Rents First Protection Act 2026. Sabine Leitner is 56 years old and lives in Linz. In addition to her job as a graphic designer, she owns two rented apartments - one in an old building in Salzburg and a newly built apartment in Vienna, which she inherited from her parents.
At the beginning of 2026, when the new Rent Assurance Act (MieWeG) comes into force, she asks herself: What does this mean for her tenancy in concrete terms? Which increases are still permitted - and which clauses will she need in future rental agreements? We guide Sabine Leitner through the most important changes - with practical examples and concrete tips.
What does the new MieWeG 2026 regulate?
On January 1, 2026, the Rent Assurance Act (MieWeG) as a central part of the 5th Inflation Reduction Act under Tenancy Law (5th MILG). This means that for the first time, uniform rules on value protection apply to all residential rental agreements - including those in the independent rental sector that are not subject to the MRG.
The legislative reform is a response to the persistently high inflation in the years 2022 to 2025 and creates a compromise between predictable rental growth for landlords and affordable housing for tenants.
The key points at a glance:
- Index adjustment only once a year, on April 1 of the year following the conclusion of the contract. This will affect every existing residential tenancy agreement from 2026.
- Cap on the annual adjustment: If inflation (average change in the CPI 2020 or the index replacing it) in the previous year exceeds 3 %, only half of the excess amount may be passed on.
- Special upper limits in the full application of the MRG:
- For 2026: maximum +1 %
- For 2027: maximum +2 %
- From 2028, the 3% limit will apply with halving of the overlying part as in the free area.
- Minimum 5-year time limit for new residential rental agreements with full or partial application of the MRG - with the exception of landlords without entrepreneurial status (e.g. private individuals without commercial activity).
Recommendation: It is better to set a time limit of 5 years, as the legislator has not set a strict limit on entrepreneurial status. In the event of a lawsuit, the burden of proof lies with the landlord. - § Section 4 (3) MieWeG restricts reclaiming overpaid rent due to inadmissible value retention agreements to five years. The limitation of the reclaim period does not apply to abusive clauses within the meaning of the European Clauses Directive.
Reading tip: Information on this from the WKO
Practical example 1: Sabine Leitner and the new rental agreement in Vienna
Sabine is renting out her modern apartment in Vienna-Favoriten from March 2026.
The rental agreement contains the new value retention clause. It refers to this with the short sentence „The main rent for this residential rental agreement is value-assured in accordance with Section 1 (2) of the Rent Value Assurance Act“ to the new MieWeG.
The first permissible increase is possible at the earliest in the year following the conclusion of the contract on April 1, 2027. Even if the consumer price index rises by 6 % in 2026, it may only pass on 3 % of the inflation rate in full. Half of the remaining 3 % will be taken into account - resulting in a possible rent adjustment of 4.5 %. As the contract was concluded in March 2026, this year may only be included in the calculation on a pro rata basis. This means that only 9/12 of the possible 4.5 % can be indexed for 2026.
Practical example 2: The old apartment in Salzburg
Sabine has been renting the apartment in Salzburg since 2020. The existing contract contains a classic value protection clause based on the CPI.
New from 2026: The adjustment may only be made on the statutory cut-off date of April 1. The statutory cap also applies.
Sabine must therefore freeze the index increase, which would have occurred at a certain point in time according to the value protection clause agreed in the contract, and postpone it until April 1. For this, she uses the official average of the CPI 2020 of the previous year with the relevant limit of 3 % plus half of the inflation in excess of this.
As the old apartment in Salzburg falls within the full scope of application of the MRG, the upper limits set out in the MieWeG must be observed. This means that only 1 % may be indexed for 2026 and only 2 % for 2027.
What does the MieWeG mean for rental agreements from 2026?
| Point | What is changing |
|---|---|
| Indexing | Only possible once a year on April 1 |
| Inflation over 3 % | Capping: only half over 3 % counts |
| Time limit | at least 5 years (except for non-commercial landlords) |
| Reclaims | max. 5 years retroactively, with the exception of misuse |
Tip: Sabine has her contracts and templates checked by a real estate law firm - and receives specific advice on how she can continue to rent in a legally compliant manner in the future.
