Austrian rental law is one of the most complex areas of law in the country. It protects tenants against excessive rents and arbitrary evictions, while at the same time posing numerous challenges for landlords. This article explains the most important regulations, current developments and what has changed in 2026 for both tenants and landlords.

The Rental Act (MRG) – Foundation of Austrian Tenancy Law

The Mietrechtsgesetz (MRG), passed in 1981, is the central legal basis for tenancy relationships in Austria. However, it does not apply universally: different rules apply depending on the type of building and year of construction:

• Full application of MRG: Main tenancies in buildings constructed before 1945 (Gründerzeit old buildings in Vienna and other cities)
• Partial application of MRG: New buildings from 1945 onwards, where only certain protective provisions apply
• No application of MRG: Detached houses, holiday apartments, company accommodation and many newly constructed owner-occupied flats

For properties not covered by the MRG, the General Civil Code (ABGB) applies, which offers significantly less tenant protection.

Rent Regulations: Benchmark Rent, Category and Free Market

Benchmark Rent (Richtwertmiete)

For apartments fully subject to the MRG, rent levels are capped by law. The benchmark rent (Richtwert) is set by ordinance for each federal state and adjusted annually. It represents the appropriate rent for an average apartment in equipment category A.

2026 benchmark rents (selection, per month per m²):

• Vienna: €6.67
• Lower Austria: €6.31
• Styria: €9.16
• Tyrol: €8.75
• Vorarlberg: €10.25

Surcharges and deductions from the benchmark can be applied, for example for exceptional location (location surcharge), fittings, floor level or floor plan disadvantages.

Location Surcharge

The location surcharge (Lagezuschlag) is an addition to the benchmark rent for locations deemed above average. Following the 2024 Supreme Court ruling, clearer criteria now govern how the surcharge is calculated based on land values.

Fixed-Term and Open-Ended Tenancies

Fixed-Term Contracts

Fixed-term tenancy agreements are generally permitted in Austria, but must run for a minimum of three years. Shorter terms are invalid for MRG apartments – the agreement is then treated as open-ended.

Tenants under fixed-term agreements have a unilateral right to terminate after one year, with three months’ notice.

Open-Ended Contracts

Open-ended contracts offer tenants the strongest protection. The landlord can only terminate for legally recognised good cause (§ 30 MRG), such as:

• Non-payment of rent
• Significantly damaging use of the apartment
• Subletting without consent
• The landlord’s own need (under strict conditions)

Service Charges: What Can Be Passed On?

Landlords may only pass on operating costs to tenants if this is contractually agreed and the costs are legally permissible. Permitted items include:

• Water and sewerage
• Waste disposal
• Building insurance (fire, water damage, liability)
• Caretaking/cleaning
• Lift operation and maintenance
• Public charges (land tax, drainage fees)

Not permitted are, for example, building repair costs, management fees or maintenance reserves.

Maintenance Obligations: Who Is Responsible for What?

Landlords are responsible for:

• Maintaining the building fabric (roof, façade, stairwells)
• Shared installations (heating, lift)
• Rectifying serious building damage

Tenants are responsible for:

• Minor repairs within the apartment (up to approx. €300)
• Damage caused by improper use

Security Deposits: Amount, Duration, Return

A rental deposit is not legally required in Austria but is widespread in practice. The typical amount is three gross monthly rents. The deposit must be held in a blocked bank account and accrue interest. After the tenancy ends, it must be returned within a reasonable period, minus any justified deductions.

Current Developments in 2026

Rent Increases and Adjustment

Legally permitted benchmark rent adjustments follow the Consumer Price Index. In years of high inflation this leads to noticeable rent increases, which regularly triggers political debate.

Digitalisation in Tenancy Law

Since 2025, rent statements and service charge breakdowns may be sent digitally, provided the tenant has consented. Digital tenancy agreements are also permitted where no notarial deed is required.

Energy Performance Certificate Requirement

When signing a new tenancy agreement, the landlord must provide the tenant with a valid energy performance certificate (Energieausweis). This is valid for a maximum of ten years. Violations can result in administrative fines.

Tips for Landlords

1. Calculate rent correctly: Location surcharges, category and benchmark rent must be carefully determined. Legal advice is recommended if in doubt.
2. Draft fixed-term clauses correctly: Defective fixed-term clauses are treated as open-ended.
3. Prepare annual service charge accounts: Accounts must be submitted within six months of the end of the accounting period.
4. Draw up a handover protocol: Documents the condition of the apartment at move-in and move-out – indispensable in the event of a dispute.

Tips for Tenants

1. Have the rent checked: Anyone living in a property fully subject to the MRG can challenge an excessive rent retroactively for up to three years.
2. Request service charge accounts: Landlords are obliged to provide a detailed breakdown.
3. Know subletting rules: Subletting is only permitted with the landlord’s express consent.
4. Submit notices on time: Strict deadlines apply under fixed-term contracts.

Conclusion

Austrian rental law is a dense network of regulations that apply with varying intensity depending on the type of property. Both tenants and landlords do well to know their rights and obligations – and to seek legal advice in good time when in doubt. Professional property management software such as nuimmo helps landlords keep track of all legal requirements and prepare accounts correctly.

FAQs

Does the MRG apply to all rental apartments in Austria?

No. The MRG only applies to certain apartments – pre-1945 old buildings often fall under full application, while many new builds are not covered at all.

Can the landlord increase the rent at any time?

Under full MRG application, only on the basis of the benchmark rent and with legal justification. On the free market, contractual agreements govern rent increases.

Can I as a tenant terminate a fixed-term contract early?

Yes, after one year with three months’ notice – but only for MRG apartments.

What happens if the landlord refuses to carry out repairs?

Tenants can apply to the competent arbitration body or court to have the defect remedied.