Renting For Members

How tenants in Austria can save money from July 2023

The Local Austria
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How tenants in Austria can save money from July 2023
Tenants could see some relief around a particular brokerage fee starting in July. (Photo by Abi Tripp / Unsplash)

Starting Saturday, a new law comes into effect in Austria that will save tenants a fee that can typically amount to the equivalent of two months rent.

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Saturday's big change for tenants concerns the payment of brokerage fees, also known as "Provision."

The federal government has announced an amendment to the renter's law, introducing the buyer's principle, or Bestellerprinzip, for apartment rentals.

Under the current system, tenants are responsible for various fees, including a security deposit and the first month's rent when they move into a new apartment. One of these fees is the Provision, a brokerage fee equivalent to two months' rent, which tenants must pay even if they find the apartment online or if the property owner is the one who engages the services of a brokerage firm.

However, starting in July, the responsibility of paying the brokerage fee will be on the party that hires the real estate agency.

Unless the property is privately rented directly by the owner without involving a brokerage firm (in which case there should be no fee), the cost will now need to be paid by the individual or entity that engages the agency's services.

This change aims to provide a fairer and more transparent system for tenants, relieving them of the financial burden of paying the brokerage fee when not using the services of a real estate agency for apartment rentals.

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

Some rents to increase


However, renters aren't completely off the hook when it comes to rising costs.

Starting from July 1st, Austria will see a 5.51 percent increase in category rents, impacting approximately 135,000 households nationwide.

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

The Rent Law Act mandates that if inflation surpasses 5 percent, the Minister of Justice must declare a rent increase.  This adjustment applies to all tenants residing in buildings governed by the Tenancy Act (MRG) and whose lease agreements were entered into before March 1st, 1994.

Therefore the effects are generally limited to those on very old leases.


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Patrick S. 2023/07/01 14:25
Maybe I'm not reading this correctly. Apparently we still have to pay the fee if the agent posts the apartment online? But if an apartment is posted online, the agent/agency has been hired by the landlord, correct? Or do we (tennant) still have to "hire" the agency? If this is the case, the law is completely useless. Greatful for some answers/clarity. Thanks in advance
  • Amanda Previdelli 2023/07/03 09:00
    Hi! If the apartment has been posted online, it may have been done so by the landlord (in which case there should be no fee for anyone) or by the agency that the landlord hired (in which case the landlord pays for the service). Tenants will only pay a brokerage fee if they hire an agent. I hope that clarifies things, but long story short: the person that hires a brokerage firm pays for the service.

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