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A new brokerage law has come into effect in Austria
PUBLISHED 04.07.2023
From the 1st of July, a new law has become effective in Austria, concerning the payment of brokerage fees, also called "Provision". Previously, tenants were responsible for paying for the agent's services, alongside a security deposit and the first month's rent. The Provision amounts to 2 months' rent, which tenants were required to pay even if they found the apartment online or the landlord had hired the broker.
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From now on, the responsibility of paying the brokerage fee is on the individual/entity who engaged the services. This move aims to create a fairer and more transparent environment for tenants, helping them to save money when they choose not to use the services of a real estate agent.
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Other relevant news is the 5.51% increase in category rents from the 1st of July, which will effect about 135,000 households across the country. According to the Rent Law Act, if inflation exceeds 5%, the Minister of Justice is obliged to declare an increase of rental payment amounts. This regulation applies to all lessees living in buildings governed by the Tenancy Act and to lease agreements initiated before the 1st of March 1994. The increase is therefore, mostly restricted to very old leases.
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