Moving out of a place where no leasing contract exists

Hey all,

I'm speaking on behalf of a friend of mine who lives and works in an area just outside of Vienna and I would appreciate a piece of advice, in anyone knows the legal details about whats going on when you rent a place without a leasing contract.

Here's the situation.

My friend rents a small place, where no contract exists. The lessor asked for a couple of rents in advance, which is the normal requirement before you rent a place in Austria. She has the receipt of that payment which states that the payment stands as a warranty for the rent of the house in "Address" with his signature on it.

The lessor noted to my friend that if she decided to leave the place, she should notify him 2 weeks in advance. Now she found another place to stay and is about to leave and among the reasons is the amount of MOLD on the walls, in a semi-basement apartment that makes living in a place with so much moisture hard enough to go.

It's first of August, and my friend notified the lessor that shes leaving in 2 weeks, just like he asked before she does so. The thing is that he asked her to pay for the whole August rent, regardless of her staying there for 2 weeks of the month.

I know, at first you might think that this is normal, but as I previously mentioned there is no contract at all, which explicitly states that requirement of the lessor. He is obviously illegal, since he is renting a place without a contract as he pays no tax to the state for the earnings he has by renting that place.

My friend is just concerned about getting the warranty back. She's willing to pay half the rent, for the 2 weeks of August, but no more since she is not obliged to do so by a contract, since the guy is not legitimate.

The question is, what happens if he refuses to return the warranty.
Should she take the legal road to solve this issue? Does it worth it? The warranty is 600euros.
Could she face some sort of penalty since she rents a place without a contract?

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