Renting In Austria: A Guide To Finding Your Apartment

If you're looking to rent an apartment in Austria, you'll want to be prepared for a fast-moving housing market, especially in metropolitan areas like Vienna, Salzburg, and Linz. To navigate this competitive market, it's essential to have a clear idea of your must-haves and nice-to-haves. While Vienna is known for its affordable housing, the system is intricate, and you may benefit from seeking advice from housing advisory services or even hiring a lawyer. When renting in Austria, be prepared to pay a security deposit (Kaution), which covers potential rent arrears and damage to the apartment. Additionally, cooperative flats are a popular option due to their low rental costs, but they often come with longer waiting times and specific requirements.

How to Rent an Apartment in Austria

Know your rights: Austria has rent controls and tenant advisory services

Austria's tenancy law offers robust protection for tenants, outlining their rights and responsibilities during the rental period. As a tenant, you have rights to equal status in tenant selection, privacy of personal details, no fees for tenant assessment, and peaceful enjoyment of the property.

In Vienna, the housing system is complex, and the market moves extremely fast. However, it is one of the most affordable large cities in the world. The city has a comprehensive set of policies, including rent controls, landlord-tenant regulations, and rental subsidies, which contribute to its affordability.

Rent controls in Vienna apply to private housing built before 1945. All units in buildings constructed after this year are exempt from rent controls. Interestingly, units created after 1945 inside older buildings are also exempt. This has led to a situation where a single building can be subject to multiple different rent regulations.

There are various tenant advisory services in Austria that can provide assistance on issues related to renting apartments. The Austrian tenants and property owners association offers counselling to both tenants and flat owners, but membership is required for full access to their services. Non-members can pay a fee for a personal consultation. The Austrian tenants interest group is another independent, private tenants organisation that offers counselling and representation. The Tenants Assistance of the City of Vienna is the main advisory centre for Viennese citizens and offers free consultation on legal issues related to housing.

Security deposits: You'll pay a deposit, returned when you move out, minus any claims

When renting an apartment in Austria, you will typically be required to pay a security deposit, known as a 'Kaution'. This deposit is used as a reserve in case of non-payment of rent or damage to the property during your tenancy. The Kaution does not cover normal use, wear and tear, which is covered by your rental payments.

The amount of the Kaution is agreed between the landlord and tenant, and it is usually the equivalent of three to six months' gross rent, including service charges and VAT. However, in some cases, the deposit may be as low as half a month's rent or as high as two months' rent. It is important to note that the landlord has no statutory right to request a deposit, and the deposit should not exceed six months' rent unless the landlord can provide a valid reason.

The deposit should be paid on the handover date of the property, at the latest. It is common for the landlord to request the deposit at an earlier stage if there are significant construction costs involved. Once paid, the landlord must keep the deposit separate from their other assets, although they may keep deposits from different tenants in the same account, provided that the interest can be calculated separately. During your tenancy, the deposit must be placed in an interest-bearing savings account, with the interest accruing to the tenant.

At the end of your tenancy, the deposit will be refunded to you, minus any claims made by the landlord. These claims may include non-payment of rent or the cost of refurbishments if the property is not handed back in the same condition as when you moved in. If there is no claim made against the deposit, you are entitled to receive the full amount back. If you have any issues regarding the security deposit, you can contact the local arbitration body or a tenant advisory service for assistance.

Rental contracts: 3-year contracts are allowed, but indefinite contracts are the norm

When it comes to rental contracts in Austria, you may come across 3-year rental contracts, but it's important to note that indefinite contracts are more common. These indefinite leases can be passed down to children under the same lease terms, providing stability and a powerful tool against rent inflation. While 3-year contracts are permitted, they come with a caveat: the landlord must offer a 20% reduction in rent for this fixed-term option.

The housing market in Austria, particularly in metropolitan areas such as Vienna, is highly dynamic, and the rental landscape can be intricate. Vienna, for instance, boasts an affordable housing strategy that combines public housing, rent controls, landlord-tenant regulations, and rental subsidies. This complexity has led to the recommendation of hiring a lawyer before renting an apartment in the city.

