often based on the average of recent billing periods—until the final settlement is completed.
3. Do Not Leave Belongings Behind
The law already provides a clear mechanism for handling leftover items.
If the landlord notifies the tenant to retrieve belongings and a reasonable time passes without action, the items are legally considered abandoned.
The landlord may dispose of them and deduct the disposal costs from the deposit, and may claim additional amounts if necessary.
Therefore, tenants should clear the property before the inspection to avoid unnecessary disputes or charges.
🧛♂️ Related Read: Rental Handover Matters! How to Document Property Conditions and Avoid Disputes in Taiwan
🦇 Related Read: Is There a Cap on Security Deposits in Taiwan?
⚰️ Related Read: Who Is Responsible for Rental Repairs in Taiwan?
🏰 Related Read: Can Tenants Renovate Their Rental in Taiwan?
Conclusion
A move-out inspection is not a mere formality—it is the process that allows a rental relationship to end cleanly.
If skipped, disputes over deposits, damages, and responsibilities often follow.
Completing the inspection allows both parties to clarify responsibilities, settle accounts, and move on without lingering conflict.
That is the practical and legal purpose behind the move-out inspection system.
