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RENTING

What happens when my rental contract expires in Austria?

Many rental contracts for Austrian homes come with a fixed-term, meaning they will eventually expire. What happens when it does, especially if you continue paying rent and living in the residence?

Published: 15 March 2024 15:40 CET
Updated: 31 July 2024 12:22 CEST
Lost apartment
The Tenancy Act contains rules that govern both the landlord's and tenant's rights and obligations regarding termination. Photo by Emily Wang on Unsplash

In Austria, “fixed-term” contracts for renting homes are not unusual, even if they tend to last ten years or more. But what happens once the contract expires?

According to Mieterhilfe, a Vienna-backed organisation that provides assistance to renters, there is a myth that the agreement is “tacitly extended”.

“Tenants very often assume that a tenancy agreement becomes permanent if landlords continue to accept the rent even though the fixed-term tenancy agreement has already expired”, the organisation wrote.

However, that is not precisely what happens. 

If landlords continue to accept the rent and do not bring an action for eviction or restitution against tenants within 14 days of the (actual) termination of the fixed-term tenancy agreement, then the tenancy agreement is (tacitly) extended by exactly three years. 

So, even though there is an extension, it is limited by three years – the contract does not become a “permanent” one, Mieterhilfe warns. 

READ ALSO: How do you qualify for a social housing flat in Vienna?

What are the advantages for tenants?

The advantage for tenants in this case is that they can terminate the contract prematurely at any time within the notice period agreed upon in the tenancy agreement.

However, this only applies to the first “silent extension,” as the association called it. If the tenancy agreement is renewed in this way, again by the landlord’s “tacit” acceptance of the rent after these extended three years, then it is unlimited.

You should then have the landlord confirm the changes in the rental contract (the extension for three years or the conversion to an open-ended agreement) in writing. This is not mandatory, but Mieterhilfe recommends it as it creates clarity “and may save you from legal disputes later on.”

READ ALSO: Renting in Austria – The vocab you need to understand apartment ads

What happens when the contract expires and is not extended?

If the renter does not choose to extend the contract, you will need to vacate the apartment. You can check your specific rental agreement (Mietvertrag) to see if they have an obligation to give you a notice period – a warning that they will not extend the contract and you will need to look for a new place to live.

Usually, there is a notice period of three months.

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RENTING

What tenants in Austria need to know about getting their rent reduced

From construction noise to broken utilities, various issues can allow tenants in Austria to request a rent reduction. Learn the steps to follow and when legal action might be necessary.

Published: 19 September 2024 15:02 CEST
What tenants in Austria need to know about getting their rent reduced

In Austria, tenants can legally request rent reductions if their rental property’s usability is significantly impaired. 

According to MieterHilfe, the association that helps renters in Vienna, Section 1096 of the Austrian Civil Code (ABGB) regulates this. The ABGB covers rental agreements for all properties. 

The law offers protection when tenants experience issues like heavy construction noise or utility outages (such as gas, electricity, or water). However, knowing when and how to apply for a rent reduction and understanding the process can be tricky. Disputes often end up in court and are decided on a case-by-case basis.

READ ALSO: Can my landlord in Austria increase the rent whenever they want?

When you can ask for a rent reduction

If your rental property’s usability is restricted, you can apply for a rent reduction. Common examples of restricted usability often include disruptions in gas, electricity, or water supplies, major construction noise from remodelling, damage to property that prevents proper use, such as a broken heating system, and more. 

Importantly, tenants can claim a rent reduction even if the landlord is not directly responsible for the impairment. However, the extent of the usability issue must be clear, and the tenant must notify the landlord to allow them to fix the problem. Additionally, if a tenant repairs the issue, the rent reduction period ends as soon as the repair is made.

Not all impairments qualify for a rent reduction, though. For example, minor inconveniences or defects, issues that the tenant was aware of when signing the lease, impairments caused by the tenant’s actions and situations where the tenant has already waived the right to a reduction do not count.

An attic room can get extremely hot without air conditioning (Photo by Jakub Żerdzicki on Unsplash)

If there is a dispute, the court will decide the extent of the rent reduction, considering objective and subjective factors. For example, households with small children or pregnant women might receive higher reductions.

READ ALSO: Tenant or landlord: Who pays which costs in Austria?

MieterHilfe has a table with many recent cases that can give you an idea of the causes of rent reduction and the amount tenants received. For example, in one case in Vienna, the flat had significant mould infestation, and the tenants received a 75 percent rental reduction. In another case, rent was reduced by 30 percent because of “unhealthy odours” from the rubbish room that affected half of the flat.

In one case, dangerous electrical cables were accessible inside the flat, and the tenant did not have to pay any rent until the issue was fixed.

Things get more complicated when it comes to noise. In one case in 2005, the tenant got a 15 percent rent reduction due to the consequences (noise and smell nuisance) of a garage construction in the neighbouring property, but not a reduction when the next-door property was doing “normal construction work.”

Another common complaint tenants have is regarding heat, especially in Dachgeschoss apartments (attic apartments), which can get extremely hot due to the lack of ventilation and their location in buildings. In one case, the air conditioning system was positioned so unfavourably that the rooms were not cooled —the tenant got a 6 percent reduction in rent.

In another, though, the complaint regarding excessive heating was dismissed, and the tenant received no reduction because they had rented the room without any reservation or questioning, even though the place had no sun protection or air conditioning.

READ ALSO: What happens when my rental contract expires in Austria?

Legal action and rent payment strategies

Tenants must be cautious when pursuing rent reductions, the renter’s association say. Two approaches are commonly used.

You can continue paying the total rent while negotiating. The tenant informs the landlord about the issue and continues paying the total rent but reserves the right to claim a reduction later. This can be useful in avoiding eviction risks.

Or, they can reduce rent directly. This means the tenant pays a reduced amount but informs the landlord in writing. If the landlord disagrees, they may take legal action, and the court will decide the appropriate – if any – reduction.

In both cases, it is essential to notify the landlord in a verifiable form, such as a registered letter, to ensure the process is documented.

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