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Austrian city of Graz announces rent brake

The Austrian federal government failed to agree on a cap for rents in the country, but the Styrian capital has announced a rent brake.

Published: 23 March 2023 15:59 CET
Austrian city of Graz announces rent brake
Buying property as a non-EU foreigner in Graz is much easier than in the rest of the country. (Photo by Yasen Iliev on Unsplash)

After months of negotiations and demands from several parties, the Austrian federal government failed to agree on a rental cap just as benchmark rents are about to rise, as The Local reported.

Instead, the ÖVP-Greens coalition has announced a one-off housing aid payment. Specific households, with income criteria to be decided by provincial governments, would receive an average of €200.

However, the measure was heavily criticised as superficial and temporary, and the City of Graz has become one of the first to announce a rental price brake on its own.

READ ALSO: ANALYSIS: Can Austria’s government get inflation under control?

Graz mayor Elke Kahr (of the left-wing KPÖ) said on Thursday that rents for municipal apartments wouldn’t increase by 8.6 percent (in line with the inflation rate for 2022). Instead, there would be a maximum two percent increase – and a further four percent in 2026.

The mayor of Graz is also not sparing in her criticism of the federal government.

“The same could have been done at the federal level, but that did not happen, and that is incomprehensible,” she said. “It’s not about relieving the big landlords now, but a price increase of this magnitude puts people in distress, and these one-off payments don’t really help.”

A supplementary budget would be necessary, but the loss of revenue was bearable, said Kahr. The rent brake in Graz applies to 4,400 municipal apartments. In addition, there are already rent aids in 6,400 cooperative apartments for all those who have to pay more than one-third of their household income for housing costs, Kahr said.

READ ALSO: Renting in Austria: When can my landlord increase the rent, and by how much?

Of the nationwide subsidy volume of €250 million, around €30 million will go to Styria, Social Affairs Minister Doris Kampus (SPÖ) assumed; but the concrete framework conditions will likely not be known until the end of April. 

Who gets how much will then be defined by the different income limits, added Kampus.

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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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