Fixed-term tenancies: when the fixed term does not hold

Fixed-term residential tenancies have become the norm. Less well known is how strict the requirements are – and what happens when one of them is missing.

Three requirements

Where the Austrian Tenancy Act applies, a fixed term is only effective if it is

1. agreed in writing,
2. fixed unconditionally by a specific end date – an actual date, not "for approximately two years", and
3. for residential property, at least as long as the statutory minimum term – five years for agreements concluded or extended since 1 January 2026, three years for older agreements.

If one of these requirements is missing, it is not the case that the fixed term falls away and the rest stands: the agreement counts as concluded for an indefinite period, with full statutory protection against termination. For landlords that is a considerable difference, because notice can then only be given on the important grounds listed in the statute, and only through the courts.

Since 2026: five-year minimum term

With the fifth Rent Inflation Relief Act (5. MILG), the legislator raised the minimum fixed term for residential tenancies within the full and partial scope of the Tenancy Act from three to five years as of 1 January 2026 – for new agreements as well as extensions. At the same time, the Rent Indexation Act caps index adjustments of residential rents: at most one percent in 2026 and two percent in 2027; from 2028, inflation above three percent is passed on only by half – in existing agreements as well. Contract templates from before 2026 are therefore outdated on two central points.

The fixed-term discount

For fixed-term principal residential tenancies the statute provides for a discount on the permissible rent. In practice it is frequently overlooked. Where too much has been charged, the overpayment can be reclaimed – retrospectively, within the statutory periods.

Extension and successive fixed terms

An extension is possible but is subject to the same formal requirements and likewise to the minimum term – five years since 2026. Where the property continues to be used tacitly after expiry and rent continues to be accepted, a statutory extension arises first – after that the tenancy becomes open-ended. A landlord who genuinely wants the fixed term to end must act in good time.

What tenants should check

Three points are worth looking at in the agreement: is a specific end date stated? Does the term reach the statutory minimum – three or five years, depending on the date of conclusion? And was the fixed-term discount applied? If the answer to any of these is no, the legal position may be quite different from what was assumed.

For landlords the reverse applies: a contract template from the internet is the most common reason a fixed term later fails to hold.