Many tenants across Austria, particularly those living in formerly non-profit housing, have discovered they're paying far higher rents than the law allows. Austria's Chamber of Labour (Arbeiterkammer, AK) discovered many cases of illegal overcharging and explained how landlords are have been able to work around the strict rent caps.
Here’s why this is happening, how to find out if your rent is too high, and what you can do to fight back.
Why rents have soared in formerly affordable housing
When previously non-profit cooperative flats (the Genossenschaftswohnungen) are privatised, "rents often rise drastically - even in areas where the lower, non-profit rents should actually still apply," explained Walter Rosifka, a housing expert at AK Vienna, in a statement published on the AK website.
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"Once the non-profit status is gone, it's all about maximising returns", he said. Despite the legal requirement under Austria's Non-Profit Housing Act (Wohnungsgemeinnützigkeitsgesetz, WGG) to cap rents at a specific level (currently €4.38 per square metre plus operating costs and VAT), landlords frequently ignored these limits.
But how?
The root of this issue lies in major waves of privatisation over recent decades. For instance, around 60,000 BUWOG flats were sold by the Austrian government in 2004 under then-Finance Minister Karl-Heinz Grasser. Between 2012 and 2015, another 3,000 flats owned by Gesfö, Riedenhof, and Pannonia cooperatives were also privatised.
Despite this privatisation, the AK stressed clearly: "Once non-profit, always non-profit." This means the capped rent must remain indefinitely.
The AK explained one significant exception: flats sold individually to tenants before 2019 could be rented out later at market rates. However, flats sold after 2019 remain under capped rents for at least 15 years.
But, in practice, landlords often disregarded the rules and charged rents significantly above what was allowed.
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A clear example was uncovered in a recent AK investigation reported by Der Standard. At Belvederegasse in Vienna, a 68-square-metre apartment was offered at around €1,300 total rent, "three times what would be allowed," Rosifka told the newspaper.
To understand how widespread this practice is, the AK posed as prospective tenants to investigate inflated rent offers. They consistently found landlords charging far more than legally allowed.
Rosifka pointed out landlords were deliberately exploiting tenants' lack of awareness: "People who rent a flat usually don't even know whether their landlord is subject to the non-profit law or not. Finding out and ultimately enforcing this is practically impossible," he said.
What should be done to protect tenants?
To better safeguard tenants, the AK proposed several clear measures on their website:
- Introducing a visible marker ("sticker") in the land register clearly identifying properties still subject to capped rents.
- Ending fixed-term rental contracts that allow landlords to pressure tenants into accepting inflated rents.
- Tougher penalties for landlords violating rent caps.
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What to do if you suspect your rent is illegally high
If you think your rent might be illegally high, the AK suggests you start by reviewing your rental contract and the property history - sometimes it's easy to find that your apartment was previously a Genossenschaft.
First, carefully review your rental contract and property history. Then, consult tenant protection organisations such as the AK, Mietervereinigung, or your local arbitration board (Schlichtungsstelle). If violations are confirmed, you should seek prompt legal advice to recover excess payments.
Many tenants supported by AK successfully recovered overpaid rents, they said. Rosifka believed companies continued overcharging simply because tenants rarely challenged them.
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