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RENTING

What’s changing for tenants and homeowners in Austria in 2023?

Whether additional aid or improvements in tenancy laws, here are the most significant changes which home renters and owners in Austria need to know about.

Published: 2 January 2023 15:26 CET
What's changing for tenants and homeowners in Austria in 2023?
Apartment buildings by a Viennese street (Photo by Oyster LIU on Unsplash)

Households to get €400 aid for heating costs

The Austrian government has agreed on additional aid to cushion high heating costs, with the payout being distributed by the provinces. 

The total amount will be transferred to the regions based on population to add to existing local subsidies. The federal aid would amount to between €200 to €400 extra per household.

The heating subsidy is intended for lower-income families, minimum pensioners and welfare recipients. It will be available whether they heat with gas, electricity, pellets or another fuel. 

READ MORE: Austria to offer extra €400 for heating costs to low income households

Residents in Vienna to get €200 aid

The City of Vienna is sending out bonuses of €200 to households to help cushion the effects of rising energy costs. Viennese households will receive €200 in a new “energy bonus, ” which will benefit about two-thirds of all city homes.

Single households with a gross annual income of a maximum €40,000 or multi-person households with an income of up to €100,000 gross per year are entitled to receive the payment. 

READ MORE: Vienna Energy Bonus: How to get a €200 payout

No more ‘Provision’ payments

From July 1st, 2023, the Bestellerprinzip (buyer’s principle) will apply to apartment rentals, meaning those who hire a broker will pay for the service, as The Local reported.

Currently, renters need to pay several fees when moving into a new apartment, including a security deposit and the first month’s rent.

Unless the property is rented “privately” by the owner without the brokerage firm intermediate, one of those fees includes the so-called ‘Provision‘, a brokerage fee paid by the tenant equivalent to two-months rent. The tenant pays the cost even if the property owner hires the brokerage firm. 

That is set to change on July 1st 2023 when the person who hires the service will have to pay for it.

READ MORE: CONFIRMED: Austria to scrap broker’s fee on apartment rentals in 2023

A possible rent freeze

Austria’s Social Democratic Party (SPÖ) plans to introduce a motion for a rent freeze that would prevent rent increases until 2025, as The Local reported.

Details on the plan should be debated in the party’s next meeting on January 24th. However, the opposition party has already advanced the main point of their proposal: “all rents should be frozen until 2025”. The measure comes as high inflation and increasing energy prices pressure tenants in Austria. 

The SPÖ also wants to change the index used to adjust rental prices in Austria. Currently, rental adjustments are based on the consumer price index, which is tied to inflation. 

However, the centre-left plans to propose that prices be adjusted on the key interest rate of the European Central Bank instead – and that they be capped at a maximum of 2 percent. 

READ MORE: What are Austria’s Social Democratic Party’s plans for freezing rents until 2025?

The electricity price brake

Austria will have a price cap for electricity throughout 2023 (it has been in place since December 1st and should last until June 30th 2024). 

The price of electricity will be subsidised up to a consumption of 2,900 kilowatt hours, the government said. Until that limit, it will cost only ten cents per kilowatt hour – the energy price from before the current energy crisis.

Above that consumption limit, people will have to pay market prices for what they consume.

The Austrian government estimates that the measure will help Austrian homes save from €400 to €800 on energy bills a year. The Finance Ministry added that the average household’s savings would be €500.

READ MORE: How could Austria’s new electricity price brake benefit you?

Salzburg has new stricter laws for property-buying. (Photo by Heinz Klier / Pexels)

New property laws in Salzburg

After years of high interest in property in Salzburgerland (especially in the winter tourism areas) followed by rising prices, the state government has decided to tighten the law.

This means when someone buys a house, apartment or building land in certain districts in Salzburg, they have to prove that it will be their main residence (Hauptwohnsitz). Purchasing second homes (Nebenwohnsitz or Zweitwohnsitz) or holiday homes in Salzburg will only be permitted in designated zones.

If several requirements are not met by the deadlines, there is a risk of foreclosure and the property or land being sold at auction. The money from the sale will go to the owner, but auctions will start at 90 percent of the estimated value.

READ MORE: Property in Austria: Can I still buy a holiday home in Salzburg?

