By law, a rental security deposit is at most 2 months' rent; the tenant may use any amount above that to pay rent. There is no statutory deadline such as “refund within a set number of days after move-out.” The rule is that when the tenant returns the unit and settles outstanding debts, the landlord must return the security deposit, or whatever remains after offsetting those debts, which means it is to be settled on the spot at handover.
Note: The most common mistake is treating normal wear and tear as damage and deducting it from the deposit. Under Civil Code Article 432 and item 12 of the required terms in the standard-form contract, the tenant is not liable for changes or wear caused by using the unit in the agreed manner or in line with the nature of the property. This article covers ordinary residential leases. Article 4 of the Rental Housing Act says that rental housing run and managed by the government or its dedicated corporation or institution is not covered by that Act; for government social housing, the deposit (保證金) follows each project's leasing rules and tenant-recruitment announcement.
The deposit cap: 2 months, and both laws say so
Article 7, paragraph 1 of the Rental Housing Market Development and Regulation Act (租賃住宅市場發展及管理條例; “Rental Housing Act” below) says the amount of the deposit may not exceed 2 months' total rent. Article 99 of the Land Act (土地法) likewise says security money may not exceed 2 months' total rent for the building, and paragraph 2 states that if the amount already paid exceeds the limit, the tenant may use the excess to pay rent.
Article 3 of the Rental Housing Act defines the deposit as money a tenant pays in advance to secure liability for damage compensation on the rental housing and for dealing with items left behind. A deposit is security, not income for the landlord, and it cannot serve as the last 2 months' rent unless both sides agree otherwise. Item 5 of the standard-form contract published by the Ministry of the Interior also requires that the deposit be “at most 2 months' total rent” and be paid when the contract is signed.
Article 5 of the Rental Housing Act treats the landlord and tenant as having a consumer relationship, so the Consumer Protection Act applies. That means the Ministry of the Interior's rules on terms that standard-form residential leases must and must not include (住宅租賃定型化契約應記載及不得記載事項) also bind ordinary landlords: required terms that are left out of the contract still become part of it under Article 17 of the Consumer Protection Act, and any clause that breaks the prohibited terms is void.
When is it refunded? Settle it at handover
Article 7, paragraph 2 of the Rental Housing Act: when the lease ends and the tenant returns the rental housing and pays the debts arising from the lease, the landlord must return the deposit, or the remaining deposit after offsetting those debts. Item 5, paragraph 2 of the standard-form contract is worded the same way: it is returned when the lease term ends or the contract is terminated and the tenant returns the unit.
The text gives the landlord no grace period such as “7 days” or “1 month.” The common practice of “waiting until the next electricity bill arrives to settle” is something the two sides may agree on separately; it is not a right the law gives the landlord. This article suggests confirming the handover date with the landlord before you move out, and settling the last utility (water and electricity) bills together on handover day.
Handover follows Article 12 of the Rental Housing Act: both sides complete the handover of the unit's condition and its fixtures together; if one side does not show up, and the other side sets a reasonable time limit by notice and the side still fails to attend, the handover is deemed complete. The photos you took at move-in are your reference at move-out. For how to take them, see the rental move-in inspection checklist, and at move-out compare against the same checklist item by item.
What the landlord can deduct from the deposit
Item 5, paragraph 2 of the standard-form contract lists four situations for which the deposit may be applied; other items generally cannot be deducted:
| Deductible item | What it covers | Basis |
|---|
| Damage caused by the tenant | Compensation for damage to or loss of the unit because the tenant failed to exercise the duty of care of a good manager (善良管理人); the landlord may claim any shortfall separately | Required terms item 12, paragraphs 3 and 4; Civil Code Article 432 |
| Penalty for terminating at will | Where the contract ticks “may” terminate at will, the penalty owed when one side terminates without giving 1 month's advance notice (at most 1 month's rent) | Required terms item 14, paragraphs 2 and 3 |
| Unpaid rent and charges; failing to move out on time | Rent and charges still unpaid after settlement, such as the management fees and utility charges agreed in item 6; the rent-equivalent for the period after the lease ends during which the unit is still not returned, plus the penalty | Required terms item 15, paragraphs 3 and 4 |
| Cost of handling left-behind items | Items still left after handover that the tenant does not retrieve after being notified are deemed abandoned, and the handling cost can be deducted from the deposit | Required terms item 19; Rental Housing Act Article 12, paragraph 2 |
| Not deductible: normal wear and tear | Changes or damage caused by use in the agreed manner or in line with the nature of the unit, for example everyday marks on walls or natural aging of fixtures | Required terms item 12, paragraph 3 proviso; Civil Code Article 432, paragraph 2 proviso |
If a tenant did interior renovation with the landlord's consent, whether the unit must be restored on return depends on what is ticked in item 10 of the contract: “responsible for restoring to original condition,” “return in present condition,” or another agreement. Repairs for natural aging of fixtures are in principle the landlord's responsibility; you can compare the details with the rental repair responsibility table.
What if the landlord does not return the deposit?
Below is the order of steps this article suggests; keep a written record at every step:
- Send a written demand first: by text message, messaging app or certified letter (存證信函), state the handover date, the amount owed to you and the fees you have already paid, and give a reasonable deadline.
