Renting out a property in Austria

Long-term lease 

• This means that the lease agreement runs for at least 5 years for commercial landlords, at least 3 years (fixed-term) for private landlords, or for an indefinite period (open-ended).  
• Advantage: Predictable, regular income over a longer period of time.  
• Disadvantage: Commitment to the tenant; limited ability to use the property yourself 
• Important to know: Terminating a tenant’s lease in Austria is subject to strict conditions due to strong tenant protection laws. However, tenant protection does not prevent action against non-payers (“rent dodgers”). 

Short-term rental 

• Offers maximum flexibility with rental terms of 1–6 months 
• Ideal for: Vacation rentals, furnished apartments, or units in urban and tourist areas. 
• Advantage: Potential returns are often higher than with traditional long-term rentals 
• Disadvantage: Competition from hotels 

Tip: If personal use of the property is a factor, then short-term rentals may be the right choice. 

Whether it’s a short-term or long-term lease: The rent is a key factor in determining whether renting out a property is profitable. The basis for renting out real estate in Austria is the Austrian Tenancy Act (MRG). 

Legal Framework 

• The MRG applies in full only to rental apartments built before July 1, 1953, and to rented condominiums built before May 8, 1945. A maximum rent limit applies to these apartments. 
• For other apartments, the MRG applies only in part, for example, regarding provisions on security deposits, fixed-term leases, or terminations. 
• For short-term rentals, a full exemption from the MRG applies pursuant to § 1(2) (3) MRG 

Clear advantage for short-term rentals: benchmark or category rents do not apply to leases of 1 to 6 months; there is no 5-year minimum lease term for commercial rentals, no 3-year minimum lease term for small private landlords, and no rent control to observe. 

Return Calculation

Before setting a price, it’s worth calculating the gross rental yield: 

Annual base rent ÷ Purchase price × 100 = Gross rental yield in % 

A yield of about 3–5% is considered standard for long-term rentals in Austria. For professionally managed short-term rentals, 6–10% or more is realistic, depending on location and occupancy rates. 

Additional criteria 

In addition to the legal requirements and the decision for or against a long-term lease, it is important to set the rent based on the following criteria: 

• Location, supply, and demand 
• Quality and condition 
• Amenities 

Especially for short-term rentals, the expectation for a fully furnished apartment is very high. It must have move-in ready rooms so that tenants can move in without any additional organizational effort and need only bring their personal belongings. 

A legally sound lease protects both parties—and prevents future disputes. You should clearly define the following points in the lease: 

• Lease term: Fixed-term or open-ended? 
• Rent and utilities: What is included in the price? 
• Security deposit: In Austria, a maximum of three months’ gross rent is standard for long-term leases.The security deposit must be held in an escrow account or savings account and returned in full, including interest, at the end of the lease. 
• Pets: Allowed or not? 
• Repair obligations: Which minor repairs are the tenant’s responsibility? 
• Subletting: Explicitly prohibit it unless desired.

For fixed-term leases in Austria, special regulations under the ABGB and MRG apply, which vary depending on the type of apartment. KURZZEiTmiete provides proven lease agreement templates tailored to the specific requirements of furnished short-term rentals.    

A well-prepared property commands a higher rent and attracts better tenants. Here’s what you should check before renting it out:

• Condition and amenities: Are all the utilities in working order? The kitchen, bathroom, heating, and electrical systems should be in perfect condition. Freshly painted walls, clean floors, and windows that open and close properly create a professional impression. 
• Furnishings: For short-term rentals, full furnishings—including bedding, towels, and kitchenware—are a minimum requirement. The goal is for tenants to feel right at home in the apartment immediately. For long-term rentals, you can offer the apartment furnished or unfurnished—furnished properties generally command higher prices. 
• Professional photos: High-quality photos are the most important factor for a successful rental. A bright, tidy atmosphere and good lighting make all the difference. 

Finding the right tenant isn’t always easy, especially if you want to protect yourself from so-called “rent nomads.” Feel free to ask previous landlords whether rent was paid on time. But be careful: questions about ethnicity, religion, or political views are not permitted. 

Post your own ads on online platforms  

Various online platforms, such as KURZZEiTmiete for short-term rentals, now allow you to reach a wide audience quickly and affordably without an agent. Be sure to post a complete listing that includes the number of occupants, living space, security deposit, utility costs, availability, and any commission fees that may apply if you hire an agent. . 

