Country profile

Austria: rental market overview

45.5%of the population rents their home
Austrian rental law is layered: the Tenancy Act (MRG) applies in full, in part, or not at all depending on the building, and rent regulation only bites where it applies.

The rental market

Ownership structureVienna is a European one-off — the city is one of Europe's largest housing owners (Gemeindebau), on top of a huge cooperative sector. In Vienna itself about 77% of homes are rented, and only one household in five owns its home — the opposite of the rest of the country.
Who rentsA huge regional gap: Vienna is a city of renters, while rural federal states (e.g. Burgenland) are dominated by ownership.
45.5% of the population rents, of which 30.7% at market rates.
At a glance

Austria: legal framework

Rental market
45.5% of the population rents, of which 30.7% at market rates.
Legal framework
Governed by the Civil Code (ABGB) and, where applicable, the MRG. Landlord termination is limited to the closed catalogue of grounds in the Act.
Deposit
The MRG sets no statutory deposit cap; the Supreme Court treats three to six months' gross rent as generally acceptable.
Notice & termination
A landlord can terminate only on the exhaustive statutory grounds, through the courts.
Rent increases
Index-linked rent adjustments are capped: since 1 January 2026 at most once a year, with full CPI pass-through up to 3% and half of the excess above that, plus extra caps in the fully-regulated segment.
Worth knowing
The MRG's full, partial and exempt tiers, together with the Mietenpaket 2026 reform, set the minimum fixed term at five years for a business landlord and three for a private one, with a 25% discount for fixed terms in the fully-regulated segment.
Landlord risk
Which rules apply turns on the building's MRG tier; getting the tier wrong misprices both the rent and the deposit.

The rental agreement

An Austrian residential lease sits on two layers of law: the general contract rules for renting property in the Civil Code (Allgemeines Bürgerliches Gesetzbuch, ABGB §§ 1090 ff.) and, where it applies, the Tenancy Act (Mietrechtsgesetz, MRG). Which layer governs a given flat depends entirely on the building, not on what the parties would prefer.

The MRG splits into three tiers. Full application (Vollanwendung) covers buildings with more than two independent rental or business units whose building permit predates 1 July 1953, plus subsidised new builds — here the closed rent-formation rules (Richtwert or Kategoriemietzins), the landlord's statutory maintenance duty and the full termination-protection catalogue all apply. Partial application (Teilanwendung) covers buildings with more than two units built after 30 June 1953 without public subsidy: rent is freely negotiable because the MRG's rent-formation rules don't reach that far, but termination protection still does. Full exemption (Vollausnahme) — one- or two-unit houses with no more than two independent units, for contracts signed after 31 December 2001, plus holiday flats — falls back on the plain ABGB, with no rent cap and no closed list of termination grounds.

  • Rent, minimum term and the landlord's maintenance duty all hinge on this classification.
  • Since the "Mietenpaket 2026" reform (in force 1 January 2026), a fixed-term lease in the full or partial regime must run at least five years for a business landlord or three for a private one — shorter is automatically indefinite.
  • A fixed-term lease in the fully-regulated segment gets a 25% discount off the Richtwertmietzins (§ 16 Abs. 7 MRG).

The letting must be residential unless the landlord agrees in writing to business use, and subletting needs the landlord's prior written consent.

Deposit

The MRG sets no statutory ceiling for the deposit (Kaution) in a residential lease — this is one area where Austrian law leaves the amount to negotiation. In practice, the Supreme Court (Oberster Gerichtshof) treats a deposit of three to six months' gross rent as generally unobjectionable; anything markedly above that risks being struck down as contrary to good morals under § 879 ABGB.

  • The deposit must be placed on a dedicated, ward-safe (mündelsicher), interest-bearing savings account, or an equivalently secure investment kept clearly separate from the landlord's own assets.
  • The interest belongs to the tenant, not the landlord.
  • It may not be used by the tenant to cover ongoing rent or operating costs during the tenancy.
  • Settlement and repayment — deposit plus accrued interest, minus any legitimate counterclaims — happens within a reasonable time after the lease ends, the flat is returned, and the handover report is signed.

Termination & rent increases

Austrian termination rules run on the same three-tier MRG map as everything else. In the full or partial application area, a tenant can end an indefinite lease at any time with one month's notice to the end of a calendar month, given in writing or through the courts; on a fixed-term lease, the earliest the tenant can walk away is after one year, with three months' notice.

The landlord's side is far narrower. A landlord can only end the lease through the courts (gerichtliche Aufkündigung) and only on one of the grounds in the closed catalogue of § 30 Abs. 2 MRG — chiefly qualified rent arrears despite a reminder, seriously detrimental use of the flat, or urgent own-use (dringender Eigenbedarf). There is no landlord notice period as such: the court process itself is the mechanism.

