Leases

The lease decides how long you are tied in.

Letting a property means committing yourself — on the rent, on the term, on the costs. Much of it cannot be changed afterwards. Here is what matters before anyone signs.

Best of all, before it is signed.

What the lease says governs, for its whole duration, what you may charge and when you can dispose of the apartment again. Putting it right later requires the tenant's consent — and that is rarely given for nothing.

One thing at a time

First: which rules apply

For one lease the Austrian Tenancy Act applies in full, for the next only in part, for a third not at all. What you may agree at all depends on that.

In practiceThis classification governs the rent, the fixed term, termination and the maintenance obligations all at once — and with them your room for manoeuvre. It belongs at the beginning, not at the end.

What you may charge

Depending on that classification, the rent is freely negotiable or capped. On top of that come additions and deductions arising from the location, the condition and the fittings.

In practiceA rent set too high can have serious consequences. Where a cap applies, the tenant can have it reviewed — and that can become expensive retrospectively.

The fixed term

If you do not want to commit yourself indefinitely, the fixed term needs a clear end date established from the outset and must as a rule be agreed in writing. For apartments, minimum durations come on top wherever the Tenancy Act applies.

In practiceIf the fixed term does not hold formally, you have an open-ended lease — and where the Tenancy Act applies you will hardly be rid of the tenant. The mistake often only comes to light years later, when you want to dispose of the apartment.

Service charges and maintenance

Which costs you may pass on and who pays for a broken boiler is usually not freely negotiable.

In practiceClauses that place more on the tenant than is permitted will not hold in a dispute. What remains are arguments — and, at worst, proceedings about something that was never enforceable in the first place.

The deposit

The deposit secures you against rent arrears and damage. It is earmarked for that purpose and has to be accounted for once the tenancy ends. Where the Tenancy Act applies, it must in addition be held separately and invested so as to bear interest.

In practiceWhoever retains the deposit must be able to show what for and why. Without clear documentation and a prior inspection, a dispute of its own quickly arises.

When you want to end it

If the lease falls under the Tenancy Act, you can only terminate it on specific grounds and only through the court. A termination by letter has no effect there. If the rent is not paid, terminating the lease for arrears comes into consideration.

In practiceExperience shows that several months unfortunately pass between the first arrears and a successful eviction, so acting quickly is necessary.

Planning to let — or having trouble with a tenant?

Send us the lease in question, or the documents on the property you intend to let. Ideally before anything is signed.

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A general overview, not advice on an individual case. Which rules apply to a particular lease depends on the property, on the date of the building permit and on the type of use. In case of doubt the German version prevails.