Austria’s New 5% Rent Cap: The 2026 Mietpreisbremse Checklist for Every Tenant

Starting January 1, 2026, a significant change enters the Austrian housing market. The federal government’s “Mietpreisbremse” (Rent Price Brake) officially begins, aiming to protect millions of tenants from spiraling costs. For many residents in Vienna and beyond, this means rent increases will be legally capped at 5% per year.

However, the law is complex, and not every apartment is covered. As we move into the new year, every renter should perform a “contract check” to ensure they aren’t paying more than the law allows. This Vienna Times guide provides the essential checklist to navigate the new regulations.

1. Does the 5% Cap Apply to Your Apartment?

The most important factor is the type of building you live in. The Mietpreisbremse primarily targets “regulated” and “semi-regulated” segments of the market.

It Applies to:

• Altbau (Old Buildings): Generally, apartments built before 1945 that fall under the full scope of the Tenancy Act (MRG).
• Social Housing (Gemeindebau): Municipal housing, such as Vienna’s famous Gemeindebau complexes, is strictly covered.
• Non-Profit Housing (Genossenschaften): Most cooperative apartments will follow the new 5% limit for their base rent.

It Does NOT Apply to:

• Neubau (New Construction): Apartments built with private funds after 1945 (for free-market rentals) or after 1953 (for condominiums) are generally exempt.
• Single-Family Homes: Private houses and certain “luxury” segment rentals often fall outside the cap.

2. Understanding the 5% Threshold

The law states that for the years 2024, 2025, and now 2026, rent increases based on the Consumer Price Index (CPI) cannot exceed 5%. If the official inflation rate is, for example, 7%, your landlord is legally restricted to charging only a 5% increase.

Much like the E-Card service fee increase, these small percentages add up to significant savings for your household budget over time.

3. The “Tenant Checklist” for January 1st

Before you pay your first rent invoice of 2026, go through these steps:

1. Check the Date of Construction: If your building was built before 1945, you are likely in the “Safe Zone” for the cap.
2. Review the Indexation Clause: Look at your contract for terms like “Wertsicherung” or “Indexierung.” This is where the landlord justifies the increase.
3. Verify the Math: If you receive an increase notice, ensure it does not exceed the 5% limit on the net rent (the base rent before operating costs and VAT).

4. What to Do if Your Rent Increases Too Much?

If you suspect your landlord is ignoring the Mietpreisbremse, do not stop paying your rent—this could lead to eviction. Instead:

• Request a Detailed Breakdown: Ask your landlord or property management (Hausverwaltung) to justify the increase in writing.
• Contact the Mietervereinigung: The Austrian Tenants’ Association is the primary resource for legal disputes.
• Check with the Schlichtungsstelle: In Vienna, the municipal arbitration board can review rent prices for free or a very low fee.

5. Conclusion: A Step Toward Fairness

The 2026 Mietpreisbremse is a vital safety net in an era of high inflation. While it doesn’t solve the housing shortage, it provides much-needed predictability for families and students. By staying informed and checking your contract today, you can ensure that you start 2026 with your rights protected.