In Austria, you will typically be required to pay a financing amount when you move into a rental property. This financing amount is reduced by one percent each year, and the remaining balance is refunded to you when you move out. Security deposits (Kaution) are also standard practice in Austria. This deposit is intended to cover any potential rent arrears or damage to the apartment upon moving out, excluding normal wear and tear. It is essential to place the security deposit in an interest-bearing savings account during your tenancy, and it will be refunded unless the landlord has valid claims.

Cooperative flats, or co-ops, are a popular alternative in Austria due to their relatively low rental costs. However, securing a co-op apartment can come with longer waiting times and specific eligibility requirements. When considering a rental property in Austria, it is beneficial to familiarise yourself with tenant advisory services (Mieterberatung). These services can provide valuable assistance and advice regarding tenancy agreements, landlord disputes, and real estate agent commissions, helping you navigate the intricacies of the Austrian rental market.

Vienna's complex: The housing system in Vienna is complicated, so consider hiring a lawyer

Vienna's housing system is notoriously complex, so it is recommended that prospective renters consider hiring a lawyer to help them navigate the process. The city boasts one of the most affordable large cities in the world, but the system is so complicated that only about 30-40 people are estimated to truly understand it.

The housing system relies on two very different forms of public housing, rent controls, landlord-tenant regulations, and rental subsidies. Rent control laws in Vienna date back to the Hapsburg Monarchy during World War I, and these, along with indefinite leases, are a powerful tool against rent inflation. Tenants can pass these indefinite leases on to their children under the same lease terms, although 3-year rental contracts are now allowed if the landlord offers a 20% rent reduction.

The affordability of Viennese public housing means that people rarely move, resulting in a wide mix of incomes. Rent is not based on income but on the apartment unit, including the number of rooms, square footage, and amenities. This means that it is impossible to generalize about what a typical family pays in rent.

The majority of housing stock in Vienna is subject to rent controls. By law, any private housing built before 1945 is subject to these controls. This is due to a program started in the 1980s to rehabilitate old private housing stock.

Rental costs: Cooperative flats are popular due to low costs, but expect longer waiting times

Cooperative flats, also known as co-operative or Genossenschaftswohnungen flats, are a popular choice for renters in Austria due to their relatively low rental costs. These flats are built with subsidies from the Federal Province of Vienna and are run by co-operative housing associations or Wohnbaugenossenschaft. They are not owned by the city or any private actors. The oldest remaining active housing cooperative in Austria was founded in 1895, and they have only grown in popularity since. Today, about a quarter of Vienna's housing stock is owned by non-profit cooperatives.

Cooperative flats are desirable because they offer affordable, high-standard homes. However, there are often longer waiting times for these apartments due to their popularity and limited availability. To live in a cooperative flat, you must meet certain requirements. For example, you must be an Austrian citizen, a citizen of another EU member state, a recognised refugee, or a third-country national with a valid residence permit. Additionally, your income must be below the income limit set by the Vienna Housing Promotion and Rehabilitation Act (Wiener Wohnbauförderungs- und Wohnhaussanierungsgesetz).

When moving into a cooperative flat, tenants are usually required to pay a financing amount (Finanzierungsbetrag) or financial contribution (Finanzierungsbeitrag), which is based on the age and location of the building and the size of the flat. This amount is reduced by one percent each year, and the remaining sum is paid back to the tenant when they move out. It's important to note that cooperative flats may have specific requirements and regulations that differ from other rental options, so be sure to familiarise yourself with those before making any decisions.

While cooperative flats offer a more affordable option, it's worth noting that the housing market in Austria, especially in metropolitan areas such as Vienna, Salzburg, and Linz, can be extremely fast-moving. It is not uncommon for an unbelievably large number of requests to be received in a very short time for a single rental listing. Therefore, it is essential to be prepared and set clear priorities for your must-have criteria in an apartment. Additionally, consider seeking assistance from housing advisory services, such as the Tenant Advisory Service (Mieterberatung), which can provide free help and advice on tenancy agreements and any issues relating to renting apartments in Austria.

Frequently asked questions