Kaohsiung Introduces Taiwan’s First Rental-Deposit Trust Scheme After Property Manager’s Debt Crisis

Kaohsiung has introduced a rental-deposit trust account after financial problems at major property management company Zhaoji raised concerns about the safety of landlords’ and tenants’ funds. The city says the new arrangement will strengthen oversight of social-housing rental management and protect both sides of the lease.

The programme requires rental operators to place tenants’ deposits in a dedicated account at Kaohsiung Bank. The city government will supervise the arrangement, while the Kaohsiung Housing and Urban Regeneration Center will serve as trust supervisor. Deposits will remain separate from operators’ own money, reducing the risk that financial or debt problems affect tenants’ funds.

The fifth phase of Kaohsiung’s city-level social-housing rental management programme is expected to cover 1,600 households. Since the city began promoting the programme, it has matched 4,147 households with housing. Officials will continue offering the “333” package, which combines three tax benefits, three forms of financial assistance and three years of service.

The tax measures include a monthly income-tax exemption of up to NT$15,000 in rent per property, along with preferential housing and land tax rates similar to those for owner-occupied homes. Landlords can also receive up to NT$10,000 a year for repairs, NT$3,500 for insurance and NT$3,000 per notarisation.

Commissioned rental-housing service providers will offer rental management and dispute mediation free of charge for up to three years. The centre said it would use its existing social-housing experience to improve property matching and management while supporting the city’s wider housing policies.