Your tenant has left, the flat shows some scratches, and you're figuring out how much of the deposit you may keep. Short answer: less than most landlords assume. The long answer comes from § 16b MRG together with § 1096 ABGB and Austrian case law — and it demands one thing above all: complete evidence. This guide takes the Austrian legal framework as default (Camilia operates from Austria), and shows where the limits sit and how to respect them verifiably.

What the deposit may be used for under Austrian law

§ 16b MRG and general Austrian tenancy principles limit deposit use to concrete claims arising from the lease:

- **Outstanding rent and operating costs** up to lease termination - **Compensation for damage** that exceeds normal wear (§ 1096 ABGB) - **Restoration costs** where the tenant breached their contractual duty of care

Not covered: general modernisation, normal wear, and routine cleaning arising from ordinary use. Withholding beyond these grounds exposes the landlord to a repayment lawsuit with statutory default interest.

The key boundary: 'normal wear' vs. damage

The line between **normal wear** (non-reimbursable) and **above-average damage** (reimbursable) is the most litigated point.

**Normal wear** includes: - Light use marks on walls (anchor holes, minor discoloration) - Floor wear from years of use - Yellowing paint after long occupancy

**Above-average damage** includes: - Wall holes larger than standard anchors - Deep parquet scratches from careless furniture sliding - Stains or burn marks clearly indicating contract breach

The burden of proof for the above-average nature rests on the landlord. Without entry AND exit photos, proving this before an Austrian district court (Bezirksgericht) is practically impossible.

Deposit amount and safekeeping

Austria sets **no rigid statutory cap** on the deposit — unlike Germany's 3-month rule. Market practice is 2 to 3 months' rent. What Austrian law does require:

- **Segregated custody**: the deposit may not land in the landlord's private account. The standard is a savings book or dedicated deposit account in the tenant's name, with a lock in favour of the landlord. - **Yield**: the deposit must be placed to generate at least market-rate interest. - **Written notice** to the tenant about the custody arrangement.

Keeping the deposit on a personal current account exposes the landlord to damage claims even when everything else is done right.

The repayment deadline after move-out

§ 16b MRG sets no exact deadline. Austrian case law has settled on **2 to 4 months** after lease termination. Within this window the landlord must:

1. Inspect the flat with the tenant or via a robust protocol 2. Prepare a written settlement with **individual supporting documents** (quotes, invoices) 3. Transfer the unwithheld portion to the tenant

If repayment is delayed without cause, the landlord owes statutory default interest under § 1000 ABGB (currently 4 % p.a.). And no court accepts lump-sum deductions without itemised evidence.

Five mistakes that get expensive in court

1. **Deposit on a private account** rather than segregated — tenant can claim repayment with damages. 2. **Lump-sum deductions** ("€300 for cleaning") without invoices — court strikes them out. 3. **Withholding for normal wear** — clear basis for full repayment claim. 4. **Missing entry protocol** — without before/after comparison you usually lose. 5. **Repayment without written settlement** — tenant can still claim further sums if the settlement is incomplete.

The evidence-safe path, step by step

This is how to handle the deposit safely under Austrian law:

1. **Entry protocol with photos**, tenant-signed, ideally digitally signed 2. **Deposit paid into a segregated savings account**, IBAN communicated to the tenant 3. **Documentation of all damage** during tenancy via written communication (WhatsApp, email) with timestamps archived 4. **Exit protocol** with direct comparison to entry, photos, tenant signature 5. **Quotes or invoices** for every damage item 6. **Written settlement within 2 months** with transfer of the balance

Camilia Casas automates exactly this path: every message about condition, damage or repairs is chained via SHA-256 hash to the previous one. At move-out you export a notarial PDF dossier documenting all communication — with verbatim references to § 16b MRG, § 1096 ABGB and § 1000 ABGB. If the tenant sues, your lawyer has usable evidence from minute one.

The deposit is not a free pot for the landlord. § 16b MRG draws clear lines, and without orderly evidence you lose more than the deposit in front of the Bezirksgericht — you also pay default interest and legal costs. Document condition at entry and exit, keep written records of damage during tenancy, and produce a transparent settlement with itemised evidence after move-out. Camilia Casas automates this evidentiary path for €9 per door per month. This guide is general information and does not replace legal advice; for your specific case consult an Austrian Rechtsanwalt.