The tenancy agreement governs for years what you pay, how long you are allowed to stay and who is responsible for what. Many mistakes can be avoided if you know before signing which points should be clarified, when written form is mandatory and which costs will actually be charged to you. Here you get an overview – with a checklist and notes on the changes since 1 January 2026.
When a tenancy agreement comes into being
A tenancy agreement is concluded as soon as both parties agree on the essentials: which flat is being let and what is to be paid for it [S1]. A signature on a contractual document is not strictly necessary for this – an open-ended contract can even arise verbally [S10]. For this reason a signed offer to let is not a mere reservation: if the landlord accepts it, you are usually bound [S11].
Nevertheless: insist on a written contract. Only in this way can you later prove what was agreed.
It is also important which tenancy law applies to the flat. Whether the Mietrechtsgesetz (MRG) applies in full, in part or not at all determines, for example, rent limits, rules on operating costs and protection against termination [S12].
Checklist: What should be in the contract
You do not have to use a specific form. However, these points should be clearly regulated:
- Parties to the contract: full names and addresses, even if several people are renting.
- Let property: address, staircase, door, usable area and included parts such as cellar compartment, parking space or furniture.
- Rent, itemised: base rent, operating costs, any furniture rent, value added tax and due date.
- Operating costs: If the MRG does not apply in full, it should be recorded precisely and conclusively which costs you bear. Pre-formulated clauses that are unclear are ineffective against consumers [S9].
- Value adjustment: An index adjustment applies only if it is agreed (see below).
- Duration: open-ended or fixed-term until a specific date.
- Deposit: amount and type of investment.
- Other: pets, subletting, alterations, number of keys.
Fictitious example: The draft only states “Rent 980 Euro including all ancillary costs”. Ask for an itemisation into base rent, operating costs and value added tax – otherwise you will hardly be able to check later whether the rent or billing is correct.
Fixed term: no effective fixed term without written form
In the full and partial application areas of the MRG a fixed-term contract ends automatically only if the fixed term was agreed in written form and a minimum duration is observed [S2]. For flats this has been five years since the reform; if the landlord is not an entrepreneur within the meaning of the Konsumentenschutzgesetz, three years suffice [S2]. This version applies to tenancy agreements concluded or renewed after 31 December 2025; for older fixed terms the previous legal situation remains decisive [S3].
If the written form is missing or the duration is too short, the contract is deemed to be concluded for an indefinite period [S2]. As a tenant you can terminate a fixed-term residential tenancy early after one year, with three months’ notice to the last day of the month [S2].
If the MRG does not apply at all – for example in many single- and two-family houses – these protective rules do not exist; in that case the contract text is all the more important [S12].
Value adjustment and deposit
Since 1 January 2026 the Mieten-Wertsicherungsgesetz limits index clauses for flats in the full and partial application areas of the MRG. Rent may rise due to a value adjustment at most once a year, on 1 April; the relevant measure is the average inflation of the previous year, and what exceeds 3 per cent counts only half [S4]. Less favourable contractual clauses are ineffective in this respect [S4]. For flats with legally restricted rent the inflation of the year 2025 will be taken into account at most with one per cent and that of the year 2026 at most with two per cent [S4]. A value adjustment can be agreed simply by referring to the law [S4].
If the MRG applies in full or in part, the landlord must invest a deposit in cash with interest on a savings book or secure it equivalently and separately from his assets. After the end of the tenancy he must repay it together with interest without delay, insofar as he does not need it for justified claims [S5]. If the MRG does not apply at all, much depends on the contract; in that case read the deposit provision particularly carefully.
What the contract costs: tax, contract preparation, commission
- Stamp duty: Contracts for the rental of residential premises are currently exempt from fees under the Gebührengesetz [S6]. For other tenancy contracts, for example for commercial premises, a fee of 1 percent may be charged; it is calculated for an indefinite term at three times the annual value, for a fixed term at the annual value multiplied by the contract duration in years, but in any case at most eighteen times the annual value [S6].
- Contract preparation costs: There is no legal basis for charging you a “processing fee” for drawing up the tenancy agreement. In the full application scope of the MRG such demands are, according to the case law of the Oberster Gerichtshof, inadmissible and recoverable [S7]. If in doubt, get a receipt for such a payment.
- Broker’s commission: Since 1 July 2023 you only pay if you were the first to commission the broker [S8]. If the flat was mediated by a broker, agreements that oblige you to make payments to the landlord or to a broker not entitled to commission are ineffective [S8].
Handover protocol: recording the condition at move-in
A handover protocol is in practice one of the most important documents when moving in. Record in it which defects exist, which appliances and furniture are included in the rental, the meter readings and the number of keys handed over. Take dated photos and have the protocol signed by both parties [S13]. It will help you on moving out when it comes to the refund of the deposit.
No separate fee may be charged to you for preparing the handover protocol in a broker-mediated transaction [S14].
If there are uncertainties in the draft contract, it is worth having it checked before signing by the Arbeiterkammer, a tenants’ organisation or a housing law advisory centre.