Rent increase- permissible?
Rent increase-permissible?
For many years now in Austria rents have been rising. It might be that your landlord recently raised your rent substantially again and you ask yourself if this is even allowed.
Not ever rent increase from your landlord is simply allowed. There are strict legal standards that regulate the raising of leases in Austria, which is why we want discuss the groundwork of permissible rent increase in the following article.
Basic requirements for rent increases
When prices rise, rents also go up. Generally every two years in April, lease agreements that are subject to the benchmark rent. This adjustment is reserved for when the cosumer price index rises by more than 5%.
Requirements:
-The lease agreement contains a guaranteed value agreement (lalso known in German as Indexklausel).
-Concerning old apparments if the lease agreement was signed after 28. February 1994, the apparment must be subject to the benchmark.
-Concerning old apparments if the lease agreement was signed before 01.03.1994, the apparment must be subject to the category benchmark (A, B, C, or D).
The benchmark does not illustrate the maximum permissible rent, but constitutes the basis of the calculation. In addition different charges/surtaxes, such as location surtaxes have to be included as well as utilites.
Important: If you paid too much rent in the past, according to tenancy law, rent increases cannot be demanded retrospectively.
Depending on the province, different benchmarks apply for the permissible rent per square meter
The current, since April 1, 2019 applicable guide values are listed below according to the province.
Burgenland 5,30 Euro/Square meter
Carinthia 6,80 Euro/Square meter
Lower Austria 5,96 Euro/Square meter
Upper Austria 6,29 Euro/Square meter
Salzburg 8,03 Euro/Square meter
Styria 8,02 Euro/Square meter
Tirol 7,09 Euro/Square meter
Vorarlberg 8,92 Euro/Square meter
Vienna 5,81 Euro/Square meter
In order to raise the rent the landlord has to send the tenant a rent increase notice 14 days before the rent is due. The tenant then has one month to appeal it.
Which deadlines exist concerning rent increases?
In order to raise the rent the landlord has to send the tenant a rent increase notice 14 days before the rent is due.
According to the Austrian rent control the tenant has one month consideration time upon receiving the notice.
If the rent amount, as measured by the base rent, is appropriate, he cannot appeal the notice. He can avail himself to special rights of cancellation according to Austrian tenancy law.
How are rent increases regulated in new appartments?
Rent and rent increases in new appartments and single family homes (for which tenancy law does not or only partially applies) are arranged between the landlord and tenant.
Rent increases are allowed when refurbishment measures have been carried out. Howerver the barriers are very high and the procedure complex.
The landlord put in new windows. Can he charge me for the work and raise my rent?
Rent increases are allowed when refurbishment measures have been carried out. That can include structural changes that can save energy, for example, exchanging windows or new heat insulation. Also measures that can raise the value of the apparment constitute a refurbishment, such as the landlord installing a new kitchen/bathroom. The same applies to improvements in the common living areas, i.e., the construction of an elevator/playground.
The barriers are very high and the procedure complex. The landlord can only raise the rent based on such maintenance and refurbishment jobs, after a rent raising proceeding at the Office of Mediation (MA50) or the court has been completed.
The proceeding reviews the necessity of the jobs, the calculation of the costs and if they cannot be covered by money from rent reserve or the rent earnings of the next 10 years. Only if that is the case can the landlord raise the rent after he carried out refurbishment measures. In the proceedings tenants have legal standing and have to been summoned to court hearings.
It is also permissible when the landlord and tenant settle outside the mediation proceedings. However the landlord is obligated to maintain certain parts of the appartment that is subject to the tenancy law, out of his own pocket.
Can the rent be raised after a change of proprietor?
Your house has a new proprietor who sends you an agreement with a rent increase.
Is that allowed? If I don't sign, can I lose my apartment?
In the event of a change of ownership, the rent increase is only permissible if the competent court agrees. Otherwise the rent increase is not permitted and you do not have to sign the agreement.
If the spouse or minor children take over the tenancy rights, the landlord is not allowed to increase the rent.
Can the rent be increased if a spouse or minor children take over the tenancy rights?
Tenancy law determines who, and under which circumstances, can enter into an existing lease agreement. If spouses or minor children take over the tenancy rights, the landlord is not allowed to raise the rent.
However there is a general exception: if up til now the rent was lower than the current category a rent- 3.60 Euro netto per square meeter-the landlord can raise the rent up the limit.
Important: Seek legal counsel before taking over an appartment.
After you have received a notice of rent increase, your next stop is the lawyer, who can review the notice along with your lease agreement.
I have received a notice of rent increase. What should I do now?
As you have a deadline of four weeks upon receiving the notice, you have ample time to seek legal counsel.
A lawyer can review your rent increase and lease agreement and give you the right advice for your next steps.
Contact
We will review your lease agreement free of charge and also examine if a rent increase is permissible": contact me under my WhatsAp number 06507283562
When contacting us via the form below, we ask you to send us your lease agreement.
Then we can help you quickly and efficiently.
If you have any questions concerning the termination of your lease agreement and if it was permissible, more Information here.
If you have any questions concerning your utilities bill and if it was too high, more information here.
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