Tenants or landlords have different rights and obligations, depending on whether and to what extent Act on Tenancy Law the "Mietrechtsgesetz" (MRG) is applicable:

  • full application to the MRG
  • partial application to the MRG
  • exemption from the MRG

MRG is applicable when renting apartments, in multi-party houses established before the end of the Second World War (mostly the full scope of application).

MRG is partly applicable when renting apartments in privately built new buildings, (partial application).

Properties leased after 31 December 2001 in a building with no more than two independent dwellings or business premises are completely exempt from the Act on Tenancy Law.

Briefly said the substantial difference between the three segments of the rental law consists of

  • full application to the MRG rent control and protection against eviction
  • partial application to the MRG only protection against eviction
  • full exemption from the MRG no rent control or protection against eviction

The lease offer

After having seen and walked through the property one or more times, the agent will ask the prospective tenant to submit a written offer.

When signing a bid, the client must be aware that he is making a binding offer to rent the property in question at a certain conditions.

The prospective tenant has to be aware that by submitting an offer, only the prospective tenant but not the landlord is committed to the offer. The landlord may continue to show the property to other potential tenants to receive additional offers and finally select the most attractive offer. In this case, an offer merely binds the prospective tenant, not the landlord.

The offer, however, is not permanently binding. Except as otherwise stated in the offer, an offer typically expires after a reasonable time period (two weeks). During this period the prospective tenant is committed to his offer.

If the landlord accepts the offer within reasonable period, the parties have entered into a formal agreement. Drafting the rental agreement will be only a formality.

From this point on the landlord cannot back out of the contract, for example if another prospective tenant makes a better offer. After the offer has been accepted, both parties will prepare a lease agreement and enter into a tenancy.

Limitation and termination notice

If the rental contract is only valid for a certain period of time, it can be extended in writing as often as needed.

In case of full or partial application to the MRG the duration of the tenancy agreement must be at least three years. Of course the duration of the tenancy agreement can be longer. In case of extension of the tenancy agreement the duration must again be at least three years.

If the duration of the tenancy agreement is limited and the MRG is applicable (full or partial application), the tenant is always entitled to withdraw from the contract after a year. This right cannot be restricted in a contract. The tenant has to give written notice three months before vacating the apartment (at the earliest at the end of the 16th month).

Single family houses

Single family houses or duplexes are not subject to Act on tenancy law and are completely exempt from the "MRG".

If a limited lease was agreed upon, the tenant does not have a premature legal right to terminate the lease. If the lease is for five years, the tenant cannot terminate the renting relationship without the agreement of the landlord. If one wants to keep himself protected, it is absolutely necessary in such cases to agree on an early termination by giving a few months notice.

Example:
"The tenancy agreement is for 5 years and begins on .......... and ends on .......... without termination required. Regardless of the agreed duration the tenant is allowed to quit the contractual relation prematurely by the end of each month by giving three-month notice."

Tenancy agreements can be set up individually. Only what has been agreed upon in the contract or "ABGB" general civil law book is valid.

Additional expenses

Please note that in case of renting premises, that additional expenses will be incurred. The following additional expenses are listed as follows.

1. Realtor commission

In case of successful closing of a tenancy agreement by a Realtor a one time commission needs to be paid as follows.

  • Limited up to three years                                                          1 x gross rent + 20% VAT
  • Limited more than three years                                                   2 x gross rent + 20% VAT
  • open end                                                                                 2 x gross rent + 20% VAT

Calculation of the commission is based on the gross rent.

Gross Rent consists of:

  • Main Rent or Sublease Rent
  • proportionate operating cost and current public charges
  • portion for possible special expenditures (e.g. elevator),
  • possible payment for furnished apartment, equipment or other additional services by the landlord.

2. Deposit

The deposit (usually 3 gross monthly rents) covers rent payments or damages of the rented property. Three gross monthly rents (net rent plus operating cost plus value added tax) are usual.

The deposit can be paid to a savingsbook account or in cash. The landlord must deposit the money on a savingsbook account.

The rented property must be returned by the tenant in the condition, in which it was rented. "Usual wear and tear" the landlord must accept. Under normal conditions, if there are no objections by the landlord, the tenant receives back the deposit including interest, after termination of the lease.