Early termination of rental agreement. The Novak family only moved into their three-room apartment in Vienna in July 2024. But already after 10 months they realize: The apartment is simply too small for two children, the second children's room is missing, the home office has to take place in the living room and arguments about space have become an everyday occurrence. When a larger apartment opens up in Graz, they want to end the temporary contract quickly.
But is it that simple? We show what tenants and landlords can do in this situation.
The most important facts about terminating fixed-term tenancy agreements under the MRG
- One Notice of termination may be given after 12 months of tenancy at the earliest. possible.
- A Notice period of 3 monthsat the end of each month.
- The termination of the contract is therefore after 16 months at the earliest Rental period possible.
- This right is guaranteed by law and not waivable (see MRG 2024, p. 12).
- One written termination is required.
Take Novak, for example: Start of lease: July 1, 2024 - notice of termination on July 1, 2025 at the earliest - earliest possible end of contract: October 31, 2025.
Further information on the subject of terminating a tenancy agreement: can be found on the Website of the Chamber of Labor.
Early termination of rental agreement - Legal basis: What the MRG says
According to MRG (Tenancy Act), tenants may terminate their tenancy agreement after one year with three months' notice to the end of the month. This regulation applies to all rental agreements within the full or partial scope of application of the MRG. A contractual restriction is voidif it excludes the statutory right of termination.
Read also: our contribution on the topic of housing law issues - What tenants and owners need to know now.
What can tenants do if they want to leave earlier?
| Option | Description | Note |
|---|---|---|
| Termination by mutual agreement | Terminate the contract early together with the landlord | Written agreement required |
| Propose a new tenant | Tenant organizes replacement to relieve landlord | Not a legal obligation, but often practicable |
| Offer payment on account | Lump-sum payment as compensation for landlord expenses | Only valid with mutual agreement |
| Continue to pay for the apartment until the regular termination date | Legally secure, but expensive | Apartment can possibly be used temporarily |
Checklist for tenants like the Novak family:
- Document the condition of the apartment (photo, log)
- Check rental agreement: Fixed term and MRG application?
- Seek discussion with landlord: Clarify willingness to cooperate
- Find a new tenant or offer a termination payment
- Putting the agreement in writing
What can landlords do?
| Measure | Benefit | Prerequisite |
| Accepting a termination agreement | Avoidance of contentious proceedings | Voluntary consent |
| Agreeing a lump-sum payment on account | Compensation for expenses & vacancies | Must be defined in the contract |
| Rent a new apartment immediately | Reduce loss of income | Delivery in good condition |
| Allow contract to continue | Legally secure, no special agreement necessary | Risk of vacancy and conflict |
A particularly practical solution, which was also used in the Novak family's case, is the agreement of a flat-rate advance payment by the tenant. This allows the landlord to financially cushion the economic disadvantages of moving out early - such as vacancies, advertising costs, painting work or reletting. In many cases, a payment of one to two months' rent is customary and legally permissible, provided it is made on a voluntary basis. This solution offers both sides planning security and helps to avoid an otherwise possible escalation.
Checklist for landlords:
- Create handover protocol
- Check: Is there a termination or termination request?
- Economic damage assessable?
- Is there a willingness to cancel?
- Written agreement with a specific move-out date?
Calculate deadlines correctly
Who e.g. on July 1, 2024 moves in, may July 1, 2025 at the earliest terminate the contract. With three months' notice, the contract is then terminated with effect from October 31, 2025 finished.
Attention: The letter of termination must July 31, 2025 at the latest be received by the landlord in order to bring about the end of the contract on October 31.
Key Takeaways - Early termination of rental agreement
- Good communication helps to avoid conflicts
- Early termination is Explainable from the 13th month
- 3 months deadlineat the end of the month → contract ends after 16 months at the earliest
- Written form and timely delivery are mandatory
- Amicable solution with Payment on account is legally possible
How Kroy Real Estate supports you
Whether as in the case of the Novak family or in your own individual living situation: early contract termination can be complicated - but it doesn't have to be. We from Kroy Real Estate help you to formulate legally compliant notices of termination, find fair solutions with landlords or find suitable new tenants.
Get non-binding advice now: www.kroyimmobilien.at/kontakt
Are you a landlord and want to rent out your apartment without any worries? Here you can find out everything about our professional Sub-management solution.
FAQ
Can I cancel before the end of a year?
No, at the earliest from the 13th month of rent according to MRG.
Can the landlord enforce an earlier termination?
No, the tenant determines the time of termination.
What happens if I just move out?
The rent continues until the contract ends with legal effect.
Is an advance payment legal?
Yes, if voluntarily agreed and appropriate.
