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How Salzburg plans to create more affordable housing

The government in Salzburg is discussing a new draft law that aims to ensure there is more affordable housing in the city.

Published: 1 August 2023 13:36 CEST
A street in central Salzburg.
A street in central Salzburg. City leaders are particularly concerned about the number of day trippers the city sees, prefering overnight guests. Photo: zhang xiaoyu on Unsplash

What’s the problem?

Salzburg, which lies on the border with Germany, has been experiencing a housing crisis, fuelled by property investors, not enough building space and increasingly tourism-focused infrastructure.

Rents in the city have been rising faster than anywhere else in Austria. 

“In the last five years, prices have risen enormously. Much more than income levels,” said Inge Strassl, project leader for housing research at the Salzburg Institute for Housing and Regional Planning (SIR) last September. 

Since 2005, Salzburg has topped the charts for rent costs compared to other Austrian states, according to recent reports. A typical rent in Salzburg has gone up from 6.50 euros per square meter up to 9.90 euros by 2020.

READ ALSO: Why is finding housing in Salzburg so difficult?

What are authorities doing?

The government is looking at addressing the issue, although many details remain unclear. 

The new coalition, made up of the liberal-conservative Austrian People’s Party (ÖVP) and the right-wing Freedom Party (FPÖ) has been discussing the draft of a new housing subsidy law, broadcaster ORF reported.

The law will create an “Alliance for Affordable Housing” for the population from 2025. This alliance would include the Chamber of Commerce and Labour, banks, municipalities, and property developers.

At the moment, Salzburg’s more affordable subsidised housing makes up around a quarter of the city’s housing stock.

A large aim of the new legislation will be to build more affordable homes. 

Land-Invest, a wholly-owned subsidiary of the province of Salzburg, is to be expanded and financially strengthened to secure affordable building land.

“Land-Invest should act as a land bank that purchases land for the state,” said Salzburg’s head of government Wilfried Haslauer (ÖVP).

EXPLAINED: Five common apartment scams in Austria

Martin Zauner (FPÖ), the regional councillor for housing, also emphasised that more available land to construct housing was needed. 

“We need land,” he said. “For this, we need the municipalities. We want to support them in developing and mobilising building land.”

Housing targets or financing models for subsiding housing were not presented after the meeting on Monday.

However, the coalition has set a deadline for the new law. They say it is due to come into force on January 1st, 2025.

What’s the reaction?

As we mentioned above, the high cost of housing in Salzburg has been a concern for politicians in the area for a long time.

Opposition parties welcomed the move to address the housing crisis – but urged for more details to be published. 

“It is good that the provincial government is now bringing advisors on board,” Gerald Forcher, of the Social Democrats in Salzburg, said in a statement.

“Above all, the Chamber of Labour has repeatedly demanded a housing offensive and supported us in our demand to build at least 1,000 rental flats per year.”

The Green party said: “How many affordable flats does the provincial government now want to implement? There are no answers to this question.”

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RENTING

‘Betriebskosten’: What are the extra costs renters must pay in Austria?

Renting an apartment in Austria means you’ll have to budget not only for the rent, but other somewhat hidden monthly costs and expenses.

Published: 30 April 2024 11:29 CEST
'Betriebskosten': What are the extra costs renters must pay in Austria?

Understanding operating costs or the specific expenses landlords or property agencies charge renters, is crucial for staying on top of your monthly payments when renting a place in Austria. These extra costs, known in German as Betriebskosten, are strictly regulated by Austria’s Tenancy Act. 

Here are the operating expensses that are chargeable to tenants, according to the MieterHilfe Public Association:

  • Water/wastewater and costs of leak testing, plus excess consumption due to burst pipes, but does not include disproportionate additional consumption for commercial operations;
  • Rubbish removal (and also clearing out floors and cellars);
  • Clearing out abandoned property;
  • Pest control, with costs such as extermination and periodic inspection or removal of pigeon droppings. Installation of pigeon screens is not included;
  • Sweeping fees (chimney sweep);
  • Electricity for lighting and communal facilities, such as the stairwell, but also replacement of light bulbs, fuses or switches;
  • Insurance premiums for fire, liability and water damage;
  • Insurance premiums for glass breakage and storm damage provided that more than half of the tenants have agreed to this being passed on;
  • Management fee (there is a set administration fee per square metre of usable space and building construction year)
  • House cleaning, including wages and social payments if there is a caretaker, plus materials; 
  • Public charges, unless there is a prohibition on passing them on – offsetting of property taxes is permitted;
  • Ongoing operating costs for communal facilities (lift, heating, playground, green areas, common rooms, etc.).

However, costs such as maintenance and repair work can never be charged under operating expenses.

The same goes for any ‘disproportionate additional costs or consumption due to commercial operations ‘, which refers to costs that are significantly higher than what would be considered normal for residential use or costs that are incurred due to the operation of a business within the rented property. 

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

Vienna’s association for tenants MieterHilfe has a calculator that uses average values to show whether the Betriebskosten you pay are comparatively low, medium or high. The association notes, however, that even low values could be considered unauthorised billing in some cases. In contrast, high values could be correct – the calculator only shows if you are paying too much compared to other properties in the city.

You can check the values HERE. You will need to know either the total usable area of the building or the usable area of the flat and the operating cost share—this information is usually shown in a payment statement you receive from property management. 

What if I believe I am being unfairly charged?

If you think you are paying too much, but the charges are legal – such as for water electricity etc, then you would need to raise this issue with property management. They could take measures to save on operating costs, such as replacing old light bulbs with more energy-efficient ones or setting lights to a timer instead of a traditional light switch, for example.

There are many possible reasons for high or low values, according to the City of Vienna. For example, you may pay comparatively low for water one year because of a small number of residents, while the following year, there are leaking sanitary facilities and a burst water pipe that raises costs.

Buildings with many communal areas and green spaces often tend to have higher operating costs, especially for water, electricity, and housekeeping. 

However, things are different if you think you are being unduly charged—that is, there are charges in the operating costs that do not belong there, such as unapproved construction repair.

READ ALSO: Renting in Austria – The key things foreign residents need to know

If you are unsure of the costs, there is a significant deviation from average prices for no particular reason, or you believe that you are being charged for something not legally admissible as an operating cost, you could have a free check carried out by MieterHilfe or a tenant protection organisation. 

If there is a suspicion of unauthorised billing that cannot be dispelled between tenants and the property management company, this will be clarified at the arbitration board. The arbitration board is an independent body that mediates disputes between tenants and landlords. It is a point of contact before the courts in case of difficulties or legal disputes, and its decision is legally binding.

Property management companies and landlords must settle the operating costs for the previous year by 30 June at the latest and disclose them to tenants. This deadline is set to ensure that tenants have sufficient time to review their cost statements and raise any concerns before the new rental year begins. All expenses must be itemised in the statement, providing transparency and allowing tenants to see exactly what they are being charged for.

They are obliged to provide tenants with a detailed summary of the statement and the invoice documents. If the operating costs per square metre exceed €2, a more detailed review is recommended, according to the City of Vienna.

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