Austrian tenancy law not only provides for the indefinite but also the fixed-term letting of properties. Find out what a fixed-term tenancy agreement means – and what changes 2026 has brought for them.
Can every apartment be rented out for a limited period?
In principle, yes. However, as mentioned above, in most federal states municipalities and non-profit building associations only rent out their apartments for an indefinite period.
How long can apartments be rented out for a limited period?
If a property is not subject to the Tenancy Act (MRG), which is the case with a detached house, for example, the duration of the fixed term can be freely agreed. This means that there is no statutory minimum or maximum duration.
However, if the apartment falls within the partial or full scope of application of the MRG, there is at least a statutory minimum time limit.
What is the minimum length of a fixed-term tenancy agreement?
If the apartment is rented out by someone who is not an entrepreneur within the meaning of the Consumer Protection Act (KSchG), the apartment may be rented out for three years or more. If, on the other hand, the landlord is to be regarded as an entrepreneur, the fixed term must now be agreed for at least five years. However, it is not yet entirely clear when a landlord is to be considered an entrepreneur. “Courts generally base their decision on the number of rental items owned by the landlord. As a rule, five or more rented apartments are considered to be entrepreneurial rentals. However, this is only based on court rulings and there is no clear distinction in the law itself,” says Berger.
Can a fixed-term tenancy agreement be extended?
Yes. However, the following should be noted: “If a fixed-term tenancy agreement is actively extended by the tenant and landlord, this can happen as often as desired,” says Berger. The situation is different if both parties overlook the end of the time limit. In this case, the tenancy agreement is tacitly extended. “However, this is only possible once. If the expiry of the fixed-term tenancy agreement is overlooked again after this one-time extension, the tenancy agreement is automatically extended indefinitely,” explains the housing law expert.
Is it possible to terminate the fixed-term rental agreement prematurely?
Tenants can terminate a fixed-term tenancy agreement within the partial and full scope of application of the MRG after one year in writing without giving reasons to the end of the month and subject to a three-month notice period. Landlords can also terminate in the first year. However, as with open-ended tenancies, they can only terminate in court and only for a statutory reason for termination. If the property rented out for a fixed term does not fall within the full or partial scope of application of the MRG or the WGG, neither tenants nor landlords can terminate the tenancy prematurely unless there is a corresponding clause in the tenancy agreement.
What else should you know about fixed-term tenancy agreements?
If the tenancy agreement is not terminated prematurely, it ends automatically on the agreed end date. “Landlords, but also tenants, could therefore in principle only say the day before that they will not extend the contract or will only extend it under certain conditions,” says Berger, who advises sitting down together in good time to clarify the next steps.
And there is something else you should know: In the area of full application of the MRG, the maximum permissible main rent is reduced by 25 percent for both fixed-term main leases and subleases. This means that the tenant only has to pay 75 percent of the otherwise maximum permissible rent. However, if the fixed-term tenancy agreement is converted into an open-ended one, the fixed-term discount no longer applies under certain conditions.
How many fixed-term rental contracts are there in Austria?
According to Statistics Austria, around 443,600 or 24.8% of existing main tenancy agreements throughout Austria were fixed-term in 2024. Three out of four new rental contracts on the private rental market in Austria are for a fixed term, and one in two of existing contracts is for a fixed term. While fixed-term contracts are the exception in the municipal and cooperative segments, 49.5 percent of main rental apartments in the “private” rental sector are fixed-term. The fewest fixed-term rental contracts are in Burgenland and the most in Vorarlberg. In Vorarlberg, council apartments and apartments belonging to non-profit building associations are also let on fixed-term contracts.
FAQ: Fixed-term rental agreement
In principle, yes. Austrian tenancy law permits both open-ended and fixed-term tenancy agreements. However, municipalities and non-profit building associations in most federal states generally rent out their apartments for an indefinite period. In the private rental sector, on the other hand, fixed-term contracts are widespread.
This depends on whether the apartment is subject to the Tenancy Act (MRG).
Without MRG (e.g. single-family house): The time limit can be freely agreed, there is no statutory minimum or maximum duration.
With MRG (partial or full application): A statutory minimum time limit applies.
If the landlord is not an entrepreneur within the meaning of the Consumer Protection Act, the minimum term is three years. If the landlord is considered an entrepreneur, the term must be at least five years since the new regulation. Whether someone is considered an entrepreneur is not precisely defined by law; courts often base their decision on the number of rented apartments (usually from around five properties).
Yes. Active renewal by both contracting parties is possible as often as desired.
However, if the end of the contract is overlooked, the contract is automatically renewed once (“tacitly”). If this happens again afterwards, the tenancy agreement is automatically extended indefinitely.
In the full and partial area of application of the MRG, the following applies:
Tenants can terminate their tenancy after one year in writing, without giving reasons, by giving three months’ notice to the end of the month.
Landlords can only terminate their tenancy in court and only for legally recognized grounds for termination.
If the apartment is not subject to the MRG or the Wohnungsgemeinnützigkeitsgesetz (WGG), early termination is only possible if this has been expressly agreed in the tenancy agreement.
In the area of full application of the MRG, the maximum permissible main rent is reduced by 25 percent for fixed-term main leases and subleases. This means that the tenant only pays 75 percent of the otherwise maximum permitted rent.
If the contract is later converted into a permanent one, this so-called time limit discount may be waived under certain conditions.
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