Under the MRG, a fixed-term tenancy agreement for a flat is only valid if the fixed term is agreed in writing, the end date is set from the outset and the minimum term is observed (since 1 January 2026, five years if the landlord is a business; three years for private landlords and for fixed terms agreed before 2026). If any of these conditions is not met, the agreement is automatically treated as open-ended – with full statutory protection against termination for the tenant. In addition, the tenant can terminate early with three months’ notice once the first year has passed; this right is mandatory. Where the MRG applies in full, fixed-term agreements are subject to a 25% fixed-term reduction on the benchmark rent.
A fixed-term tenancy agreement ends at a time set in advance – without any need for notice of termination. That sounds simple, but it is not. The Tenancy Act (MRG) sets strict conditions for a valid fixed term on flats. If they are not met, the agreement is automatically treated as open-ended – a fact that is often overlooked, although it works in the tenant’s favour. This page explains when a fixed term is valid, what an error means, and what rights you have as a tenant.
When a fixed term is valid (§ 29 MRG)
Where the MRG applies, a fixed-term tenancy agreement for a flat is only valid if all of the following conditions are met:
- Written form: The fixed term must be agreed in writing. A purely oral agreement on a fixed term is invalid.
- A specific end date from the outset: The end date must already be set when the agreement is concluded, either as a date or as a precisely determinable period. A fixed term ‘for an indefinite period, but no longer than …’ or an end date set at a later stage is not enough.
- Minimum term of five or three years (for flats): Since 1 January 2026, the agreed fixed term must be at least five years if the landlord is a business (for example a property company). For private landlords, and for fixed terms agreed before 2026, it is three years. This also applies when the agreement is extended or renewed. Shorter fixed terms are not permitted.
If these three conditions are met, the tenancy ends when the agreed term expires, without any need for notice of termination.
The tenant’s right to terminate early
Even a valid fixed-term agreement does not bind the tenant for the whole term. The MRG gives the tenant a right to terminate early that is mandatory in the tenant’s favour. Once the first year of the fixed term has passed, the tenant can terminate the agreement at any time by giving three months’ notice to the end of a calendar month. This right cannot be excluded by contract to the tenant’s disadvantage. The landlord, by contrast, is bound by the full fixed term and cannot terminate early unless there is an important reason.
Renewal and conversion into an open-ended tenancy
If the fixed term expires but the flat is not actually handed back and nobody ends the tenancy, the agreement is extended by law. Under § 29 MRG, a first fixed-term agreement that continues in this way is extended once, by five years (by three years for private landlords). If it is still not ended after that, it converts into an open-ended tenancy. So fixed-term agreements do not automatically continue as open-ended agreements. They pass through this statutory intermediate stage – a point that is often misjudged in practice.
The fixed-term reduction in rent
If you rent for a fixed term, you pay less. Where the MRG applies in full, the law provides for a 25% fixed-term reduction on the benchmark rent. The permissible main rent is therefore a quarter lower than under an open-ended agreement. If the fixed term later turns out to be invalid or the agreement becomes open-ended, a further question may arise: was the rent charged so far correct? This is a common reason to have the City of Vienna’s Arbitration Board for Legal Housing Matters (MA 50) review whether the rent is lawful.
How we help you
Fixed terms are one of the most common sources of error in tenancy law – and that is exactly why they are an opportunity for tenants. We check your fixed-term agreement for written form, end date and minimum term, establish whether it may be treated as open-ended, and help you exercise your right to terminate early. We also advise landlords, so that fixed terms are agreed with the correct formalities from the outset. A brief review of your agreement will quickly show you where you stand.
Contact: Teamanwälte · Mag. Johannes Bügler · Baumgartenstraße 82, 1140 Vienna · Phone +43 1 419 13 18 · office@teamanwaelte.at. Book an initial consultation – we will review your fixed-term tenancy agreement and tell you where you stand.
More on tenancy and housing law: return to the overview of Tenancy & housing law in Vienna, or read about the related topics Termination of a tenancy (§ 30 MRG) and Security deposit (§ 16b MRG).
Note: This page provides general information and does not replace legal advice on your specific case. Deadlines and reductions need to be checked for each individual case. We give no guarantee of success.