Real estate investment has long been a notable aspect of Austria, a stable country that respects the rights of property owners and bona fide users. Income-generating buildings, known as Zinshauses or Zinshäuser, have traditionally been particularly popular among investors.
A Zinshaus is a multi-apartment building, typically owned by a single individual or legal entity, where the apartments are rented out to other people, and the owner generates income from rental payments.
Initially, this term referred to buildings constructed before 1945, in which the owners rented out apartments. These buildings were originally built by private wealthy owners with the purpose of investing in real estate and earning a profit.
Over time, however, the term has also come to refer to more modern buildings used for commercial rental purposes.
A Zinshaus is always a multi-apartment building owned by a single entity. This is the main difference between a Zinshaus and a regular multi-apartment building, where each apartment belongs to a separate owner.
A Zinshaus is considered commercial real estate rather than residential, in the sense that the primary purpose of owning such a building is not for living, but for renting out the apartments to others and generating a stable income.
Since a significant portion of Zinshauses was built before 1945, there are strict rules regarding the calculation of rental payments, as established by law. This must be taken into account when calculating the profitability of the business.
