Chapter 3. Rental Housing Service Business
Section 1. Registration
Article 19
Rental housing service businesses shall apply to the competent authorities in municipalities or counties (cities) for permits and complete corporation registration within three months of acquiring the permit; otherwise, the competent authority will revoke the permit.
Rental housing service businesses cannot start operation before: depositing a guarantee bond of operation within six months of completing corporation registration, employing rental housing managers, joining the local trade association where the business has registered, filing relevant proof and documents to the competent authorities in municipalities or counties (cities) to register as rental housing service businesses, and receiving the registration certificate. The competent authorities in municipalities or counties (cities) shall revoke the permits if registration is not completed by the prescribed time, and notify the competent authorities of corporation registration to remove the business from the registry.
In the case where a rental housing service business has set up a separate business branch, operation cannot begin before depositing a guarantee bond of operation, employing rental housing managers, filing relevant proof and documents to the competent authorities in municipalities or counties (cities) to register the branch, and receiving the registration certificate.
The amount of guarantee bond of operation referred to in the first two Paragraphs shall be calculated based on the number of branches and the operation scale.
If rental housing service businesses and their branches fail to commence business operation within six months of receiving permits or have discontinued their operation for over six months, the competent authorities in municipalities or counties (cities) shall remove them from the registry and revoke their registration certificates, unless the rental housing service businesses and their branches have filed for discontinuity registration pursuant to legal procedures.
If rental housing service businesses and all of their branches have their registration certificates revoked and have been removed from the registry, the competent authorities in municipalities or counties (cities) shall revoke their permits and notify the competent authorities responsible for corporation registration to remove the business from the registry.
RHMB and RHSB should jointly, but not separately, form trade associations.
Article 20
A person having any of the following situations may not serve as a person responsible for running a rental housing service business. If he has assumed such a post, the competent authorities in municipalities or counties (cities) shall order the rental housing service business to rectify matters within the specified period. If it fails to rectify matters by the deadline, the competent authorities in municipalities or counties (cities) shall remove it from the registry, revoke its permit, and notify the competent authorities of corporation registration to remove the business from the registry.
1. Having been adjudicated bankrupt, and having not been reinstated to his rights and privileges.
2. Having been dishonored for unlawful use of negotiable instruments, and the term of such sanction has not expired yet.
3. A court has initiated a debt clearance procedure pursuant to the Consumer Debt Clearance Act and has not reinstated the person in question.
4. Having no or limited legal capacity to make any juristic act, or being currently subject to guardianship or assistantship.
5. Having committed the following crimes: fraud, breach of trust, misappropriation, abrupt taking, robbery, extortion or kidnapping for ransom, Article 173, Article 174, Article 176, Article 178, Article 179, Article 226-1, Article 271 to 276, Article 332, Article 334, Article 348 of the Criminal Code of the Republic of China, Article 2 of the Sexual Assault Crime Prevention Act, Article 23 to Article 27 of the Child and Youth Sexual Exploitation Prevention Act, Article 32 to 37 of the Child and Youth Sexual Exploitation Prevention Act, Paragraph 1 of Article 3, Article 6, Article 9 of the Organized Crime Prevention Act, Article 7, Article 8 , Article 14, or Article 15 of the Controlling Guns, Ammunition and Knives Act; where such persons committing the crimes have been sentenced to one-year or longer imprisonment; and such persons have not fully served their time or it has been less than 3 years since such persons fully served their time or were pardoned. This Sub-Paragraph does not apply to those who are sentenced to probation.
6. Less than one year has passed since permits to run rental housing service businesses were revoked, unless the permit was revoked pursuant to Paragraph 6 of Article 19.
Article 21
Rental housing service businesses that make any change of matters that they should get permits for shall apply to the competent authorities in municipalities or counties (cities) for revised permits within thirty days of making the change. Relevant documents of proof must be submitted together with such application.
When information contained in the registry is outdated, rental housing service businesses or their branches shall apply to the competent authorities in municipalities or counties (cities) for updating registration within thirty days of informational change. Relevant documents of proof must be submitted together. Changes to employed rental housing managers should be processed pursuant to Paragraph 3.
Rental housing service businesses or their branches shall report changes in identities of employed rental housing managers to the competent authorities in municipalities or counties (cities) within thirty days of the changes. Relevant documents of proof must be submitted together.
Article 22
If the guarantee bond of operation that the rental housing service business should pay exceeds a certain amount of money, a letter of guarantee provided by a financial institution may guarantee this excess.
