The main difference between fix-term and indefinite tenancy agreements is the length of tenancy. Indefinite tenancy agreements can be terminated by the landlord only in exceptional cases. For this to apply, the tenant must commit a gross violation, for instance, in the form of rent arrears or unauthorised subletting of the apartment. The landlord’s personal requirement exists only in the case of an acute housing shortage and courts usually decide in the favour of the tenant.
In the case of fixed-term agreements, the Tenancy Act requires a minimum fixed term of 3 years; there is no limit on the maximum duration. The agreement can be extended as often as desired, but the term of tenancy must always be at least 3 years. In the case of fixed-term agreements, tenants must be granted a 25% discount on the legally permissible rent. If the landlord does not wish to continue the fixed-term tenancy, the landlord must inform the tenant by registered mail. Otherwise, it can happen that the tenancy agreement is extended for an additional 3 years.