Many rental flats are let only for a fixed term. For a fixed-term contract to actually expire at the end, it must comply with strict legal requirements – and since 2026 many landlords are subject to a longer minimum duration. Here you can find out what matters when concluding, extending and leaving early.
When a fixed term actually takes effect
For flats in the full or partial application scope of the Mietrechtsgesetz (MRG) a tenancy agreement ends by expiry of time only if two conditions are met [S1][S2]:
- The contract expressly stipulates in writing that it expires at the end of the term.
- The agreed duration meets the statutory minimum duration.
“In writing” fundamentally means in Austrian law that the parties sign [S3]. There is no maximum duration; extensions are possible indefinitely, but must also be in writing and comply with the minimum duration [S1].
Minimum duration: five or three years
Since 1 January 2026 the minimum duration depends on who is letting: if the landlord was an entrepreneur within the meaning of the Konsumentenschutzgesetz at the time of the fixing of the term, it is five years, otherwise three years [S1]. According to case law, real estate companies are regarded as entrepreneurial; for private persons it depends on the scope and organisation of the lettings, and the landlord must prove that they are not an entrepreneur [S8].
The new five‑year threshold applies to contracts concluded after 31 December 2025 or renewed contractually or by operation of law. Fixed terms agreed before 1 January 2026 remain subject to the old law with three years [S4].
Illustrative example: You signed a three‑year contract with a housing company in 2024. That fixed term remains valid. If the company offers you an extension in 2027, that extension must be for at least five years.
What happens if the rules are not followed?
If the written form is missing or the duration is too short, the agreed end cannot be enforced: the contract is then deemed to have been concluded for an indefinite period [S1]. For you this generally means more security, because the landlord can only terminate an indefinite contract for important reasons and only by court [S9][S10].
If, after the expiry of a valid fixed‑term contract, no one reacts – that is, there is neither an extension nor a dissolution – the contract is deemed once to be renewed for five years (for non‑entrepreneurial landlords for three years) [S1]. During this renewal you can terminate at any time with three months’ notice to the last day of the month. If nothing happens after that either, the contract becomes indefinite [S1].
Fixed‑term discount: 25% less in the full application scope
If a statutory rent cap applies to your flat, for example the Richtwertmietzins for old buildings, the permissible principal rent for a fixed‑term contract is reduced by 25% [S5]. If the contract later becomes indefinite, the discount is removed only if the contract shows the discount numerically, i.e. it juxtaposes the indefinite and the actually agreed principal rent [S5]. In the partial application scope, for example in privately financed new buildings, there is no statutory cap and therefore no discount [S2].
Illustrative example: If for an old building flat an indefinite principal rent of at most 600 euros would be permitted, a fixed‑term contract may charge at most 450 euros.
You can have checked whether the discount was applied. For fixed‑term contracts this is possible at least until six months after the end of the contract or conversion, and excessive amounts become statute‑barred only after ten years [S6].
Leaving early: termination after the first year
As a tenant you have a termination right which you cannot waive: after one year of the agreed or extended contract duration has elapsed you may terminate to the last day of a month; the notice period is three months [S1]. The termination must be in writing or made in court [S7]. The earliest possible end date is therefore at the end of the 16th month [S11].
Illustrative example: Your contract begins on 1 February 2026. From 1 February 2027 you can give notice; if the notice is given in February 2027, the contract ends on 31 May 2027.
The landlord, by contrast, cannot simply terminate a valid fixed‑term contract early. An earlier dissolution is only possible in narrow cases, for example in the case of seriously disadvantageous use or arrears under § 1118 ABGB [S1].
Completely outside the MRG: different rules
If your flat falls entirely outside the MRG – for example in a building with at most two independent flats – neither the minimum duration nor the termination right after one year applies [S2][S12]. Early exit is then in principle only possible if it is agreed in the contract or an important reason exists, for example an unusable or health‑hazardous flat [S12][S13]. Pay attention to a termination clause in such contracts before you sign.