“Huge rent increase is coming” – that’s how much you pay more – Austria
The next burden is just around the corner: Housing is getting more expensive again! The AK has calculated: From April 1st, the guideline rents will rise by a whopping 8.6 percent – for a rent that is an average additional cost of around 490 euros per year. “Everyone has to live, so in the best welfare state in the world, housing is affordable for everyone,” says Thomas Ritt, head of the municipal and housing department. The AK demands: one-time rent increase per year plus rent cover at two percent and away with the time limits. It’s fast and gets the job done.
Next price shock! Rents are increasing significantly
The AK calculated on the basis of the annual inflation published by Statistics Austria: The benchmark rents will rise by a whopping 8.6 percent in April – around 776,000 tenants in Austria will be affected. “You have additional costs of around 162 million euros due to this increase,” says Ritt. For a tenant in a private old building, this means additional costs of just under 490 euros per year on average across Austria (with an average apartment size of 65 square meters). A family in a 90 square meter apartment will pay around 620 euros more in rent in Vienna and around 960 euros more in Vorarlberg (if there are surcharges on top of the guideline value, it will be even more expensive).
“Young people can hardly keep up”
“For many, it’s getting tighter and tighter with all the price increases – and now there’s another hefty rent increase. Young people in particular can hardly keep up. In the best welfare state in the world, housing is affordable for everyone,” says Ritt. “Therefore, we demand that rents should not be increased more than once a year and that the increase be limited to two percent – until there is a major long-overdue tenancy law reform. We also want to get rid of the fixed-term leases.”
And further: “This can be implemented quickly and relieves tenants enormously. Three out of four new rental contracts in the private segment are only limited in time, not to mention the illegal surcharges for new, limited old building rents, which make living very expensive. And who its too high Rent and thus suing for his rights must also fear that the contract will not be extended. That is why many do not do so. This is how the law becomes an empty shell!”
Indicative rents in April
Normally, the benchmark rents are adjusted for inflation every two years on April 1st. In 2021, due to the urging of AK and the tenants’ association, the government suspended the adjustment to relieve tenants in the corona pandemic and postponed it to 2022. Rents have risen by almost 6 percent over the past year. Now the next rent increase is due (from April for new contracts, from May for current contracts). The Ministry of Justice published the increase in the benchmarks in March.
Anyone who has signed a lease after March 1, 1994, for example in a private old building built before 1945, is subject to the benchmark system. The increase also affects all contracts concluded in the past 27 years, as they (often) have corresponding adjustment clauses in the contract, as well as new contracts. The benchmarks vary from state to state.
What to do with rent and energy cost debts?
➤ Wohnschirm helps with rent and energy cost debts: https://wohnschirm.at/
➤ Apply for housing assistance: In Vienna you can apply for housing assistance from MA 50 if you have a certain minimum income: Tel.: +43 1 4000-74880, email: [email protected]. In all other federal states, the respective office of the state government provides information on this.
➤ Private old building rent too high: Check your rent with the benchmark rent calculator City vienna.
Are you paying too much? Application to the housing law arbitration board MA 50: Tel.: +43 1 4000-744 98, e-mail: [email protected]. In the other federal states, tenant organizations and district courts provide information.