Fixed-Term Lease in Austria: Notice & Minimum Term from 2026
Most rental contracts in Austria are fixed-term – and since the 2026 rental package (Mietenpaket) the rules have changed noticeably. If you are signing now, you should know the new minimum term and your right to give notice. Here is the overview.
New from 2026: a five-year minimum term
In the full scope of the MRG, the minimum fixed term used to be three years. Since 1 January 2026, a minimum term of five years applies to commercial landlords (Unternehmer in the sense of the Consumer Protection Act – that is, most larger landlords, property managers and real-estate companies).
For private small-scale landlords who are not businesses, it stays at three years. The new rule applies to all contracts concluded or extended from 1 January 2026 onwards – older fixed-term contracts keep their original term.
Important: a fixed term must be agreed in writing and meet the minimum term. If the contract is fixed for a shorter period than allowed, or the fixed term is faulty, it automatically counts as open-ended – with much stronger protection against termination for you.
Your right to give notice as a tenant
The good news: you are not locked in for five years. With a fixed-term contract in the MRG scope, you as the tenant can give notice at any time after the first year has passed – with a notice period of three months to the end of a month (§ 29 MRG). So the fixed term effectively binds the landlord, not you.
Notice must be given in writing. Count the three months generously: if you want to be out by 31 May, the notice must reach the landlord by the end of February at the latest.
The fixed-term deduction: 25% less rent
Because a fixed term is a disadvantage for the tenant, the law provides for compensation: for fixed-term contracts, the permissible main rent must be reduced by 25% (the fixed-term deduction, Befristungsabschlag). If the contract is later converted into an open-ended one, the landlord may only remove this deduction from that point on.
In practice this deduction is often "forgotten". So check whether your fixed-term rent reflects the deduction – this is where overpaid rent frequently hides.
What happens at the end of the fixed term?
When the term runs out, there are three possibilities:
- You move out – on the agreed end date, without any notice being required.
- A new fixed-term contract – the next fixed term must again meet the statutory minimum.
- You stay on without anything new being agreed – then the contract extends automatically once by the statutory minimum term (five years for commercial landlords, three for private ones); your right to give notice stays intact. If you remain beyond that, it continues open-ended, and the landlord can then only terminate it on an important ground named in the law.
Fixed-term or open-ended – which is better?
An open-ended contract is almost always the better choice for tenants: full protection against termination, no pressure to move, plannable living. A fixed-term contract gives you the 25% deduction and full flexibility after the first year – at the price of the uncertainty of whether you can extend. Which is cheaper in a specific case depends on how long you want to stay.
Have your contract checked
Whether your fixed term is valid, the 25% deduction was applied correctly and there are no impermissible clauses is what our AI contract check reviews in minutes. Launching in September 2026, the waitlist is open. Not legal advice, but a fast first assessment before you sign.
For more on the extra costs, see our deposit guide; and if you are still searching, let Mietscan report new listings to you instantly.
Sources: oesterreich.gv.at – Fixed-term rental contracts (as of August 2026)