OGH Ruling on Value Adjustment Clause in Rental Agreements

A tenant demanded the refund of excessive rents, citing a provision in the Consumer Protection Act, which states that a price adjustment within two months of contract conclusion is only allowed if it was individually agreed upon. However, the Supreme Court judges (OGH) assess this differently.

OGH Judges: Value Adjustment Clause in Long-Term Rental Contracts Permissible

Specifically, the tenant in the individual case referred to Paragraph 6 Section 2 No. 4 of the Consumer Protection Act (KSchG) and demanded the invalidity of the corresponding contract clause. According to the OGH judges, this provision only applies to services rendered within two months. Typical long-term obligations such as rental contracts are exempt from this. The lawsuit was therefore dismissed. "At the same time, the 10th Senate explicitly rejects the contrary view recently represented in individual decisions on class actions," stated an OGH announcement on Friday. The OGH decision now provides legal certainty for rental contracts: value adjustment clauses remain permissible if they do not take effect early and are clearly defined. Long-term rental contracts can thus include index adjustments (e.g., to the consumer price index) if they are transparently formulated.

VfGH Ruling on Value Adjustment Clause Made Real Estate Industry Nervous

The Constitutional Court (VfGH) had already confirmed the constitutionality of Paragraph 6 Section 2 No. 4 of the Consumer Protection Act in June 2025: Contract terms that allow price adjustments within the first two months after contract conclusion without individual agreement may be prohibited by the legislator. The VfGH made it clear that this protection in favor of consumers is constitutional and proportionate. This VfGH ruling had made the real estate industry nervous - experts warned that without value adjustment clauses, no one would rent out apartments indefinitely anymore. Two years ago, the OGH had determined the invalidity of value adjustment clauses if the rental contract did not explicitly mention a two-month waiting period regarding possible rent increases.

Government Wants to Find a Solution by Autumn

The federal government has already promised changes to rent value adjustment upon taking office. The Vice Chancellor responsible for housing, Andreas Babler, and Justice Minister Anna Sporrer (both SPÖ) want to find a solution together with the coalition partners by autumn.

(APA/Red)

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