Taiwan landlords no longer allowed to use rent subsidies as excuse to hike rent

TAIPEI (Taiwan News) — The Ministry of the Interior (MOI) on Wednesday (June 14) said it is issuing a new amendment that will bar landlords from raising the rent on tenants if they receive a rental subsidy.

As the boom in the rental housing market continues to drive up rents, the Cabinet last year started a four-year program with a goal of offering rent subsidies annually to up to 500,000 households, nearly 60% of renters. Those eligible include underprivileged families, new graduates, newlyweds, and other categories of adults aged 18 or over, but do not include foreign nationals unless they are in the process of naturalizing or are married to Taiwanese citizens.

However, many tenants do not apply for the subsidy because they are rejected by their landlords, who fear that they will have to pay significantly higher taxes. Also, some landlords upon learning that their tenants have started receiving the rent subsidy will raise the rent or refuse to renew the lease.

To address this issue, the MOI on Wednesday said that it will amend the guidelines for rental lease contracts to include a clause that reads: "Shall not require that the lessee shall not apply for rent subsidies," reported ETtoday. That is to say that future tenants can apply for rental subsidies without the consent of their landlords.

If a landlord unilaterally prohibits the application, it is unfair to the tenant and is against Article 12 of the Consumer Protection Act (消費者保護法) and Article 247-1 of the Civil Code (民法).

In addition, the MOI has said in the past that if a landlord requires a tenant to pay higher rent or taxes, the tenant can file a complaint with the county and city government for rectification of the situation. If the rectification is not made, a fine of NT$30,000 (US$976) to NT$300,000 can be imposed.

Those who still refuse to make rectifications may be fined NT$50,000 to NT$500,000, and may be punished on a case-by-case basis.

The first phase of the subsidy program ran from July to December of last year. The new phase will officially begin on July 3 this year and the MOI on June 21 will hold a press conference explaining the eligibility requirements and details of the application process.