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Rent control 2026: New regulations for rent adjustments based on value guarantee clauses
The 5th Rental Law Inflation Relief Act (5. MILG; Federal Law Gazette I No. 114/2025; www.ris.bka.gv.at/Bund) has been in force since January 1, 2026. Part of the 5th MILG is also the Rent Value Stabilization Act (MieWeG), which provides for a limitation of contractual value stabilization in residential rental agreements within the full and partial scope of application of the Tenancy Law Act (MRG).
Legal background
Since the publication of the decision of the Austrian Supreme Court (OGH) of March 21, 2023, 2 Ob 36/23t (www.ris.bka.gv.at/jus), which repealed unclear and disadvantageous rent indexation clauses, there has been considerable uncertainty, particularly on the part of landlords: According to this, an index clause is invalid if the rental agreement stipulates that, in the event of the agreed index ceasing to apply, an index that most closely corresponds to the agreed index shall apply. The Supreme Court considers this to be a violation of Section 6 (1) (5) of the Consumer Protection Act (KSchG), as it is not clear which consumer price index most closely corresponds to the agreed consumer price index. An index clause is also invalid and constitutes a violation of Section 6 (2) (4) KSchG if the clause enables the landlord to increase the rent within the first two months after the conclusion of the contract and this has not been negotiated in detail and proven.
The aim of the MieWeG is to create legal certainty with regard to value guarantee clauses in rental agreements; furthermore, inflation-related rent increases are to be effectively curbed. In addition, new rules on fixed-term contracts are intended to improve the situation of tenants with fixed-term rental agreements.
Restriction on annual rent increases
The MieWeG stipulates that rent increases may (only) take place on April 1 of each year. The value adjustment is usually linked to the consumer price index (CPI). An increase is still only possible if there is a validly agreed value adjustment clause and by means of an express letter from the landlord claiming the index adjustment. The rent is therefore increased or reduced on April 1 of the calendar year following the conclusion of the contract and subsequently annually on April 1 in accordance with the CPI 2020. The starting point is the annual average of the previous year.
If the change exceeds 3%, only half of the amount exceeding 3% may be included in the rent increase. For residential rental agreements subject to the rent restrictions of the MRG (category rent, reference rent, reasonable rent), the rent may only be increased by 1% as of April 1, 2026, and by 2% as of April 1, 2027.
Claims for reimbursement due to invalid value preservation agreements
If a rent indexation agreement in a residential lease agreement concluded before January 1, 2026 is invalid, excess rent payments made in the last five years prior to the termination of the agreement or, in the case of agreements that are still in force, in the last five years prior to knowledge of the legal invalidity and the claim for reimbursement may be reclaimed.
New minimum term
For residential leases falling within the full or partial scope of the MRG, the minimum term is extended from 3 years to 5 years, both when the lease is concluded and when it is renewed, provided that the landlord is an entrepreneur. Outside the scope of the MRG (e.g., rental agreements for vacation homes, residential rental agreements in single-family or two-family houses, commercial rental agreements, etc.), this new term limit rule does not apply.
Facilitations for future value protection agreements
It is now expressly provided that in a contract for the rental of space, value protection can also be effectively agreed by merely referring to Section 1 (2) MieWeG and, if applicable, Section 1 (3) MieWeG. For example, in connection with the determination of the rent, the phrase “value-protected in accordance with Section 1 (2) of the Rent Value Protection Act” may be used. This is intended to make it easier for contract drafters to effectively agree on a value protection clause.
