Many tenants prefer an open-ended tenancy agreement. Real estate lawyer Valentina Philadelphy-Steiner knows what is important here.
For many tenants, an open-ended tenancy agreement is the best solution of all – after all, it gives them the certainty that they will be spared the inconvenience of moving and all the associated hassle in the future. Discussions with the landlord about any investments can also be reduced in this way. Landlords, on the other hand, see the open-ended tenancy agreement with one laughing and one crying eye: although frequent changes of tenant can be avoided in this way, at the same time they themselves can then only dispose of their property, namely the apartment, with difficulty. In other words, should they ever need the apartment themselves, this demand is extremely difficult to enforce with an open-ended tenancy agreement.
When can you conclude an open-ended tenancy agreement?
This is possible both for apartments that are in the full or partial area of application and for all those that are completely exempt. The MRG applies in full to residential buildings that were built before 1945. “Residential buildings built after that date that were built without subsidies as well as new buildings that are owned by condominiums fall under the partial scope of application,” says real estate lawyer Valentina Philadelphy-Steiner. Single-family homes and apartments in a building with no more than two independent apartments, for example, are not subject to the Tenancy Act.
When does an open-ended MRG rental agreement end?
As the name suggests, an open-ended tenancy agreement is concluded for an indefinite period. It therefore ends as soon as it is terminated by the tenant or landlord. The former can do this in court or in writing, observing the notice period and termination date. “Unless otherwise agreed in the tenancy agreement, the notice period is usually one month and the termination date is usually the last day of the month,” says Philadelphy-Steiner. Incidentally, a reason for the termination does not have to be given.
Termination by the landlord
It is much more difficult for the landlord, at least if the apartments are subject to the MRG: they can only terminate the tenancy agreement in court and for certain reasons. “These reasons include, for example, significantly detrimental use of the apartment, if the rent is not paid or the apartment is sublet in its entirety and at too high a price, or if the tenant prevents the renovation of a substandard apartment, as well as non-use of the apartment,” explains the lawyer.
Even if the renovation of a dilapidated building is unprofitable, the landlord can terminate the open-ended tenancy agreement in court, but must provide the tenants with alternative accommodation. Although the landlord’s declaration of personal use is also cited as a legal reason for termination, “in practice, however, it is becoming increasingly difficult to enforce this reason,” says the lawyer. For properties that do not fall under the MRG, on the other hand, the landlord does not have to give any special reasons for termination, but – like the tenant – only has to adhere to the notice periods and dates agreed in the tenancy agreement.
Does the right to rent expire in the event of death?
No. The tenant’s death does not terminate the open-ended tenancy agreement. If there are persons entitled to take over, such as spouses or children who were living in the apartment with the deceased at the time of death, they automatically enter into the tenancy agreement. “If there is no person entitled to take over, however, the landlord may terminate the tenancy agreement in court,” says Philadelphy-Steiner.
Related posts:
Who has to maintain the heating boiler?
