Renting in Austria: Deposit, Agency Fees and Initial Costs

When renting a home in Austria, you need to budget for one-off costs in addition to the monthly rent. Some charges are permitted and regulated, while others are expressly prohibited. This guide explains the main rules in 2026.

How much does moving in cost?

Before you start looking, consider how you will finance the move. As a rule of thumb, housing costs should not exceed one third of your net income.

Regular costs depend on the type of accommodation, such as a rental apartment, student residence or shared home, and on its equipment, including furniture, telephone, cable and internet. You must also budget for initial costs such as the deposit, which is payable in advance.

Rental deposit (Kaution): how much can it be?

The deposit is security for the landlord if the tenant fails to pay rent or causes damage to the property.

The amount is generally a matter of agreement. The usual and permitted amounts are:

• Three gross monthly rents: the usual amount.
• Up to six gross monthly rents: still permitted.
• More than six monthly rents: only possible where there is a special security interest.

Here, gross monthly rent means the net rent plus operating costs (Betriebskosten) and 10% VAT. A higher deposit may be justified by factors such as the amount of rent, the tenant’s ability to pay, the property’s equipment or rented furniture.

How is the deposit held?

The deposit can be provided as a savings account book (Sparbuch) or as money. If you pay money, the landlord must place it in an interest-bearing account, in a savings account book or in an equivalent form separate from the landlord’s own assets. This must protect the amount even if the landlord becomes insolvent.

When is the deposit returned?

You must return the property in the condition in which you received it. The landlord must accept normal wear and tear (gewöhnliche Abnutzung).

If there are no objections, the deposit must be returned with interest after the tenancy ends. If there is a dispute, the claim must be made before the competent district court (Bezirksgericht), because this matter does not fall within the jurisdiction of the housing conciliation offices (Schlichtungsstelle).

It is advisable to document the exact condition of the property both when moving in and when moving out, for example with photographs or a handover report (Übernahmeprotokoll).

Real estate agency commission: who pays?

After a successful brokerage, the real estate agent (Immobilienmakler) is entitled to a one-off commission. Since 1 July 2023, the client principle (Bestellerprinzip) has applied: as a person looking for a home, you only pay if you commissioned the agent yourself. In practice, the landlord is usually the client and therefore pays.

The commission is based on gross rent, but this term has a specific meaning here: the net rent plus operating costs, excluding VAT. Heating costs can never be included, while charges for rented furniture can be included.

The maximum commission depends on the length of the tenancy:

• Unlimited tenancy or a tenancy longer than three years: two gross rents.
• Fixed-term tenancy of up to three years: one gross rent.
• If the tenancy is later extended beyond three years or converted into an unlimited tenancy: an additional one gross rent.

20% VAT is added to the resulting amount.

Ablöse: what is permitted and what is prohibited?

An Ablöse is a one-off payment connected with taking over the home, for example for furniture or improvements. A typical example is a new tenant (Nachmieter) paying for a fitted kitchen or a new heating system.

Where the tenancy is fully covered by the Tenancy Act (Mietrechtsgesetz, MRG), a charge is prohibited if it is requested for:

• the mere transfer of the home;
• waiving grounds for termination; or
• rights that already exist under the law.

Such an agreement is void, and the amount paid can be reclaimed within ten years.

A payment is permitted where there is a specific service or item in return and the amount is proportionate. Examples include furniture at its current value or improvements that are also useful to the next tenant. If you carried out a significant improvement within the past 20 years and it remains useful, you may be able to request investment compensation (Investitionsablöse) under certain conditions.

Advance rent and contract preparation fees

Advance rent (Mietzinsvorauszahlung): the landlord may request this if it is agreed in the contract. Where the tenancy is fully covered by the law, the amount must relate to a specified period. An advance payment of 3,600 euros for two years means that the rent payable is 150 euros lower per month for 24 months; after that, the full amount is payable. Advance rent is not the same as a deposit and is not a prohibited Ablöse.

Contract preparation fee (Bearbeitungshonorar): a landlord or property manager may sometimes request this, but there is no legal basis for it. Where the tenancy is fully covered by the MRG, it is prohibited and invalid because it forms part of the ordinary management of the property, which is already covered by operating costs. If you have paid it, you can reclaim it.

Where can you get help with a dispute?

For a prohibited Ablöse, you can seek help from the Chamber of Labour (Arbeiterkammer, AK), the Mietervereinigung, the Austrian tenants’ and homeowners’ association (ÖMW) or a housing advice centre (Wohnberatungsstelle). Landlords can seek advice from the Austrian Economic Chambers (WKO).

Practical steps before and after signing

1. Calculate the monthly rent and all initial costs before applying, using one third of your net income as a budgeting rule of thumb.
2. Check the deposit amount and confirm how it will be held. Three gross monthly rents is usual; up to six is permitted.
3. Ask who commissioned the Immobilienmakler. You only pay the commission if you commissioned the agent yourself.
4. Check every requested Ablöse against the item or improvement being transferred and its current value. Do not pay for the mere transfer of the home or for existing legal rights.
5. Read the contract carefully for advance rent and any Bearbeitungshonorar. A contract preparation fee is prohibited and invalid under the full scope of the MRG.
6. Photograph the property and complete an Übernahmeprotokoll when moving in and out.
7. If the deposit is not returned, claim it before the Bezirksgericht. For advice about unlawful charges, contact the Arbeiterkammer (AK), Mietervereinigung, ÖMW or Wohnberatungsstelle.