Client principle applies – brokerage costs fall: there will be relief for tenants

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In the future, tenants will only have to pay brokerage fees if they hire an estate agent themselves. An eternal topic in rental history is thus postponed.

It has been four years since the ÖVP made a remarkable political U-turn: in the 2019 National Council election campaign, the Turks gave up their rejection of the so-called brokerage fee ordering principle.

In other words: the broker’s commission – usually two gross monthly rents – should no longer be automatically passed on to the new tenant, but should be paid by the person who hires him, following the German model. Usually this is the landlord.

“Whoever orders, pays”
“We are clearing an injustice that has been going on for decades,” said Justice Minister Alma Zadic (Greens) on Thursday. “As everywhere, the same applies to renting from 1 July 2023: whoever orders pays”. Especially in times of enormous inflation, the current regulations are a huge financial burden for tenants.

Graphic: property and rental rates in Austria

“Significant economic losses”
The planned law continues to irritate the real estate industry. In the run-up to the committee, the Association of Property and Asset Managers of the Economic Chamber (WKÖ) warned ÖVP members in a letter “from significant economic losses up to and including a threat to the survival of brokers”.

It reads: “With the introduction of an ordering principle, estate agents can no longer meet their extensive information and clarification obligations towards prospective tenants. The potential tenant is therefore completely at the mercy of the market. This is not in the interests of consumer protection,” said Gerald Gollenz, president of the association.

Source: Krone

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