Given the sky-high rents, the tenants’ association is calling for a reform of operating costs. If the interest group has its way, matters such as insurance, property tax and management costs will no longer have to be borne by the tenants but by the landlords in the future. With a corresponding change, tenants of a 70 square meter apartment in the private sector could save more than 60 euros per month, the association calculated.
Elke Hanel-Torsch, chairman of the Vienna Tenants’ Association, described the operating costs at a press conference on Thursday as a “second rent”, which accounts for about a quarter of the total rental costs. In this respect, there is a lot of leverage to absorb the recent sharp increase in rental prices due to inflation and thus the additional burden on tenants.
“Costs are not caused by tenants”
One should start with points “not caused by the tenants” – that is, not the costs for waste or waste water, but rather the premiums for insurance such as fire insurance. The landlord’s property is protected.
“This is asset protection. The owner protects his property, but others have to pay for it. “That is anything but fair,” Hanel-Torsch said. For the same reason, the settlement of property tax as part of the operating costs invoice to tenants is also rejected. It is “a tax on land, which is a tax on real estate”.
Figures without participation
Thirdly, from the point of view of the tenants’ association, the fact that tenants have to pay the management fee, i.e. the costs of property management, is “absurd” and therefore in need of reform. “The tenants have no say at all in the appointment of property management, but they have to pay for it,” Hanel-Torsch complains. Moreover, the property manager is appointed to represent the interests of the landlords, and not those of the tenants. It is therefore not possible to demonstrate that tenants must bear the costs.
“Apartments must become affordable again”
Georg Niedermühlbichler, chairman of the Tenants Association, considers the current catalog of operating costs to be outdated. It comes from a time when rents were much cheaper than now and landlords could count on significantly lower incomes. “With this reform we want to help make housing affordable again,” he emphasized.
Niedermühlbichler also did not spare his criticism of the turquoise green government, which had failed to implement a ‘real’ reform with its rent ceiling. “Unfortunately, the federal government did not listen to our suggestions.” Such a reform remains a concern of the tenants’ association, which would like to see rent increases suspended until 2025 and then limited to two percent per year. The interest group also aims to standardize the Rent Act, which currently does not offer equal protection for all tenants.
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.
