Strict written form requirement for fixed-term rental agreements

For some time now, the Austrian Rent Act (MRG) that Fixed-term tenancies At least 3 years must include – previously, a shorter fixed term had also been possible. The Supreme Court (OGH) had dealt with (GZ 1 Ob 237/13d of 23 January 2014) the Requirement of a written document to deal with fixed-term rental agreements. The underlying facts were such that an agreement between landlord and tenant, originally for 3 years fixed-term Tenancy agreement time and again extends was done. Shortly before the expiry of the lease, the property management regularly enquired with the tenant whether they wished to extend the contract. If the residential tenant agreed, they had to return a prepared written addendum, signed by an agreed date, to the property management – subsequently, if the landlord agreed, they would receive a copy of the written addendum. In fact, the extension agreement was signed by a representative of the landlord at an unidentifiable time, but the Tenant neither I'm Original still in Copy handed over. The extension of the lease was lived out by both parties in such a way that the tenant continued to use the rented property and the landlord continued to receive the rent.

Final fixed-term lease or indefinite lease?

Disagreements arose in 2010 when the tenant refused to sign the written amendment and the Landlord therefore assuming that the Tenancy agreement until 2013 temporary it is, as it leads to a one-off conclusive Extension des Tenancy agreement came. The Tenant however, was of the opinion that instead one temporary Tenancy agreement at all permanent Here is the translation into English (UK): Here are the courts of first and second instance followed the view of Landlords, because for the Fixed-term lease one Written agreement assuming, which ultimately is also through the signatures of both parties fulfilled was. The meaning and purpose of Written form requirement at temporary rental agreements are fundamentally in the Warning and information function for the tenant as well as in the Preservation of evidence function for the landlord.

Unlike the previous instances, the Oh strict standards to the Written form requirement in connection with fixed-term tenancies - both for initial contract conclusion and for renewals. The practice long observed by landlords and tenants fulfilled whereas Requirements to the principle of written form Not, For this required is that the Landlord inside The Acceptance period to the tenant a Written acceptance provides. A written statement from the tenant (that they wish to continue renting the flat), which is informally accepted by the landlord, is not sufficient. For Fixed-term tenancies It is true that these – if they are neither contractually extended nor terminated – themselves unique open extend for three years. However, this in turn means that from the law merely once an oral or implied Extension des fixed-term lease agreement provided for and a written agreement is necessary for each further extension. If no valid fixed term because for instance the Written form requirement Not fulfilled is, so converts to, of the Fixed-term tenancy agreement in a permanent rental agreement even if the contracting parties wanted to conclude a fixed-term tenancy agreement. The Oh therefore came to the decision that already one Tenancy for an indefinite period is already met because the one-time automatic extension of the fixed term has already been exhausted. As the Tenant on the part of the landlord as well no written declaration of acceptance gone in war, no written agreement for the intended fixed-term lease has been made. This means that the party interested in terminating Landlord den Tenancy agreement only, as expressly stipulated and exemplified in the MRG, for important reasons To resign Can.

Caution in practice

So that it comes out Landlord's perspective so as to avoid any unwelcome surprises, and instead the desired extension of fixed-term lease agreement suddenly a (difficult-to-terminate) Perpetual rental agreement be available, should also Written form requirement corresponding attention must be paid and the path laid out by the Supreme Court of Justice (OGH) followed. Accordingly, in constellations where the lease agreement is to be extended by a written offer from the tenant, ensured to be, that this Anbot on lease extension accepted in writing by the landlord and sent to the tenant.

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