Property prices to fall

Experts have said that they expect prices to fall across the entire property market in Austria in 2023 – although it might not increase transactions in all segments. Predictions for the year are that the market will definitely slow at the lower end.

The scenario will also depend on the geopolitical situation, especially the war in Ukraine and its repercussions, experts told The Local.

READ MORE: What experts say will happen to the Austrian housing market in 2023

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RENTING

What tenants in Austria need to know about getting their rent reduced

From construction noise to broken utilities, various issues can allow tenants in Austria to request a rent reduction. Learn the steps to follow and when legal action might be necessary.

Published: 19 September 2024 15:02 CEST
What tenants in Austria need to know about getting their rent reduced

In Austria, tenants can legally request rent reductions if their rental property’s usability is significantly impaired. 

According to MieterHilfe, the association that helps renters in Vienna, Section 1096 of the Austrian Civil Code (ABGB) regulates this. The ABGB covers rental agreements for all properties. 

The law offers protection when tenants experience issues like heavy construction noise or utility outages (such as gas, electricity, or water). However, knowing when and how to apply for a rent reduction and understanding the process can be tricky. Disputes often end up in court and are decided on a case-by-case basis.

READ ALSO: Can my landlord in Austria increase the rent whenever they want?

When you can ask for a rent reduction

If your rental property’s usability is restricted, you can apply for a rent reduction. Common examples of restricted usability often include disruptions in gas, electricity, or water supplies, major construction noise from remodelling, damage to property that prevents proper use, such as a broken heating system, and more. 

Importantly, tenants can claim a rent reduction even if the landlord is not directly responsible for the impairment. However, the extent of the usability issue must be clear, and the tenant must notify the landlord to allow them to fix the problem. Additionally, if a tenant repairs the issue, the rent reduction period ends as soon as the repair is made.

Not all impairments qualify for a rent reduction, though. For example, minor inconveniences or defects, issues that the tenant was aware of when signing the lease, impairments caused by the tenant’s actions and situations where the tenant has already waived the right to a reduction do not count.

An attic room can get extremely hot without air conditioning (Photo by Jakub Żerdzicki on Unsplash)

If there is a dispute, the court will decide the extent of the rent reduction, considering objective and subjective factors. For example, households with small children or pregnant women might receive higher reductions.

READ ALSO: Tenant or landlord: Who pays which costs in Austria?

MieterHilfe has a table with many recent cases that can give you an idea of the causes of rent reduction and the amount tenants received. For example, in one case in Vienna, the flat had significant mould infestation, and the tenants received a 75 percent rental reduction. In another case, rent was reduced by 30 percent because of “unhealthy odours” from the rubbish room that affected half of the flat.

In one case, dangerous electrical cables were accessible inside the flat, and the tenant did not have to pay any rent until the issue was fixed.

Things get more complicated when it comes to noise. In one case in 2005, the tenant got a 15 percent rent reduction due to the consequences (noise and smell nuisance) of a garage construction in the neighbouring property, but not a reduction when the next-door property was doing “normal construction work.”

Another common complaint tenants have is regarding heat, especially in Dachgeschoss apartments (attic apartments), which can get extremely hot due to the lack of ventilation and their location in buildings. In one case, the air conditioning system was positioned so unfavourably that the rooms were not cooled —the tenant got a 6 percent reduction in rent.

In another, though, the complaint regarding excessive heating was dismissed, and the tenant received no reduction because they had rented the room without any reservation or questioning, even though the place had no sun protection or air conditioning.

READ ALSO: What happens when my rental contract expires in Austria?

Legal action and rent payment strategies

Tenants must be cautious when pursuing rent reductions, the renter’s association say. Two approaches are commonly used.

You can continue paying the total rent while negotiating. The tenant informs the landlord about the issue and continues paying the total rent but reserves the right to claim a reduction later. This can be useful in avoiding eviction risks.

Or, they can reduce rent directly. This means the tenant pays a reduced amount but informs the landlord in writing. If the landlord disagrees, they may take legal action, and the court will decide the appropriate – if any – reduction.

In both cases, it is essential to notify the landlord in a verifiable form, such as a registered letter, to ensure the process is documented.

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