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RENTING

Reader question: Could Austria scrap the broker’s fee on apartment rentals?

Renting a home in Austria can be expensive, especially if you consider the number of fees a renter has to pay. The country is planning some changes, though.

Reader question: Could Austria scrap the broker's fee on apartment rentals?
Only residents of Austria can get mortgages. But with some exceptions, it's still possible for foreigners to buy. (Photo by Dimitry Anikin / Unsplash)

Austria is one of the best countries to live in, and its cities are among the ones with the highest standard of living constantly. But it is not a cheap place to live, especially concerning rent and property costs.

The average rental price in Vienna is much lower than in other capitals.

According to a European Union research, a 2-bedroom flat in Austria’s capital averages a monthly rate of € 1,250. In Berlin, the price is € 1,400, while in Bern, the average is € 1,550.

Average prices can be tricky, though, and prices in Austria, especially in Vienna, go down substantially when lower-cost subsidised homes, cooperative-based apartments and old rental contracts are taken into account.

READ ALSO: Reader question: How does Vienna’s rent control system work?

None of which are accessible to all residents of Austria, especially those who are just arriving or haven’t lived in the same city for a few years.

The brokerage fees

Besides having to pay high rents, several associated fees weigh on the pocket of renters. One of the most controversial ones is known as the Provision.

The provision is a fee paid to the broker (Makler) after a rental contract is signed. In Austria, this fee is paid by the person renting a property, not by the property owner, even if they were the ones hiring the service.

READ ALSO: Tenant or landlord: Who pays which costs in Austria?

Even if you find a property online, do your research alone, and have no say in who the broker is, you will probably still have to pay their fee. Unfortunately, the price is also quite high, at about two months’ rent.

Is Austria about to change that?

It’s very likely.

In March 2022, the federal government announced that it would scrap the broker fees favouring a “buyer’s principle”. Instead, the person who hires the broker pays the price.

READ ALSO: Renting: Austria to scrap brokerage fees from 2023

Austria wants the person who commissions the real estate broker to also pay the fee in the future. The government estimates that about €50 million a year, which tenants pay, will be at the landlord’s expense.

“It is a great injustice to pay for a service that you have not commissioned yourself’,” minister Zadic said at the announcement. She added that the cost represents a significant financial challenge, especially for low-income families and students.

When will the changes come?

After the changes were announced, a draft law went into the revision process, and it is still in Parliamentary procedures.

The government expects the new law to be valid by the end of 2022 or the beginning of 2023 – and there is a six-month transitional period is provided.

What are the chances of the draft regulation not passing?

Since the current coalition has a majority in parliament, and the draft regulation has not been opposed by any significant opposition party, the rules will likely be put in place by the timeline presented.

READ ALSO: Vienna vs Graz: Which city is better for foreign residents?

Still, the process could be delayed, and changes to the drafted text could make the amendment take longer to be signed into law. Renters waiting for the new rules to be adopted before finding a place to live in Austria will need to consider this before deciding to postpone their plans.

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POLITICS

EXPLAINED: Austria wants to define its fundamental culture but what is it?

Politicians from Austria's centre-right ÖVP are putting together a definition of Austria's 'guiding culture', known in German as 'Leitkultur'. What is that and why are they doing it?

EXPLAINED: Austria wants to define its fundamental culture but what is it?

When you think of Austria, your first thoughts might be of Alpine hills, Schnitzel and traditional folk music. 

Is this what politicians are referring to when they talk about Austrian ‘Leitkultur’ or ‘leading or guiding culture’? 

Many in Austria are considering this question because the coalition government is honing in on this concept. 

Austria’s Integration Minister Susanne Raab, of the centre-right Austrian People’s Party (ÖVP), has been tasked by chancellor Karl Nehammer (ÖVP) to develop a legal definition of ‘Austrian guiding culture’.

