Austria’s strict rental laws balance tenant rights and landlord fairness in 2024
Austria's rental market, governed by regulations like the Tenancy Law Act (Mietrechtsgesetz, MRG) and the energy performance certificate (Energieausweis), ensures tenant protections and fair practices for realtors and landlords. The reference rent (Richtwertmietzins), set by each federal state, serves as the baseline for rent amounts, with surcharges possible for prime locations or amenities. The MRG regulates rent caps and eviction protections for pre-1945 apartments, while single-family homes may fall under different regulations. The rent cap (Mietpreisbremse) has been extended until March 2025 to curb steep increases, affecting reference and category-based rents but not freely negotiated ones.
Landlords can claim deductible expenses, known as Werbungskosten, including operating costs, repairs, depreciation, mortgage interest, property management fees, and realtor commissions. All realtors must comply with tax requirements, with rental income taxed progressively based on the income tax scale. Since July 2023, the 'requester pays' principle for brokerage fees has been implemented, requiring the party hiring the realtor (usually the landlord) to cover the broker’s fee. The maximum legal commission for brokering an open-ended lease is two months’ gross rent plus 20% VAT, while for fixed-term leases under three years, the fee is capped at one month’s gross rent plus VAT.
The energy performance certificate (Energieausweis) is a legally required document for rental properties, displaying key metrics such as heating demand (HWB) and overall energy efficiency factor (fGEE). Failure to provide a valid certificate or omit energy efficiency data from property listings may result in administrative fines of up to €1,450.
Austria's rental market is well-regulated to balance tenant protections and landlord rights. Key regulations include the MRG, rent caps, energy performance certificates, and tax requirements. Recent changes in brokerage fee payment and rent cap extensions aim to further improve the rental landscape.
