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PROPERTY

Renting in Austria: How much can estate agents charge in commission?

The size of the estate agent's commission, called 'Provision', comes as a shock to a lot of foreign renters in Austria. There are legal limits on what they can charge, depending on the type of contract you have.

Couple and estate agent looking at an apartment
If your estate agent overcharges you for commission, you have a right to claim it back, so it's worth knowing your rights. Photo: Alena Darmel/Pexels

The majority of apartment rental contracts in Austria are managed by estate agents, which means that there is a commission to be paid. This is even the case if you found the apartment using an online service or through word of mouth, as long as an estate agent has been given the job of that apartment rental.

This commission is called Provision or Maklerprovision.

A standard amount is two months’ rent, plus an extra 20 percent in VAT.

For the purposes of the commission, the ‘rent’ means the net rent (Nettomiete) plus any service costs (Betriebskosten) that are included, but not the VAT that makes up part of your gross rent, and not extra costs you pay individually as the tenant, like electricity and gas in most cases. 

If your contract is limited to three years or less however, the maximum an estate agent is allowed to charge in commission is one months’ rent plus VAT. The same is generally true if the estate agent is also the property manager of the landlord; you should only be charged one months’ rent plus VAT (or half a months’ rent if it’s limited to less than three years).

These fees apply whether you’re renting an apartment or a house. If you are renting a single room as a lodger, you can only be charged one months’ rent plus VAT, regardless of the length of contract.

What’s more, if the estate agent owns the apartment and is representing themselves, they should not be charging any commission to the tenant. They’re obliged to disclose any economic or personal relationship between the agent and landlord.

If your contract is extended after you reach the end of the initial time period, whether it’s extended to another set term or changed to an unlimited contract, the estate agent can again take a commission, but this time the limit is half one month’s rent.

A few things to note about the Provision that may not be immediately obvious are that the amount must be listed in the apartment ad, and that this is not a refundable fee like the deposit (Kaution).

Check the Provision amount carefully; these are legal upper limits, so you can’t be charged extra — and if you are, you can claim the money back. Since they are upper limits and not fixed prices, it may even be possible to negotiate a lower fee, especially if it’s an apartment that hasn’t been easy to rent.

You should also make sure that VAT has only been counted once, so that the two months’ rent calculation wasn’t made on the basis of the gross rent.

Lastly and crucially, you should only need to pay the commission after the conclusion of a valid rental agreement, so be very wary of any agents that ask for fees upfront. 

Do you have questions about renting, or another aspect of life in Austria? Email our editorial team at [email protected] with your question and we will do our best to help you.

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VIENNA

How do I lower my rent if I pay too much in Vienna?

If you live in an older building, a so called "Altbau", the price per square meter is regulated. If you are paying too much rent, there are ways to lower it and claim your money back.

How do I lower my rent if I pay too much in Vienna?

Vienna is known for offering its residents affordable rents. However, if you live in one of the older apartments in Vienna (Altbau), you should know that there is a limit on how much rent can be charged per square meter.

Some landlords rent out their flats more expensively than they are actually allowed to. The City of Vienna’s rent calculator can help you determine if you are paying too much.

If you believe that your rent is too high, there are three different options on how to bring it down and also get the money back from the time when you paid too much.

Hire a company to take on your case

In Vienna, several companies, known as Prozessfinanzierer in German, will take on your case individually and try to reduce your rent. This could not only result in a lower rent for the future but also in you receiving a refund for the period you overpaid. It is even possible to pursue this after you leave your apartment. 

However, the City of Vienna has warned against using these services. If you are successful, the companies could claim a great portion of the refunded money, ranging from 30 percent to even half. MeinBezirk also reported occasions when employees of these companies have gone door to door, pretending to be city officials to secure contracts with excessively high commission payments.

Tenant protection organisations argue, as cited in Der Standard, that the companies may prioritise their profits over the best interests of tenants, negatively impacting tenant-landlord relationships.

However, these companies typically operate on a ‘no win-no fee’ basis, which means that you do not have to pay anything if the reduction attempt is unsuccessful. 

READ MORE: Gemeindebau: How do you qualify for a social housing flat in Vienna?

Get help from the Mietervereinigung

Another option is to get help from the Mietervereinigung. This is a tenants’ association that supports tenants’ rights and interests. A yearly membership costs around €69 in Vienna (it also operates in Austria’s other federal states).

Once you are a member, you can go to them for help. They will assist you with claiming back your rent if you have been overpaying, and can also help with rental problems such as mould, contracts, painting, disputes with landlords and housing standards. 

The association also offer education and information to help you understand your rights and responsibilities under landlord-tenant laws. This includes workshops and seminars about topics related to housing rights and regulations.

The association is also known for publishing guides, brochures, and online resources with practical tips for dealing with common rental issues.

The Mietervereinigung offers services and guidance for its members over the phone, online or through meetings in person. 

Altbau in Alsegrund, district 9 in Vienna. Photo by Melloo on Unsplash

Do it yourself

The third option you have as a tenant is to go to the arbitration board yourself.

The arbitration board is an independent entity established to help resolve conflicts between tenants and landlords outside of the court system. However, this can sometimes be complicated.

You often need certain legal expertise to be successful and the process can be complex and time consuming.

READ NEXT: How does urban gardening work in Vienna?

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