  • In a fully-exempt property (Vollausnahme), none of this applies — termination instead follows the general ABGB rules of §§ 1116 f., which are considerably less protective of the tenant.
  • Rent adjustments tied to an index are capped since 1 January 2026: at most once a year, no earlier than 1 April, with full CPI pass-through up to 3% and only half of any excess above that — plus extra ceilings of 1% for 2026 and 2% for 2027 in the fully-regulated segment.

Handover protocol

Neither the MRG nor the ABGB obliges a landlord to draw up a formal handover report, but it is standard Austrian market practice — and, in practice, the single strongest piece of evidence either side has. The Übergabeprotokoll records the meter readings, the condition of the flat and its fittings, and is signed by both parties in two identical copies, one for each.

It carries real legal weight at both ends of the tenancy: on move-out, it is the yardstick for any § 1111 ABGB damages claim beyond ordinary wear and tear, and it is the primary reference when the Kaution is settled and returned.

The document is not filed with any authority — it stays between landlord and tenant — but Brokik stores it alongside the lease so both sides can pull it up the moment a deposit dispute or damage claim comes up, months or years after move-in.

Obligations & utilities

In the full or partial MRG regime, the landlord's maintenance duty under § 3 MRG is mandatory and cannot be reduced to the tenant's disadvantage: it covers the building's common parts and any serious, health-endangering defect, even inside the let unit. In a fully-exempt property, the lighter general duty of § 1096 ABGB applies instead.

  • The tenant covers day-to-day cleaning and the small upkeep needed to keep the flat in unchanged condition, and must promptly flag anything more serious.
  • If the landlord doesn't act in time after being notified, the tenant may arrange urgent, non-postponable repairs and bill the landlord.
  • Structural changes, and any interference with water, sewage or electrical lines run under the plaster, always need the landlord's prior written consent.
  • No smoking, and no pets without consent, are standard clauses.

Interesting facts

Vienna owns about 220,000 municipal apartments (Gemeindebau) — roughly a quarter of the city's entire housing stock — making it one of the largest municipal property owners in Europe.
The "Red Vienna" movement (1918–1934) funded mass municipal housing construction from a special luxury tax — the flagship Karl-Marx-Hof has about 1,382 apartments and, at roughly 1.1 km long, is one of the longest residential buildings in the world.
In Vienna itself, only one household in five owns its home — about 77% are renters, the reverse of the rest of Austria.

Frequently asked questions

It turns on the building's age and size, not the flat itself. If the building has more than two independent rental or business units and its building permit predates 1 July 1953 (or it's a subsidised new build), you're in full application. More than two units built after 30 June 1953 without subsidy puts you in partial application. One- or two-unit buildings for contracts signed after 2001, plus holiday flats, fall outside the MRG entirely — check this before you set the rent.

Only outside full application. In the fully-regulated segment, rent is capped by the Richtwert or Kategoriemietzins system, and a fixed-term lease there gets an automatic 25% Befristungsabschlag off that base rate. In the partial-application and fully-exempt tiers, rent is freely negotiated, subject only to the general good-morals limit of § 879 ABGB — so a wildly excessive figure can still be challenged.

The MRG sets no cap at all. Courts generally accept three to six months' gross rent as unobjectionable; markedly more risks being struck down as contrary to good morals under § 879 ABGB. Whatever you collect must sit in a ward-safe, interest-bearing account kept apart from your own funds — the interest legally belongs to the tenant, not you, for the whole tenancy.

Only in the full or partial application area, and only through the courts, on the narrow "urgent own-use" ground within the closed catalogue of § 30 Abs. 2 MRG. There is no general no-fault termination right for an Austrian landlord — even genuine hardship on your side doesn't open a path outside that catalogue, so plan any own-use scenario well before signing.

Nothing stops you legally — the MRG and ABGB impose no obligation. But you lose your strongest evidence: without a signed Übergabeprotokoll recording meter readings and condition at move-in, any dispute over damage or the Kaution settlement at move-out comes down to your word against the tenant's, with no independent record either side can point to.

Yes — the Energieausweis-Vorlage-Gesetz 2012 requires you to show a valid one to the tenant before they sign, and to hand over a full copy within 14 days of signing. Property listings must also display the key energy figures up front, so get the certificate sorted before you advertise, not after you've already found a tenant.

No — the Rechtsgeschäftsgebühr on residential leases was abolished on 11 November 2017 under § 33 TP 5 GebG. Before that date, both parties paid a fee calculated on the total rent over the contract term; today a Wohnraummiete contract carries no such charge, regardless of its length or value. That said, a private sale, notarial deed or other document related to the same property may still trigger unrelated stamp-duty rules — the exemption is specific to the residential lease itself, not every paper connected to the flat.

Austria: manage every rental with Brokik

Brokik gives every property the rental agreement, tax rules and language of its own market — in a single account.