Handling foreign tenants as a landlord or agent in Taiwan involves additional considerations to ensure compliance with local laws and cultural norms. Here’s a structured guide:
1. Verify Legal Residency
- Check visa status:
- Ensure the potential tenant has a valid visa (work, student, or family unification visa) that allows them to reside in Taiwan
- Tourist visas typically disqualify them from long-term rentals
- Request documents:
- Valid passport, Alien Resident Certificate (ARC), and proof of visa status (student ID, work contract)
2. Rental contract requirements
- Language clarity: Provide contracts in Chinese (legally required). Offer an English translation for clarity, but note that the Chinese version is the legal document
- Specify terms: Include clauses about subletting, lease duration, and dispute resolution
- Registration: For leases over 2 years, register the contract with the local household registration office
3. Security deposit and payment
- Advance payment / reservation deposit (optional): Some rentals may require a deposit before signing to reserve the property. This is not mandatory and serves as a commitment from both parties
Request a receipt from the landlord that clearly states:
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Deposit amount
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Payer and recipient names and IDs
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Reservation period
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Typical reservation period: 10–15 days (up to 30 days maximum)
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If the lease is signed, this advance payment is usually credited toward rent or the security deposit.
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- Deposit amount: Typically 1–2 months’ rent, same as local tenants. Foreign tenants should not be charged extra due to their nationality
- Rent and utilities: Clarify which fees are included in the rent (water, electricity, gas, internet, management fees, cleaning fees) and specify this in the lease
- Payment methods:
- Accept bank transfers or cash, but prefer bank transfers for traceability
- Note that foreign tenants may need time to transfer funds internationally
4. Property and Equipment Maintenance
- Landlord responsibility: Unless otherwise stated in the contract, landlords are responsible for repairs of furniture, appliances, and other facilities
- Tenant obligation: Tenants should act as "responsible managers" by notifying the landlord promptly of any damage to prevent further loss
- Lease recommendation: Clearly list which repairs are the tenant’s responsibility and which are the landlord’s to reduce disputes
5. Communication and Cultural Sensitivity
- Language barriers: Use translation tools or hire bilingual staff/agents to ensure clear communication
- Cultural norms: Be patient with language differences and respect cultural practices (notice periods, payment deadlines)
- Property inspection: Photos may differ from reality. Encourage foreign tenants to inspect equipment, layout, and furnishings in person to avoid misunderstandings
6. Legal Compliance
- Tax obligations: Ensure tenants understand tax responsibilities (utility bills, property taxes paid by the landlord)
- Lease termination and notice: If early termination is allowed, tenants must provide notice within the agreed timeframe (usually 1–2 months), or a penalty may apply (max 1 month’s rent)
- Security deposit return and property condition: Clearly define the standard for property return. Specify whether tenants should return the property to its original state or maintain modifications. Normal wear and tear (e.g., wall marks, mattress sagging) should not be deducted from the deposit
7. Lease termination and renewal
- Notice period: Clearly state termination clauses (1-2 months’ notice)
- Refund process: Return the deposit promptly after inspection, minus any deductions for damage or unpaid bills
8. Guarantor Requirements
- Require a local guarantor:
- Foreigners with no local credit history may need a guarantor to vouch for them
- The guarantor must provide ID, income proof, and sign the contract
9. Common Challenges and Solutions
- Early departure: Foreigners may leave abruptly due to visa issues or job changes. Include clauses for early termination penalties
- Dispute resolution: Mediation can be sought through the local household registration office, Consumer Protection Center, or, if necessary, legal channels
10. Resources for Landlords/Agents
- Government websites: Ministry of the Interior (MOI): https://www.moi.gov.tw for housing laws
- Real estate agents: Partner with agencies experienced in handling foreign tenants (those catering to expats)
11. Documentation Tips
- Keep copies: Store tenant documents (ID, visa, guarantor info) securely
- Digital records: Use cloud storage for contracts and communication records
Key Takeaways
- Prioritize legal compliance and clear communication
- Be prepared to accommodate language and cultural differences
By following these steps, landlords and agents can manage foreign tenants smoothly while minimizing risks. If unsure, consult a legal professional.