As of July, realtors must be paid by those who hire them. As reported, so far only the tenants have to pay for the fees, which can amount to two gross monthly rents. The change drew criticism from the Austrian Chamber of Commerce (WKÖ) and representatives of the real estate industry. It doesn’t make living any cheaper, it was said.
The market is becoming “more confusing, supply is lower and housing is not cheaper for tenants because of the ordering principle,” Gerald Gollenz, president of the WKÖ Association of Real Estate and Asset Trustees, said in a broadcast. It is “not a nice Christmas present from the government parties.” Decisive and most important factors are current housing costs.
Industry: Not involved in consultation
Michael Pisecky, deputy president of the association, spoke of “unpleasant and unexpected changes”. In addition, criticism came from the Austrian Association of Property Management (ÖVI). The affected industry has not been involved in consultations at all for a year, ÖVI chairman Georg Flödl said in a broadcast. In addition, injustice as an argument is “more than astonishing”. The tenants will soon no longer have to pay for the services provided.
117,000 rental contracts per year
Justice Minister Alma Zadic (Greens) had previously spoken of clearing up “decades of injustice”. There are almost four million primary residences in Austria, of which about a fifth are rented privately. About half of these are rented out for a certain period of time. Approximately 82,000 temporary (an average of 4.5 years) and 35,000 permanent leases are concluded each year. Every third person will no longer receive an extension and will therefore have to look for a new place to live.
Brokers can ask for the highest possible commission for a fixed-term contract of more than three years. The new law takes effect on July 1, 2023.
Source: Krone

I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.