It’s part of the “Austria Plan” that Nehammer presented earlier this year when he called for a “guiding Austrian culture by 2030, which should also be reflected in law as a national cultural asset”.

READ ALSO: ‘Austria Plan’ – What are the chancellor’s new plans for the country?

Raab said it should ensure “that symbols and behaviours that contradict our fundamental values can be treated in a legally differentiated manner”.

However, this topic has been the subject of heated debate with critics accusing politicians of using it to alienate immigrants, particularly asylum seekers and refugees.There is a fear that the ‘Leitkultur’ concept goes against multiculturalism and calls on people to conform to one ‘guiding culture’ without an acceptance of other ways of life outside western culture. 

The concept is not just a talking point in Austria – it’s also been discussed heavily in neighbouring Germany for years, particularly by centre-right and far-right parties. 

How is Austria planning to define Leitkultur?

The Austrian government says it wants to define a concept of national cultural heritage in law over the next six years. 

As a first step, the Integration Minister has brought together a panel of experts who will meet on Thursday.

Under the banner “Austrian identity and guiding culture: values of coexistence”, the first meeting will be an introductory exchange, according to Raab’s office. The minister will outline her approach to the topic before the discussion, Austrian newspaper Der Standard reported.

The panel includes Katharina Pabel, a lawyer from Linz, Rainer Münz, who worked for Erste Bank and advised Jean-Claude Juncker as President of the EU Commission and Wolfgang Mazal, a professor at the Institute for Labour and Social Law at the University of Vienna.

What is Austrian ‘guiding culture’?

In an interview with Der Standard before the meeting, Mazal said the initial discussion “should serve to find a consensus in society about what is important to us and what form of coexistence we should cultivate”. He added that the ‘Leitkultur’ debate should be a “process of reflection”.

Mazal does not share the criticism of the term – in his view, it is not about placing one culture above others. Similar to the mission statement of a company, a “guiding culture” should define the “fundamental direction” of a society, he said. 

But the ÖVP’s communication has been more rigid. Secretary General Christian Stocker, for instance, recently explained in a Facebook video that Austrian identity is “what defines us”. This goes “from A to Z”, for example from brass band music to the Vienna Philharmonic Orchestra. “How we celebrate our festivals and holidays” is also part of our identity, he said. And “anyone who doesn’t want to accept all that is welcome to leave”, he made clear.

Overall, the People’s Party is focussing the debate very strongly on the topic of migration. Stocker says, for example, in the context of his comments on identity, that those “who have come to us” have done so voluntarily. “They have chosen this country and therefore they must also accept how we live in this country, what tradition and identity we have.”

In social media posts, Der Standard notes that the party states things like: “Anyone who believes that they should not shake a woman’s hand because she is ‘unclean’ must leave.” Or: “Anyone who rejects our way of life must leave!” 

Integration a key component 

Integration Minister Susanne Raab (ÖVP) told the Kronen Zeitung earlier this year that the concept was centred on integration. 

“Integration means learning the language, going to work and also accepting the values of our coexistence,” she said.

“And that is relevant because many people come to us who have been socialised completely differently. Where the culture is completely different, where women are worth less than men, where girls have no access to education and are forced into marriage or where the police are not your friend and helper, but highly corrupt. All of this is important to convey. And this is where immigrants also have to adapt.”

Raab added that it was possible for someone who did not adapt to face sanctions. 

“Yes, there will be measures that can be implemented in law, Raab told the newspaper, suggesting that could include cuts to social benefits, for example, or negative influences in the citizenship procedure or to asylum status.

The minister gave the example of when refugees come to Austria they have to take a German and values course as well as sign a declaration of integration otherwise there is a risk of having social benefits cut. The ÖVP is also currently considering further sanctions. 

Whatever the case, it is clear that the ÖVP is pushing for more integration measures in Austria, which is something they have been doing consistently. 

READ ALSO: Austrian minister wants foreigners to improve German levels to keep social benefits

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