The guarantee bond of operation referred to in Paragraphs 2 and 3 of Article 19 shall be deposited in a special guarantee bond account opened in a financial institution named by the National Joint Trade Association of Rental Housing Service Business of the R.O.C. (hereinafter referred to as the National Joint Association), and a management committee shall be in charge of the account; the interest generated by the bond shall be earmarked toward developing a sound rental housing service management system.
Representatives from the rental housing service businesses in the management committee referred to in the previous Paragraph shall not fill more than two-fifths of the seats on the committee. The competent authority in the central government shall specify rules regarding the organization of the management committee and the management of the guarantee bond of operation.
The guarantee bond of operation shall be spent under no circumstances but those referred to in Paragraph 4 of Article 31.
If the guarantee bond a rental housing service business pays is below the amount specified by Paragraph 3 of Article 24, the National Joint Association shall demand that the rental housing service business make up the payment within a month. The National Joint Association shall inform the competent authorities in municipalities or counties (cities) of any non-compliance and the latter may impose civil fines pursuant to Sub-Paragraph 3 of Paragraph 1 of Article 37.
Article 23
The guarantee bond is a separate patrimony of rental housing service businesses and their employees. Except in circumstances referred to in Paragraph 4 of Article 31, the guarantee bond shall not be transferred, held in custody, set off, or used as collateral.
Ownership of the guarantee bond shall be transferred when rental housing service businesses merge or change organizational form.
Article 24
If one of the following conditions holds, and no victims demand vicarious compensation pursuant to Paragraph 4 of Article 31, rental housing service businesses may request in writing that the National Joint Association return the deposited guarantee bond starting one year (but no later than three years) after the following condition materializes. Interests accrued on the guarantee bond are excluded from the return amount.
1. Corporate dissolution.
2. Exit from rental housing service business after amending the corporate registration.
3. Permits revoked by the competent authorities in municipalities or counties (cities).
4. Removal from corporation registry by the competent company registration authority.
Rental housing service businesses that close branches or downsize, such that their deposited guarantee bond exceeds the prescribed amount, may demand return of the overpaid guarantee bond amount pursuant to the timeline and procedure prescribed in the previous Paragraph, if no victims demand vicarious compensation pursuant to Paragraph 4 of Article 31.
The competent authority in the central government shall stipulate detailed regulations regarding the procedure for depositing the guarantee bond (referred to in Paragraphs 2 and 3 of Article 19), the amount of the guarantee bond (referred to in Paragraph 4 of Article 19), and ways to provide a letter of guarantee or return the guarantee bond referred to in the previous two Paragraphs.
Article 25
Rental housing service businesses shall employ qualified rental housing managers to run RHMB and RHSB tasks.
Rental housing service businesses shall have at least one full-time rental housing manager. Each branch shall have at least one full-time rental housing manager.
A full-time rental housing manager should not be employed by two or more rental housing service businesses at the same time.
Section 2. Rental housing managers
Article 26
A person may not be employed as a rental housing manager without attending training courses held by National Joint Association, passing its qualification examination, and registering at and acquiring a rental housing manager permit from the competent authority in the central government or agencies, organizations, associations, or schools designed by the competent authority in the central government within one year of receiving the permit.
The permit referred to in the previous Paragraph is effective for four years. Rental housing managers shall, during the last six months before it expires, apply to the competent authority in the central government or the designated agency, association, or school for renewing permits and updating the registry. Rental housing managers shall provide documents showing that they attended and passed qualification examinations of the renewal training courses held by the National Joint Association in the past two years.
The competent authority in the central government shall prescribe regulations regarding the training, examination qualification, training program, course hours, fee schedule for the training program, registration, issuance and renewal of permits, fee schedule for issuing and renewing permits, and other compliance matters referred to in the preceding two Paragraphs.
Article 27
A person having any of the following situations referred to in Sub-Paragraphs 4 and 5 of Paragraph 1 of Article 20 is not qualified as a rental housing manager. If the person has assumed such a post, the competent authority in the central government should revoke the permit with a public notice and remove the person from the registry.
A rental housing manager employed by a rental housing service business cannot be in charge of RHMB and RHSB matters if she is not qualified as one for reasons referred to in the preceding paragraph.
Section 3. Business and Duty
Article 28
RHMB cannot commence its RHMB operation before signing a rental housing management commission contract with the commissioner.
RHMB referred to in the previous Paragraph shall not commission other RHMB to operate its business.
Article 29
RHSB cannot commence its operation or post advertisements before signing leases with a lessor who is willing to sublease its rental housing.
When RHSB and a sub-lessee sign a lease, the former should provide a check list of the status quo of the rental housing and documents that demonstrate the lessor’s consent referred to in the previous Paragraph. The lease should also include the boundary of the lease target, period, and conditions for early termination, as agreed between RHSB and the lessor.
