The Austrian real estate rental market is very specific and unclear to many. Pricing is strictly regulated by current legislation, so not every property owner can determine the rental price at their own discretion.
This is explained by the fact that the cost of housing rent in Austria largely depends on whether the property falls under the full application of the Tenancy Law (Mietrechtsgesetz), partial application, or is not subject to it at all. These differences affect the methods of rent calculation and the level of tenant protection.
What does the Tenancy Law regulate?
The Tenancy Law (Mietrechtsgesetz, MRG) is an Austrian federal law enacted on November 12, 1981, that governs the rental of residential and commercial premises (in particular, warehouses, workshops, garden plots, parking spaces, etc.). MRG sets restrictions on the amount of rent, also provides protection from unjustified termination of the rental contract (Kündigungsschutzbestimmungen), and outlines the landlord’s obligations to maintain the property in proper condition.
What is the scope of the MRG?
1. Full application of the MRG.
If the property falls under the full application of the MRG, the rent is limited by statutory boundaries. The MRG is fully applied to determine the rent amount for apartments:
- in buildings with more than two apartments that were built before May 8, 1945 – the end of World War II in Austria (in this case, the standard rental rate is applied);
- in buildings built after World War II and until 1953 that have 2 or more apartments, as well as those built after 1953 with state subsidies (in this case, a reasonable rental rate is applied).
The main method of rent calculation is the use of the indicative rental rate (Richtwertmietzins). Each federal state of Austria has its own base indicative rental rate per square meter.
This rate is adjusted depending on various factors such as:
- Location: central location or good infrastructure can increase the rent.
- Condition of the building and apartment: new renovation or modernization increases the cost.
- Floor and presence of an elevator: higher floors without an elevator can reduce the rent.
In addition, the Tenancy Law defines four categories of housing:
- Category A. The apartment must be in livable condition and have an area of at least 30 m². It must include a living room, kitchen or kitchenette, hallway, toilet, and modern bathing facilities. A central or floor heating system is also required.
- Category B. The apartment must be in livable condition and must include a living room, kitchen or kitchenette, hallway, toilet, and modern bathing facilities.
- Category C. The apartment must be in livable condition and must have a water extraction point and a toilet inside the apartment.
- Category D. The apartment does not have a toilet or a water extraction point inside the apartment.
Therefore, in addition to the base rental rate, the value of a property that falls under the MRG is also affected by its condition, category, and a number of other important factors.
What are the base rental rates in different regions of Austria?
In Austria, base rental rates (Richtwertmietzins) are established separately for each federal state and are usually revised every two years. By the way, we already wrote in our previous article about how rental prices in Austria change.
The chart shows the dynamics of changes in base rental rates for 2023–2025 for each federal state from the cheapest (Burgenland) to the most expensive (Vorarlberg). As you can see, these rates remained unchanged for two years, and in 2025 they are expected to increase slightly.
Example of rent calculation for a property fully subject to the MRG:
- For example, if a 70 m² apartment is located in a multi-apartment building built in 1950 in Vienna (base rate in 2024 – €6.67/m²), then the base rent will be €467. A similar apartment in Styria will be rented for €644.7, where the base rate is €9.21.
- If the apartment is located in a similar Altbau building in a prestigious area and has modern renovation, surcharges of 20% may be added, increasing the rent to €561 in Vienna and €773.64 in Styria.
- If the apartment requires renovation or is in a less attractive area, although in the same year-built building, discounts may apply, for example, 10%, which will reduce the rent to €421 in Vienna and €580.23 in Styria.
2. Partial application of the MRG
Some properties fall under partial application of the MRG. In particular, this applies to:
- all condominiums built after World War II;
- premises in buildings built after June 30, 1953, without state support;
- premises created by adding to existing buildings after December 31, 2001 (attics);
- extensions after 2006.
For properties subject to partial MRG application, rent restrictions are less strict. In such cases, rent is often determined based on the “adequate rent” principle (angemessener Mietzins), based on market prices for similar properties in that area.
Example:
A 70 m² apartment in a building built after 1953 without state support may have rent set at market value, say, €9/m², which amounts to €630 per month.
3. Properties not subject to the MRG
If the property is not subject to the MRG, the rent is freely determined by agreement between the landlord and the tenant, without legal restrictions. This applies, for example, to single-family houses or apartments in buildings with no more than two separate residential units, vacation apartments, as well as new buildings constructed after 2006.
Example:
The rent for such a property may range from €12 to €20/m² for a 70 m² apartment, depending on the agreement between the parties and market conditions.
So, the factors that affect the application of the MRG are:
- Building construction date: buildings constructed before June 30, 1953, usually fall under the full application of the MRG.
- Use of state subsidies: buildings built with state support may be subject to different MRG provisions.
- Type of property: single-family houses and certain other types of premises may be excluded from the MRG.
Understanding these differences is important for both landlords and tenants, as they affect rent levels and the rights and obligations of the parties.
What does the full rental cost in Austria consist of?
In Austria, the rental cost consists of several main components:
- Base rent (Hauptmietzins): this is the basic amount paid by the tenant for using the apartment. As mentioned above, the amount depends on various factors, particularly whether the housing is subject to the Tenancy Law or not.
- Operating costs (Betriebskosten): these are additional costs that include payments for utilities such as garbage removal, water supply, and sewage.
- Special expenses (besondere Aufwendungen): these may be costs for maintaining shared facilities, such as an elevator or laundry.
- Furniture rental fee (Entgelt für mitvermietete Einrichtungsgegenstände): if the apartment is rented with furniture, an additional fee may be charged for its use.
- Value-added tax (Umsatzsteuer): usually 10% of the total rent amount, but may be 20% for certain services, such as furniture or garage rental.
Conclusion
Thus, the rental value of a property depends on many factors — from its size and condition to the year of construction of the building where the apartment is located. It is difficult for an ordinary person to understand these nuances, so Austria has a special category of lawyers and consultants who help owners correctly calculate the rent amount. As for tenants, there are lawyers who can check the correctness of the rent charged and, in case of bad faith on the part of the landlord, go to court demanding recalculation of the rent amount and recovery of unlawfully charged amounts.
