Long-Term Property Rental in Taiwan

Published on October 3, 2025 and written by Cyril Jarnias

Taiwan, a vibrant island off the coast of China, is attracting an increasing number of foreign real estate investors. With its thriving economy and growing population, Taiwan’s rental market offers attractive opportunities for those looking to lease property long-term. This article will guide you through the key steps to succeed in your rental investment in Taiwan.

A Promising Rental Market: Why Invest in Taiwan?

Long-term property leasing in Taiwan can indeed prove to be a profitable venture for several reasons:

A Dynamic Economy: Taiwan benefits from a robust economy, particularly in the technology and electronics sectors. This economic vitality attracts many expatriates and skilled professionals, creating consistent demand for quality housing.

A Growing Population: Although Taiwan’s population growth is moderate, the urban population continues to increase, especially in major cities like Taipei, New Taipei, and Kaohsiung. This urbanization supports rental demand.

A Stable Real Estate Market: Unlike some more volatile Asian markets, Taiwan’s real estate market is relatively stable, offering appreciable security for long-term investors.

Attractive Rental Yields: According to recent data, gross rental yields in Taipei range between 1.5% and 2.5% annually. While these figures may seem modest, they are offset by market stability and long-term appreciation prospects.

A Favorable Legal Framework: The Taiwanese government has implemented regulations that protect both landlords and tenants, creating an environment conducive to rental investment.

Lease Agreement: Keys to a Solid and Fair Contract

Establishing a clear and comprehensive lease is essential for successful long-term rental in Taiwan. Here are the key elements to consider:

Lease Duration: In Taiwan, residential leases are typically signed for one-year terms, renewable. Make sure to clearly specify the initial duration and renewal conditions.

Security Deposit: It’s common to request a security deposit equivalent to two months’ rent. This amount should be clearly stated in the contract, along with the conditions for its return.

Party Responsibilities: Precisely detail the landlord’s and tenant’s responsibilities regarding maintenance, repairs, and payment of utilities.

Termination Clauses: Include clear clauses regarding early termination conditions for both the tenant and the landlord.

Contract Language: Although Chinese is the official language, having a bilingual version (Chinese and English) of the contract is recommended to avoid misunderstandings.

Lease Registration: In Taiwan, registering the lease with local authorities is not mandatory but can offer additional protection in case of disputes.

• Ensure the contract complies with Taiwan’s Residential Lease Act.
• Include specific clauses regarding the use of common areas in buildings.
• Specify conditions for property access for inspections or repairs.

Pricing Strategy: Optimizing Your Rental Income

Setting the appropriate rent is crucial to maximizing your income while remaining competitive in Taiwan’s rental market. Here are some points to consider:

Market Research: Analyze rents charged in the neighborhood for similar properties. Real estate listing sites like 591.com.tw can give you a good overview of market prices.

Location: Rents vary significantly by neighborhood. In Taipei, for example, areas like Xinyi or Da’an command higher rents than peripheral districts.

Property Features: Objectively assess your property’s assets (size, amenities, view, etc.) to adjust your rent accordingly.

Seasonality: Consider seasonal variations in demand, particularly related to university start dates or economic cycles.

Flexibility: Be prepared to adjust your rent based on lease duration or tenant profile (expatriate, student, local family, etc.).

Included Utilities: Decide whether certain utilities (water, electricity, internet) will be included in the rent or paid separately by the tenant.

• Consider offering one month’s free rent for long-term leases.
• Include a rent escalation clause for multi-year contracts.
• Stay informed about local real estate market developments to adjust your rates if necessary.

Property Management: Cultivating Harmonious Relationships with Your Tenants

Effective management of relationships with your tenants is essential to ensure the longevity of your rental investment in Taiwan. Here are some tips to achieve this:

Clear Communication: Establish open and regular communication with your tenants from the start. If you don’t speak Mandarin, consider using the services of an interpreter or bilingual real estate agent.

Responsiveness: Respond quickly to your tenants’ requests and concerns. Responsiveness is particularly appreciated in Taiwanese culture.

Respect for Local Traditions: Familiarize yourself with Taiwanese customs, such as Lunar New Year, and be understanding of your tenants’ cultural practices.

Regular Maintenance: Schedule regular property inspections, always respecting your tenants’ privacy. Preventive maintenance can avoid more costly problems in the long run.

Conflict Management: In case of disagreement, always prioritize dialogue and amicable solutions before considering legal measures.

Respect for Privacy: Taiwanese law places great importance on protecting tenants’ privacy. Ensure you scrupulously respect these legal provisions.

• Consider offering a small welcome gift to your new tenants, a practice appreciated in Taiwan.
• Provide a detailed tenant guide, including information about the neighborhood and local services.
• Consider using a property management app to facilitate communication and payment tracking.

Conclusion: A Promising Investment with the Right Tools

Long-term property leasing in Taiwan can prove to be a profitable and rewarding venture for savvy investors. By understanding local market specifics, establishing solid contracts, setting competitive rents, and cultivating good relationships with your tenants, you’ll maximize your chances of success.

Remember that every investment carries risks and opportunities. Thorough due diligence and, if necessary, consulting local professionals can help you navigate the complexities of Taiwan’s real estate market.

With a thoughtful approach and careful management, your rental investment in Taiwan could well become a stable source of long-term income, while offering you the opportunity to participate in the economic growth of this vibrant island.