Rental Deposit in Austria: Rules and Refund

Nearly every Austrian rental contract involves a deposit (Kaution) – and it is one of the most common things tenants and landlords fight about at move-out. Here are the rules that actually matter.

How much can the landlord ask for?

There is no fixed statutory cap, but Austrian courts have drawn clear lines: three months' gross rent (rent including running costs and VAT) is the standard and always acceptable. Anything above three months needs a special justification from the landlord, and more than six months' gross rent is considered immoral (sittenwidrig) under case law – you can reclaim the excess.

What form does it take?

Usually a bank transfer to the landlord, or a savings book (Sparbuch) pledged to them. The Sparbuch has one advantage: the money formally stays yours, cleanly separated from the landlord's assets. If you ever hand over cash, never do it without a written receipt.

Does the deposit earn interest?

Yes. The landlord must keep the deposit in a form that bears interest, and the interest belongs to you when it is returned. With today's savings rates it is not much – but it is yours.

When do you get it back?

After the tenancy ends and you hand back the apartment, the landlord must return the deposit without undue delay. They may only withhold amounts they can concretely justify: unpaid rent, outstanding running costs, or damage beyond normal wear and tear.

The point that decides most disputes: normal wear and tear is not damage. Lived-in walls, ordinary traces of use on the floor, a kitchen that simply got older – none of that justifies deductions. A normal number of drill holes is generally considered ordinary wear as well.

Protect yourself from day one

• Handover protocol at move-in: record the condition of every room in writing, signed by both sides.
• Dated photos at move-in and move-out – the best insurance against later claims.
• Document the final cleaning if your contract requires one.
• Give your new address in writing, so "we didn't know where to send it" stops being an excuse.

If the landlord won't pay

Start with a written reminder setting a deadline (registered mail). If that fails, Vienna and some other cities have an arbitration board (Schlichtungsstelle) as a cheap first instance; otherwise the district court. The Arbeiterkammer and the tenants' association (Mietervereinigung) support tenants – usually free for members.

Check the deposit clause before you sign

Whether the deposit clause in your contract is legal – along with the fixed term, Ablöse and everything else – is what our AI contract check reviews in minutes, in English – launching in September 2026, the waitlist is open. Not legal advice, but a fast first assessment before you sign.