RHSB shall within 30 days of signing the lease referred to in the previous Paragraph inform the lessor in writing of the boundary of the lease target, period and the information regarding the sub-lessee.
Article 30
If the lessor terminates the lease before its expiry and after RHSB has sub-leased the rental housing, RHSB should inform the sub-lessee within five days of knowing of the termination and terminate the sub-lease. RHSB shall be the coordinator in returning the rental housing to the lessor and inspecting the space and fixtures, returning prepaid rent and all or part of the security deposit, and assisting the sub-lessee in finding other rental housing.
When the lessor terminates the lease before its expiry as referred to in the preceding Paragraph, the lessor may inform the sub-lessee when the RHSB discontinues its operation, dissolves, or moves to an unknown place. The lessor or the sub-lessee can request assistance from the local trade association or the National Joint Association with lease renewal or the return of the rental housing. The local trade association or the National Joint Association are obliged to provide mediation and cannot refuse such requests.
Article 31 applies if the early termination of leases referred to in the preceding two Paragraphs causes lessor or sub-lessee losses that are imputable to RHSB.
Article 31
A rental housing service business is liable for damages for losses caused to parties of rental housing services for lease default imputable to the rental housing service business.
The rental housing service business is jointly and severally liable for damages for losses caused by intentional or negligent acts of its employees to parties of rental housing services.
When the victim referred to in the previous two Paragraphs demands that the National Joint Association pay compensation vicariously, the guarantee bond management committee should step in to mediate immediately.
When the victim obtains a writ of execution over a rental housing service business or its employees, or when the guarantee bond management committee decides to pay in a mediation resolution, the victim may demand that the National Joint Association, using the guarantee bond deposited by the rental housing service business in question and the credit guaranteed by a financial institution for this rental housing service business, compensate vicariously. Following the vicarious compensation, the National Joint Association shall, pursuant to Paragraph 5 of Article 22, demand that the rental housing service business make up the guarantee bond within the specified time.
Article 32
A full-time rental housing manager designated by the rental housing service business should sign the following documents:
1. A commission contract of rental housing management.
2. A lease.
3. A check list of the status quo of the rental housing.
4. Documents of proof regarding the wear, tear, and damage of the space and fixtures of the rental housing.
5. Receipts of rents, security deposits, and other fees.
6. Receipts of returned rents and security deposits.
Sub-Paragraph 1 of the preceding Paragraph is not applicable to RHSB; Sub-Paragraphs 2 and 3 of the preceding Paragraph are not applicable to RHMB.
The competent authority in the central government shall specify the terms that should and should not be included in the boilerplate for leases (referred to in Sub-Paragraph 1 of Paragraph 1) and subleases (referred to in Sub-Paragraph 2 of Paragraph 1).
Article 33
A rental housing service business shall display the following documents in an obvious place in its business venue and on its website.
1. The registration certificate.
2. The certificate of membership of a trade association
3. The rental housing manager permit
4. The schedule of management fees and the payment methods.
The Sub-Paragraph 4 of the preceding Paragraph is not applicable to RHSB.
Article 34
Rental housing service businesses shall, within 30 days from the date of contracting, provide the competent authorities in municipalities and counties (cities) with information regarding commission, lease, and sublease.
For subleasing rental housing of RHSB cases, the RHSB shall declare the current transaction information to the competent authorities in municipalities or counties (cities)after signing the rental contract within 30 days. (hereinafter referred to as the declared transaction information).
The Government may utilize the declared transaction information of the preceding paragraph, and provide publicly for inquiry, without revealing personal data.
Rules of the categories and contents of the declared transaction information of Paragraph 2, and the provision of information contents, methods, fees and other matters to follow in the preceding paragraph, shall apply mutatis mutandis to the provisions of the regulations stipulated pursuant to Paragraph 5 of Article 24-1 of the Real Estate Broking Management Act.
The competent authorities in municipalities or counties (cities) may request the RHSB or sub-lessee to access, obtain relevant documents, or provide explanations, to confirm the declared transaction information. The inspected person shall not evade, hinder, or refuse the inspection.
The inspection in the preceding paragraph shall not exceed the necessary scope for the purpose of ensuring the correctness of the declared transaction information.
The competent authority in the central government should prescribe regulations regarding the information categories, contents, provision methods, and other matters to be complied with in the first paragraph.
Article 35
The competent authority may inspect the operation of a rental housing service business. A rental housing service business may not avoid, impede, or refuse to cooperate with such an inspection.