The rental deposit (押金, yā jīn) is one of the most common sources of conflict between tenants and landlords in Taiwan. It's also frequently confused with earnest money (定金 or 斡旋金), a separate, smaller payment made earlier in the process; see Earnest Money in Taiwan Rentals if you're not sure which one you've been asked for. Knowing your legal rights before you sign can save you significant money and stress when you move out.
What the Law Says
Under Taiwan's Civil Code (民法) and the Rental Housing Market Development and Regulation Act (租賃住宅市場發展及管理條例):
- Maximum deposit: 2 months' rent. A landlord cannot legally demand more.
- Return deadline: The landlord must return the deposit within a reasonable time after the lease ends. In practice, this is generally expected within 1 month unless deductions are being disputed.
- Interest: Deposits held long-term technically accrue interest, though this is rarely enforced.
These terms should be spelled out in the lease itself; see the rental contract checklist for the deposit clause and nine other things to verify before you sign.
What Landlords Can Legally Deduct
Landlords may deduct from the deposit for:
- Damage beyond normal wear and tear: e.g., a hole in the wall, broken appliances, stains that require professional cleaning
- Unpaid rent: if you owe rent at the end of the tenancy
- Unpaid utilities: if utilities are in your name or under a landlord-billed arrangement and remain unpaid
What counts as "normal wear and tear"?
- Faded or slightly scuffed paint
- Small marks from hanging frames (with proper hooks)
- Minor scratches on floors from regular use
- Aging of fixtures over time
Landlords cannot deduct for normal aging or fair wear from everyday use.
What to Do Before Moving In
The most effective protection against deposit disputes is a proper move-in inspection:
- Walk through the unit with the landlord on move-in day
- Photograph every existing crack, stain, scratch, or damaged item
- Create a written checklist listing all pre-existing issues
- Both you and the landlord sign and keep copies
Without this, the landlord can claim any damage was caused during your tenancy, and you'll have no evidence to the contrary. For a full move-in checklist, see Move-In Inspection SOP.
Common Deposit Dispute Scenarios
"I'm deducting for repainting the whole apartment"
Unless you painted the walls a non-neutral colour or caused unusual damage, full repainting is typically classified as normal turnover cost, not the tenant's responsibility.
"I'm deducting because you left furniture"
If the lease didn't require you to remove furniture you brought in, and you removed everything you agreed to, this deduction is questionable.
The landlord refuses to return the deposit at all
If the landlord does not return the deposit within a reasonable time:
- Send a written demand (email or registered letter) stating the return deadline
- If ignored, file a small claims action (簡易庭) at your local district court: it's a straightforward process for amounts under NT$500,000
- You may also seek help from the Housing Rental Dispute Mediation service in your city
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Quick Reference
| Item | Rule |
|---|---|
| Maximum deposit | 2 months' rent |
| Landlord's return deadline | Within reasonable time (typically 1 month) |
| Deductible: normal wear | ❌ Not allowed |
| Deductible: actual damage | ✅ Allowed with evidence |
| Deductible: unpaid rent | ✅ Allowed |
| No move-in inspection done | Dispute becomes your word vs. landlord's |
Summary
Protect your deposit by doing a thorough move-in inspection with photos and a signed checklist. Know that the legal cap is 2 months' rent and that normal wear is not a valid deduction reason. If a dispute arises, you have legal remedies available, but documentation is everything.