Tenant refuses to move out after lease expiration? How to terminate an indefinite lease?
As a landlord, you may have encountered this situation: the lease has expired, but the tenant refuses to move out and is even willing to continue paying rent. You may think, “As long as I’m still collecting rent, there’s no loss,” but that could be a huge mistake! Be careful—the rental relationship between you and the tenant may have quietly transformed into an “indefinite lease,” and if you later want to terminate the lease and reclaim the property, things could become much more complicated!

Lease may turn into an indefinite lease after expiration

According toArticle 451 of the Civil Code：“If, after the expiration of the lease term, the lessee continues to use the leased property and the lessor does not immediately express objection, the contract is deemed to be continued without a fixed term.” In other words, if the tenant continues to occupy the property after the lease expires, and you do not explicitly object, legally the lease automatically converts into an indefinite lease. This form of lease offers both parties greater flexibility and freedom, but it can also bring certain uncertainties and risks!

How to terminate an indefinite lease?

Step 1: Understand the law—termination is only allowed under statutory grounds!

As mentioned earlier,under Article 451 of the Civil Code，if the landlord does not expressly object, the tenant may continue using the property, and the lease relationship automatically becomes indefinite. Some landlords may think: “Then I can just terminate the lease later, right?”

Indeed, at first glance this doesn't seem problematic.Article 450, Paragraph 2 of the Civil Code also provides that indefinite lease contracts allow either party to terminate at any time, as long as advance notice is given according to customary practices. Based on this, it may seem that as long as proper notice is given, an indefinite lease can be terminated at any time. But in reality, it's not that simple!

To protect tenants' rights from being easily stripped away by landlords and to balance both sides in the rental market,Article 100 of the Land Act stipulates that a landlord may only reclaim a property and terminate an indefinite lease under specific circumstances. Otherwise, the lease cannot be terminated, nor the property reclaimed! These include:

1. The lessor needs the property for personal residence or reconstruction.

2. The lessee subleases the property in violation of Civil Code Article 443, Paragraph 1.

3. The lessee owes rent for more than two months.

4. The lessee uses the property for illegal purposes.

5. The lessee breaches terms of the lease agreement.

6. The lessee damages the property and fails to provide adequate compensation.

Step 2: How far in advance should tenants be notified? Confirm the proper notice period

Even when statutory grounds for termination exist, Article 450, Paragraph 2 of the Civil Code still applies: whether landlord or tenant, reasonable advance notice must be given before terminating the lease. So, how early should notice be given?

Typically, a notice period of one month is recommended to avoid disputes, especially when rent is paid monthly. Article 450, Paragraph 3 of the Civil Code explicitly states that termination should follow customary advance notice. For real estate where rent is payable weekly, biweekly, or monthly, termination shall be at the end of that period, with at least one week, half a month, or one month advance notice. The notice period should allow the other party enough time to find a new residence or tenant.

Step 3: Pay attention to details—how to notify and negotiate?

Although the law does not require written notice, to avoid future disputes it is strongly recommended that termination notices be made in writing, such as through an attorney's letter or notarized mail. The notice should clearly state the termination date and reasons (if any), to ensure there is legal proof that notice was delivered.
After notifying, both parties can negotiate the specific details of lease termination, such as moving arrangements or deposit refunds. Negotiation helps resolve potential issues in a smooth and amicable manner.

Step 4: Lease termination—restore the property to its original condition

Once an agreement is reached and all necessary procedures are completed, the lease formally ends. The landlord must ensure the tenant vacates on time, while the tenant must restore the property to its original condition (unless otherwise agreed).

Key Takeaways：

1. Landlords must meet statutory grounds and provide advance notice to terminate an indefinite lease.

2. Notices and negotiation processes should be in writing or in preservable form (e.g., chat records).

3. If disputes arise during termination negotiations, it is advisable to consult a professional lawyer for legal assistance to protect your rights.

By following these steps, landlords can ensure lawful termination of indefinite leases, protect both parties' rights, and reduce unnecessary legal risks and disputes.

What should landlords do when a lease expires?

To avoid the legal risks of indefinite leases, landlords should take the following measures when the lease expires:

1. Clearly notify the tenant that the lease has expired

Before or on the expiration date, the landlord must explicitly notify the tenant: “The lease has expired. Please vacate and return the property. I do not consent to renewal.”

2. Treat further payments as unjust enrichment equivalent to rent

If the tenant continues occupying the property and even pays rent, the landlord must clarify that they do not consent to continued use. Payments made are not rent but “unjust enrichment equivalent to rent” due for illegal occupation after lease expiration.

3. Use written evidence

It is recommended to notify the tenant via notarized letter or attorney's notice to ensure legal proof is preserved, confirming that the landlord explicitly opposed continued occupancy. This prevents triggering  Civil Code Article 451, which would deem the lease indefinite.

Case Study from Our Firm on Indefinite Lease

Case Background

Mr. Te rented out his unused factory building to Mr. Yi for business use. For years, rent payments and contract renewals went smoothly without disputes. Recently, however, Mr. Te planned new uses for the factory and, in good faith, informed Mr. Yi in advance that he would not renew the lease after the current term expired. He even allowed Mr. Yi additional time to find a new property, during which Mr. Yi gave postdated checks to cover occupancy until relocation. Unexpectedly, Mr. Yi later refused to move out, arguing that since Mr. Te continued cashing checks, his earlier statements of non-renewal did not constitute objection. Mr. Yi claimed their relationship had converted into an indefinite lease, so he was not required to vacate. Even though Mr. Te stopped cashing the checks once Mr. Yi backtracked, Mr. Yi escalated by depositing the checks with the court.

District Court: Ruling in Favor of Landlord

Whether an indefinite lease contract existed was critical! If Mr. Yi's claim stood, then under Article 100 of the Land Act, Mr. Te could only reclaim the factory under specific statutory grounds. Otherwise, he would not be allowed to take it back—effectively leaving the decision of whether and when the property could be reclaimed in Mr. Yi's hands.

However, Article 451 of the Civil Code clearly provides that after a lease expires, if the tenant continues use, the landlord’s lack of immediate objection is the determining factor, not whether rent continues to be collected. In Taiwan's social context, it is common for landlords to allow tenants a grace period after lease expiration to find new premises, while still collecting rent for that period. This is considered a goodwill gesture, not consent to indefinite leasing.

Therefore, since Mr. Te had repeatedly expressed his intent not to renew both before and upon expiration, his actions constituted objection to continued use. Thus, no indefinite lease relationship was formed. The checks Mr. Te cashed only represented unjust enrichment equivalent to rent for the period of occupation while Mr. Yi sought new premises, not contractual rent.

After years of litigation, Mr. Te finally received justice. The New Taipei District Court accepted our firm's arguments, correctly applied the law, and ruled that no indefinite lease existed. Mr. Yi was ordered to return the factory to Mr. Te.

Common Landlord Questions

Q1：Can a landlord freely enter a rented property?

A：No. Once rented, the right of use belongs to the tenant. Entry requires tenant consent or urgent legitimate reasons. Forcibly unlocking and entering may constitute criminal trespass under Article 306 of the Criminal Code.

Q2：What can a landlord do if a tenant damages the property?

A：The landlord may sue for damages. Under Article 184, Paragraph 1 of the Civil Code, anyone who intentionally or negligently unlawfully infringes another's rights is liable for compensation. Intentionally causing harm contrary to good morals is also covered. Thus, the landlord may lawfully claim compensation from the tenant.