“No longer feasible” – category rents will be increased by about 5.5% from July

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After AK, ÖGB and tenants’ association had recently warned against this scenario, the time has come: category rents will be increased again by about 5.5 percent from 1 July. The Ministry of Justice announced this on Tuesday. This is already the fourth adjustment in almost 15 months.

The category rents are automatically adjusted for inflation if inflation has reached the five percent threshold since the last increase. Similar large increases previously occurred in November 2022 and in June and April 2022.

With regard to the now announced increase, the Labor Chamber (AK), the Austrian Trade Union Federation (ÖGB) and the tenants’ association had already called for a rent brake in advance.

“Four increases in 15 months”
“Four increases in 15 months of a total of almost 24 percent – that is no longer feasible for many,” Walter Rosifka, housing law expert at the Chamber of Labor (AK) said in a broadcast last week.

The current increase affects all households living in buildings to which the Rent Act applies – for example in private old buildings built before 1945 – and for which the lease was concluded before 1 March 1994. There are approximately 135,000 of them.

Indirectly, however, the mechanism does not only affect category tenants, because an increase in category rents has consequences for the operating costs of almost all tenants. Because the administration costs, which are settled with the exploitation costs to the tenant, are capped at the amount in category A, according to the AK and the tenants’ association.

Source: Krone

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