LEXIKON

Termination of the lease agreement in the event of water damage caused by the tenant

Anyone who uses water carelessly and repeatedly causes damage to the rental property risks termination of the tenancy agreement. In a recent ruling (OGH 28.03.2025, 8 Ob 36/25i; www.ris.bka.gv.at/jus) that repeated water damage by a tenant constitutes significantly detrimental use within the meaning of Section 30(2)(3) of the Austrian Tenancy Act (MRG) and Section 1118(1) of the Austrian Civil Code (ABGB), thereby destroying the relationship of trust with the landlord.

 

In the specific case, a tenant had caused water damage in his apartment on several occasions because, among other things, he left the water running unattended and the drains were blocked. Despite being aware of the problem, he refused to remedy the defects. According to the Supreme Court, the threat of damage to the substance of the rental property is sufficient to justify termination of the contract. It is not necessary for serious structural damage to have already occurred. The decisive factor is the loss of trust due to repeated breach of contract.

 

The Supreme Court’s decision underscores the responsibility of tenants to treat the rental property with care and avoid damage. Those who fail to do so must expect the consequence of termination of the contract.