Listing with a real estate agent 

You can also rely on the expertise of an experienced real estate agent. For a commission, they will handle the pricing, the property listing, the showings, and the tenant screening. Since July 2023, the so-called “principle of the party commissioning the agent” has been in effect in Austria. This means that the agent’s fees are paid by the party who first hired the agent. As a rule, this is the landlord. 

Credit check 

Regardless of how you found the tenant: Check their creditworthiness before signing the lease. In Austria, you can request a credit report for an individual through the Kreditschutzverband von 1870 (KSV1870). Require the following from the tenant: 

• Photo ID 
• Proof of income (pay stubs, bank statements) 
• Employer confirmation 
• Self-disclosure, if applicable 

Clear advantage: With KURZZEiTmiete, this is not strictly necessary, as the first month’s rent is guaranteed in the event of non-payment. 

As a landlord, you don’t just have rights—you also have responsibilities. 

Your obligations: 

• Maintenance obligation: You must repair serious damage—a broken heating system, leaky pipes, or damage to the electrical system are generally your responsibility. 
• Common areas of the building: The stairwell, elevator, and roof must be kept in good condition. 

Your rights: 

• Entering the apartment: Only after prior notice and with the tenant’s consent. 
• Termination: Lease agreements subject to the MRG can only be terminated for good cause—such as late payment (at least 8 days) including a grace period, personal use of the property, or gross misconduct by the tenant. 

Rental income is taxable in Austria. The following taxes apply: 

Income tax: All rental income is taxable as income from renting and leasing. Offsetting this are deductible business expenses such as operating costs, maintenance expenses, depreciation (AfA), financing interest, and administrative costs. 

Value-Added Tax (VAT): If your total annual revenue is less than 55,000 euros, the small business exemption applies—you are exempt from VAT. Additionally, you may opt to be subject to VAT. 

Recommendation: Hire a tax advisor to legally optimize your tax burden and take advantage of all available deductions. Short-term rentals, in particular, involve specific tax issues that require individual consultation.

TIP: If you have tax questions regarding rentals, we’d be happy to connect you with qualified advisors. 

Several Austrian states have introduced a vacancy tax or are planning to implement one. Anyone who leaves an apartment vacant for an extended period risks incurring additional costs. Short-term rentals are an effective way to avoid vacancies.   

• The apartment is used regularly   
• You generate income   
• You remain flexible 

☐ Decision: Short-term or long-term lease? 

☐ Clarify legal requirements (MRG, lease term, “orderer pays” principle) 

☐ Determine rent and calculate return on investment

☐ Prepare the apartment: condition, amenities, energy performance certificate, photos  

☐ Create listing (including mandatory information)  

☐ Start searching for tenants/guests (with or without an agent/platform) 

☐ Obtain credit check / booking confirmation 

☐ Draft and sign the lease agreement 

☐ Collect the security deposit before handing over the keys

☐ Create a handover report with photos and meter readings 

☐ Check insurance coverage 

☐ Notify your tax advisor

☐ Organize (or outsource) ongoing property management 

Step 1: Create a listing

Sign up as a landlord on KURZZEiTmiete and create your listing. High-quality photos, a clear description of the amenities, and a realistic rental price will ensure that your apartment gets noticed and attracts inquiries.   

Step 2: Select a tenant

You’ll receive inquiries from interested parties directly through the platform. Select the right tenant, clarify any open questions, and agree on a move-in date. Typically, customers expect a response from the landlord with a binding confirmation within a maximum of 24 hours of their non-binding inquiry. However, the rental agreement only becomes legally binding once the tenant has finalized the booking and paid the deposit online.

Step 3: Rent out and generate income

KURZZEiTmiete provides you with a fully completed rental agreement. Once the rental agreement has been digitally signed—for example, via ID-Austria—the rental begins. You’ll receive your rental income on time without significant administrative effort. KURZZEiTmiete handles all invoicing. 

This information is provided as a non-binding service and is intended solely as a general guide; it does not constitute legal advice. The information provided on this website cannot replace individualized advice tailored to a specific case. No liability of any kind is assumed for the content or accuracy of this information.