Early termination of rental agreement: 8 solutions for tenants and landlords

Zuletzt aktualisiert am 10. February 2026

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Vorzeitige Kündigung Mietvertrag. Die Familie Novak ist erst im Juli 2025 in ihre Dreizimmerwohnung in Wien eingezogen. Doch schon 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: Mietbeginn: 1. Juli 2025 – Kündigungserklärung frühestens am 31. August 2026 – frühestmögliches Vertragsende: 30. November 2026.

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.

Early termination of rental agreement - Mrg

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?

OptionDescriptionNote
Termination by mutual agreementTerminate the contract early together with the landlordWritten agreement required
Propose a new tenantTenant organizes replacement to relieve landlordNot a legal obligation, but often practicable
Offer payment on accountLump-sum payment as compensation for landlord expensesOnly valid with mutual agreement
Continue to pay for the apartment until the regular termination dateLegally secure, but expensiveApartment 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?

MeasureBenefitPrerequisite
Accepting a termination agreementAvoidance of contentious proceedingsVoluntary consent
Agreeing a lump-sum payment on accountCompensation for expenses & vacanciesMust be defined in the contract
Rent a new apartment immediatelyReduce loss of incomeDelivery in good condition
Allow contract to continueLegally secure, no special agreement necessaryRisk 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.

Early termination of rental agreement - What can landlords do

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 frühestens am 31. August 2025 terminate the contract. With three months' notice, the contract is then terminated with effect from 30. November 2025 finished.

Attention: The letter of termination must spätestens am 31. August 2025 beim Vermieter eingehen, um das Vertragsende per 30. November zu bewirken.

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.

Disclaimer:
The contents of this article have been carefully researched. However, we cannot guarantee that the information is correct, complete or up-to-date. This article is for general information purposes only and does not constitute legal or professional advice.

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