A new bathroom, a more airtight window or a fresh floor: many tenants want to improve their flat without owning it. The Mietrechtsgesetz gives you a specific procedure for this with clear time limits. If you know it, you can renovate without risking disputes, and you may get part of the costs back when you move out.
First clarify: does the full Mietrechtsgesetz apply to your flat?
The rules on notifying alterations (§ 9 MRG) and on compensation for investments (§ 10 MRG) apply only in the full scope of application of the Mietrechtsgesetz. In the partial scope of application, for example for rented condominiums in post‑war buildings or in privately financed new buildings, these two paragraphs are not applicable [S3]. The general tenancy law of the ABGB applies there: for substantial alterations you then need the landlord’s consent, and unless otherwise agreed you must restore the previous condition when you move out [S8]. You can claim reimbursement for expenditure there only under the general rules, and at the latest six months after handing the flat back in court [S5].
For cooperative flats of a non‑profit building association § 9 MRG also applies. Investment compensation there is governed by the Wohnungsgemeinnützigkeitsgesetz in a very similar form [S4].
Distinguish between minor and major alterations
Painting, wallpapering or hanging pictures are not substantial alterations. You do not have to ask anyone about those and you do not have to notify them [S6]. It is different when you interfere with the fabric: new pipes, a remodelled bathroom, a different heating system, new windows or knocking through a wall. Such a substantial alteration must be notified to the landlord beforehand [S1].
Anyone who alters without notification risks two things: a claim for disturbance of possession or for injunction [S6] and possibly losing later entitlement to investment compensation [S2].
How to notify a substantial alteration correctly
The law does not prescribe a specific form, but a letter is the safest method. Describe exactly what you intend to do and enclose sketches, plans or cost estimates if you have them [S6]. Make sure you can prove the notice was received, for example by registered post.
From the time the notice is received the landlord has two months. If he does not refuse within this period, his consent is deemed to have been given [S1]. If your project requires a building permit, he must under the same conditions also support the necessary application to the building authority [S1].
Hypothetical example: A tenant sends her notice to install a shower on 3 March, the letter arrives on 5 March. If no refusal is received by 5 May, consent is deemed to have been given.
When the landlord may not say no
The landlord may not refuse his consent if all of the following points are fulfilled [S1]:
- The alteration corresponds to the state of the art.
- It is customary and serves an important interest of you as the principal tenant.
- Professional execution is guaranteed.
- You bear the costs.
- Legitimate interests of the landlord or other tenants are not impaired.
- The building is not damaged, including in its external appearance.
- No danger arises to persons or property.
For certain projects the requirement “customary and important interest” is in any case considered to be fulfilled: new or remodelled water, electricity, gas, heating and sanitary installations, measures to save energy, publicly funded improvements, a telephone connection as well as antennas and installations for radio, television and multimedia when connection to an existing installation is not possible or not reasonable [S1].
If the landlord refuses wrongly, you can have the consent replaced in a separate procedure at the District Court [S7]. In municipalities with a conciliation board, for example in Vienna, you must first turn to that [S9]. In the other federal states the District Court is usually competent directly.
Restoration when moving out: when it may be demanded
For the projects mentioned above the landlord may not demand restoration. For all other substantial alterations he may make his consent conditional on your restoring the previous condition when you move out [S1]. If he did so lawfully, you will not receive compensation later for that investment either [S2]. Therefore clarify in writing before starting construction whether a restoration obligation will be agreed.
Investment reimbursement under § 10 MRG: what is returned and which deadlines apply
If you paid for substantial improvements in the last 20 years before the end of the tenancy that still benefit the property after you move out, you can claim reimbursement from the landlord. This also applies if you took over such investments from the previous tenant or from the landlord [S2]. Reimbursable are primarily pipework, heating and sanitary systems in standard specification, the replacement of a boiler or hot-water heater that was already present and had become defective at the start of the tenancy, the amalgamation with an offered neighbouring flat, the complete renewal of a defective floor and other similarly substantial improvements [S2].
The amount decreases with each completed year: for pipework, sanitary installations, boiler and flooring by one tenth, for publicly subsidised works after the duration of the subsidy, otherwise by one twentieth [S2].
Fictitious example: A tenant has a defective floor completely renewed for €6.000 and moves out after four full years. Four tenths are deducted, leaving €3.600.
You must notify the landlord of the claim in writing and provide invoices, otherwise you forfeit it [S2]:
- Mutual termination: no later than 14 days after the termination agreement
- You give notice: no later than 14 days after service of your notice
- All other cases: two months from the date the eviction order becomes final, or if returned earlier, at the latest upon return
If your timely notice is formally defective, the landlord must call on you to remedy it with a period of at least 14 days [S2]. You can enforce the claim in court if within six months after return you name a new tenant who will pay the amount, or as soon as the landlord re-rents or realises the flat otherwise [S2]. You cannot waive the right to reimbursement in the tenancy agreement in advance [S2].
Keep all invoices and photos of the condition before and after. In case of uncertainties, the Arbeiterkammer, tenant organisations and, where available, the conciliation board can help.