Renting a flat in Wels: the rental contract explained

Last updated: 24 October 2026

Austrian tenancy law protects tenants well, but how much depends on the building your flat is in. Before you sign, it pays to know which rules apply. Here is what matters in Wels, with the rules in force since 2026.

Which rules apply

The main law is the Tenancy Act (Mietrechtsgesetz, MRG). It applies in three degrees:

Fully in older buildings permitted before 1 July 1953 and in buildings constructed with public subsidies. Here the rent itself is capped.
Partly in buildings constructed without subsidies after 30 June 1953, and for rented-out condominium flats in buildings permitted after 8 May 1945. The rent is freely agreed, but the rules on fixed terms, notice and deposits still apply.
Not at all in a house with no more than two flats, such as a granny flat in a family home. Almost everything then depends on the contract.

Flats let by non-profit housing associations (gemeinnützige Bauvereinigungen, usually called Genossenschaften) follow an additional law, the WGG. A large share of the rental flats in Wels belongs to this group. Your contract names the landlord.

One exception: subsidised cooperative flats that were transferred into private ownership. For 15 years from the first purchase contract the MRG applies fully to them, with the reference rent as the cap. If you rent a condominium flat, ask whether it used to belong to a cooperative.

Rent caps

Where the MRG applies fully, the base rent (Hauptmietzins) is limited, for older flats usually by the reference rent (Richtwert). In Upper Austria it has been €7.30 per square metre of usable floor space since 1 April 2026, plus or minus adjustments for location and fittings. The district court can review whether an agreed rent is permitted. In unsubsidised new buildings the rent is freely agreed.

A fixed term lowers the maximum permitted base rent by 25%, but only where the rent is capped in the first place.

Fixed-term leases

Many leases in Austria are fixed-term (befristet). Such a lease ends automatically only if the term is agreed in writing and is long enough. For contracts signed or renewed since 1 January 2026, the minimum is five years if the landlord is a business and three years if the landlord is a private person. A shorter or unwritten term counts as an open-ended lease.

You are not locked in for the whole term. After the first year you may give notice in writing to the end of any month, with three months' notice. The contract cannot take this right away from you.

Rent increases

Many contracts link the rent to the consumer price index. Since 1 January 2026 the Rent Indexation Act (Mieten-Wertsicherungsgesetz) limits these clauses for flats covered fully or partly by the MRG, in older contracts too. Non-profit housing mostly follows its own rules under the WGG. The rent may change only once a year, on 1 April, based on the average inflation of the previous year. Inflation above 3% counts only half. For capped rents, inflation counts with at most 1% for 2025 and at most 2% for 2026.

Costs when signing

There is no stamp duty on residential leases. Agent fees follow the "first client pays" rule since 1 July 2023: if the landlord hired the agent first, the landlord pays. This also applies if the agent advertises the flat with the landlord's consent. You only pay a fee if you were the first to hire the agent, to search for you. The fee is then capped at two months' gross rent plus VAT, or one month plus VAT for leases of up to three years.

Checklist before you sign

Contracts are in German. Take the time to have yours translated before signing.
Are base rent, operating costs and heating listed separately? See operating costs.
Is the fixed term in writing and long enough?
Does the indexation clause stay within the legal limits?
How much is the deposit and where is it held? See deposit.
Is there a handover report with photos and meter readings?

Rental flats in Wels and the surrounding district are in the search. Moving out? You can list your flat for a successor tenant free of charge.