As reported, the judgments of the Supreme Court in doubt the value protection for rental prices. However, these are without an alternative, said Wifo economist Michael Klien. Without securing value, nobody would rent indefinitely.
At the same time, landlords would open the inflation of the coming years to rent if there was no way to increase them during the rental period. Moreover, Klien also sees the protection of the tenants in the clause, so that the monthly amount does not increase more than general inflation.
The possibility of adjusting a contract to inflation is important for all contracts that have been concluded for a long or permanent way, the economist said. “It may seem like a success for the tenants, but the negative consequences in the long term are great.” The rental prices under the cost repair would damage the entire housing system. Social and residential policy may not be mixed. For people who cannot afford rent, instruments are required than rent legislation.
AK: Clauses are not automatically invalid
The Chamber of Labor (AK), which is currently leading different procedures to ineffective value security clauses, announced on Wednesday that the clauses were not automatically invalid. In any case, agreements that make the rent can be made in the first two months after the contract of the contract make the Consumer Protection Act possible.
The federal government has announced that it is on its way to a repair and the restriction periods for rent claims again.
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.