- Apply for mediation by the local government: under Article 16 of the Rental Housing Act, residential lease disputes can be brought to the government of the special municipality (直轄市) or county (city) for mediation (調處), with no mediation fee. The Taipei City Government's land administration bureau (臺北市政府地政局) statistics on real estate dispute mediation list a category called “residential lease disputes” (住宅租賃爭議).
- Consumer dispute complaint: a press release of the Taipei City land administration bureau dated September 1, 2023 explains that under the new system, residential lease contracts are fully subject to the Consumer Protection Act's rules on standard-form contracts and dispute handling, so a tenant can file a consumer dispute complaint.
- Township, city or district mediation: Article 1 of the Township and County-Administered City Mediation Act (鄉鎮市調解條例) provides that the mediation committee of the township or city office handles mediation of civil matters, and Article 35 applies it to the districts of special municipalities; Article 23 provides that no fee may be charged other than inspection fees.
- Small claims: Article 436-8 of the Code of Civil Procedure: a claim for payment of money of NT$100,000 or less uses the small claims procedure. Most deposits fall within this range.
Mind the limitation period too. Civil Code Article 456: the landlord's claim against the tenant for compensation for damage to the rented property lapses if it is not exercised within 2 years from the time the property is returned. If a landlord says long after move-out that repair costs will be deducted, first check whether more than 2 years have passed.
FAQ
Can the deposit be 3 months?
No. Article 7 of the Rental Housing Act and Article 99 of the Land Act both set the cap at 2 months' total rent. Under Article 99, paragraph 2 of the Land Act, any amount already overpaid can be used by the tenant to pay rent.
Can the deposit be used directly for the last month's rent?
Not on the tenant's own say-so. The rules give the tenant no unilateral right to use the deposit as rent; the deposit secures damage compensation and the handling of left-behind items. If both sides agree, it is fine, and this article suggests writing it into the contract or keeping a written record of the consent so that it is not treated as unpaid rent at handover.
If the house is sold, who do I get the deposit from?
Under Civil Code Article 425 (a sale does not break a lease, 買賣不破租賃), the lease continues to bind the new owner; item 16 of the required terms requires the original landlord to hand the deposit and prepaid rent over to the transferee and to notify the tenant in writing. But these two provisions do not apply to a lease that has not been notarized and has a term of more than 5 years; Civil Code Article 425, paragraph 2 also excludes leases that are not notarized and have no fixed term from the rule that a sale does not break a lease.
If I end the lease early, is the whole deposit forfeited?
No, not automatically. Where the contract ticks “may” terminate at will, a penalty is owed only if no notice was given 1 month in advance, at most 1 month's rent, and it can be deducted from the deposit; no compensation is owed for early termination on a statutory ground. For details see rental early termination penalty and notice period.
Last updated: 2026-10-31
This article was compiled by the SOSfix editors from public information and is for general reference only; for your own case, contact the land administration unit or consumer service center of the special municipality or county (city) government where the property is located.
Sources
- National laws and regulations database (全國法規資料庫): Rental Housing Market Development and Regulation Act (amended February 8, 2023; verified 2026-10-31) (in Chinese): Article 3 definition of the deposit, Article 4 scope of exclusion, Article 5 consumer relationship, Article 7 deposit cap and return, Article 12 handover and left-behind items, Article 16 free mediation.
- Executive Yuan consumer protection office (行政院消費者保護處): required and prohibited terms for standard-form residential lease contracts (required term item 18 amended April 18, 2025; PDF attachment; verified 2026-10-31) (in Chinese): item 5 deposit cap and return timing, item 10 restoration after renovation, item 12 good manager's duty of care and normal wear, item 14 penalty for terminating at will, item 15 return and offsetting, item 16 transfer of ownership, item 19 left-behind items.
- National laws and regulations database (全國法規資料庫): Land Act (amended August 7, 2024; verified 2026-10-31) (in Chinese): Article 99, security money may not exceed 2 months' total rent and the excess can be used to pay rent.
- National laws and regulations database (全國法規資料庫): Civil Code (amended August 17, 2026; verified 2026-10-31) (in Chinese): Article 425 a sale does not break a lease, Article 432 good manager's duty of care and no liability for normal use, Article 456 two-year limitation period.
- National laws and regulations database (全國法規資料庫): Consumer Protection Act (amended June 17, 2015; verified 2026-10-31) (in Chinese): Article 17, clauses that violate the announced terms are void and required terms that were left out still become part of the contract.
- National laws and regulations database (全國法規資料庫): Township and County-Administered City Mediation Act (amended January 13, 2023; verified 2026-10-31) (in Chinese): Article 1 mediation of civil matters, Article 23 no fees, Article 35 applies to districts of special municipalities.
- National laws and regulations database (全國法規資料庫): Code of Civil Procedure (amended November 29, 2023; verified 2026-10-31) (in Chinese): Article 436-8, small claims procedure for claims of NT$100,000 or less.
- Taipei City Government land administration bureau (臺北市政府地政局): press release on new rental management (September 1, 2023; verified 2026-10-31) (in Chinese): residential lease contracts are fully subject to the Consumer Protection Act's standard-form contract rules and dispute handling, and tenants can file consumer dispute complaints.
- Taipei City Government land administration bureau (臺北市政府地政局): overview of real estate dispute mediation cases in Taipei City (compiled July 16, 2026; PDF; verified 2026-10-31) (in Chinese): the case categories include “residential lease disputes.”
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