Since inflation has not dropped noticeably in recent months, many tenants are threatened with the next price increase as early as July – when category rents are expected to rise by about 5.5 percent. It would be the fourth increase in 15 months and would affect about 135,000 households unless the government takes countermeasures. AK, ÖGB and tenants’ association are concerned, they are calling again for the introduction of a rent brake.
“Four increases in 15 months totaling almost 24 percent – that is no longer feasible for many,” Walter Rosifka, housing rights expert at the Chamber of Labor (AK) said Monday. “For an apartment of 70 square meters, this means an increase of a total of 790 euros per year within 15 months. That drives up prices for everyone,” agrees Helene Schuberth, chief economist at the Austrian trade union federation (ÖGB). Housing costs are now a “heavy financial burden” for every third tenant, while the real estate industry is making high profits.
About 135,000 people affected
All households living in buildings to which the Rent Act applies and for which the lease was concluded before 1 March 1994 will be affected by the imminent increase. That is about 135,000. Category rents are increased if inflation exceeds five percent. The index of March 2023 was decisive for the increase in July, when inflation was 9.2 percent, according to Statistics Austria.
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 management costs, which are charged to the tenant together with the operating costs, are capped at the amount in category A, according to the AK and the tenants’ association.
Rental brake requested for everyone
All three institutions agree that the government should put the brakes on this. Such a rent brake should apply to all rents linked to inflation – not just category rents. “Without political intervention, the rent spiral will continue to spin,” says Schuberth. “The government must act now or pave the way for a policy that takes tenant protection seriously,” said Elke Hanel-Torsch, president of the Vienna Tenants Association.
The ÖGB is also demanding an end to the deadlines, as contract extensions are usually accompanied by rent increases. In addition, the union wants more money for the construction of new apartments and vacancy compensation for private apartments that have been vacant for a long time.
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.
