A draft law amending the Bauordnung für Wien, the Wiener Kleingartengesetz (1996) and the Garagengesetze(2008) was recently published and put up for discussion. This draft law is called the “Building Code Amendment 2023” (Bauordnungsnovelle 2023). The amendments are expected to come into force in early 2024.
The amendments will affect several factors in the real estate sector, including:
- the establishment of a maximum term for short-term rent in Vienna;
- extension of the obligation to preserve buildings constructed before 1 January 1945;
- introduction of street tree protection;
- decarbonization and reconstruction of buildings;
- promoting greening of facades and roofs;
- expanding opportunities for bicycles and e-mobility;
- and other changes.
Katrin Gaal, Vice Mayor and Councillor of the Vienna City Council for Housing, Housing Development, Urban Renewal and Women’s Affairs, said: “With the draft law amending the Building Code, the City of Vienna is setting completely new standards for sustainable and affordable living in the future. This comprehensive amendment bears the political mark of responsibility towards future generations. Sustainable energy supply, depressurisation, mobility, as well as the protection of old buildings and short-term rentals are the main levers that guide us on Vienna’s path to becoming the best city to live in!”.
In this article, we would like to take a closer look at the amendments regarding the maximum rental period for property in Vienna.
Rental property in Vienna as of today
It is well known that short-term rental (usually to tourists) is more expensive and, accordingly, more profitable for homeowners who successfully rent apartments through Airbnb, Booking and other services. In this regard, it is not uncommon in Vienna for residents to find it difficult to rent an apartment for long-term lease, as owners prefer to work with tourists or do not always raise the monthly rent fairly.
That is why, since 2018 and as of now (until the new amendments are adopted in 2023), it has been prohibited to rent out apartments located in a residential area for short-term rent. According to §7a of the Bauordnung für Wien, residential zones must be clearly demarcated from other areas. In addition to the prohibition of commercial rental, certain types of development are also prohibited in residential zones. Such restrictions should allow locals not to compete with tourists for rented accommodation and to rent an apartment in Vienna faster, but according to general estimates, such a ban only partially solves the problem of housing shortage for Vienna residents.
So what’s going to change?
The new draft law of 2023 stipulates that short-term rental to tourists will in future be allowed for a maximum of 90 days per year, provided that the owner pays the local tourist tax and does not give up his or her primary residence in the respective dwelling. This provision is intended to allow short-term rental of one’s own home during holidays/business trips, but de facto prevent commercial, profit-oriented short-term rental. Experts note that this restriction will help to achieve a balance between tourist and residential property. According to these innovations, “residential” and “non-residential” zones will no longer directly affect the ability to rent out housing and renting out housing for more than 90 days will be considered a commercial activity.
Permit to rent out accommodation through Airbnb
Starting from 1 July 2024, property owners who wish to continue renting out their property to tourists through Airbnb and similar services will need to obtain a special permit to carry out such activities. Such a permit may be applied for if the residential building was built without a housing subsidy and is not located in a residential area. When applying for the permit, you will need to provide written consent of all co-owners of the building. It is worth noting that such a permit to rent out housing for more than 90 days will be granted for a maximum of half of the apartments in the building. The permit is valid for 5 years.
In summary, we would like to note that from now on, the rental of apartments to tourists will be subject to certain restrictions. Owners will have to obtain special permits for such activities, and this is likely to increase the cost of renting apartments in Vienna for tourists. On the other hand, locals, or those who want to live here permanently, will be able to find accommodation for their own use more quickly.
VigoImmobilien real estate agency will become the best friend for both property owners and property seekers. We will help you to understand all the innovations, assist you in obtaining all types of permits, and help you to rent a property in Vienna.
