Security Deposit and Damage for Tenants in Austria
As a tenant in Austria you should know how deposits, escrow accounts and possible damage claims work. This text explains clearly what rights and obligations you have when paying and reclaiming a security deposit, how to document damage, which deadlines apply and which evidence is useful. It also explains how an escrow account is managed and how to recover a deposit wrongfully withheld. The guidance helps you plan steps, compose letters correctly and meet deadlines. If necessary, you will also learn when court action or mediation makes sense and which official authorities in Austria are primary contacts. Forms are available via JustizOnline[3]. Keep receipts, photos and correspondence as evidence.
What applies to the deposit?
In Austria the Tenancy Law (Mietrechtsgesetz, MRG) and the General Civil Code (ABGB) regulate rights around rental deposits[1]. The deposit serves as security for unpaid rent or damages after the contract ends. Often the deposit is agreed as cash or paid into a separate escrow account, where it should be kept separate from the landlord's assets.
What can the deposit be used for?
- Unpaid rent or utility charges
- Repairs for tenant-caused damage
- Costs for non-vacation or returning the apartment
- Supporting documents and invoices as proof for claims
Landlords must itemize deductions and be able to prove that damages exceed normal wear and tear. Photographs, estimates and handover records reduce disputes.
How does an escrow account work?
An escrow account is a separately maintained account where the deposit is kept. It protects tenants because the funds must not be mixed with the landlord's assets[2]. Ask when signing the lease whether the deposit is held in an escrow account and request proof.
Frequently Asked Questions
- When can the landlord withhold the deposit?
- The landlord may only withhold it for outstanding claims or proven damage. There must be a comprehensible settlement.
- How long does the landlord have to return the deposit?
- There is not always a fixed legal deadline, but claims should be handled promptly; keep contract deadlines and receipts ready.
- What is an escrow account and how do I request proof?
- An escrow account is a separate account for the deposit. Request a confirmation or account statements as proof.
How-To
- Document condition and damages immediately with photos and a handover record.
- Request the refund in writing, setting a deadline and send by registered mail.
- Wait the set deadline and check the settlement carefully.
- In case of dispute: contact a mediation body or consider court action.
Key Takeaways
- Evidence increases clarity in disputes.
- Written claims with deadlines are often required.
