As reported, a price brake is in sight for rents. Time is of the essence as benchmark rents were set to increase by 8.6 percent in April. The Chamber of Labor (AK) therefore demands that the new law must be adopted in February. According to her, rents may only increase by a maximum of two percent once a year.
“If nothing happens, the reference rents will be increased again in April by 8.6 percent. This law should be passed in February so that it comes into effect in April,” said Thomas Ritt, head of the housing department at AK Vienna. The reference rents in old buildings were only increased by almost six percent last spring. This affects about 376,000 households, of which 273,000 are in Vienna. In concrete terms, this concerns leases in old buildings that were concluded after 1994. Other apartments (135,000) in Austria still fall under the rental category and are therefore old-build rent from before 1994.
Conversion to other heating systems as an argument
The owners often argue that they have to raise rents so high to pay for the forthcoming thermal renovation or conversion to other heating systems (away from gas). Ritt doesn’t accept that. “According to the Rental Act, the profit of the past ten years must be saved – that is a total of 5.5 billion euros. They can use it to refurbish 90 percent of the old building stock.” Federal law requires owners to set aside one dollar per square foot for apartment maintenance.
Other countries are doing it
A look abroad would show how we can act against sharply rising rental and energy costs. According to the tenants’ association, rents in Spain and Portugal may be increased by a maximum of two percent per year and in France by 3.5 percent. Denmark limits rent increases to two percent until 2024. The Netherlands would be guided by the average wage increase, Switzerland by inflation.
“There are role models, the government can learn something from them. The rent brake could be introduced,’ says chairman of the tenants’ association Elke Hanel-Torsch. You are currently noticing an increasing demand for advice. Even middle-income groups would already be reaching their breaking point. In addition to a rent ceiling of two percent, the Labor Chamber calls for the abolition of temporary rents and “an effective vacancy tax”.
Source: Krone
I am Ida Scott, a journalist and content author with a passion for uncovering the truth. I have been writing professionally for Today Times Live since 2020 and specialize in political news. My career began when I was just 17; I had already developed a knack for research and an eye for detail which made me stand out from my peers.
