Renting a property in Austria is a very common practice. Renting property always allows you to remain mobile and does not require you to have a large sum of money at once (unlike buying property). However, few landlords and tenants are fully aware of their rights and obligations in this process. That is why in this article we have compiled the most important information for those who wish to rent or lease an apartment in Austria.
How is rental property regulated in Austria?
In Austria, rental property is regulated by an agreement between the landlord and the tenant. The provisions of the agreement must comply with the Rental Act (Mietrechtsgesetz, MRG) and the General Civil Code (Allgemeines bürgerliches Gesetzbuch, ABGB).
Types of rental agreements
There are three main types of lease agreements in Austria:
- short-term lease (up to six months) – its terms are not regulated by law;
- fixed-term lease (befristet) – can be concluded for different periods of time (but not less than three years), although it can also be concluded for a longer period (ten years or more). A fixed-term lease expires automatically at the end of the agreed period;
- open-ended lease (unbefristet) – the most favorable option for the tenant, as he or she can terminate the lease at any time by giving the landlord a reasonable notice. The landlord, on the other hand, is subject to certain restrictions on an open-ended lease under the Mietrechtsgesetz and may terminate it only for substantial reasons. These may include, for example, late payment of rent by the tenant or the landlord’s personal need for the property.
Who has the right to rent real estate?
As a rule, an adult over the age of 18 can rent an apartment on their own and, accordingly, sign a lease agreement.
However, if the following conditions are met, a lease agreement may be concluded before the age of 18:
- parents (legal representatives) agree to this;
- the person’s regular income before the age of 18 (e.g., study allowance, pocket money) and possibly family allowance together are so high that the young person can “afford” the monthly rent.
Basic rights of the landlord:
- to receive the rent in full on time;
- to increase the rent within certain limits (varies depending on the application of the Mietrechtsgesetz or the Allgemeines bürgerliches Gesetzbuch;
- to unilaterally terminate the lease for special reasons (e.g. non-payment of rent, use of the apartment in violation of the terms of the agreement, personal need);
- to enter the apartment for important reasons;
- to develop house rules that define, for example, quiet hours, keeping pets, etc.
The main responsibilities of the landlord:
- obligation to hand over the keys and spare keys to the tenant;
- maintenance of common parts and installations of the building;
- maintenance and repair of heating appliances (e.g. boilers and water heaters);
- repairing significant damage to the building or defects that pose a health risk, e.g. burst water pipes, leaking pipes;
- refund of rent in case of termination or cancellation of the lease agreement.
Basic rights of the tenant:
- to demand repairs from the landlord, as the landlord is obliged to maintain the property in good condition;
- to check the operating expenses report;
- upon expiry of the lease term, receive the security deposit back.
The main responsibilities of the tenant:
- to pay the rent on time in the proper amount and take good care of the apartment;
- to treat other residents of the building with respect and follow the house rules;
- if the tenant wants to make significant changes to the rented property, he/she must ask the landlord for permission in advance;
- in case of serious damage or imminent danger, notify the landlord as soon as possible.
Deposit for rent
It is necessary to pay a Kaution when renting a house in Austria. The Kaution is used as a reserve in case of non-payment of rent or damage to the rented property in the future.
The exact amount of the Kaution is determined by agreement between the parties (most often it is 3 monthly rent payments). A receipt and a note in the agreement are proof of payment of the Kaution. Kaution is refunded at the end of the lease or in case of termination of the agreement.
Tips for drafting a rental agreement:
You can draft a real estate lease agreement in Austria yourself or hire a professional real estate broker to do so. The broker will not only find the right property for you but will also handle the matter until the final stage – the conclusion of the lease agreement. For his services, the broker receives a fee of 2 monthly rents + 20% VAT. Since 1 July 2023, the Bestellerprinzip has been in force in Austria. It can be explained by the words “He who orders, pays”. That is, the person who first engaged the broker will pay for the services of the broker (in most cases, the landlord).
Regardless of whether you draft the agreement yourself or invite a broker, we recommend reading the following tips.
1.Although it is permissible to enter into a lease agreement orally, we recommend that you draw up a written agreement. Additions and amendments to the agreement should also be made in writing. This will protect you from misunderstandings and inaccuracies in the future.
2.Read the lease agreement carefully before signing it.
3.Any unclear clauses of the agreement should be discussed with the counterparty before signing the agreement.
4.Carefully check that the agreement contains all the necessary details of each party (from names to contact addresses and telephone numbers).
5.Describe all the leased property in the apartment/house, including the basement, parking space, etc., and the inventory, as well as their condition, and record any defects (if any). Do not be afraid to describe the apartment in too much detail. In the future, such a description will save you from conflicts with the other party.
6.In the agreement, clearly indicate the beginning of the lease term, the term, the procedure for terminating the agreement and the amount of rent. If there is a gradual increase/decrease in the rent, this should also be stated in the agreement.
7.Get written confirmation of all costs, such as deposits, construction cost subsidies, transfer fees, etc.
8.Sign the lease agreement in two equivalent copies (for each party).
As you can see, in order to avoid problems and misunderstandings in the future, you need to be responsible from the very beginning when renting/leasing a property. It is not enough to just choose a good property/prepare the property for rent, you also need to properly build business relations with the counterparty and properly conclude the agreement.
The team of VigoImmobilien, a certified real estate agency, will be happy to help you with these and other processes. For more information, just call +4366499877599 or write to us at [email protected].