Q2 2026 Update: Initial Practical Experiences and New Discussions Surrounding the MieWeG
In the second quarter of 2026, it is becoming increasingly clear just how significantly the new MieWeG is impacting day-to-day leasing practices. Real estate law firms, property management companies, and private landlords, in particular, report a significantly higher workload when reviewing existing lease agreements. The focus is primarily on older value-protection clauses that were drafted before the law took effect. Many landlords are currently having their leases reviewed by legal counsel to avoid future claims for refunds or disputes. At the same time, market participants are observing that tenants are exercising their rights much more actively and are increasingly demanding information about index calculations and adjustment dates.
There is also renewed discussion regarding how to handle contracts in which multiple index adjustments during the year were previously agreed upon. In practice, the transition to the uniform statutory effective date of April 1, in particular, creates additional organizational work—for example, in the case of automated billing or existing management systems. Property managers are therefore increasingly recommending standardized contract templates and ongoing documentation of the calculation bases. As a result, digital rental management models are also continuing to gain importance. These new developments show that the MieWeG is no longer merely a legal issue but now influences the entire operational practice of property leasing in Austria.
Q2 2026 Update: Initial Practical Experiences and New Discussions Surrounding the MieWeG
In the second quarter of 2026, it is becoming increasingly clear just how significantly the new MieWeG is impacting day-to-day leasing practices. Real estate law firms, property management companies, and private landlords, in particular, report a significantly higher workload when reviewing existing lease agreements. The focus is primarily on older value-protection clauses that were drafted before the law took effect.
Many landlords are currently having their leases reviewed by legal counsel to avoid future claims for refunds or disputes. At the same time, market participants are observing that tenants are exercising their rights much more actively and are increasingly requesting information about index calculations and adjustment dates.
Another issue currently under discussion is how to handle contracts in which multiple index adjustments within the year have been agreed upon to date. In practice, the switch to the uniform statutory effective date of April 1 in particular creates additional organizational work—for example, in the case of automated billing or existing administrative systems.
As a result, property managers are increasingly recommending standardized contract templates and ongoing documentation of the basis for calculations. Digital rental management models are also continuing to gain importance as a result. These new developments show that the MieWeG is no longer just a legal issue; it now influences the entire operational practice of rental management in Austria.
Practical Overview for Q2 2026: What Property Owners and Landlords Should Keep in Mind Now
The following overview shows which topics have become particularly relevant in practice since Q2 2026.
| Range | New Development, Q2 2026 | Recommendation for Landlords |
|---|---|---|
| Value protection clauses | Many older clauses are currently undergoing legal review | Have existing lease agreements reviewed by a real estate law firm or an attorney |
| Adjustment Date | Only one statutory adjustment date per year is now permitted | Adjust administrative systems and standing orders to April 1 |
| Documentation | Tenants are increasingly demanding transparent calculations | Document and archive index adjustments in writing |
| Reclaims | Discussions about invalid clauses are on the rise | Stop using outdated contract templates |
| Fixed-Term Lease Agreements | Uncertainty Regarding the Entrepreneurial Status of Private Landlords | If in doubt, choose a fixed-term contract of at least 5 years |
| Property Management & Software | Many existing systems had to be adapted | Use Digital Rental Management and Automated Deadline Tracking |
| Communication with tenants | Greater Need for Information When Index Levels Rise | Communicate changes early and transparently |
| New Leases | Standardized MieWeG clauses are gaining traction in the market | Use current templates that reference Section 1(2) of the MieWeG |
Tip: Property owners with multiple apartments, in particular, should have their existing lease agreements reviewed all at once. Experience has shown that standardized contract templates and clear documentation can significantly reduce future disputes.
Key Takeaways
- Tenants:inside: Pay attention to comprehensible index clauses. Have the calculation explained to you in detail.
- Landlords like Sabine Leitner: Pay attention to the new regulations on value protection for residential rental agreements in accordance with the MieWeG.
FAQs on the Rental Value Protection Act 2026
What happens to existing rental agreements?
They will also be subject to the MieWeG from January 1, 2026. Increases are possible from April 1, 2026 at the earliest.
As a landlord, can I adjust:in several times a year?
No. From 2026, only one annual increase is permitted - and this is required by law on April 1.
How is inflation calculated?
Based on the average annual change in the consumer price index (CPI 2020) of the previous year - officially published by Statistics Austria.
What applies to unfair terms?
If a clause violates the EU Clauses Directive (e.g. is incomprehensible or inadmissibly one-sided), reclaims can also be asserted beyond 5 years.
Does this also apply to business premises?
No. The MieWeG only applies to residential tenancies.
Are you renting in Salzburg or Vienna?
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