January 2025
Residential Leasing and Subleasing:Mandatory and Prohibited Clauses in Standardized Contracts (Taiwan)
January 2025
Frank Sun and Elesha Wang
To promote a healthy residential leasing market and enhance the protection of lessee rights, the Legislative Yuan has gradually amended the Rental Housing Market Development and Regulation Act, improving the framework for rights and obligations in leasing relationships. Simultaneously, the Ministry of the Interior has been revising the mandatory and prohibited clauses in the Standardized Residential Lease Agreement[1] and Standardized Residential Sublease Agreement[2] to enhance fairness and transparency in the leasing market.
The key revisions are summarized as follows:
1. Fairness and Transparency in Electricity Billing
For electricity costs borne by lessees and billed per kilowatt-hour (kWh), it is stipulated that the rate cannot exceed the average electricity price per kWh for the rental unit during the billing period. Lessors or Rental Housing Subleasing Businesses (RHSBs) are prohibited from charging additional fees for shared public facility electricity costs that have not been submitted to Taiwan Power Company for apportionment into the rental unit's electricity fees. For electricity costs not billed per kWh, the total electricity fees collected by the lessor for each billing period must not exceed the total electricity charges stated in the electricity bill for the rental unit during the same period.
Additionally, lessors or RHSBs are required to provide lessees with information on electricity charges for the rental unit, ensuring reasonable and transparent billing practices. Lessees may also directly request relevant electricity usage information for the rental period from the Taiwan Power Company.
2. Protection of Lessees’ Early Termination Rights
The clause requiring lessees to demonstrate “difficulty in continuing to reside” in order to terminate the lease early has been deleted[3]. This revision ensures that lessees can lawfully terminate the lease early in situations such as house damage or safety concerns.
3. Strengthening Prohibited Clauses: Ban on Restrictions Related to Rent Subsidies
To uphold housing justice, a new provision prohibits lease agreements from explicitly restricting lessees from applying for rent subsidies. Furthermore, lessors may not impose indirect restrictions on lessees—such as increasing rent or prematurely terminating the lease—through improper contractual terms designed to deter lessees from applying for rent subsidies.
[1] https://www.ey.gov.tw/Page/DFB720D019CCCB0A/478917df-7599-418f-8715-fd2716b623b4 （Last visited: 2025/01/09）
[2] https://www.ey.gov.tw/Page/DFB720D019CCCB0A/64abee92-0677-4a8a-b54a-ee644e611ad3 （Last visited: 2025/01/09）
[3] Currently, this revision is only included in the "Mandatory and Prohibited Clauses in Standardized Residential Sublease Agreements." Whether the Ministry of the Interior will incorporate similar amendments into the "Mandatory and Prohibited Clauses in Standardized Residential Lease Agreements" remains uncertain. Our firm will continue to monitor developments in this regard.
The contents of all materials (Content) available on the website belong to and remain with Lee, Tsai & Partners. All rights are reserved by Lee, Tsai & Partners, and the Content may not be reproduced, downloaded, disseminated, published, or transferred in any form or by any means, except with the prior permission of Lee, Tsai & Partners.
The Content is for informational purposes only and is not offered as legal or professional advice on any particular issue or case. The Content may not reflect the most current legal and regulatory developments. Lee, Tsai & Partners and the editors do not guarantee the accuracy of the Content and expressly disclaim any and all liability to any person in respect of the consequences of anything done or permitted to be done or omitted to be done wholly or partly in reliance upon the whole or any part of the Content. The contributing authors' opinions do not represent the position of Lee, Tsai & Partners. If the reader has any suggestions or questions, please do not hesitate to contact Lee, Tsai & Partners.
Frank Sun and Elesha Wang
To promote a healthy residential leasing market and enhance the protection of lessee rights, the Legislative Yuan has gradually amended the Rental Housing Market Development and Regulation Act, improving the framework for rights and obligations in leasing relationships. Simultaneously, the Ministry of the Interior has been revising the mandatory and prohibited clauses in the Standardized Residential Lease Agreement[1] and Standardized Residential Sublease Agreement[2] to enhance fairness and transparency in the leasing market.
The key revisions are summarized as follows:
1. Fairness and Transparency in Electricity Billing
For electricity costs borne by lessees and billed per kilowatt-hour (kWh), it is stipulated that the rate cannot exceed the average electricity price per kWh for the rental unit during the billing period. Lessors or Rental Housing Subleasing Businesses (RHSBs) are prohibited from charging additional fees for shared public facility electricity costs that have not been submitted to Taiwan Power Company for apportionment into the rental unit's electricity fees. For electricity costs not billed per kWh, the total electricity fees collected by the lessor for each billing period must not exceed the total electricity charges stated in the electricity bill for the rental unit during the same period.
Additionally, lessors or RHSBs are required to provide lessees with information on electricity charges for the rental unit, ensuring reasonable and transparent billing practices. Lessees may also directly request relevant electricity usage information for the rental period from the Taiwan Power Company.
2. Protection of Lessees’ Early Termination Rights
The clause requiring lessees to demonstrate “difficulty in continuing to reside” in order to terminate the lease early has been deleted[3]. This revision ensures that lessees can lawfully terminate the lease early in situations such as house damage or safety concerns.
3. Strengthening Prohibited Clauses: Ban on Restrictions Related to Rent Subsidies
To uphold housing justice, a new provision prohibits lease agreements from explicitly restricting lessees from applying for rent subsidies. Furthermore, lessors may not impose indirect restrictions on lessees—such as increasing rent or prematurely terminating the lease—through improper contractual terms designed to deter lessees from applying for rent subsidies.
[1] https://www.ey.gov.tw/Page/DFB720D019CCCB0A/478917df-7599-418f-8715-fd2716b623b4 （Last visited: 2025/01/09）
[2] https://www.ey.gov.tw/Page/DFB720D019CCCB0A/64abee92-0677-4a8a-b54a-ee644e611ad3 （Last visited: 2025/01/09）
[3] Currently, this revision is only included in the "Mandatory and Prohibited Clauses in Standardized Residential Sublease Agreements." Whether the Ministry of the Interior will incorporate similar amendments into the "Mandatory and Prohibited Clauses in Standardized Residential Lease Agreements" remains uncertain. Our firm will continue to monitor developments in this regard.
The contents of all materials (Content) available on the website belong to and remain with Lee, Tsai & Partners. All rights are reserved by Lee, Tsai & Partners, and the Content may not be reproduced, downloaded, disseminated, published, or transferred in any form or by any means, except with the prior permission of Lee, Tsai & Partners.
The Content is for informational purposes only and is not offered as legal or professional advice on any particular issue or case. The Content may not reflect the most current legal and regulatory developments. Lee, Tsai & Partners and the editors do not guarantee the accuracy of the Content and expressly disclaim any and all liability to any person in respect of the consequences of anything done or permitted to be done or omitted to be done wholly or partly in reliance upon the whole or any part of the Content. The contributing authors' opinions do not represent the position of Lee, Tsai & Partners. If the reader has any suggestions or questions, please do not hesitate to contact Lee, Tsai & Partners.
