Austria Rental Laws: Pro-landlord, Neutral or Pro-tenant?

Austrian landlord and tenant laws are judged by the Global Property Guide to be Pro-Tenant between landlord and tenant. The system allows landlords some protections, especially in properties not fully covered by the Tenancy Act (e.g., new buildings or luxury apartments). In those cases, there’s more flexibility on rent pricing and contract terms.

Can landlord and tenant freely agree rents in Austria?

There is rent-control by local authority tribunals. Their assessments are below free-market levels, but only slightly so in the case of new or renovated buildings. Rent can initially be freely negotiated, but the tenant can request an assessment at any time during the contract, and for six months after departure. The landlord will then have to pay back any excess of actual over assessed rent, with interest, up to a maximum period of three years.

New buildings, and renovated buildings, attract slightly higher local authority rental assessments, which have encouraged the renovation of older apartments.

Contract limited to a specified number of years (befristet Mietvertrag) - A fixed-term tenancy agreement typically runs for a minimum of three years and can be extended in increments of at least another three years. While you're generally expected to stay for the full term, the law allows you to end the agreement early—but only after the first year. In such cases, you must give three months' notice, starting from the end of the month in which you notify your landlord. This means the earliest you can move out is at the end of the 16th month.

Unlimited contract (unbefristet Mietvertrag) - An open-ended tenancy agreement doesn't have a fixed end date and remains in effect until either you or the landlord decides to terminate it. By law, tenants must give at least one month's notice, though your contract might specify a longer period. For example, if you notify your landlord on May 15, your tenancy would typically end on June 30. Landlords, however, can only end this type of agreement if they have a legitimate reason—like unpaid rent.

In both the unbefristet contract and the befristet contract, rent is subject to being set by the local authority, at the request of the tenant.

Deposits

In Austria, landlords are allowed to request a security deposit from tenants at the beginning of the rental agreement. This deposit is usually equivalent to three months' rent, though the exact amount can vary depending on the terms of the lease. The deposit serves as a safeguard for the landlord, covering potential damage to the property or unpaid rent. When the tenancy ends, the landlord is required to return the deposit, as long as the property is handed back in its original condition and all financial obligations have been met.

What rights do landlords and tenants have in Austria, especially as to duration of contract, and eviction?

In Austria, the legal principle of Kündigungsschutz safeguards tenants from unjustified evictions by landlords. Under the law, a landlord can only terminate a tenancy agreement if there is a legally valid reason—such as unpaid rent, significant property damage, or another serious breach of the rental terms.

Additionally, landlords must provide adequate notice before ending the tenancy, allowing tenants enough time to secure alternative housing. The length of the notice period depends on both the specific rental agreement and the provisions of Austrian tenancy law.

How effective is the Austrian legal system?

The Austrian legal system is widely considered effective, transparent, and dependable. It operates under a strong rule of law, with courts functioning independently from the government and legal decisions grounded in well-established legislation. Austria consistently performs well in international rankings for judicial independence and civil liberties, reflecting the public’s trust in its institutions.

In terms of efficiency, civil and administrative courts generally handle cases in a timely manner, often faster than the European Union average—particularly at the lower levels. More complex cases or those that escalate to higher courts, such as the Supreme Court, can take longer to resolve. Nevertheless, the system remains accessible; legal aid is available to individuals with limited financial means, ensuring that justice isn’t restricted to those with the ability to pay.

Legislation

The two sources of tenancy laws are the "ABGB" (General Civil Code) and the "MRG" (MietrechtsG, TenStatute).