The tenant provides the security deposit to cover unpaid rent or damage beyond normal wear and tear. There is no fixed statutory upper limit; around three times the gross monthly rent is usual. Under § 16b MRG, the landlord must invest the deposit separately from their own assets and at interest; the interest belongs to the tenant. When the tenancy ends, the landlord must repay the deposit with interest without undue delay – and may keep back only amounts for specific claims that can be documented. Flat-rate deductions ‘for renovation’ are not allowed.
What a security deposit is for (§ 16b MRG)
The security deposit is one of the most common sources of dispute when a tenancy ends. It is a security that the tenant hands to the landlord at the start of the tenancy, so that the landlord has something to fall back on in a dispute – for example, in the case of unpaid rent or damage that goes beyond normal wear and tear. As long as the tenancy runs without problems, nobody touches the deposit, and in economic terms it still belongs to the tenant.
Where the Tenancy Act applies, § 16b MRG sets out how the landlord must handle the deposit. One point is important: the deposit is not a bonus for the landlord and not a flat-rate payment for renovation. It secures specific claims that can be proven – no more and no less.
How much can the security deposit be?
There is no fixed statutory upper limit. In practice, around three times the gross monthly rent – that is, the rent including operating costs and VAT – is usual and recognised as reasonable. The Supreme Court (OGH) has referred to around six times the gross monthly rent as an order of magnitude. What is still permissible in an individual case depends on the specific circumstances; an excessive deposit may be open to challenge.
The landlord’s duty: invest the deposit separately and at interest
The landlord may not simply keep the deposit or mix it with their own money. Under § 16b MRG, the landlord must invest it separately from their own assets and so that it earns interest – for example, in a dedicated passbook savings account or a separate account. The interest belongs to the tenant. This duty to keep the deposit separate protects the tenant above all if the landlord runs into financial difficulties: a deposit invested separately does not form part of the landlord’s general assets.
Repayment after the tenancy ends
When the tenancy has ended, the landlord must repay the deposit with interest and without undue delay – to the extent that the landlord has no justified claims outstanding. ‘Without undue delay’ means without any delay for which the landlord is to blame. The landlord may take a short, reasonable period to inspect the flat, but must not hold up repayment without good reason.
The landlord may keep back only what they can justify with specific, verifiable reasons: unpaid rent, unpaid operating costs, or the cost of putting right damage that goes beyond normal wear and tear. A landlord who keeps back part of the deposit must be able to set out the claim – flat-rate deductions ‘for renovation’ are not allowed.
Common points of dispute
Normal wear and tear vs damage
The most common dispute is about the line between normal wear and tear and genuine damage. Yellowed walls, the usual signs of wear on the floor or small drill holes generally count as normal wear and tear. The landlord may not deduct them from the deposit – the rent already covers them. A ruined parquet floor, damaged bathroom fittings or wilful damage are a different matter: the landlord may deduct these. Where exactly the line lies is often a matter of interpretation and is at the heart of many disputes.
Delayed repayment
Just as common: the landlord simply does not repay the deposit, or repays it only slowly, and points to vague ‘outstanding issues’. If no specific, documented claim follows, the tenant is entitled to the full deposit with interest.
What can you do if the landlord does not repay the deposit?
If your landlord does not repay the deposit, or repays only part of it, a structured approach is advisable:
- Demand repayment in writing: Ask for the deposit back in writing and set a deadline – ideally in a way you can prove (registered post or an email with confirmation of receipt).
- Keep your evidence safe: The handover report, photos of the condition of the flat when you moved out and the tenancy agreement are the most important evidence.
- Have the deductions checked: Get a careful assessment of whether the amounts the landlord claims to keep back are actually justified, or whether the landlord is simply deducting normal wear and tear.
- Go to court: If the landlord still does not pay, you can file a claim for the deposit with the court – usually the district court.
How we help you
In Vienna, we advise and represent both tenants and landlords on security deposits. We check whether the deposit demanded is reasonable, review whether amounts kept back are justified, pursue repayment with interest and – if necessary – represent you in court. For landlords, we help set out proper reasons for any amounts kept back and conduct proceedings correctly. Our aim is a clear assessment you can follow – without legal jargon and without false promises.
Contact: Teamanwälte · Mag. Johannes Bügler · Baumgartenstraße 82, 1140 Vienna · Phone +43 1 419 13 18 · office@teamanwaelte.at. Arrange an initial consultation – we will clarify whether your deposit is being handled correctly and which route is right in your case.
More on tenancy and housing law: return to the overview of Tenancy & housing law in Vienna, or read about the related topics Fixed-term tenancies (§ 29 MRG) and Termination of a tenancy (§ 30 MRG).
Note: This page provides general information only and is no substitute for individual legal advice. Figures on the amount of the deposit are for guidance only and must be checked in each individual case. We do not promise any flat-rate amounts and give no guarantee of success.